Town Centre Securities (TOWN) AI Stock Analysis

• Market Cap: £52.40M
• Dividend Yield: 2.01%
• Average Volume (3M): 6.68K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.19
• Revenue Growth: -0.20%
• EPS Growth: 98.04%
• Country: UK
• Employees: 150
• Sector: Real Estate
• Sector Strength: 53
• Industry: REIT - Diversified
• EPS (TTM): 0.04
• Shares Outstanding: 42,162,678
• 10 Day Avg. Volume: 4,710
• 30 Day Avg. Volume: 6,678
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: £142.00
• Price Target Upside: 14.06% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 58 Neutral
• Price Target: 142.00p ▲(14.06% Upside)

The overall stock score for Town Centre Securities is influenced primarily by mixed financial performance with challenges in profitability, and stable technical analysis indicators. The positive corporate event regarding the employee incentive plan slightly boosts the score, while valuation concerns due to negative earnings weigh it down.

Town Centre Securities Business Overview & Revenue Model

Company Description

Town Centre Securities PLC (TCS) is a leading UK property investment & development company with property assets of over £394 million. With almost 60 years' experience, a commitment to sustainable development and a reputation for quality & innovation, TCS create outstanding mixed use developments close to transport hubs in Leeds, Manchester, Glasgow and London. Committed to tenants and shareholders, TCS provides world-class residential, office and commercial accommodation and robust investment opportunities through actively managing our portfolio for income and capital growth. We invest in locations likely to demonstrate sustainable growth, work closely with tenants to improve our properties to meet their needs, and dispose of properties that no longer meet our stringent criteria for future performance.

How the Company Makes Money

Town Centre Securities generates revenue primarily through rental income from its diverse real estate portfolio, which includes commercial and residential properties. The company also earns money through the strategic acquisition, development, and subsequent sale or leasing of properties. Additionally, TOWN manages and operates car parking facilities, contributing to its income. The firm often enters into partnerships and joint ventures to optimize asset management and maximize returns on investment. These activities, along with prudent financial management and market-driven strategies, support its revenue generation objectives.

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 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Income Statement
Total Revenue	34.32M	31.97M	31.20M	29.72M	23.38M	31.98M
Gross Profit	22.08M	16.16M	18.18M	17.45M	13.95M	19.77M
EBITDA	11.43M	-1.27M	10.68M	12.09M	9.67M	12.19M
Net Income	-320.00K	-8.01M	-29.49M	11.01M	-576.00K	-24.12M
Balance Sheet
Total Assets	289.62M	292.43M	306.68M	375.07M	364.10M	394.89M
Cash, Cash Equivalents and Short-Term Investments	24.79M	25.33M	29.76M	22.15M	21.67M	12.64M
Total Debt	157.28M	159.37M	153.21M	185.94M	197.20M	226.86M
Total Liabilities	170.00M	172.79M	165.59M	195.76M	208.70M	239.81M
Stockholders Equity	119.63M	119.64M	141.09M	179.30M	155.40M	155.08M
Cash Flow
Free Cash Flow	7.58M	6.08M	7.46M	4.57M	-2.47M	6.67M
Operating Cash Flow	8.28M	6.60M	8.04M	4.85M	-2.28M	6.79M
Investing Cash Flow	-167.00K	2.24M	51.06M	10.72M	44.08M	-4.74M
Financing Cash Flow	-6.09M	-9.07M	-56.21M	-17.39M	-43.61M	103.00K

Town Centre Securities Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 124.50
• 50DMA: Negative
• 100DMA: Negative
• 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 Negative. The current price of 124.5 is below the 20-day moving average (MA) of 126.20, below the 50-day MA of 131.13, and below the 200-day MA of 131.09, indicating a bearish trend. The MACD of -1.39 indicates Negative momentum. The RSI at 40.50 is Neutral, neither overbought nor oversold. The STOCH value of 56.67 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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	57.48M	11.28	―	8.68%	4.10%	88.43%
AEWU	68 Neutral	173.32M	7.07	―	7.31%	―	―
TOWN	58 Neutral	£52.40M	―	-0.26%	2.01%	-0.20%	98.04%
PCA	58 Neutral	43.48M	47.36	―	6.98%	-32.42%	―
RLE	54 Neutral	55.95M	48.48	-2.63%	5.63%	-9.28%	―
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%

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.