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Morses Club

AIM:MCL
Snowflake Description

Very undervalued with high growth potential and pays a dividend.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
MCL
AIM
£53M
Market Cap
  1. Home
  2. GB
  3. Diversified Financials
Company description

Morses Club PLC, together with its subsidiaries, provides home collected credit services in the United Kingdom. The last earnings update was 171 days ago. More info.


Add to Portfolio Compare Print
  • Morses Club has significant price volatility in the past 3 months.
MCL Share Price and Events
7 Day Returns
-21.2%
AIM:MCL
6.7%
GB Consumer Finance
6%
GB Market
1 Year Returns
-76.6%
AIM:MCL
-68.6%
GB Consumer Finance
-22.7%
GB Market
MCL Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Morses Club (MCL) -21.2% -62.8% -70.2% -76.6% -64.9% -
GB Consumer Finance 6.7% -47.9% -52.1% -68.6% -84.5% -85.2%
GB Market 6% -20.3% -28.1% -22.7% -24.6% -22%
1 Year Return vs Industry and Market
  • MCL underperformed the Consumer Finance industry which returned -68.6% over the past year.
  • MCL underperformed the Market in United Kingdom of Great Britain and Northern Ireland which returned -22.7% over the past year.
Price Volatility
MCL
Industry
5yr Volatility vs Market

MCL Value

 Is Morses Club undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Morses Club to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Morses Club.

AIM:MCL Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model Excess Returns Model
Stable EPS Median Return on Equity from the past 5 years.
= Stable Book Value * Return on Equity
= £0.51 * 20.1%
£0.10
Book Value of Equity per Share Median Book Value from the past 5 years. £0.51
Discount Rate (Cost of Equity) See below 5.9%
Perpetual Growth Rate 10-Year GB Government Bond Rate 0.5%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for AIM:MCL
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year GB Govt Bond Rate 0.5%
Equity Risk Premium S&P Global 6.1%
Consumer Finance Unlevered Beta Simply Wall St/ S&P Global 0.59
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.587 (1 + (1- 19%) (49.71%))
0.882
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.88
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 0.53% + (0.882 * 6.07%)
5.88%

Discounted Cash Flow Calculation for AIM:MCL using Excess Returns Model Model

The calculations below outline how an intrinsic value for Morses Club is arrived at using the Excess Return Model. This approach is used for finance firms where free cash flow is difficult to estimate.

In the Excess Return Model the value of a firm can be written as the sum of capital invested currently in the firm and the present value of excess returns that the firm expects to make in the future.

The model is sensitive to the Return on Equity of the company versus the Cost of Equity, how these are calculated is detailed below the main calculation.

Note the calculations below are per share.

See our documentation to learn about this calculation.

AIM:MCL Value of Excess Returns
Calculation Result
Excess Returns = (Stable Return on equity – Cost of equity) (Book Value of Equity per share)
= (20.1% – 5.88%) * £0.51)
£0.07
Terminal Value of Excess Returns = Excess Returns / (Cost of Equity - Expected Growth Rate)
= £0.07 / (5.88% - 0.53%)
£1.35
Value of Equity = Book Value per share + Terminal Value of Excess Returns
= £0.51 + £1.35
£1.86
AIM:MCL Discount to Share Price
Calculation Result
Value per share (GBP) From above. £1.86
Current discount Discount to share price of £0.40
= -1 x (£0.40 - £1.86) / £1.86
78.4%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Morses Club is available for.
Intrinsic value
>50%
Share price is £0.4 vs Future cash flow value of £1.86
Current Discount Checks
For Morses Club to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Morses Club's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • Morses Club's share price is below the future cash flow value, and at a substantial discount (> 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Morses Club's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Morses Club's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
AIM:MCL PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-08-31) in GBP £0.10
AIM:MCL Share Price ** AIM (2020-03-27) in GBP £0.4
United Kingdom of Great Britain and Northern Ireland Consumer Finance Industry PE Ratio Median Figure of 13 Publicly-Listed Consumer Finance Companies 5.84x
United Kingdom of Great Britain and Northern Ireland Market PE Ratio Median Figure of 747 Publicly-Listed Companies 12.54x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Morses Club.

