AIM:PCIP

Stock Analysis Report

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Executive Summary

PCI-PAL PLC, through its subsidiaries, provides payment card industry (PCI) compliance solutions and telephony services primarily in the United Kingdom, European Union, North America, Asia Pacific, and the Middle East. More Details


Snowflake Analysis

Mediocre balance sheet with limited growth.

Share Price & News

How has PCI-PAL's share price performed over time and what events caused price changes?


Latest Share Price and Events

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


Market Performance


7 Day Return

-6.8%

PCIP

-0.8%

GB IT

-3.3%

GB Market


1 Year Return

56.5%

PCIP

12.2%

GB IT

-17.2%

GB Market

Return vs Industry: PCIP exceeded the UK IT industry which returned 12.2% over the past year.

Return vs Market: PCIP exceeded the UK Market which returned -17.2% over the past year.


Shareholder returns

PCIPIndustryMarket
7 Day-6.8%-0.8%-3.3%
30 Day7.9%-6.0%-3.7%
90 Day2.5%5.3%-3.4%
1 Year56.5%56.5%13.4%12.2%-13.8%-17.2%
3 Year-10.9%-10.9%60.5%52.8%-8.3%-19.5%
5 Year225.3%192.9%140.4%121.8%18.8%-8.1%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is PCI-PAL undervalued compared to its fair value and its price relative to the market?

10.91x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: PCIP (£0.41) is trading above our estimate of fair value (£0.4)

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


Price To Earnings Ratio

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

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


Price to Book Ratio

PB vs Industry: PCIP is overvalued based on its PB Ratio (10.9x) compared to the GB IT industry average (2.4x).


Next Steps

Future Growth

How is PCI-PAL forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

53.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: PCIP is forecast to remain unprofitable over the next 3 years.

Earnings vs Market: PCIP is forecast to remain unprofitable over the next 3 years.

High Growth Earnings: PCIP is forecast to remain unprofitable over the next 3 years.

Revenue vs Market: PCIP's revenue (41.9% per year) is forecast to grow faster than the UK market (6.3% per year).

High Growth Revenue: PCIP's revenue (41.9% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

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


Next Steps

  • Explore growth companies in the Software industry.

Past Performance

How has PCI-PAL performed over the past 5 years?

-36.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: PCIP is currently unprofitable.

Growing Profit Margin: PCIP is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: PCIP is unprofitable, and losses have increased over the past 5 years at a rate of 36.5% per year.

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

Earnings vs Industry: PCIP is unprofitable, making it difficult to compare its past year earnings growth to the IT industry (9.5%).


Return on Equity

High ROE: PCIP has a negative Return on Equity (-215.95%), as it is currently unprofitable.


Next Steps

Financial Health

How is PCI-PAL's financial position?


Financial Position Analysis

Short Term Liabilities: PCIP's short term assets (£6.6M) exceed its short term liabilities (£5.7M).

Long Term Liabilities: PCIP's short term assets (£6.6M) exceed its long term liabilities (£1.6M).


Debt to Equity History and Analysis

Debt Level: PCIP's debt to equity ratio (66.6%) is considered high.

Reducing Debt: PCIP's debt to equity ratio has increased from 59.5% to 66.6% over the past 5 years.


Balance Sheet


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: PCIP has sufficient cash runway for more than a year based on its current free cash flow.

Forecast Cash Runway: Insufficient data to determine if PCIP has enough cash runway if its free cash flow continues to grow or shrink based on historical rates.


Next Steps

Dividend

What is PCI-PAL current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

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

High Dividend: Unable to evaluate PCIP'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 PCIP's dividends per share have been stable in the past.

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


Current Payout to Shareholders

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


Future Payout to Shareholders

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


Next Steps

Management

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

1.7yrs

Average management tenure


CEO

James Barham (38 yo)

1.92yrs

Tenure

UK£246,788

Compensation

Mr. James Christopher Barham has been Chief Executive Officer of PCI-PAL PLC since October 08, 2018 and served as its Chief Commercial Officer and has been its Executive Director since September 30, 2016. ...


CEO Compensation Analysis

Compensation vs Market: James's total compensation ($USD315.66K) is about average for companies of similar size in the UK market ($USD348.00K).

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


Leadership Team

NamePositionTenureCompensationOwnership
James Barham
CEO & Executive Director1.92yrsUK£246.79k0.23%
£ 56.9k
Thomas Good
CFO, Secretary & Executive Director3.42yrsUK£139.80k0.35%
£ 84.1k
Geoffrey Forsyth
Chief Information Security Officer & Executive Director20.92yrsUK£142.11k2.26%
£ 550.8k
Hugh James
Chief Technology Officer1.67yrsno datano data
Jane Goodayle
Senior Vice President of Global Marketingno datano datano data
Darren Gill
Chief Revenue Officer1.67yrsno datano data
Sadie Ahier
Senior Vice President of Professional Services0.67yrno datano data

1.7yrs

Average Tenure

55yo

Average Age

Experienced Management: PCIP's management team is not considered experienced ( 1.7 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
James Barham
CEO & Executive Director1.92yrsUK£246.79k0.23%
£ 56.9k
Thomas Good
CFO, Secretary & Executive Director3.42yrsUK£139.80k0.35%
£ 84.1k
Geoffrey Forsyth
Chief Information Security Officer & Executive Director20.92yrsUK£142.11k2.26%
£ 550.8k
Simon Wilson
Independent Chairman & Senior Non-Executive Director0.83yrno data0.17%
£ 41.0k
Jason Starr
Independent Non-Executive Director5.67yrsUK£25.00kno data
Christopher Fielding
Independent Non-Executive Director6yrsUK£35.00kno data
Neira Jones
Member of Advisory Committeeno datano datano data

4.8yrs

Average Tenure

56yo

Average Age

Experienced Board: PCIP'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: 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 been diluted in the past year, with total shares outstanding growing by 39.4%.


Top Shareholders

Company Information

PCI-PAL PLC's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: PCI-PAL PLC
  • Ticker: PCIP
  • Exchange: AIM
  • Founded: 1999
  • Industry: Data Processing and Outsourced Services
  • Sector: Software
  • Market Cap: UK£24.321m
  • Shares outstanding: 59.32m
  • Website: https://www.pcipal.com

Number of Employees


Location

  • PCI-PAL PLC
  • 30 Moorgate
  • London
  • Greater London
  • EC2R 6DN
  • United Kingdom

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
PCIPAIM (London Stock Exchange AIM Market)YesOrdinary SharesGBGBPSep 2000

Biography

PCI-PAL PLC, through its subsidiaries, provides payment card industry (PCI) compliance solutions and telephony services primarily in the United Kingdom, European Union, North America, Asia Pacific, and the ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/09/26 03:13
End of Day Share Price2020/09/25 00:00
Earnings2020/06/30
Annual Earnings2020/06/30


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.