LSE:PDG

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

Executive Summary

Pendragon PLC, together with its subsidiaries, operates in the automotive retail sector in the United Kingdom. More Details


Snowflake Analysis

Fair value with moderate growth potential.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: PDG is more volatile than 75% of UK stocks over the past 3 months, typically moving +/- 10% a week.

Volatility Over Time: PDG's weekly volatility (10%) has been stable over the past year, but is still higher than 75% of UK stocks.


Market Performance


7 Day Return

0%

PDG

0.9%

GB Specialty Retail

-0.5%

GB Market


1 Year Return

14.9%

PDG

0.7%

GB Specialty Retail

-8.2%

GB Market

Return vs Industry: PDG exceeded the UK Specialty Retail industry which returned 0.7% over the past year.

Return vs Market: PDG exceeded the UK Market which returned -8.2% over the past year.


Shareholder returns

PDGIndustryMarket
7 Day0%0.9%-0.5%
30 Day5.8%-0.008%2.9%
90 Day-12.7%5.3%15.2%
1 Year14.9%14.9%1.0%0.7%-4.5%-8.2%
3 Year-42.2%-47.3%12.9%5.1%3.7%-9.0%
5 Year-60.4%-66.9%11.0%-3.9%42.1%14.4%

Long-Term Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: PDG (£0.13) is trading below our estimate of fair value (£0.42)

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


Price To Earnings Ratio

PE vs Industry: PDG is unprofitable, so we can't compare its PE Ratio to the GB Specialty Retail industry average.

PE vs Market: PDG 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 PDG's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: PDG is good value based on its PB Ratio (1.6x) compared to the GB Specialty Retail industry average (1.7x).


Next Steps

Future Growth

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

96.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

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

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

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

Revenue vs Market: PDG's revenue (6.4% per year) is forecast to grow slower than the UK market (6.6% per year).

High Growth Revenue: PDG's revenue (6.4% 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 PDG's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Pendragon performed over the past 5 years?

-62.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: PDG is currently unprofitable.

Growing Profit Margin: PDG is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: PDG is unprofitable, and losses have increased over the past 5 years at a rate of 62% per year.

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

Earnings vs Industry: PDG is unprofitable, making it difficult to compare its past year earnings growth to the Specialty Retail industry (-13.3%).


Return on Equity

High ROE: PDG has a negative Return on Equity (-44.58%), as it is currently unprofitable.


Next Steps

Financial Health

How is Pendragon's financial position?


Financial Position Analysis

Short Term Liabilities: PDG's short term assets (£1.0B) do not cover its short term liabilities (£1.2B).

Long Term Liabilities: PDG's short term assets (£1.0B) exceed its long term liabilities (£554.4M).


Debt to Equity History and Analysis

Debt Level: PDG's debt to equity ratio (144.6%) is considered high.

Reducing Debt: PDG's debt to equity ratio has increased from 52.3% to 144.6% over the past 5 years.

Debt Coverage: PDG's debt is well covered by operating cash flow (24%).

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


Balance Sheet


Next Steps

Dividend

What is Pendragon current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate PDG's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate PDG's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if PDG's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if PDG's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: PDG is not paying a notable dividend for the UK market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of PDG's dividend in 3 years as they are not forecast to pay a notable one for the UK market.


Next Steps

  • Explore strong dividend paying companies in the Retail industry.

Management

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

1.8yrs

Average management tenure


CEO

Bill Berman (53 yo)

0.92

Tenure

UK£369,904

Compensation

Mr. William R. Berman, also known as Bill, serves as President at Valencia Auto Imports Holding LLC, Stevens Creek Luxury Imports Holding, LLC, AN Valencia Auto Imports, Inc., and Auto Company XIII, Inc. H...


CEO Compensation Analysis

Compensation vs Market: Bill's total compensation ($USD505.41K) is about average for companies of similar size in the UK market ($USD604.59K).

Compensation vs Earnings: Insufficient data to compare Bill's compensation with company performance.


Leadership Team

NamePositionTenureCompensationOwnership
William Berman
CEO & Interim Executive Chairman0.92yrUK£369.90kno data
Mark Willis
CFO & Director1.75yrsUK£307.29kno data
Martin Casha
COO & Executive Directorno dataUK£377.00k0.69%
£ 1.3m
Richard Maloney
Company Secretaryno datano datano data

1.8yrs

Average Tenure

Experienced Management: PDG's management team is not considered experienced ( 1.8 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
William Berman
CEO & Interim Executive Chairman0.92yrUK£369.90kno data
Mark Willis
CFO & Director1.75yrsUK£307.29kno data
Martin Casha
COO & Executive Directorno dataUK£377.00k0.69%
£ 1.3m
Michael Wright
Independent Non-Executive Director2.67yrsUK£45.00k0.018%
£ 32.8k
Dietmar Exler
Independent Non Executive Director0.75yrno data0.015%
£ 27.5k
Brian Small
Independent Non-Executive Director1.08yrsUK£3.00k0.029%
£ 52.4k
Nikki Flanders
Independent Non-Executive Director0.75yrno datano data

1.2yrs

Average Tenure

60yo

Average Age

Experienced Board: PDG's board of directors are not considered experienced ( 1.2 years average tenure), which suggests a new board.


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

Pendragon PLC's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Pendragon PLC
  • Ticker: PDG
  • Exchange: LSE
  • Founded: 1988
  • Industry: Automotive Retail
  • Sector: Retail
  • Market Cap: UK£182.159m
  • Shares outstanding: 1.39b
  • Website: https://www.pendragonplc.com

Number of Employees


Location

  • Pendragon PLC
  • Loxley House
  • 2 Oakwood Court
  • Nottingham
  • Nottinghamshire
  • NG15 0DR
  • United Kingdom

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
PDGLSE (London Stock Exchange)YesOrdinary SharesGBGBPNov 1989
PDGN.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDNov 1989
PDGLBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBGBPNov 1989

Biography

Pendragon PLC, together with its subsidiaries, operates in the automotive retail sector in the United Kingdom. It operates through five segments: Car Store, Franchised UK Motor, Software, Leasing, and US M...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/01/24 18:48
End of Day Share Price2021/01/22 00:00
Earnings2020/06/30
Annual Earnings2019/12/31


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.