LSE:PCTN

Stock Analysis Report

Executive Summary

Picton is a property investment company established in 2005.

Snowflake

Fundamentals

Adequate balance sheet average dividend payer.

Risks

  • Picton Property Income is covered by less than 3 analysts.

Similar Companies

Share Price & News

How has Picton Property Income's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

-4.6%

LSE:PCTN

-0.8%

GB REITs

-1.7%

GB Market


1 Year Return

-6.1%

LSE:PCTN

-10.9%

GB REITs

-5.7%

GB Market

PCTN outperformed the REITs industry which returned -10.9% over the past year.

PCTN matched the United Kingdom of Great Britain and Northern Ireland Market (-5.7%) over the past year.


Share holder returns

PCTNIndustryMarket
7 Day-4.6%-0.8%-1.7%
30 Day-9.0%-6.0%-4.8%
90 Day-12.4%-7.4%-2.7%
1 Year-2.3%-6.1%-7.0%-10.9%-1.3%-5.7%
3 Year44.7%28.1%5.7%-9.0%17.8%4.0%
5 Year69.6%36.8%18.9%-4.2%26.9%0.2%

Price Volatility Vs. Market

How volatile is Picton Property Income's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Picton Property Income undervalued based on future cash flows and its price relative to the stock market?

3%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Picton Property Income's share price is below the future cash flow value, but not at a moderate discount (< 20%).

Picton Property Income's share price is below the future cash flow value, but not at a substantial discount (< 40%).


Price Based on Earnings

Picton Property Income is overvalued based on earnings compared to the GB REITs industry average.

Picton Property Income is good value based on earnings compared to the United Kingdom of Great Britain and Northern Ireland market.


Price Based on Expected Growth

Picton Property Income is poor value based on expected growth next year.


Price Based on Value of Assets

Picton Property Income is overvalued based on assets compared to the GB REITs industry average.


Next Steps

Future Growth

How is Picton Property Income expected to perform in the next 1 to 3 years based on estimates from 2 analysts?

5.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Picton Property Income's revenue is expected to decrease over the next 1-3 years, this is not considered high growth.

Picton Property Income's earnings are expected to grow by 5.4% yearly, however this is not considered high growth (20% yearly).

Picton Property Income's revenues are expected to decrease over the next 1-3 years, this is below the United Kingdom of Great Britain and Northern Ireland market average.

Picton Property Income's earnings growth is positive but not above the United Kingdom of Great Britain and Northern Ireland market average.

Picton Property Income's earnings growth is expected to exceed the low risk savings rate of 1.2%.


Earnings per Share Growth Estimates


Future Return on Equity

Unable to establish if Picton Property Income will efficiently use shareholders’ funds in the future without estimates of Return on Equity.


Next Steps

Past Performance

How has Picton Property Income performed over the past 5 years?

-4.1%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Picton Property Income's year on year earnings growth rate was negative over the past 5 years and the most recent earnings are below average.

Picton Property Income's 1-year earnings growth is negative, it can't be compared to the 5-year average.

Picton Property Income's 1-year earnings growth is negative, it can't be compared to the GB REITs industry average.


Return on Equity

Picton Property Income has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Picton Property Income used its assets less efficiently than the GB REITs industry average last year based on Return on Assets.


Return on Capital Employed

Picton Property Income's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Picton Property Income's financial position?


Financial Position Analysis

Picton Property Income is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Picton Property Income's long term commitments exceed its cash and other short term assets.


Debt to Equity History and Analysis

Picton Property Income's level of debt (38.4%) compared to net worth is satisfactory (less than 40%).

The level of debt compared to net worth has been reduced over the past 5 years (109% vs 38.4% today).

Debt is not well covered by operating cash flow (13.2%, less than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 3.6x coverage).


Balance Sheet

High level of physical assets or inventory.

Debt is not covered by short term assets, assets are 0.2x debt.


Next Steps

Dividend

What is Picton Property Income's current dividend yield, its reliability and sustainability?

4.16%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Picton Property Income's pays a higher dividend yield than the bottom 25% of dividend payers in United Kingdom of Great Britain and Northern Ireland (2.08%).

