Shaftesbury Capital (SHC) AI Stock Analysis

• Market Cap: £2.64B
• Dividend Yield: 2.73%
• Average Volume (3M): 3.46M
• Price to Earnings (P/E): 8.0
• Beta (1Y): 1.04
• Revenue Growth: -0.04%
• EPS Growth: 655.16%
• Country: UK
• Employees: 101
• Sector: Real Estate
• Sector Strength: 53
• Industry: REIT - Retail
• EPS (TTM): 0.02
• Shares Outstanding: 1,953,178,100
• 10 Day Avg. Volume: 2,970,710
• 30 Day Avg. Volume: 3,462,654
• PEG Ratio: -0.13
• Price to Book (P/B): 0.62
• Price to Sales (P/S): 10.07
• P/FCF Ratio: 46.28
• 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: £188.75
• Price Target Upside: 32.18% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 68 Neutral
• Price Target: 154.00p ▲(7.84% Upside)

Shaftesbury Capital's overall stock score is driven by its strong financial performance and favorable valuation metrics. The company's strategic growth initiatives and robust leasing activity further bolster its outlook. However, mixed technical indicators suggest caution in the short term.

Positive Factors

Strong Profitability Metrics

High profitability margins indicate efficient cost management and strong pricing power, which can sustain long-term financial health and shareholder value.

Robust Balance Sheet

A strong balance sheet with manageable debt levels provides financial stability and flexibility to pursue growth opportunities and withstand economic downturns.

Positive Cash Flow Improvements

Improved cash flow enhances the company's ability to invest in property development and refurbishment projects, supporting long-term revenue growth and asset value appreciation.

Negative Factors

Revenue Decline

Declining revenue growth may signal challenges in maintaining tenant demand or rental rates, potentially impacting long-term income stability and asset utilization.

Operational Volatility

Fluctuating operational margins suggest potential instability in core operations, which could affect consistent profitability and predictability of earnings.

Cash Generation Alignment

Misalignment between cash generation and net income may indicate inefficiencies in converting accounting profits into cash, affecting liquidity and investment capacity.

Shaftesbury Capital Business Overview & Revenue Model

Company Description

Shaftesbury Capital (SHC) is a real estate investment trust (REIT) focused on the ownership and management of retail and leisure properties primarily in London's West End. The company specializes in high-quality, mixed-use assets that include shops, restaurants, and entertainment venues, catering to both local and international consumers. With a strategic approach to property development and tenant management, Shaftesbury Capital aims to enhance the value of its portfolio through active asset management and urban regeneration initiatives.

How the Company Makes Money

Shaftesbury Capital generates revenue primarily through rental income from its extensive portfolio of properties. The company leases space to a diverse range of tenants, including restaurants, shops, and leisure facilities, which provides a steady stream of rental income. Additionally, SHC benefits from property appreciation and value enhancement through strategic renovations and repositioning of its assets. The company may also engage in joint ventures or partnerships with other real estate firms and developers to expand its portfolio or undertake significant development projects, which can further contribute to its earnings. Furthermore, the firm may realize gains through the sale of properties that have appreciated in value, adding to its overall revenue.

Shaftesbury Capital Financial Statement Overview

Summary

Shaftesbury Capital exhibits a positive financial outlook with substantial revenue growth and strong profitability metrics. The balance sheet is robust, characterized by a healthy equity position and manageable debt levels. Cash flow improvements are evident, though aligning cash generation more closely with net income would enhance financial health further. The company shows promise but should focus on maintaining consistent operational performance.

Income Statement

Shaftesbury Capital has shown strong revenue growth with a significant increase from the previous year, indicating a positive trajectory. The gross profit margin is healthy at approximately 73.6%, and the net profit margin for the latest year is notable at 111.0%, reflecting profitability. However, the EBIT margin shows fluctuations, and the EBITDA margin is exceptionally high, possibly due to non-recurring items, suggesting some operational volatility.

Balance Sheet

The company's balance sheet is solid, with a debt-to-equity ratio of 0.40, indicating a reasonable level of leverage. The equity ratio is strong at 70.2%, reflecting financial stability. Return on Equity (ROE) stands at 6.9%, which is moderate but shows the company is generating returns on its investments in equity.

