NYSE:IPOA.U

Stock Analysis Report

Social Capital Hedosophia Holdings

Executive Summary

Social Capital Hedosophia Holdings Corp. does not have significant operations.

Snowflake

Fundamentals

Overvalued with weak fundamentals.

Share Price & News

How has Social Capital Hedosophia Holdings's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

-4.8%

IPOA.U

4.4%

US Capital Markets

3.4%

US Market


1 Year Return

9.8%

IPOA.U

0.5%

US Capital Markets

5.4%

US Market

Return vs Industry: IPOA.U exceeded the US Capital Markets industry which returned 0.5% over the past year.

Return vs Market: IPOA.U exceeded the US Market which returned 5.4% over the past year.


Shareholder returns

IPOA.UIndustryMarket
7 Day-4.8%4.4%3.4%
30 Day1.2%-3.9%-1.0%
90 Day0.4%-2.0%-0.4%
1 Year9.8%9.8%2.7%0.5%7.7%5.4%
3 Yearn/a51.7%43.2%46.2%36.8%
5 Yearn/a77.1%60.9%65.6%47.5%

Price Volatility Vs. Market

How volatile is Social Capital Hedosophia Holdings's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Social Capital Hedosophia Holdings undervalued compared to its fair value and its price relative to the market?

8.0%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: IPOA.U ($11.2) is trading below our estimate of fair value ($12.17)

Significantly Undervalued: IPOA.U is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: IPOA.U is unprofitable, so we can't compare its PE Ratio to the Capital Markets industry average.

PE vs Market: IPOA.U is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

Low PEG Ratio: Insufficient data to calculate IPOA.U's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: IPOA.U is overvalued based on its PB Ratio (42.3x) compared to the US Capital Markets industry average (6.6x).


Next Steps

Future Growth

How is Social Capital Hedosophia Holdings forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

37.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

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

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

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

Revenue vs Market: Insufficient data to determine if IPOA.U's revenue is forecast to grow faster than the US market.

High Growth Revenue: Insufficient data to determine if IPOA.U's revenue 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 IPOA.U's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Social Capital Hedosophia Holdings performed over the past 5 years?

-107.1%

Last years earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: Unable to establish if IPOA.U's year-on-year earnings growth rate was positive over the past 5 years as it has been trading publicly for less than 3 years.

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

Earnings vs Industry: IPOA.U is unprofitable, making it difficult to compare its past year earnings growth to the Capital Markets industry (36.2%).


Return on Equity

High ROE: IPOA.U has a negative Return on Equity (245.06%), as it is currently unprofitable.


Return on Assets

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


Return on Capital Employed

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


Next Steps

Financial Health

How is Social Capital Hedosophia Holdings's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

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

Debt Coverage by Assets: IPOA.U's debt is not covered by short term assets (assets are 0.5x debt).


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: IPOA.U has less than a year of cash runway based on its current free cash flow.

Forecast Cash Runway: IPOA.U has less than a year of cash runway if free cash flow continues to grow at historical rates of 0.3% each year.


Financial Institutions Analysis

Asset Level: IPOA.U's level of assets compared to its equity is very high.

Allowance for Bad Loans: Insufficient data to determine if IPOA.U has a sufficient allowance for bad loans.

Low Risk Liabilities: IPOA.U reports no customer deposits, loans are made up entirely of externally borrowed funds.

Loan Level: Insufficient data to determine if IPOA.U has an acceptable proportion of non-loan assets held.

Low Risk Deposits: IPOA.U has advanced significantly more loans than the customer deposits it holds.

Level of Bad Loans: Insufficient data to determine if IPOA.U has an appropriate level of bad loans.


Next Steps

Dividend

What is Social Capital Hedosophia Holdings's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%1.5%markettop25%3.8%industryaverage2.1%forecastin3Yearsn/a

Current dividend yield vs market & industry


Stability and Growth of Payments

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

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

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


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

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


Next Steps

  • Explore strong dividend paying companies in the Diversified Financials industry.

Management

What is the CEO of Social Capital Hedosophia Holdings's salary, the management and board of directors tenure and is there insider trading?

2.4yrs

Average management tenure


CEO

Chamath Palihapitiya (42yo)

2.4yrs

Tenure

0

Mr. Chamath Palihapitiya is the Founder of Social Capital and serves as its Managing Partner, Chief Executive Officer and Partner. He led its investment in Crushpath LLC. He has been a Director at Slack Te ...


Management Age and Tenure

2.4yrs

Average Tenure

39.5yo

Average Age

Experienced Management: IPOA.U's management team is considered experienced (2.4 years average tenure).


Board Age and Tenure

2.4yrs

Average Tenure

46yo

Average Age

Experienced Board: IPOA.U's board of directors are not considered experienced ( 2.4 years average tenure), which suggests a new board.


Insider Trading

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


Ownership Breakdown


Management Team

  • Chamath Palihapitiya (42yo)

    CEO & Chairman

    • Tenure: 2.4yrs
  • Simon Williams (39yo)

    General Counsel & Secretary

    • Tenure: 2.4yrs
  • Ian Osborne (36yo)

    President & Director

    • Tenure: 2.4yrs
  • Steven Trieu (40yo)

    Chief Financial Officer

    • Tenure: 0.6yrs

Board Members

  • Jackie Reses (49yo)

    Director

    • Tenure: 0yrs
  • Tony Bates (52yo)

    Vice Chairman of the Board

    • Tenure: 2.4yrs
  • Chamath Palihapitiya (42yo)

    CEO & Chairman

    • Tenure: 2.4yrs
  • Andrea Wong (52yo)

    Director

    • Tenure: 2.8yrs
  • Adam Bain (46yo)

    Director

    • Tenure: 2.8yrs
  • Ian Osborne (36yo)

    President & Director

    • Tenure: 2.4yrs
  • James Ryans (43yo)

    Director

    • Tenure: 0yrs

Company Information

Social Capital Hedosophia Holdings Corp.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Social Capital Hedosophia Holdings Corp.
  • Ticker: IPOA.U
  • Exchange: NYSE
  • Founded: 2017
  • Industry: Asset Management and Custody Banks
  • Sector: Diversified Financials
  • Market Cap: US$211.446m
  • Shares outstanding: 20.35m
  • Website: https://www.socialcapitalhedosophiaholdings.com

Location

  • Social Capital Hedosophia Holdings Corp.
  • 120 Hawthorne Avenue
  • Palo Alto
  • California
  • 94301
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
IPOA.UNYSE (New York Stock Exchange)UnitsUSUSDSep 2017
IPOANYSE (New York Stock Exchange)YesClass A Ordinary SharesUSUSDSep 2017

Biography

Social Capital Hedosophia Holdings Corp. does not have significant operations. It intends to effect a merger, share exchange, asset acquisition, share purchase, reorganization, or similar business combinat ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/16 00:22
End of Day Share Price2019/10/15 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.