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.


Snowflake Analysis

Limited growth with weak fundamentals.

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's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

17.5%

PCIP

-1.0%

GB IT

-2.5%

GB Market


1 Year Return

32.4%

PCIP

-7.6%

GB IT

-16.0%

GB Market

Return vs Industry: PCIP exceeded the UK IT industry which returned -7.7% over the past year.

Return vs Market: PCIP exceeded the UK Market which returned -15.1% over the past year.


Shareholder returns

PCIPIndustryMarket
7 Day17.5%-1.0%-2.5%
30 Day14.6%0.9%-4.0%
90 Day62.1%9.4%4.9%
1 Year32.4%32.4%-6.6%-7.6%-12.1%-16.0%
3 Year10.6%10.6%66.5%56.1%-5.4%-17.1%
5 Year242.4%208.2%122.9%105.1%11.6%-13.4%

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?


In this section, we usually try to help investors determine whether PCI-PAL is trading at an attractive price based on the cash flow it is expected to produce in the future. But as PCI-PAL has not provided consistent financial data, and the stock also has no analyst forecast or coverage, its intrinsic value cannot be reliably calculated by extrapolating past data or using analyst consensus cash flow predictions.

This is quite a rare situation as 89% of companies covered by Simply Wall St do have a valuation analysis.


Next Steps

  • Take a look at our analysis of PCIP’s management and see if the CEO’s compensation is within a reasonable range, who is on the board and if insiders have been trading lately.
  • When valuing a company like this, investors focus more on how they perceive the size of the opportunity, the company's ability to deliver and scale, and the strength of the team. While we are not analysing this type of data at the moment, if you don’t know where to start, we recommend reading through PCI-PAL regulatory filings.
  • Explore potentially undervalued companies in the Software industry.

Future Growth

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

9.5%

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 (41.7% per year) is forecast to grow faster than the UK market (3.3% per year).

High Growth Revenue: PCIP's revenue (41.7% 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

Past Performance

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

-42.7%

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 -42.7% 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 (10%).


Return on Equity

High ROE: PCIP's liabilities exceed its assets, so it is difficult to calculate its Return on Equity.


Next Steps

Financial Health

How is PCI-PAL's financial position?


Financial Position Analysis

Short Term Liabilities: PCIP has negative shareholder equity, which is a more serious situation than short term assets not covering short term liabilities.

Long Term Liabilities: PCIP has negative shareholder equity, which is a more serious situation than short term assets not covering long term liabilities.


Debt to Equity History and Analysis

Debt Level: PCIP has negative shareholder equity, which is a more serious situation than a high debt level.

Reducing Debt: PCIP's has negative shareholder equity, so we do not need to check if its debt has reduced over time.


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 less than a year of cash runway based on its current free cash flow.

Forecast Cash Runway: PCIP has less than a year of cash runway if free cash flow continues to reduce at historical rates of 41.9% each year


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?

1.5yrs

Average management tenure


CEO

James Barham (38yo)

1.75yrs

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 ($USD311.32K) is about average for companies of similar size in the UK market ($USD345.91K).

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


Leadership Team

NamePositionTenureCompensationOwnership
James Barham
CEO & Executive Director1.75yrsUK£246.79k0.23% £65.2k
Thomas Good
CFO, Secretary & Executive Director3.25yrsUK£139.80k0.35% £96.3k
Geoffrey Forsyth
Chief Information Security Officer & Executive Director20.75yrsUK£142.11k2.27% £631.4k
Hugh James
Chief Technology Officer1.5yrsno datano data
Jane Goodayle
Vice President of Global Marketingno datano datano data
Darren Gill
Chief Revenue Officer1.5yrsno datano data

1.5yrs

Average Tenure

55yo

Average Age

Experienced Management: PCIP's management team is not considered experienced ( 1.5 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
James Barham
CEO & Executive Director1.75yrsUK£246.79k0.23% £65.2k
Thomas Good
CFO, Secretary & Executive Director3.25yrsUK£139.80k0.35% £96.3k
Geoffrey Forsyth
Chief Information Security Officer & Executive Director20.75yrsUK£142.11k2.27% £631.4k
Simon Wilson
Independent Chairman & Senior Non-Executive Director0.67yrno data0.17% £47.0k
Jason Starr
Independent Non-Executive Director5.5yrsUK£25.00kno data
Christopher Fielding
Independent Non-Executive Director5.83yrsUK£35.00kno data

4.7yrs

Average Tenure

56yo

Average Age

Experienced Board: PCIP's board of directors are considered experienced (4.7 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: PCIP 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 39.2%.


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£27.834m
  • Shares outstanding: 59.22m
  • 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 Middle East. It offers data secure payment card authorizations for call center operations; and Agent Assist, a PCI compliant solution to enhance contact center customer experience. The company also provides IVR payments solution that empowers customers to make payments 24/7; legacy suite for securing archived call recordings and electronic documents; and SMS and Web chat solutions. It serves clients in utilities, leisure, financial services, retail, logistics, and public sectors, as well as business process outsourcers and not for profit organizations. The company was formerly known as IPPlus plc and changed its name to PCI-PAL PLC in October 2016. PCI-PAL PLC was incorporated in 1999 and is headquartered in London, the United Kingdom. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/07/09 21:02
End of Day Share Price2020/07/09 00:00
Earnings2019/12/31
Annual Earnings2019/06/30


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.