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PCA

Palace CapitalLSE:PCA Stock Report

Last Price

UK£2.53

Market Cap

UK£117.1m

7D

-2.7%

1Y

27.1%

Updated

19 Jan, 2022

Data

Company Financials +
PCA fundamental analysis
Snowflake Score
Valuation3/6
Future Growth1/6
Past Performance2/6
Financial Health4/6
Dividends4/6

PCA Stock Overview

Palace Capital plc is a real estate investment firm specializing in investment in entities operating in the property sector.

Palace Capital Competitors

Tritax Big Box REIT

LSE:BBOX

UK£4.5b

UK Commercial Property REIT

LSE:UKCM

UK£1.0b

BMO Commercial Property Trust

LSE:BCPT

UK£841.2m

Picton Property Income

LSE:PCTN

UK£562.5m

Price History & Performance

Summary of all time highs, changes and price drops for Palace Capital
Historical stock prices
Current Share PriceUK£2.53
52 Week HighUK£2.90
52 Week LowUK£1.89
Beta1.0
1 Month Change-1.17%
3 Month Change3.26%
1 Year Change27.14%
3 Year Change-17.32%
5 Year Change-28.73%
Change since IPO-89.67%

Recent News & Updates

Shareholder Returns

PCAGB Real EstateGB Market
7D-2.7%-0.9%-1.0%
1Y27.1%10.6%8.3%

Return vs Industry: PCA exceeded the UK Real Estate industry which returned 10.5% over the past year.

Return vs Market: PCA exceeded the UK Market which returned 8.3% over the past year.

Price Volatility

Is PCA's price volatile compared to industry and market?
PCA volatility
PCA Average Weekly Movement5.0%
Real Estate Industry Average Movement3.9%
Market Average Movement5.0%
10% most volatile stocks in GB Market10.7%
10% least volatile stocks in GB Market2.5%

Stable Share Price: PCA is not significantly more volatile than the rest of UK stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: PCA's weekly volatility (5%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
n/a16Ronald Sinclairhttps://www.palacecapitalplc.com

Palace Capital plc is a real estate investment firm specializing in investment in entities operating in the property sector. It seeks to invest in United Kingdom. Palace Capital plc is based in London, the United Kingdom.

Palace Capital Fundamentals Summary

How do Palace Capital's earnings and revenue compare to its market cap?
PCA fundamental statistics
Market CapUK£117.11m
Earnings (TTM)UK£9.66m
Revenue (TTM)UK£36.49m

12.1x

P/E Ratio

3.2x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
PCA income statement (TTM)
RevenueUK£36.49m
Cost of RevenueUK£17.66m
Gross ProfitUK£18.83m
ExpensesUK£9.17m
EarningsUK£9.66m

Last Reported Earnings

Sep 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)0.21
Gross Margin51.61%
Net Profit Margin26.48%
Debt/Equity Ratio65.4%

How did PCA perform over the long term?

See historical performance and comparison

Dividends

5.1%

Current Dividend Yield

56%

Payout Ratio

Valuation

Is Palace Capital undervalued compared to its fair value and its price relative to the market?

12.12x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: PCA (£2.53) is trading above our estimate of fair value (£1.95)

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


Price To Earnings Ratio

PE vs Industry: PCA is good value based on its PE Ratio (12.1x) compared to the UK Real Estate industry average (13.6x).

PE vs Market: PCA is good value based on its PE Ratio (12.1x) compared to the UK market (19.1x).


Price to Earnings Growth Ratio

PEG Ratio: PCA is poor value based on its PEG Ratio (1.5x)


Price to Book Ratio

PB vs Industry: PCA is good value based on its PB Ratio (0.7x) compared to the GB Real Estate industry average (0.9x).


Future Growth

How is Palace Capital forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

8.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: PCA's forecast earnings growth (8.2% per year) is above the savings rate (0.9%).

Earnings vs Market: PCA's earnings (8.2% per year) are forecast to grow slower than the UK market (12.1% per year).

High Growth Earnings: PCA's earnings are forecast to grow, but not significantly.

Revenue vs Market: PCA's revenue is expected to decline over the next 3 years (-11.8% per year).

High Growth Revenue: PCA's revenue is forecast to decline over the next 3 years (-11.8% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

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


Past Performance

How has Palace Capital performed over the past 5 years?

-43.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: PCA has high quality earnings.

Growing Profit Margin: PCA became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: PCA's earnings have declined by 43.6% per year over the past 5 years.

Accelerating Growth: PCA has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: PCA has become profitable in the last year, making it difficult to compare its past year earnings growth to the Real Estate industry (41.3%).


Return on Equity

High ROE: PCA's Return on Equity (5.9%) is considered low.


Financial Health

How is Palace Capital's financial position?


Financial Position Analysis

Short Term Liabilities: PCA's short term assets (£52.0M) exceed its short term liabilities (£40.0M).

Long Term Liabilities: PCA's short term assets (£52.0M) do not cover its long term liabilities (£78.1M).


Debt to Equity History and Analysis

Debt Level: PCA's net debt to equity ratio (57%) is considered high.

Reducing Debt: PCA's debt to equity ratio has reduced from 75.1% to 65.4% over the past 5 years.

Debt Coverage: PCA's debt is well covered by operating cash flow (31%).

Interest Coverage: PCA's interest payments on its debt are well covered by EBIT (4.9x coverage).


Balance Sheet


Dividend

What is Palace Capital current dividend yield, its reliability and sustainability?

5.14%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: PCA's dividend (5.14%) is higher than the bottom 25% of dividend payers in the UK market (1.41%).

High Dividend: PCA's dividend (5.14%) is in the top 25% of dividend payers in the UK market (4.06%)


Stability and Growth of Payments

Stable Dividend: PCA has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: PCA's dividend payments have increased, but the company has only paid a dividend for 8 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (56.1%), PCA's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: PCA's dividends in 3 years are forecast to be covered by earnings (85.6% payout ratio).


Next Steps

Management

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

0.6yrs

Average management tenure


CEO

Ronald Sinclair (78 yo)

11.5yrs

Tenure

UK£424,996

Compensation

Mr. Ronald Neil Sinclair, FRICS serves as a Managing Director of Palace Capital Plc and has been its Chief Executive Officer since July 2010. Mr. Sinclair serves as a Managing Director of Peregrine Corpora...


CEO Compensation Analysis

Compensation vs Market: Ronald's total compensation ($USD579.26K) is about average for companies of similar size in the UK market ($USD570.90K).

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


Leadership Team

Experienced Management: PCA's management team is not considered experienced ( 0.6 years average tenure), which suggests a new team.


Board Members

Experienced Board: PCA's board of directors are considered experienced (5.1 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: Insufficient data to determine if 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

Palace Capital Plc's employee growth, exchange listings and data sources


Key Information

  • Name: Palace Capital Plc
  • Ticker: PCA
  • Exchange: LSE
  • Founded: NaN
  • Industry: Real Estate Operating Companies
  • Sector: Real Estate
  • Implied Market Cap: UK£117.110m
  • Shares outstanding: 46.29m
  • Website: https://www.palacecapitalplc.com

Number of Employees


Location

  • Palace Capital Plc
  • 25 Bury Street
  • 4th Floor
  • London
  • Greater London
  • SW1Y 6AL
  • United Kingdom

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/01/19 21:17
End of Day Share Price2022/01/19 00:00
Earnings2021/09/30
Annual Earnings2021/03/31


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.