Picton Property Income's dividend is below the markets top 25% of dividend payers in United Kingdom of Great Britain and Northern Ireland (5.77%).

Dividends per share have been stable in the past 10 years.

Dividends per share have fallen over the past 10 years.


Current Payout to Shareholders

Dividends paid are covered by earnings (1.3x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be covered by earnings (1.2x coverage).


Next Steps

Management

What is the CEO of Picton Property Income's salary, the management and board of directors tenure and is there insider trading?

4.6yrs

Average management tenure


CEO

Michael Morris (46yo)

0.0yrs

Tenure

UK£851,000

Compensation

Mr. Michael Morris serves as CEO & Executive Director at Picton Property Income Ltd. since October 1, 2018. Mr. Morris serves as the Chief Executive of Picton Capital Limited. Mr. Morris served as Investme ...


CEO Compensation Analysis

Michael's remuneration is about average for companies of similar size in United Kingdom of Great Britain and Northern Ireland.

Michael's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Management Age and Tenure

4.6yrs

Average Tenure

44.5yo

Average Age

The tenure for the Picton Property Income management team is about average.


Board Age and Tenure

2.3yrs

Average Tenure

62yo

Average Age

The average tenure for the Picton Property Income board of directors is less than 3 years, this suggests a new board.


Insider Trading

No 3 month open market individual insider trading information.


Ownership Breakdown


Management Team

  • Sheryl Bates

    Marketing & Communications Manager of Picton Capital Limited

    • Tenure: 2.2yrs
  • Andrew Dewhirst (59yo)

    Finance Director & Executive Director

    • Tenure: 0.8yrs
    • Compensation: UK£350.00k
  • Jay Cable (41yo)

    Head of Asset Management & Director

    • Tenure: 0.0yrs
  • James Forman

    Financial Controller

    • Tenure: 0.0yrs
  • Michael Morris (46yo)

    CEO & Executive Director

    • Tenure: 0.0yrs
    • Compensation: UK£851.00k
  • Fraser D'Arcy (43yo)

    Investment Director

    • Tenure: 6.6yrs
  • James Verstringhe

    IR Professioanl-Tavistock Communications

    • Tenure: 0.0yrs
  • Melissa Ricardo

    Team Secretary

    • Tenure: 2.6yrs

Board Members

  • Roger St John Lewis (71yo)

    Non Executive Director

    • Tenure: 9.4yrs
    • Compensation: UK£45.00k
  • Maria Bentley

    Independent Non Executive Director

    • Tenure: 0.8yrs
    • Compensation: UK£23.00k
  • Nick Thompson (70yo)

    Chairman of the Board

    • Tenure: 14.6yrs
    • Compensation: UK£98.00k
  • Mark Batten (62yo)

    Senior Independent Director

    • Tenure: 0.4yrs
    • Compensation: UK£46.00k
  • Andrew Dewhirst (59yo)

    Finance Director & Executive Director

    • Tenure: 0.8yrs
    • Compensation: UK£350.00k
  • Michael Morris (46yo)

    CEO & Executive Director

    • Tenure: 0.0yrs
    • Compensation: UK£851.00k

Company Information

Picton Property Income Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Picton Property Income Limited
  • Ticker: PCTN
  • Exchange: LSE
  • Founded: 2005
  • Industry: Diversified REITs
  • Sector: Real Estate
  • Market Cap: UK£466.999m
  • Shares outstanding: 546.20m
  • Website: https://www.picton.co.uk

Number of Employees


Location

  • Picton Property Income Limited
  • Trafalgar Court
  • Les Banques
  • Saint Peter Port
  • GY1 3QL
  • Guernsey

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
PCTNLSE (London Stock Exchange)YesOrdinary SharesGBGBPOct 2005
PCTNLBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBGBPOct 2005

Biography

Picton is a property investment company established in 2005. It owns and actively manages a £685 million diversified UK commercial property portfolio, invested across 49 assets and with around 350 occupier ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/08/18 20:54
End of Day Share Price2019/08/16 00:00
Earnings2019/03/31
Annual Earnings2019/03/31


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.