LSE:PCTN

Stock Analysis Report

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Executive Summary

Picton, established in 2005, is a UK REIT.


Snowflake Analysis

Undervalued with adequate balance sheet.


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

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


Market Performance


7 Day Return

-4.6%

PCTN

1.2%

GB REITs

2.7%

GB Market


1 Year Return

-27.6%

PCTN

-7.9%

GB REITs

-12.4%

GB Market

Return vs Industry: PCTN underperformed the UK REITs industry which returned -7.9% over the past year.

Return vs Market: PCTN underperformed the UK Market which returned -12.4% over the past year.


Shareholder returns

PCTNIndustryMarket
7 Day-4.6%1.2%2.7%
30 Day-4.8%3.9%0.9%
90 Day0.5%5.3%4.1%
1 Year-24.8%-27.6%-5.0%-7.9%-8.8%-12.4%
3 Year-15.2%-24.5%-0.8%-12.7%-4.9%-16.3%
5 Year7.8%-12.3%-5.9%-23.0%14.2%-11.1%

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 compared to its fair value and its price relative to the market?

22.8%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: PCTN (£0.65) is trading below our estimate of fair value (£0.84)

Significantly Below Fair Value: PCTN is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: PCTN is good value based on its PE Ratio (15.7x) compared to the GB REITs industry average (15.8x).

PE vs Market: PCTN is good value based on its PE Ratio (15.7x) compared to the UK market (16x).


Price to Earnings Growth Ratio

PEG Ratio: PCTN is good value based on its PEG Ratio (0.5x)


Price to Book Ratio

PB vs Industry: PCTN's PB Ratio (0.7x) is in line with the GB REITs industry average.


Next Steps

Future Growth

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

32.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: PCTN's forecast earnings growth (32.5% per year) is above the savings rate (1.2%).

Earnings vs Market: PCTN's earnings (32.5% per year) are forecast to grow faster than the UK market (22.7% per year).

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

Revenue vs Market: PCTN's revenue is expected to decline over the next 3 years (-9.7% per year).

High Growth Revenue: PCTN's revenue is forecast to decline over the next 3 years (-9.7% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

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


Next Steps

Past Performance

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

-17.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: PCTN has high quality earnings.

Growing Profit Margin: PCTN's current net profit margins (49.3%) are lower than last year (64.8%).


Past Earnings Growth Analysis

Earnings Trend: PCTN's earnings have declined by 17% per year over the past 5 years.

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

Earnings vs Industry: PCTN had negative earnings growth (-27.2%) over the past year, making it difficult to compare to the REITs industry average (-9%).


Return on Equity

High ROE: PCTN's Return on Equity (4.4%) is considered low.


Next Steps

Financial Health

How is Picton Property Income's financial position?


Financial Position Analysis

Short Term Liabilities: PCTN's short term assets (£41.2M) exceed its short term liabilities (£20.4M).

Long Term Liabilities: PCTN's short term assets (£41.2M) do not cover its long term liabilities (£166.0M).


Debt to Equity History and Analysis

Debt Level: PCTN's debt to equity ratio (32.4%) is considered satisfactory.

Reducing Debt: PCTN's debt to equity ratio has reduced from 62.9% to 32.4% over the past 5 years.

Debt Coverage: PCTN's debt is not well covered by operating cash flow (8.2%).

Interest Coverage: PCTN's interest payments on its debt are well covered by EBIT (3.4x coverage).


Balance Sheet


Next Steps

Dividend

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

3.85%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: PCTN's dividend (3.85%) is higher than the bottom 25% of dividend payers in the UK market (1.81%).

High Dividend: PCTN's dividend (3.85%) is low compared to the top 25% of dividend payers in the UK market (5.35%).


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (140.6%), PCTN's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: PCTN's dividends in 3 years are forecast to be covered by earnings (85.4% payout ratio).


Next Steps

Management

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

7.6yrs

Average management tenure


CEO

Michael Morris (47 yo)

no data

Tenure

UK£824,000

Compensation

Mr. Michael Morris serves as Executive Director at Picton Property Income Ltd. since October 1, 2018 and serves as its Chief Executive since 2020. Mr. Morris serves as the Chief Executive of Picton Capital ...


CEO Compensation Analysis

Compensation vs Market: Michael's total compensation ($USD1.08M) is about average for companies of similar size in the UK market ($USD928.78K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Michael Morris
Chief Executive & Executive Directorno dataUK£824.00k0.0046%
£ 16.2k
Andrew Dewhirst
Finance Director & Executive Director1.83yrsUK£551.00k0.037%
£ 131.1k
Fraser D'Arcy
Investment Director7.58yrsno datano data
James Verstringhe
IR Professioanl-Tavistock Communicationsno datano datano data
Sheryl Bates
Marketing & Communications Manager of Picton Capital Limited3.17yrsno datano data
Jay Cable
Head of Asset Managementno datano datano data
Mark Alder
Head of Occupier Servicesno datano datano data
James Forman
Financial Controllerno datano datano data

7.6yrs

Average Tenure

45.5yo

Average Age

Experienced Management: PCTN's management team is seasoned and experienced (7.6 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Michael Morris
Chief Executive & Executive Directorno dataUK£824.00k0.0046%
£ 16.2k
Andrew Dewhirst
Finance Director & Executive Director1.83yrsUK£551.00k0.037%
£ 131.1k
Roger St John Lewis
Independent Non Executive Director10.42yrsUK£45.00k0.11%
£ 389.4k
Anna Maria Josephine Bentley
Independent Non Executive Director1.83yrsUK£49.00k0.014%
£ 48.3k
Nicholas Thompson
Non-Executive Chairman of the Board15.58yrsUK£98.00k0.024%
£ 86.6k
Mark Batten
Senior Independent Director1.42yrsUK£48.00kno data

3.3yrs

Average Tenure

63yo

Average Age

Experienced Board: PCTN's board of directors are considered experienced (3.3 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: PCTN 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

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£354.031m
  • Shares outstanding: 545.50m
  • 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, established in 2005, is a UK REIT. It owns and actively manages a £665 million diversified UK commercial property portfolio, invested across 47 assets and with around 350 occupiers (as at 31 March ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/08/08 20:46
End of Day Share Price2020/08/07 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.