OTCPK:PRPP.F

Stock Analysis Report

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Executive Summary

Purplebricks Group plc engages in real estate agency business in the United Kingdom, Australia, the United States, and Canada.


Snowflake Analysis

Adequate balance sheet with moderate growth potential.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: PRPP.F's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

0%

PRPP.F

2.9%

US Real Estate

2.4%

US Market


1 Year Return

-68.3%

PRPP.F

-15.7%

US Real Estate

9.2%

US Market

Return vs Industry: PRPP.F underperformed the US Real Estate industry which returned -15.7% over the past year.

Return vs Market: PRPP.F underperformed the US Market which returned 9.2% over the past year.


Shareholder returns

PRPP.FIndustryMarket
7 Day0%2.9%2.4%
30 Day5.8%14.2%10.2%
90 Dayn/a-23.0%3.4%
1 Year-68.3%-68.3%-15.2%-15.7%11.6%9.2%
3 Year-92.3%-92.3%-15.8%-17.7%33.7%24.9%
5 Yearn/a-23.1%-25.4%59.7%41.8%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

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

1.75x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: PRPP.F ($0.4) is trading above our estimate of fair value ($0.18)

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


Price To Earnings Ratio

PE vs Industry: PRPP.F is unprofitable, so we can't compare its PE Ratio to the Real Estate industry average.

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


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate PRPP.F's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: PRPP.F is overvalued based on its PB Ratio (1.7x) compared to the US Real Estate industry average (1.1x).


Next Steps

Future Growth

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

70.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: PRPP.F is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (2.2%).

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

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

Revenue vs Market: PRPP.F's revenue (4% per year) is forecast to grow slower than the US market (8.8% per year).

High Growth Revenue: PRPP.F's revenue (4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: PRPP.F's Return on Equity is forecast to be low in 3 years time (1.5%).


Next Steps

Past Performance

How has Purplebricks Group performed over the past 5 years?

-51.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: PRPP.F is currently unprofitable.

Growing Profit Margin: PRPP.F is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: PRPP.F is unprofitable, and losses have increased over the past 5 years at a rate of -51.9% per year.

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

Earnings vs Industry: PRPP.F is unprofitable, making it difficult to compare its past year earnings growth to the Real Estate industry (-6.4%).


Return on Equity

High ROE: PRPP.F has a negative Return on Equity (-67.73%), as it is currently unprofitable.


Next Steps

Financial Health

How is Purplebricks Group's financial position?


Financial Position Analysis

Short Term Liabilities: PRPP.F's short term assets (£64.2M) exceed its short term liabilities (£30.2M).

Long Term Liabilities: PRPP.F's short term assets (£64.2M) exceed its long term liabilities (£6.0M).


Debt to Equity History and Analysis

Debt Level: PRPP.F is debt free.

Reducing Debt: PRPP.F has not had any debt for 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: PRPP.F has less than a year of cash runway based on its current free cash flow.

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


Next Steps

Dividend

What is Purplebricks Group's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

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

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

Growing Dividend: Insufficient data to determine if PRPP.F'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 PRPP.F's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

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

1.9yrs

Average management tenure


CEO

Vic Darvey (46yo)

1.08yrs

Tenure

Mr. Victor Marc Darvey, also known as Vic, has been Global Chief Executive Officer and Director of Purplebricks Group plc since May 7, 2019. He served as Group Chief Operating Officer of Purplebricks Group ...


Leadership Team

NamePositionTenureCompensationOwnership
Victor Darvey
CEO & Director1.08yrsno datano data
David Shepherd
Founder & Chief Information Officerno datano datano data
Andrew Botha
Chief Financial Officer0.083yrno datano data
David Kavanagh
Group Chief Technology Officer7.5yrsno datano data
Steve Parker
Head of Compliance and Area Directorno datano datano data
Joby Russell
Chief Marketing Officer5yrsno datano data
Sarah Downes
Head of Customer Experienceno datano datano data
Andy Holdsworth
Head of Information Technology Support & Infrastructureno datano datano data
Stephanie Walker
Head of Recruitment2.42yrsno datano data
Phil Felice
Chief Executive Officer of US Business1.42yrsno datano data

1.9yrs

Average Tenure

Experienced Management: PRPP.F's management team is not considered experienced ( 1.9 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Victor Darvey
CEO & Director1.08yrsno datano data
Andreas Wiele
Non-Executive Director2.17yrsno datano data
Paul R. Pindar
Non-Executive Chairmanno dataUK£30.00k3.53% £7.0m
Simon Downing
Senior Independent Director0.50yrUK£56.00k0.044% £86.6k
Adrian Blair
Independent Non-Executive Director2.17yrsUK£57.00k0.011% £21.9k

1.6yrs

Average Tenure

54yo

Average Age

Experienced Board: PRPP.F's board of directors are not considered experienced ( 1.6 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.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Purplebricks Group plc's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Purplebricks Group plc
  • Ticker: PRPP.F
  • Exchange: OTCPK
  • Founded: 2012
  • Industry: Real Estate Services
  • Sector: Real Estate
  • Market Cap: UK£158.005m
  • Listing Market Cap: UK£199.084m
  • Shares outstanding: 306.81m
  • Website: https://www.purplebricks.co.uk

Number of Employees


Location

  • Purplebricks Group plc
  • Cranmore Place
  • Suite 7, First Floor
  • Solihull
  • West Midlands
  • B90 4RZ
  • United Kingdom

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
PURPAIM (London Stock Exchange AIM Market)YesOrdinary SharesGBGBPDec 2015
5PBDB (Deutsche Boerse AG)YesOrdinary SharesDEEURDec 2015
PRPP.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDDec 2015

Biography

Purplebricks Group plc engages in real estate agency business in the United Kingdom, Australia, the United States, and Canada. It provides services relating to the sale and letting of properties. The company combines local property experts and technology to help make the process of selling, buying, or letting more convenient, transparent, and cost effective. Purplebricks Group plc was incorporated in 2012 and is based in Solihull, the United Kingdom. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/06/04 05:14
End of Day Share Price2020/05/22 00:00
Earnings2019/10/31
Annual Earnings2019/04/30


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.