Cash Flow

Shaftesbury Capital's cash flow position shows improvement, with a significant turnaround to positive free cash flow. The operating cash flow to net income ratio is less than optimal, suggesting room for improvement in cash generation relative to accounting profits. The free cash flow to net income ratio indicates that while the company is generating free cash flow, it is not fully aligned with net income levels.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	230.40M	227.10M	198.00M	87.60M	75.30M	72.90M
Gross Profit	173.80M	167.10M	141.90M	70.90M	42.80M	13.40M
EBITDA	124.80M	324.70M	818.60M	-175.30M	73.40M	28.30M
Net Income	317.60M	252.10M	750.40M	-211.80M	34.80M	-703.70M
Balance Sheet
Total Assets	5.89B	5.23B	5.22B	2.35B	2.80B	2.91B
Cash, Cash Equivalents and Short-Term Investments	602.70M	109.80M	208.50M	129.90M	331.10M	365.10M
Total Debt	1.41B	1.47B	1.63B	744.40M	941.00M	1.08B
Total Liabilities	1.50B	1.56B	1.74B	789.60M	1.01B	1.15B
Stockholders Equity	3.80B	3.67B	3.48B	1.56B	1.79B	1.76B
Cash Flow
Free Cash Flow	203.80M	49.40M	-17.00M	-4.10M	-8.80M	-78.70M
Operating Cash Flow	102.70M	51.70M	-13.60M	7.00M	-900.00K	-54.80M
Investing Cash Flow	582.20M	103.20M	155.80M	7.10M	101.00M	-250.50M
Financing Cash Flow	-226.10M	-231.10M	-71.90M	-215.30M	-147.60M	517.30M

Shaftesbury Capital Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 142.80
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:SHC, the sentiment is Negative. The current price of 142.8 is above the 20-day moving average (MA) of 140.30, above the 50-day MA of 141.98, and above the 200-day MA of 139.90, indicating a bearish trend. The MACD of -1.44 indicates Positive momentum. The RSI at 33.31 is Neutral, neither overbought nor oversold. The STOCH value of <0.01 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GB:SHC.

Shaftesbury Capital Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SAFE	83 Outperform	£1.49B	5.06	13.69%	4.45%	1.66%	11.42%
LAND	73 Outperform	£4.31B	17.34	3.85%	6.60%	10.69%	135.58%
SHC	68 Neutral	£2.64B	8.05	8.66%	2.73%	-0.04%	655.16%
BYG	68 Neutral	£1.97B	15.08	4.95%	4.61%	1.81%	-51.09%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
GPE	64 Neutral	£1.23B	8.47	7.31%	2.59%	12.73%	―
BOOT	63 Neutral	£302.33M	11.63	6.37%	2.93%	22.07%	130.06%

Shaftesbury Capital Corporate Events

Shaftesbury Capital Reports Strong Leasing Activity and Strategic Growth

Shaftesbury Capital PLC reported strong performance in its latest trading update, highlighting high occupancy and robust leasing activity in its West End estates. The company completed 367 leasing transactions year-to-date, yielding £30.2 million in new contracted rent, significantly surpassing previous rent benchmarks. With a vibrant portfolio and strategic asset management, Shaftesbury Capital is well-positioned for continued growth, supported by a strong balance sheet and substantial liquidity. The company has also made significant investments in targeted acquisitions and secured a new £300 million credit facility, enhancing its financial flexibility and growth prospects.

Shaftesbury Capital Announces Executive Director Departure

Shaftesbury Capital PLC announced that Executive Director Michelle McGrath will step down to pursue other opportunities, having significantly contributed to the company’s real estate strategy and long-term growth since joining in 2014. Her departure marks a transition period for the company as it continues to position itself as a leading REIT in London’s West End, with implications for its strategic direction and leadership dynamics.

Shaftesbury Capital Announces Changes in Non-Executive Director Roles

Shaftesbury Capital PLC has announced changes in its non-executive director roles, with Richard Akers stepping down as Senior Independent Director and Chair of the Remuneration Committee, effective from the end of 2025 and the 2026 AGM, respectively. Sian Westerman and Madeleine Cosgrave will assume these roles, respectively, while Akers will continue as a Non-executive Director and committee member. These changes reflect the company’s ongoing governance evolution, potentially impacting its strategic direction and stakeholder engagement.

Shaftesbury Capital PLC Updates Exchangeable Bonds Following Dividend Distribution

Shaftesbury Capital PLC announced changes to its exchangeable bonds due to a recent interim cash dividend distribution. The capital distribution resulting from the dividend has led to adjustments in the exchange property, increasing the number of shares and cash per bond. This announcement impacts bondholders by altering the value and composition of the exchange property, reflecting the company’s financial strategy and market positioning.