Town Centre Securities (TOWN) AI Stock Analysis

• Market Cap: £53.45M
• Dividend Yield: 3.94%
• Average Volume (3M): 6.14K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.14
• Revenue Growth: 16.08%
• EPS Growth: 56.94%
• Country: UK
• Employees: 150
• Sector: Real Estate
• Sector Strength: 53
• Industry: REIT - Diversified
• EPS (TTM): -0.09
• Shares Outstanding: 42,162,678
• 10 Day Avg. Volume: 6,428
• 30 Day Avg. Volume: 6,143
• PEG Ratio: 0.00
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: 46 Neutral
• Price Target: 124.00p ▼(-1.59% Downside)

The overall stock score is primarily influenced by financial performance challenges, including profitability and cash flow issues. Technical analysis provides a neutral outlook, while valuation is negatively impacted by the company's losses, despite a decent dividend yield.

Positive Factors

Revenue Growth

Strong revenue growth indicates the company's ability to expand its market presence and enhance its asset utilization, supporting long-term business sustainability.

Operational Efficiency

Positive EBIT and EBITDA margins reflect operational efficiency, suggesting the company effectively manages its operational costs, which is crucial for long-term profitability.

Diversified Revenue Streams

Diversified revenue streams from rental income, property management, and development projects provide stability and reduce reliance on a single income source, enhancing resilience.

Negative Factors

High Leverage

Significant leverage increases financial risk, potentially impacting liquidity and limiting the company's ability to invest in growth opportunities.

Profitability Challenges

Negative net profit margins highlight ongoing profitability issues, which can affect the company's ability to generate sustainable earnings and shareholder value.

Declining Cash Flow

Declining free cash flow indicates potential liquidity constraints, affecting the company's ability to fund operations and invest in future growth initiatives.

Town Centre Securities Business Overview & Revenue Model

Company Description

Town Centre Securities (TOWN) is a UK-based property investment and development company, specializing in the acquisition, management, and development of commercial and residential real estate. Operating primarily within the retail and leisure sectors, TOWN focuses on enhancing urban environments through strategic property initiatives, including mixed-use developments and regeneration projects. The company’s portfolio includes a diverse range of assets, from shopping centers to office spaces, demonstrating its commitment to creating vibrant town centers that foster community engagement and economic growth.

How the Company Makes Money

Town Centre Securities generates revenue primarily through rental income from its diversified property portfolio, which includes retail, office, and residential spaces. The company leases these properties to various tenants, providing a steady cash flow. Additionally, TOWN earns revenue from property management services and development projects, including fees from construction and project management. The company also engages in joint ventures and partnerships with other real estate firms and local authorities, which can lead to profit-sharing arrangements on various developments. Furthermore, capital appreciation of its property assets contributes to overall financial performance, allowing TOWN to realize gains upon the sale of properties or through refinancing strategies.

Town Centre Securities Financial Statement Overview

Summary

The financial performance of Town Centre Securities is mixed, with strengths in cash management and gross profitability. However, challenges exist in revenue consistency and overall profitability, with negative EBIT and net income impacting the score.

Income Statement

The company has experienced fluctuating revenue with a slight growth in the most recent year, but profitability has been a concern due to negative EBIT and net income. Gross profit margin remains healthy, indicating potential for improvement if operational efficiencies can be realized. Revenue growth has been inconsistent, impacting the overall financial performance.

Balance Sheet

The balance sheet reflects moderate leverage with a debt-to-equity ratio that suggests cautious management of liabilities. The decline in stockholders' equity and total assets over recent years is concerning, but the equity ratio remains stable, indicating reasonable financial health. Improvement in equity would enhance the company's financial standing.

Cash Flow

Cash flow from operations has been positive but variable, reflecting challenges in converting revenue to cash consistently. The company has managed free cash flow effectively despite significant capital expenditures, but the ratio of operating cash flow to net income indicates variability in profitability.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	24.87M	34.49M	31.97M	31.20M	29.72M	21.43M
Gross Profit	14.38M	14.38M	16.16M	18.18M	17.45M	13.95M
EBITDA	11.04M	11.43M	-1.27M	10.68M	12.09M	8.88M
Net Income	-3.45M	-3.45M	-8.01M	-29.49M	11.01M	-576.00K
Balance Sheet
Total Assets	281.43M	281.43M	292.43M	306.68M	375.07M	364.10M
Cash, Cash Equivalents and Short-Term Investments	17.99M	17.99M	25.33M	29.76M	22.15M	21.67M
Total Debt	157.90M	157.90M	159.37M	153.21M	185.94M	197.20M
Total Liabilities	169.13M	169.13M	172.79M	165.59M	195.76M	208.70M
Stockholders Equity	112.30M	112.30M	119.64M	141.09M	179.30M	155.40M
Cash Flow
Free Cash Flow	-1.41M	-1.41M	6.08M	7.46M	4.57M	-2.47M
Operating Cash Flow	3.42M	3.42M	6.60M	8.04M	4.85M	-2.28M
Investing Cash Flow	-2.10M	-2.10M	2.24M	51.06M	10.72M	44.08M
Financing Cash Flow	-3.10M	-3.10M	-9.07M	-56.21M	-17.39M	-43.61M

Town Centre Securities Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 126.00
• 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:TOWN, the sentiment is Positive. The current price of 126 is above the 20-day moving average (MA) of 124.49, below the 50-day MA of 126.14, and below the 200-day MA of 129.16, indicating a neutral trend. The MACD of -0.52 indicates Negative momentum. The RSI at 53.76 is Neutral, neither overbought nor oversold. The STOCH value of 63.10 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:TOWN.

Town Centre Securities Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AIRE	70 Neutral	£59.17M	8.15	10.96%	8.23%	8.48%	207.85%
AEWU	68 Neutral	£171.05M	13.41	7.37%	7.42%	-10.95%	-30.09%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
PCA	58 Neutral	£42.27M	22.74	4.34%	7.18%	-41.22%	―
RLE	54 Neutral	£57.00M	49.39	1.28%	4.91%	-9.28%	―
TOWN	46 Neutral	£53.45M	-15.51	-2.97%	3.94%	16.08%	56.94%

Town Centre Securities Corporate Events

TCS Trustees Limited Acquires Shares for Employee Incentive Plan

Town Centre Securities PLC announced that TCS Trustees Limited purchased 100,000 shares at £1.36 each to support the company’s All Employee Share Incentive Plan. This acquisition reflects TCS’s ongoing efforts to manage its employee incentive schemes effectively, potentially enhancing employee engagement and aligning interests with shareholders.