AIM:MCL PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= AIM:MCL Share Price ÷ EPS (both in GBP)

= 0.4 ÷ 0.10

3.88x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Morses Club is good value based on earnings compared to the GB Consumer Finance industry average.
  • Morses Club is good value based on earnings compared to the United Kingdom of Great Britain and Northern Ireland market.
Price based on expected Growth
Does Morses Club's expected growth come at a high price?
Raw Data
AIM:MCL PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 3.88x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 6 Analysts
27%per year
United Kingdom of Great Britain and Northern Ireland Consumer Finance Industry PEG Ratio Median Figure of 11 Publicly-Listed Consumer Finance Companies 0.41x
United Kingdom of Great Britain and Northern Ireland Market PEG Ratio Median Figure of 531 Publicly-Listed Companies 0.98x

*Line of best fit is calculated by linear regression .

AIM:MCL PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 3.88x ÷ 27%

0.14x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Morses Club is good value based on expected growth next year.
Price based on value of assets
What value do investors place on Morses Club's assets?
Raw Data
AIM:MCL PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-08-31) in GBP £0.54
AIM:MCL Share Price * AIM (2020-03-27) in GBP £0.4
United Kingdom of Great Britain and Northern Ireland Consumer Finance Industry PB Ratio Median Figure of 16 Publicly-Listed Consumer Finance Companies 0.75x
United Kingdom of Great Britain and Northern Ireland Market PB Ratio Median Figure of 1,322 Publicly-Listed Companies 1.08x
AIM:MCL PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= AIM:MCL Share Price ÷ Book Value per Share (both in GBP)

= 0.4 ÷ 0.54

0.75x

* Primary Listing of Morses Club.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Morses Club is good value based on assets compared to the GB Consumer Finance industry average.
X
Value checks
We assess Morses Club's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Consumer Finance industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Consumer Finance industry average (and greater than 0)? (1 check)
  5. Morses Club has a total score of 6/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

MCL Future Performance

 How is Morses Club expected to perform in the next 1 to 3 years based on estimates from 6 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
27%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Morses Club expected to grow at an attractive rate?
  • Morses Club's earnings growth is expected to exceed the low risk savings rate of 0.5%.
Growth vs Market Checks
  • Morses Club's earnings growth is expected to exceed the United Kingdom of Great Britain and Northern Ireland market average.
  • Morses Club's revenue growth is expected to exceed the United Kingdom of Great Britain and Northern Ireland market average.
Annual Growth Rates Comparison
Raw Data
AIM:MCL Future Growth Rates Data Sources
Data Point Source Value (per year)
AIM:MCL Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 6 Analysts 27%
AIM:MCL Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 6 Analysts 9%
United Kingdom of Great Britain and Northern Ireland Consumer Finance Industry Earnings Growth Rate Market Cap Weighted Average 18.5%
United Kingdom of Great Britain and Northern Ireland Consumer Finance Industry Revenue Growth Rate Market Cap Weighted Average 12.1%
United Kingdom of Great Britain and Northern Ireland Market Earnings Growth Rate Market Cap Weighted Average 15.4%
United Kingdom of Great Britain and Northern Ireland Market Revenue Growth Rate Market Cap Weighted Average 2.6%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
AIM:MCL Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (6 months ago) See Below
Future Estimates Average of up to 6 Analyst Estimates (S&P Global) See Below
All numbers in GBP Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
AIM:MCL Future Estimates Data
Date (Data in GBP Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2022-02-28 162 25 23 5
2021-02-28 151 18 20 6
2020-03-29
2020-02-29 138 22 13 6
AIM:MCL Past Financials Data
Date (Data in GBP Millions) Revenue Cash Flow Net Income *
2019-08-31 123 25 13
2019-05-31 119 23 15
2019-02-23 115 20 16
2018-11-23 117 19 16
2018-08-25 118 17 16
2018-05-25 117 12 15
2018-02-24 115 7 13
2017-11-24 110 7 12
2017-08-26 106 6 10
2017-05-26 102 8 9
2017-02-25 99 10 9
2016-11-25 96 30 8

