AIM:PCIP

Stock Analysis Report

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, and the Middle East.

Snowflake

Fundamentals

Adequate 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


Market Performance


7 Day Return

0%

PCIP

0.07%

GB IT

-0.4%

GB Market


1 Year Return

9.6%

PCIP

7.6%

GB IT

2.9%

GB Market

Return vs Industry: PCIP exceeded the UK IT industry which returned 7.6% over the past year.

Return vs Market: PCIP exceeded the UK Market which returned 2.9% over the past year.


Shareholder returns

PCIPIndustryMarket
7 Day0%0.07%-0.4%
30 Day5.6%-3.5%-1.4%
90 Day-14.9%-5.9%-2.1%
1 Year9.6%9.6%10.2%7.6%7.9%2.9%
3 Year1.1%-8.1%74.1%61.3%18.0%3.6%
5 Year126.2%103.6%69.9%54.3%35.8%6.4%

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?

8.57x

Price to Book (PB) ratio


Share Price vs. Fair Value

Undervalued: Insufficient data to calculate PCIP's fair value to establish if it is undervalued.

Significantly Undervalued: Insufficient data to calculate PCIP's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: PCIP is unprofitable, so we can't compare its PE Ratio to the 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

Low 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 (8.6x) compared to the GB IT industry average (2.5x).


Next Steps

Future Growth

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

39.4%

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 (49.7% per year) is forecast to grow faster than the UK market (3.9% per year).

High Growth Revenue: PCIP's revenue (49.7% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High 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?

-50.8%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: PCIP is unprofitable, and losses have increased over the past 5 years at a rate of -50.8% 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 (4.2%).


Return on Equity

High ROE: PCIP has a negative Return on Equity (-308.55%), as it is currently unprofitable.


Return on Assets

ROA vs Industry: PCIP is currently unprofitable, so its Return on Assets is negative.


Return on Capital Employed

ROCE Improving: PCIP is currently unprofitable, so its Return on Capital Employed is negative.


Next Steps

Financial Health

How is PCI-PAL's financial position?


Financial Position Analysis

Short Term Liabilities: PCIP's short term assets (£3.5M) exceeds its short term liabilities (£3.4M)

Long Term Liabilities: PCIP has no long term liabilities


Debt to Equity History and Analysis

Debt Level: PCIP is debt free.

Reducing Debt: PCIP has no debt compared to 5 years ago when its debt to equity ratio was 45.5%.


Balance Sheet

Inventory Level: PCIP has a low level of unsold assets or inventory.

Debt Coverage by Assets: Insufficient data to determine if PCIP's debt is covered by short term assets.


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 -61.4% each year


Next Steps

Dividend

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


Dividend Yield vs Market

company0%marketbottom25%2.0%markettop25%5.4%industryaverage2.6%forecastin3Yearsn/a

Current dividend yield vs market & industry


Stability and Growth of Payments

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

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

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

What is the CEO of PCI-PAL's salary, the management and board of directors tenure and is there insider trading?

0.9yrs

Average management tenure


CEO

James Barham (37yo)

1yrs

Tenure

UK£179,304

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 has recently become CEO, making it difficult to compare their total compensation against companies of similar size in the UK market.

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


Management Age and Tenure

0.9yrs

Average Tenure

55yo

Average Age

Experienced Management: PCIP's management team is not considered experienced ( 0.9 years average tenure), which suggests a new team.


Board Age and Tenure

4.0yrs

Average Tenure

54yo

Average Age

Experienced Board: PCIP's board of directors are considered experienced (4 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyUK£10,17925 Jun 19
Christopher Fielding
EntityIndividual
Role
Chairman of the Board
Non-Executive Chairman
Shares35,590
Max PriceUK£0.29
BuyUK£14,69814 Jun 19
James Barham
EntityIndividual
Role
Chief Executive Officer
CEO & Executive Director
Shares50,684
Max PriceUK£0.29
BuyUK£13,35906 Mar 19
Geoffrey Forsyth
EntityIndividual
Role
Member of the Board of Directors
Chief Information Security Officer & Executive Director
Shares55,662
Max PriceUK£0.24

Ownership Breakdown


Management Team

  • Simon Wilson (56yo)

    President of North American Operations

    • Tenure: 2.2yrs
  • Thomas Good (54yo)

    CFO, Secretary & Executive Director

    • Tenure: 2.5yrs
    • Compensation: UK£127.07k
  • Geoff Forsyth (56yo)

    Chief Information Security Officer & Executive Director

    • Tenure: 19.9yrs
    • Compensation: UK£133.99k
  • Jane Goodayle

    Vice President of Global Marketing

    • Tenure: 0yrs
  • James Barham (37yo)

    CEO & Executive Director

    • Tenure: 1yrs
    • Compensation: UK£179.30k
  • Grafton Potter

    Senior Vice President of Sales - North America & Australasia

    • Tenure: 0yrs
  • Darren Gill

    Chief Revenue Officer

    • Tenure: 0.8yrs
  • Hugh James

    Chief Technology Officer

    • Tenure: 0.8yrs

Board Members

  • Thomas Good (54yo)

    CFO, Secretary & Executive Director

    • Tenure: 2.5yrs
    • Compensation: UK£127.07k
  • Geoff Forsyth (56yo)

    Chief Information Security Officer & Executive Director

    • Tenure: 19.9yrs
    • Compensation: UK£133.99k
  • Jason Starr (47yo)

    Senior Independent Director

    • Tenure: 0yrs
    • Compensation: UK£25.00k
  • Chris Fielding (60yo)

    Non-Executive Chairman

    • Tenure: 4.8yrs
    • Compensation: UK£45.00k
  • James Barham (37yo)

    CEO & Executive Director

    • Tenure: 1yrs
    • Compensation: UK£179.30k

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£12.128m
  • Shares outstanding: 42.55m
  • Website: https://www.pcipal.com

Number of Employees


Location

  • PCI-PAL PLC
  • 1 Cornhill
  • London
  • Greater London
  • EC3V 3ND
  • 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, and the Middle East.  ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/19 20:33
End of Day Share Price2019/10/18 00:00
Earnings2019/06/30
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.