Palace Capital (PCA) AI Stock Analysis

• Market Cap: £42.07M
• Dividend Yield: 7.14%
• Average Volume (3M): 49.56K
• Price to Earnings (P/E): 22.6
• Beta (1Y): 0.37
• Revenue Growth: -41.22%
• EPS Growth: N/A
• Country: UK
• Employees: 8
• Sector: Real Estate
• Sector Strength: 53
• Industry: REIT - Diversified
• EPS (TTM): 0.04
• Shares Outstanding: 20,224,775
• 10 Day Avg. Volume: 40,225
• 30 Day Avg. Volume: 49,557
• PEG Ratio: -0.40
• Price to Book (P/B): 0.92
• Price to Sales (P/S): 5.06
• P/FCF Ratio: 9.74
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 66 Neutral
• Price Target: 226.00p ▲(7.62% Upside)

The score is primarily supported by improved financial stability (debt eliminated) and strong recent cash generation, plus shareholder-return-focused corporate actions. Offsetting factors include multi-year revenue decline and volatility in results, with only modest technical momentum and a valuation that is helped by the yield but limited by a mid-to-high P/E.

Positive Factors

Strategic Property Disposals

The strategic property disposals have strengthened the company's financial position by exceeding valuations and eliminating debt, allowing for a cash reserve of £32.1 million. This enhances financial flexibility and supports future growth initiatives.

Debt-Free Status

Becoming debt-free significantly improves Palace Capital's balance sheet health, reducing financial risk and interest expenses, thus providing a stable foundation for long-term operations and strategic investments.

Dividend Commitment

The consistent dividend payments reflect Palace Capital's commitment to shareholder returns, enhancing investor confidence and potentially attracting income-focused investors, which supports stock stability and market perception.

Negative Factors

Revenue Volatility

Revenue volatility poses a challenge to predictability and stability in financial performance, potentially impacting long-term strategic planning and investor confidence.

Negative Cash Flow

Negative cash flow indicates potential liquidity issues, limiting the company's ability to reinvest in growth opportunities and manage operational expenses, which could hinder long-term sustainability.

Net Losses

Persistent net losses undermine profitability and can erode shareholder value over time, challenging the company's ability to fund operations and growth without external financing.

Palace Capital Business Overview & Revenue Model

Company Description

Palace Capital plc is a real estate investment firm specializing in investment in entities operating in the property sector. It seeks to invest in United Kingdom. Palace Capital plc is based in London, the United Kingdom.

How the Company Makes Money

Palace Capital makes money primarily through the rental income generated from its commercial property portfolio. The company strategically acquires properties with strong potential for value enhancement and income growth. Revenue is also generated from property sales when assets are disposed of at a profit, often after a period of asset management and improvement. Palace Capital may engage in partnerships or joint ventures to amplify its investment capabilities and leverage opportunities within the market, contributing further to its earnings.

Palace Capital Financial Statement Overview

Summary

Palace Capital is struggling with revenue volatility, net losses, and negative margins. While the balance sheet shows a strong equity base, the declining asset trend and cash flow management issues pose significant challenges.

Income Statement

Palace Capital's revenue has shown significant volatility, with a recent decline from 2023 to 2024. Gross profit margin has decreased from 47.9% in 2023 to 50.1% in 2024. The company has faced consistent net losses over the years, with a notable net loss in 2024. EBITDA margin is negative, indicating potential operational challenges.

Balance Sheet

The company's debt-to-equity ratio improved significantly due to reduced debt levels. Stockholders' equity remains strong, although it has decreased over the years. The equity ratio remains robust, indicating a solid asset base relative to liabilities. However, a declining asset base over the years is a concern.