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Morses Club's earnings are expected to grow significantly at over 20% yearly.
  • Morses Club's revenue is expected to grow by 9% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
AIM:MCL Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (6 months ago) See Below
Future Estimates Average of up to 6 Analyst Estimates (S&P Global) See Below

All data from Morses Club Company Filings, last reported 6 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

AIM:MCL Future Estimates Data
Date (Data in GBP Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2022-02-28 0.18 0.19 0.16 3.00
2021-02-28 0.15 0.16 0.14 4.00
2020-03-29
2020-02-29 0.10 0.10 0.10 4.00
AIM:MCL Past Financials Data
Date (Data in GBP Millions) EPS *
2019-08-31 0.10
2019-05-31 0.11
2019-02-23 0.12
2018-11-23 0.12
2018-08-25 0.12
2018-05-25 0.11
2018-02-24 0.10
2017-11-24 0.09
2017-08-26 0.08
2017-05-26 0.07
2017-02-25 0.07
2016-11-25 0.06

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Morses Club is expected to efficiently use shareholders’ funds in the future (Return on Equity greater than 20%).
X
Future performance checks
We assess Morses Club's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United Kingdom of Great Britain and Northern Ireland market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United Kingdom of Great Britain and Northern Ireland market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Morses Club has a total score of 5/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

MCL Past Performance

  How has Morses Club performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Morses Club's growth in the last year to its industry (Consumer Finance).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Morses Club's year on year earnings growth rate was negative over the past 5 years and the most recent earnings are below average.
  • Morses Club's 1-year earnings growth is negative, it can't be compared to the 5-year average.
  • Morses Club's 1-year earnings growth is negative, it can't be compared to the GB Consumer Finance industry average.
Earnings and Revenue History
Morses Club's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Morses Club Company Filings, last reported 6 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

AIM:MCL Past Revenue, Cash Flow and Net Income Data
Date (Data in GBP Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-08-31 123.37 13.47 47.03
2019-05-31 119.31 14.82 42.89
2019-02-23 115.26 16.18 38.75
2018-11-23 116.67 16.14 39.20
2018-08-25 118.08 16.10 39.65
2018-05-25 116.60 14.60 38.64
2018-02-24 115.12 13.09 37.64
2017-11-24 110.37 11.65 36.31
2017-08-26 105.61 10.22 34.98
2017-05-26 102.13 9.41 34.64
2017-02-25 98.65 8.60 34.30
2016-11-25 95.86 7.57 34.23
2016-08-27 93.06 6.54 34.16
2016-05-27 91.49 7.23 34.19
2016-02-27 89.92 7.92 34.22
2015-02-28 89.86 58.94 33.61
2014-02-22 21.09 2.73 7.32

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Morses Club has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Morses Club used its assets more efficiently than the GB Consumer Finance industry average last year based on Return on Assets.
  • Unable to establish if Morses Club improved its use of capital last year versus 3 years ago (Return on Capital Employed) due to insufficient past data.
X
Past performance checks
We assess Morses Club's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Consumer Finance industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Morses Club has a total score of 1/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

MCL Health

 How is Morses Club's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Morses Club's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Morses Club is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Morses Club's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Morses Club's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • Debt is covered by short term assets, assets are 3.7x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Morses Club Company Filings, last reported 6 months ago.

AIM:MCL Past Debt and Equity Data
Date (Data in GBP Millions) Total Equity Total Debt Cash & Short Term Investments
2019-08-31 70.34 22.71 7.47
2019-05-31 70.34 22.71 7.47
2019-02-23 70.98 14.08 7.89
2018-11-23 70.98 14.08 7.89
2018-08-25 65.89 11.68 5.81
2018-05-25 65.89 11.68 5.81
2018-02-24 66.52 15.55 4.87
2017-11-24 66.52 15.55 4.87
2017-08-26 60.98 16.43 7.07
2017-05-26 60.98 16.43 7.07
2017-02-25 61.38 10.00 3.99
2016-11-25 61.38 10.00 3.99
2016-08-27 58.90 8.50 5.74
2016-05-27 58.90 8.50 5.74
2016-02-27 55.37 9.00 3.76
2015-02-28 96.08 0.00 8.65
2014-02-22 21.15 0.00 1.25
  • Morses Club's level of debt (32.3%) compared to net worth is satisfactory (less than 40%).
  • Unable to establish if Morses Club's debt level has increased without past 5-year debt data.
  • Debt is well covered by operating cash flow (111.1%, greater than 20% of total debt).
  • Unable to confirm if the interest payments on Morses Club's debt are well covered by earnings due to lack of past financial data.
X
Financial health checks
We assess Morses Club's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Morses Club has a total score of 4/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

