LSE:MCKS

Stock Analysis Report

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Executive Summary

McKay Securities Plc is a commercial property investment company with Real Estate Investment Trust (REIT) status, listed on the main market of the London Stock Exchange. More Details


Snowflake Analysis

Unattractive dividend payer with poor track record.


Similar Companies

Share Price & News

How has McKay Securities's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: MCKS has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-4.3%

MCKS

2.0%

GB REITs

0.4%

GB Market


1 Year Return

-16.2%

MCKS

-14.1%

GB REITs

-13.8%

GB Market

Return vs Industry: MCKS underperformed the UK REITs industry which returned -14.4% over the past year.

Return vs Market: MCKS underperformed the UK Market which returned -13.2% over the past year.


Shareholder returns

MCKSIndustryMarket
7 Day-4.3%2.0%0.4%
30 Day4.4%-0.1%-0.3%
90 Day-3.5%-3.2%-1.7%
1 Year-13.4%-16.2%-11.7%-14.1%-10.4%-13.8%
3 Year2.0%-8.9%2.9%-8.7%-4.3%-15.8%
5 Year-8.8%-24.8%0.9%-16.8%22.8%-4.6%

Price Volatility Vs. Market

How volatile is McKay Securities's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is McKay Securities undervalued compared to its fair value and its price relative to the market?

22.23x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: MCKS (£1.91) is trading above our estimate of fair value (£1.84)

Significantly Below Fair Value: MCKS is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: MCKS is poor value based on its PE Ratio (22.2x) compared to the GB REITs industry average (17.2x).

PE vs Market: MCKS is poor value based on its PE Ratio (22.2x) compared to the UK market (17.3x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate MCKS's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: MCKS's PB Ratio (0.6x) is in line with the GB REITs industry average.


Next Steps

Future Growth

How is McKay Securities forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

-8.1%

Forecasted annual revenue growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: Insufficient data to determine if MCKS's forecast earnings growth is above the savings rate (1.2%).

Earnings vs Market: Insufficient data to determine if MCKS's earnings are forecast to grow faster than the UK market

High Growth Earnings: Insufficient data to determine if earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: MCKS's revenue is expected to decline over the next 3 years (-8.1% per year).

High Growth Revenue: MCKS's revenue is forecast to decline over the next 3 years (-8.1% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if MCKS's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has McKay Securities performed over the past 5 years?

-21.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: MCKS has high quality earnings.

Growing Profit Margin: MCKS's current net profit margins (27.6%) are lower than last year (52%).


Past Earnings Growth Analysis

Earnings Trend: MCKS's earnings have declined by 21.2% per year over the past 5 years.

Accelerating Growth: MCKS's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: MCKS had negative earnings growth (-38.6%) over the past year, making it difficult to compare to the REITs industry average (-26.9%).


Return on Equity

High ROE: MCKS's Return on Equity (2.6%) is considered low.


Next Steps

Financial Health

How is McKay Securities's financial position?


Financial Position Analysis

Short Term Liabilities: MCKS's short term assets (£88.5M) exceed its short term liabilities (£14.1M).

Long Term Liabilities: MCKS's short term assets (£88.5M) do not cover its long term liabilities (£196.7M).


Debt to Equity History and Analysis

Debt Level: MCKS's debt to equity ratio (61.6%) is considered high.

Reducing Debt: MCKS's debt to equity ratio has increased from 60.2% to 61.6% over the past 5 years.

Debt Coverage: MCKS's debt is not well covered by operating cash flow (3.6%).

Interest Coverage: MCKS's interest payments on its debt are not well covered by EBIT (2.6x coverage).


Balance Sheet


Next Steps

Dividend

What is McKay Securities's current dividend yield, its reliability and sustainability?

3.77%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: MCKS's dividend (3.77%) is higher than the bottom 25% of dividend payers in the UK market (1.86%).

High Dividend: MCKS's dividend (3.77%) is low compared to the top 25% of dividend payers in the UK market (5.16%).


Stability and Growth of Payments

Stable Dividend: MCKS's dividend payments have been volatile in the past 10 years.

Growing Dividend: MCKS's dividend payments have fallen over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (141.1%), MCKS's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: MCKS's dividends in 3 years are forecast to be covered by earnings (95.1% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

8.0yrs

Average management tenure


CEO

Simon Perkins (55 yo)

17.67yrs

Tenure

UK£891,000

Compensation

Mr. Simon C. Perkins, BSc (Hons), M.R.I.C.S., has been the Chief Executive Officer and Managing Director of McKay Securities PLC since January 2003 and its Executive Director since April 2001. Mr. Perkins ...


CEO Compensation Analysis

Compensation vs Market: Simon's total compensation ($USD1.15M) is above average for companies of similar size in the UK market ($USD687.45K).

Compensation vs Earnings: Simon's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Simon Perkins
CEO & Executive Director17.67yrsUK£891.00k0.37%
£ 664.1k
Giles Salmon
CFO & Executive Director9.08yrsUK£594.00k0.18%
£ 319.6k
Tom Elliott
Property Director3.42yrsUK£507.00k0.041%
£ 74.6k
Stuart Key
Asset Manager8yrsno datano data
Lynda Perry
Head of Occupier Services3.75yrsno datano data
Andrew Jones
Head of Projects1.67yrsno datano data
Joanne McKeown
Company Secretary10.83yrsno datano data
Richard Morgan
Asset Managerno datano datano data

8.0yrs

Average Tenure

54yo

Average Age

Experienced Management: MCKS's management team is seasoned and experienced (8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Simon Perkins
CEO & Executive Director17.67yrsUK£891.00k0.37%
£ 664.1k
Giles Salmon
CFO & Executive Director9.08yrsUK£594.00k0.18%
£ 319.6k
Tom Elliott
Property Director3.42yrsUK£507.00k0.041%
£ 74.6k
Richard Grainger
Independent Non-Executive Chairman of the Board4.17yrsUK£90.00k0.061%
£ 110.1k
Nick Shepherd
Employee Representative Non-Executive Director5.67yrsUK£46.00k0.025%
£ 44.5k
Jonathan Austen
Senior Independent Non-Executive Director3yrsUK£46.00k0.027%
£ 48.4k
Jeremy Bates
Independent Non-Executive Director3.67yrsUK£41.00kno data

4.2yrs

Average Tenure

55yo

Average Age

Experienced Board: MCKS's board of directors are considered experienced (4.2 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: MCKS insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

McKay Securities Plc's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: McKay Securities Plc
  • Ticker: MCKS
  • Exchange: LSE
  • Founded: 1946
  • Industry: Office REITs
  • Sector: Real Estate
  • Market Cap: UK£180.188m
  • Shares outstanding: 94.34m
  • Website: https://www.mckaysecurities.plc.uk

Number of Employees


Location

  • McKay Securities Plc
  • 20 Greyfriars Road
  • Reading
  • East Lothian
  • RG1 1NL
  • United Kingdom

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
MCKSLSE (London Stock Exchange)YesOrdinary SharesGBGBPJan 1992
M8KDB (Deutsche Boerse AG)YesOrdinary SharesDEEURJan 1992
MCKSlBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBGBPJan 1992
MCKA.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJan 1992

Biography

McKay Securities Plc is a commercial property investment company with Real Estate Investment Trust (REIT) status, listed on the main market of the London Stock Exchange. It specialises in the development a ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/09/19 02:34
End of Day Share Price2020/09/18 00:00
Earnings2020/03/31
Annual Earnings2020/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.