Cash Flow

Operating cash flow has drastically decreased, with a negative free cash flow in the most recent period, indicating cash management challenges. The company has shown inconsistent free cash flow growth, highlighting potential volatility in financial operations.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	9.17M	13.24M	19.60M	32.97M	49.06M	17.32M
Gross Profit	0.00	5.38M	9.82M	15.83M	18.66M	15.82M
EBITDA	-182.00K	1.53M	-7.52M	-32.02M	27.56M	-2.33M
Net Income	2.64M	1.42M	-9.36M	-35.70M	24.55M	-5.53M
Balance Sheet
Total Assets	52.19M	77.02M	110.75M	201.77M	288.62M	301.24M
Cash, Cash Equivalents and Short-Term Investments	4.64M	22.22M	19.77M	5.51M	28.14M	9.42M
Total Debt	0.00	0.00	8.29M	64.88M	102.31M	129.24M
Total Liabilities	2.77M	4.52M	12.98M	73.30M	111.42M	143.41M
Stockholders Equity	49.42M	72.50M	97.77M	128.47M	177.20M	157.83M
Cash Flow
Free Cash Flow	3.44M	6.88M	-443.00K	13.07M	26.14M	-14.68M
Operating Cash Flow	-701.00K	7.05M	1.10M	14.45M	32.68M	6.54M
Investing Cash Flow	17.74M	30.46M	90.67M	14.03M	18.04M	-14.84M
Financing Cash Flow	-33.69M	-35.06M	-77.52M	-51.12M	-32.00M	3.82M

Palace Capital Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 210.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:PCA, the sentiment is Positive. The current price of 210 is above the 20-day moving average (MA) of 203.05, above the 50-day MA of 203.71, and above the 200-day MA of 209.77, indicating a neutral trend. The MACD of 1.06 indicates Negative momentum. The RSI at 52.85 is Neutral, neither overbought nor oversold. The STOCH value of 71.93 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:PCA.

Palace Capital Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AIRE	73 Outperform	£61.18M	8.43	10.96%	8.23%	8.48%	207.85%
AEWU	71 Outperform	£170.73M	13.38	7.37%	7.43%	-10.95%	-30.09%
PCA	66 Neutral	£42.07M	22.63	4.34%	7.14%	-41.22%	―
SREI	66 Neutral	£274.88M	―	―	6.64%	―	―
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
RLE	54 Neutral	£56.83M	49.24	1.28%	5.02%	-9.28%	―
TOWN	46 Neutral	£51.98M	-15.08	-2.97%	3.94%	16.08%	56.94%

Palace Capital Corporate Events

Palace Capital Board to Consider Lakestreet’s Proposal to Shake Up Directors

Palace Capital has acknowledged an announcement from shareholder Lakestreet Capital Partners AG, which has proposed appointing two new directors to the company’s board and removing Executive Chairman Steven Owen as a director. The current board, comprising Owen and Senior Independent Director Mark Davies, has said it will consider Lakestreet’s proposals and issue further updates in due course, signalling a potential governance reshuffle that could influence the company’s strategic direction and leadership stability.

The most recent analyst rating on (GB:PCA) stock is a Hold with a £226.00 price target. To see the full list of analyst forecasts on Palace Capital stock, see the GB:PCA Stock Forecast page.

Palace Capital Declares Quarterly Dividend

Palace Capital PLC has announced a quarterly dividend of 3.75 pence per ordinary share for the three months ended 30 September 2025. This dividend, classified as a Property Income Distribution, will be paid on 30 January 2026 to shareholders registered by 19 December 2025. The announcement reflects the company’s commitment to providing returns to its shareholders and may influence its market positioning as a reliable income-generating investment option.

Palace Capital Advances Shareholder Returns with Strategic Asset Disposals

Palace Capital PLC has reported its interim results for the six months ending September 30, 2025, highlighting its continued strategy of capital return to shareholders. The company successfully sold its HQ Office in York for £10 million and conducted an oversubscribed tender offer returning £20.8 million to shareholders. Since announcing its updated strategy in July 2022, Palace Capital has sold over £160 million in assets, repaid all bank debt, and returned more than £64 million to shareholders. The company remains debt-free with an unencumbered portfolio, allowing flexibility in its disposal program. The financial results reflect a decrease in adjusted profit before tax to £1.1 million due to reduced income from disposals, while the IFRS profit before tax improved to £0.3 million. The company plans further asset sales and anticipates another tender offer in early 2026, indicating ongoing shareholder returns.