MCL Dividends

 What is Morses Club's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
19.4%
Current annual income from Morses Club dividends. Estimated to be 23.44% next year.
If you bought £2,000 of Morses Club shares you are expected to receive £388 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Morses Club's pays a higher dividend yield than the bottom 25% of dividend payers in United Kingdom of Great Britain and Northern Ireland (2.7%).
  • Morses Club's dividend is above the markets top 25% of dividend payers in United Kingdom of Great Britain and Northern Ireland (7.3%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
AIM:MCL Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 6 Analyst Estimates (S&P Global) See Below
United Kingdom of Great Britain and Northern Ireland Consumer Finance Industry Average Dividend Yield Market Cap Weighted Average of 11 Stocks 13.7%
United Kingdom of Great Britain and Northern Ireland Market Average Dividend Yield Market Cap Weighted Average of 630 Stocks 6%
United Kingdom of Great Britain and Northern Ireland Minimum Threshold Dividend Yield 10th Percentile 1.4%
United Kingdom of Great Britain and Northern Ireland Bottom 25% Dividend Yield 25th Percentile 2.7%
United Kingdom of Great Britain and Northern Ireland Top 25% Dividend Yield 75th Percentile 7.3%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

AIM:MCL Future Dividends Estimate Data
Date (Data in £) Dividend per Share (annual) Avg. No. Analysts
2022-02-28 0.10 5.00
2021-02-28 0.09 6.00
2020-03-29
2020-02-29 0.07 6.00
AIM:MCL Past Annualized Dividends Data
Date (Data in £) Dividend per share (annual) Avg. Yield (%)
2019-05-28 0.078 6.749
2019-05-02 0.078 4.799
2018-05-24 0.070 4.565
2018-04-26 0.070 4.661
2017-05-19 0.064 4.856
2017-04-27 0.064 4.786
2016-10-06 0.000 0.000

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Whilst dividend payments have been stable, Morses Club has been paying a dividend for less than 10 years.
  • Dividend payments have increased, but Morses Club only paid a dividend in the past 3 years.
Current Payout to shareholders
What portion of Morses Club's earnings are paid to the shareholders as a dividend.
  • Dividends paid are covered by earnings (1.3x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be covered by earnings (1.7x coverage).
X
Income/ dividend checks
We assess Morses Club's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.4%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Morses Club afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Morses Club has a total score of 4/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

MCL Management

 What is the CEO of Morses Club's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Paul Smith
COMPENSATION £708,810
AGE 52
CEO Bio

Mr. Paul Mark Smith serves as Chief Executive Officer of Morses Club Plc. Mr. Smith joined Morses Club in October 2014. He has been responsible for growing Morses Club by acquisition and organically. He has experience in mobile payment technology as Managing Director of E.Z. Pay Limited, a prepaid MasterCard organisation, from 2009 to 2012 prior to its sale to BC Partners. He started his career in the global software market before joining Phones 4U Group in 1998, where he became Managing Director and was an integral part of the management team until its sale for £1.4 billion in 2006. He has been a Director of Morses Club Plc since January 20, 2015.

