LSE:PCA

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

Executive Summary

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


Snowflake Analysis

Moderate growth potential second-rate dividend payer.


Similar Companies

Share Price & News

How has Palace Capital's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: PCA is not significantly more volatile than the rest of UK stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: PCA's weekly volatility (4%) has been stable over the past year.


Market Performance


7 Day Return

6.3%

PCA

1.6%

GB Real Estate

-2.3%

GB Market


1 Year Return

-31.9%

PCA

-5.5%

GB Real Estate

1.1%

GB Market

Return vs Industry: PCA underperformed the UK Real Estate industry which returned -8.5% over the past year.

Return vs Market: PCA underperformed the UK Market which returned -0.2% over the past year.


Shareholder returns

PCAIndustryMarket
7 Day6.3%1.6%-2.3%
30 Day5.5%4.0%-0.1%
90 Day-10.4%7.9%4.2%
1 Year-29.2%-31.9%-3.9%-5.5%7.1%1.1%
3 Year-26.2%-37.5%0.6%-7.4%9.7%-3.4%
5 Year-19.6%-38.8%-20.2%-28.5%36.9%10.5%

Long-Term Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

0.59x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: PCA (£2.02) is trading above our estimate of fair value (£1.3)

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


Price To Earnings Ratio

PE vs Industry: PCA is unprofitable, so we can't compare its PE Ratio to the GB Real Estate industry average.

PE vs Market: PCA is unprofitable, so we can't compare its PE Ratio to the UK market.


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: PCA is good value based on its PB Ratio (0.6x) compared to the GB Real Estate industry average (0.9x).


Next Steps

Future Growth

How is Palace Capital forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

88.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: PCA is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (1%).

Earnings vs Market: PCA is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: PCA's is expected to become profitable in the next 3 years.

Revenue vs Market: PCA's revenue (1.1% per year) is forecast to grow slower than the UK market (7.3% per year).

High Growth Revenue: PCA's revenue (1.1% per year) is forecast to grow slower than 20% 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


Next Steps

Past Performance

How has Palace Capital performed over the past 5 years?

-42.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: PCA is currently unprofitable.

Growing Profit Margin: PCA is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: PCA is unprofitable, and losses have increased over the past 5 years at a rate of 42.5% per year.

Accelerating Growth: Unable to compare PCA's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: PCA is unprofitable, making it difficult to compare its past year earnings growth to the Real Estate industry (-34.1%).


Return on Equity

High ROE: PCA has a negative Return on Equity (-9.56%), as it is currently unprofitable.


Next Steps

Financial Health

How is Palace Capital's financial position?


Financial Position Analysis

Short Term Liabilities: PCA's short term assets (£62.7M) exceed its short term liabilities (£15.2M).

Long Term Liabilities: PCA's short term assets (£62.7M) do not cover its long term liabilities (£133.2M).


Debt to Equity History and Analysis

Debt Level: PCA's debt to equity ratio (84%) is considered high.

Reducing Debt: PCA's debt to equity ratio has increased from 48.6% to 84% over the past 5 years.

Debt Coverage: PCA's debt is not well covered by operating cash flow (5.5%).

Interest Coverage: PCA is unprofitable, therefore interest payments are not well covered by earnings.


Balance Sheet


Next Steps

Dividend

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

4.95%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: PCA's dividend (4.95%) is higher than the bottom 25% of dividend payers in the UK market (1.48%).

High Dividend: PCA's dividend (4.95%) is in the top 25% of dividend payers in the UK market (4.52%)


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 7 years.


Current Payout to Shareholders

Dividend Coverage: PCA is paying a dividend but the company is unprofitable.


Future Payout to Shareholders

Future Dividend Coverage: PCA's dividends in 3 years are forecast to be covered by earnings (79.1% payout ratio).


Next Steps

Management

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

5.6yrs

Average management tenure


CEO

Ronald Sinclair (77 yo)

10.58yrs

Tenure

UK£598,406

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 ($USD833.32K) is above average for companies of similar size in the UK market ($USD339.59K).

Compensation vs Earnings: Ronald's compensation has increased whilst the company is unprofitable.


Leadership Team

NamePositionTenureCompensationOwnership
Ronald Sinclair
CEO, MD & Executive Director10.58yrsUK£598.41k0.57%
£ 526.6k
Stephen Silvester
Group Finance Director & Executive Director5.58yrsUK£402.18k0.075%
£ 69.8k
Richard Starr
Executive Director7.33yrsUK£441.37k0.43%
£ 403.1k
Matthew Simpson
Head of Finance & Operationsno datano data0.0069%
£ 6.4k
Andrew Wolfe
Financial Controllerno datano datano data
Nicola Grinham
Company Secretary2.08yrsno datano data
Daniel Davies
Senior Asset Managerno datano datano data
Tom Parsonage
Senior Asset Managerno datano datano data

5.6yrs

Average Tenure

46yo

Average Age

Experienced Management: PCA's management team is seasoned and experienced (5.6 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Ronald Sinclair
CEO, MD & Executive Director10.58yrsUK£598.41k0.57%
£ 526.6k
Stephen Silvester
Group Finance Director & Executive Director5.58yrsUK£402.18k0.075%
£ 69.8k
Richard Starr
Executive Director7.33yrsUK£441.37k0.43%
£ 403.1k
Mickola Wilson
Senior Independent Director0.83yrUK£45.00k0.022%
£ 20.4k
Kim D. Taylor-Smith
Independent Non-Executive Director6.33yrsUK£45.00k0.022%
£ 20.2k
Stanley Davis
Non-Executive Chairman11.08yrsUK£50.00k3.61%
£ 3.4m
Paula Dillon
Independent Non-Executive Director0.92yrUK£3.33kno data

6.3yrs

Average Tenure

64yo

Average Age

Experienced Board: PCA's board of directors are considered experienced (6.3 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 company bio, 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
  • Market Cap: UK£93.061m
  • Shares outstanding: 46.07m
  • 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

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
PCALSE (London Stock Exchange)YesOrdinary SharesGBGBPFeb 2007

Biography

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...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/02/27 20:01
End of Day Share Price2021/02/26 00:00
Earnings2020/09/30
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.