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PRSR

PRS REITLSE:PRSR Stock Report

Last Price

UK£1.08

Market Cap

UK£585.0m

7D

1.4%

1Y

27.1%

Updated

17 Jan, 2022

Data

Company Financials +
PRSR fundamental analysis
Snowflake Score
Valuation2/6
Future Growth2/6
Past Performance2/6
Financial Health0/6
Dividends2/6

PRSR Stock Overview

The PRS REIT plc is a closed-ended real estate investment trust established to invest in the Private Rented Sector and to provide shareholders with an attractive level of income together with the potential for capital and income growth.

Price History & Performance

Summary of all time highs, changes and price drops for PRS REIT
Historical stock prices
Current Share PriceUK£1.08
52 Week HighUK£1.12
52 Week LowUK£0.84
Beta0.50
1 Month Change0.46%
3 Month Change6.93%
1 Year Change27.06%
3 Year Change11.57%
5 Year Changen/a
Change since IPO2.25%

Recent News & Updates

Shareholder Returns

PRSRGB REITsGB Market
7D1.4%-1.1%-0.5%
1Y27.1%21.7%8.7%

Return vs Industry: PRSR exceeded the UK REITs industry which returned 21.7% over the past year.

Return vs Market: PRSR exceeded the UK Market which returned 8.7% over the past year.

Price Volatility

Is PRSR's price volatile compared to industry and market?
PRSR volatility
PRSR Average Weekly Movement2.4%
REITs Industry Average Movement2.6%
Market Average Movement5.0%
10% most volatile stocks in GB Market10.5%
10% least volatile stocks in GB Market2.4%

Stable Share Price: PRSR is less volatile than 75% of UK stocks over the past 3 months, typically moving +/- 2% a week.

Volatility Over Time: PRSR's weekly volatility (2%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
n/an/aGraham Barnethttps://www.theprsreit.com

The PRS REIT plc is a closed-ended real estate investment trust established to invest in the Private Rented Sector and to provide shareholders with an attractive level of income together with the potential for capital and income growth. The Company is investing £0.9bn in a portfolio of high quality homes for private rental across the regions, having raised a total of £500m (gross) through its Initial Public Offering, on 31 May 2017, and a subsequent placing in February 2018. Both fundraisings were supported by the UK Government's Homes England with direct investments.

PRS REIT Fundamentals Summary

How do PRS REIT's earnings and revenue compare to its market cap?
PRSR fundamental statistics
Market CapUK£584.95m
Earnings (TTM)UK£44.11m
Revenue (TTM)UK£26.64m

13.4x

P/E Ratio

22.3x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
PRSR income statement (TTM)
RevenueUK£26.64m
Cost of RevenueUK£5.19m
Gross ProfitUK£21.45m
Expenses-UK£22.66m
EarningsUK£44.11m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)0.08
Gross Margin80.53%
Net Profit Margin165.61%
Debt/Equity Ratio72.4%

How did PRSR perform over the long term?

See historical performance and comparison

Dividends

3.7%

Current Dividend Yield

153%

Payout Ratio

Valuation

Is PRS REIT undervalued compared to its fair value and its price relative to the market?

14.9%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: PRSR (£1.08) is trading below our estimate of fair value (£1.27)

Significantly Below Fair Value: PRSR is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: PRSR is poor value based on its PE Ratio (13.4x) compared to the UK REITs industry average (13.1x).

PE vs Market: PRSR is good value based on its PE Ratio (13.4x) compared to the UK market (19.5x).


Price to Earnings Growth Ratio

PEG Ratio: PRSR is poor value based on its PEG Ratio (2.6x)


Price to Book Ratio

PB vs Industry: PRSR is overvalued based on its PB Ratio (1.2x) compared to the GB REITs industry average (0.9x).


Future Growth

How is PRS REIT forecast to perform in the next 1 to 3 years based on estimates from 3 analysts?

5.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: PRSR's forecast earnings growth (5.2% per year) is above the savings rate (0.9%).

Earnings vs Market: PRSR's earnings (5.2% per year) are forecast to grow slower than the UK market (12.1% per year).

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

Revenue vs Market: PRSR's revenue (17% per year) is forecast to grow faster than the UK market (4.9% per year).

High Growth Revenue: PRSR's revenue (17% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: PRSR's Return on Equity is forecast to be low in 3 years time (3.8%).


Past Performance

How has PRS REIT performed over the past 5 years?

168.9%

Last years earnings growth


Earnings and Revenue History

Quality Earnings: PRSR has a large one-off gain of £38.2M impacting its June 30 2021 financial results.

Growing Profit Margin: PRSR's current net profit margins are higher than last year .


Past Earnings Growth Analysis

Earnings Trend: Insufficient data to determine if PRSR's year-on-year earnings growth rate was positive over the past 5 years.

Accelerating Growth: Insufficient data to compare PRSR's past year earnings growth to its 5-year average.

Earnings vs Industry: PRSR earnings growth over the past year (168.9%) exceeded the REITs industry 150.1%.


Return on Equity

High ROE: PRSR's Return on Equity (9%) is considered low.


Financial Health

How is PRS REIT's financial position?


Financial Position Analysis

Short Term Liabilities: PRSR's short term assets (£93.0M) do not cover its short term liabilities (£132.5M).

Long Term Liabilities: PRSR's short term assets (£93.0M) do not cover its long term liabilities (£250.6M).


Debt to Equity History and Analysis

Debt Level: PRSR's net debt to equity ratio (54.8%) is considered high.

Reducing Debt: Insufficient data to determine if PRSR's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: PRSR's debt is not well covered by operating cash flow (4.6%).

Interest Coverage: PRSR's interest payments on its debt are not well covered by EBIT (1.6x coverage).


Balance Sheet


Dividend

What is PRS REIT current dividend yield, its reliability and sustainability?

3.70%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: PRSR's dividend (3.7%) is higher than the bottom 25% of dividend payers in the UK market (1.39%).

High Dividend: PRSR's dividend (3.7%) is low compared to the top 25% of dividend payers in the UK market (4.05%).


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, PRSR has been paying a dividend for less than 10 years.

Growing Dividend: PRSR has only been paying a dividend for 4 years, and since then payments have fallen.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (152.8%), PRSR's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: PRSR's dividends in 3 years are forecast to be covered by earnings (98.4% payout ratio).


Next Steps

Management

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

4.8yrs

Average board tenure


CEO

Graham Barnet (58 yo)

no data

Tenure

Graham Barnet is an Architect of the Sigma PRS model and co-founded and created Winchburgh development. Qualified corporate lawyer with significant merchant banking experience in Noble Grossart Limited and...


Board Members

Experienced Board: PRSR's board of directors are considered experienced (4.8 years average tenure).


Ownership

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


Insider Trading Volume

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


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 10.9%.


Top Shareholders

Company Information

The PRS REIT plc's employee growth, exchange listings and data sources


Key Information

  • Name: The PRS REIT plc
  • Ticker: PRSR
  • Exchange: LSE
  • Founded: NaN
  • Industry: Residential REITs
  • Sector: Real Estate
  • Implied Market Cap: UK£584.953m
  • Shares outstanding: 549.25m
  • Website: https://www.theprsreit.com

Location

  • The PRS REIT plc
  • 1 St. Ann Street
  • Floor 3
  • Manchester
  • Greater Manchester
  • M2 7LR
  • United Kingdom

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/01/17 18:58
End of Day Share Price2022/01/17 00:00
Earnings2021/06/30
Annual Earnings2021/06/30


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.