CEO Compensation
  • Paul's compensation has increased by more than 20% in the past year whilst earnings fell less than 20%.
  • Paul's remuneration is higher than average for companies of similar size in United Kingdom of Great Britain and Northern Ireland.
Management Team

Paul Smith

TITLE
CEO & Director
COMPENSATION
£709K
AGE
52

Andy Thomson

TITLE
Interim Chief Financial Officer
COMPENSATION
£520K
AGE
57

Les Easson

TITLE
Director

Ian Cooper

TITLE
Risk & Compliance Director

Tracey Mulligan

TITLE
Human Resources & Communications Director
TENURE
4.8 yrs

Dave Belmont

TITLE
Company Secretary
AGE
60

Myron Burlak

TITLE
Finance Director
Board of Directors Tenure

Average tenure and age of the Morses Club board of directors in years:

3.5
Average Tenure
55
Average Age
  • The tenure for the Morses Club board of directors is about average.
Board of Directors

Stephen Karle

TITLE
Independent Non-Executive Chairman
COMPENSATION
£122K
AGE
60

Paul Smith

TITLE
CEO & Director
COMPENSATION
£709K
AGE
52
TENURE
5.2 yrs

Les Easson

TITLE
Director
TENURE
0.5 yrs

Joanne Lake

TITLE
Independent Non-Executive Director
COMPENSATION
£58K
AGE
55
TENURE
3.9 yrs

Baroness Finn

TITLE
Independent Non-Executive Director
AGE
51
TENURE
0.8 yrs

Nigel Knowles

TITLE
Senior Independent Non-Executive Director
COMPENSATION
£57K
AGE
62
TENURE
3 yrs

Peter Ward

TITLE
Non-Executive Director
COMPENSATION
£51K
AGE
59
TENURE
5 yrs

Andy Hayward

TITLE
Executive Director
AGE
40
Who owns this company?
Recent Insider Trading
  • No 3 month open market individual insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (£) Value (£)
29. Aug 19 Sell Peter Ward Individual 29. Aug 19 29. Aug 19 -200,000 £1.27 £-253,750
29. Aug 19 Buy Peter Ward Individual 29. Aug 19 29. Aug 19 200,000 £1.27 £254,250
X
Management checks
We assess Morses Club's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Morses Club has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

MCL News

Simply Wall St News

The Non-Executive Director of Morses Club PLC (LON:MCL), Peter Ward, Just Bought 100% More Shares

View our latest analysis for Morses Club Morses Club Insider Transactions Over The Last Year In fact, the recent purchase by Peter Ward was the biggest purchase of Morses Club shares made by an insider individual in the last twelve months, according to our records. … AIM:MCL Recent Insider Trading, September 1st 2019 Insider Ownership of Morses Club Many investors like to check how much of a company is owned by insiders. … Our data indicates that Morses Club insiders own about UK£5.2m worth of shares (which is 3.1% of the company).

Simply Wall St -

Morses Club PLC (LON:MCL): What Are The Future Prospects?

Based on Morses Club PLC's (LON:MCL) earnings update in February 2019, analysts seem cautiously optimistic, as a 2.2% increase in profits is expected in the upcoming year, compared with the past 5-year average growth rate of -8.6%. … View our latest analysis for Morses Club What can we expect from Morses Club in the longer term? … To get an idea of the overall earnings growth trend for MCL, I’ve plotted out each year’s earnings expectations and inserted a line of best fit to determine an annual rate of growth from the slope of this line.

Simply Wall St -

What Type Of Shareholder Owns Morses Club PLC's (LON:MCL)?

Check out our latest analysis for Morses Club AIM:MCL Ownership Summary, August 8th 2019 What Does The Institutional Ownership Tell Us About Morses Club? … We can see that Morses Club does have institutional investors; and they hold 46% of the stock. … Private Company Ownership We can see that Private Companies own 37%, of the shares on issue.

Simply Wall St -

Is Morses Club PLC's (LON:MCL) CEO Paid Enough Relative To Peers?

Check out our latest analysis for Morses Club How Does Paul Smith's Compensation Compare With Similar Sized Companies? … We examined the amount Morses Club PLC pays its CEO, and compared it to the amount paid by similar sized companies. … CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Morses Club (free visualization of insider trades).

Simply Wall St -

Does Morses Club PLC's (LON:MCL) P/E Ratio Signal A Buying Opportunity?

