Valuations/Lawyers/Lenders

Hits: 57

Historic PE vs CAPE

  • With no clue what earnings might be this year I checked my watchlist for historic PE vs the  year average PE inflation adjusted.  The list is below. Once again STM and FBD come up as cheap as they did on the Price/NTAV screen.
PE CAPE
Cenkos 5.5 0.5 1100.0%
Arbuthnot 17.3 5.3 326.4%
Walker Crips 26.3 10.6 248.1%
Provident 4.1 2.4 170.8%
Numis 19.1 11.7 163.2%
Standard Life 10.4 6.8 152.9%
NAHL 1.9 1.3 146.2%
ST James Place 26.3 18.8 139.9%
First Property 6.3 5 126.0%
TP ICAP 9.2 7.6 121.1%
Begbies 13.5 11.8 114.4%
IPF 2.4 2.1 114.3%
Frenkel Topp. 17.8 16.3 109.2%
Record 8.3 7.9 105.1%
IG Group 14.1 13.6 103.7%
Ashmore 14.8 14.8 100.0%
CLIG 10.1 10.1 100.0%
Charles Stanley 11.4 11.5 99.1%
Jupiter 6.9 7.1 97.2%
Man Group 6.5 7 92.9%
OCG 12.6 13.8 91.3%
Investec 2.6 3 86.7%
Schroder 12.1 14 86.4%
Rathbone 10.6 12.4 85.5%
Brewin Dolphin 9.5 11.4 83.3%
Close 7.5 9.3 80.6%
Mattioli 15 19 78.9%
Plus5 9 11.6 77.6%
Onepm 2 2.7 74.1%
Brooks Macdonlad 12 16.6 72.3%
Jarvis 10.2 14.2 71.8%
H&T 5.3 7.4 71.6%
Bank of Georgia 3.5 4.9 71.4%
Paragon 5.5 7.8 70.5%
Hargreaves Lansdown 24.5 34.9 70.2%
Gateley 9.2 13.9 66.2%
Secure Trust 4.5 7.1 63.4%
L. Stock Exchange 34.9 56.1 62.2%
Just 2.7 4.4 61.4%
Arrow Global 2.6 4.3 60.5%
S&U 6.3 10.8 58.3%
Equiniti 8.9 15.7 56.7%
PCF 6.7 12.4 54.0%
Impax 19.8 41.9 47.3%
Orchard 9.6 20.8 46.2%
Polar 6.1 13.3 45.9%
Christie 7.3 17.9 40.8%
Liontrust 18.7 46.9 39.9%
STM 3.6 9.1 39.6%
FBD Holdings 2.9 8 36.3%
AFH 7 19.9 35.2%

SSource:Sharepad

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News

The differing responses of companies is starting to be noticeable. This morning of the two lawyers one cuts salaries while the other cuts the dividend. It is also unusual to see a lender increase its dividend 5%.

Lawyers

Knights Group

Share Price 330p

Mkt Cap £263m

Conflict Disclosure: No Holding

  • News  (17m net debt) says it has seen limited impact to date from the lock down. It has implemented a 30% reduction in board pay and 10% reduction for all staff earning over 30k. Guidance withdrawn
  • Valuation NAV £39.3m. Mkt Cap £263m

Ince Group

Share Price 25.5p

Mkt Cap £17.5m

Conflict Disclosure: No Holding

  • News The board has concluded that the pandemic is having a significant effect on the UK business. Cancels dividend and withdraws guidance.
  • Valuation The £31m NAV will have increased by £14m for the February placing at 45p/share. Intangibles of £53m make NTAV modestly negative.

Lenders

Non Standard Finance  

Share Price 14p

Mkt Cap £44m

Conflict Disclosure: No Holding

  • News The company is significantly reducing lending volumes. Branch based and guarantor loan collections are already remote. Home collected agents are no longer visiting homes and are encouraging customers to use other options online and over the phone. Guidance withdrawn. Dividend withdrawn.
  • Valuation NAV 54m, NTAV 25.5m.

Arbuthnot Banking Group – FY Results

Share Price 747p

Mkt Cap £111m

Conflict Disclosure: I Hold

  • Results PBT £7m  (2018-£6.8m). Underlying EPS 32.8p. DPS 37p, with a 5% increase in the final dividend.  Net assets £208m, which is 1364p/share. NTAV £188m or 1, 232p/share. No detailed guidance and the company says it is well positioned to take advantage of opportunities as we emerge from lock down.
  • Valuation Net assets £208m, which is 1364p/share. NTAV £188m or 1, 232p/share.

jeremy@charltonillingworth.co.uk