Looking at earnings over the last twelve months, Morses Club has a P/E ratio of 10.97. … The formula for P/E is: Price to Earnings Ratio = Share Price ÷ Earnings per Share (EPS) Or for Morses Club: P/E of 10.97 = £1.37 ÷ £0.12 (Based on the year to February 2019.) Is A High Price-to-Earnings Ratio Good? … All else being equal, it's better to pay a low price -- but as Warren Buffett said, 'It's far better to buy a wonderful company at a fair price than a fair company at a wonderful price.' How Does Morses Club's P/E Ratio Compare To Its Peers?

Simply Wall St -

Is Morses Club PLC (LON:MCL) A Smart Choice For Dividend Investors?

Morses Club has been growing its dividend quite rapidly, which is exciting. … Strong earnings per share (EPS) growth might encourage our interest in the company despite fluctuating dividends, which is why it's great to see Morses Club has grown its earnings per share at 23% per annum over the past five years. With recent, rapid earnings per share growth and a payout ratio of 62%, this business looks like an interesting prospect if earnings are reinvested effectively. Conclusion Dividend investors should always want to know if a) a company's dividends are affordable, b) if there is a track record of consistent payments, and c) if the dividend is capable of growing. … Companies that are growing earnings tend to be the best dividend stocks over the long term.

Simply Wall St -

Is It Too Late To Buy Morses Club PLC (LON:MCL) At Its June Price?

This tells us the stock is undervalued relative to the current GB market average of 16.24x , and overvalued based on current earnings compared to the Consumer Finance industry average of 11.56x. … However, to be able to properly assess the value of a high-growth stock such as Morses Club, we must incorporate its earnings growth in our valuation. … This tells us that when we include its growth in our analysis Morses Club's stock can be considered slightly overvalued , based on its fundamentals.

Simply Wall St -

Morses Club (LON:MCL) Shareholders Booked A 52% Gain In The Last Three Years

It hasn't been the best quarter for Morses Club PLC (LON:MCL) shareholders, since the share price has fallen 12% in that time. … Morses Club was able to grow its EPS at 27% per year over three years, sending the share price higher. … So for companies that pay a generous dividend, the TSR is often a lot higher than the share price return.

Simply Wall St -

Morses Club PLC (LON:MCL): Will The Growth Last?

Morses Club PLC's (LON:MCL) announced its latest earnings update in February 2019, which confirmed that the business benefited from a robust tailwind, leading to a double-digit earnings growth of 24%. … Below is my commentary, albeit very simple and high-level, on how market analysts view Morses Club's earnings growth outlook over the next few years and whether the future looks even brighter than the past. … Check out our latest analysis for Morses Club Analysts' expectations for next year seems rather subdued, with earnings expanding by a single digit 7.1%.

Simply Wall St -

An Examination Of Morses Club PLC (LON:MCL)

Want to participate in a short research study? … Help shape the future of investing tools and you could win a $250 gift card! … In the case of Morses Club PLC (LON:MCL), there's

Simply Wall St -

MCL Company Info

Description

Morses Club PLC, together with its subsidiaries, provides home collected credit services in the United Kingdom. It offers small cash loans between £100 and £1000. The company offers consumer credit through a network of 95 branches and approximately 2,050 self-employed agents, as well as online channels. Morses Club PLC was incorporated in 2009 and is headquartered in Batley, the United Kingdom.

Details
Name: Morses Club PLC
MCL
Exchange: AIM
Founded: 2009
£52,760,266
131,244,444
Website: http://www.morsesclubplc.com
Address: Morses Club PLC
Kingston House,
Centre 27 Business Park,
Batley,
West Yorkshire, WF17 9TD,
United Kingdom
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
AIM MCL Ordinary Shares London Stock Exchange AIM Market GB GBP 05. May 2016
Number of employees
Current staff
Staff numbers
547
Morses Club employees.
Industry
Consumer Finance
Diversified Financials
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2020/03/29 23:22
End of day share price update: 2020/03/27 00:00
Last estimates confirmation: 2020/03/13
Last earnings filing: 2019/10/10
Last earnings reported: 2019/08/31
Last annual earnings reported: 2019/02/23


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.