The Property Franchise (TPFG) AI Stock Analysis

• Market Cap: £323.86M
• Dividend Yield: 3.66%
• Average Volume (3M): 125.70K
• Price to Earnings (P/E): 20.4
• Beta (1Y): 0.22
• Revenue Growth: 97.27%
• EPS Growth: 25.80%
• Country: UK
• Employees: 365
• Sector: Real Estate
• Sector Strength: 53
• Industry: Real Estate - Services
• EPS (TTM): 0.18
• Shares Outstanding: 63,752,007
• 10 Day Avg. Volume: 151,757
• 30 Day Avg. Volume: 125,702
• PEG Ratio: -0.83
• Price to Book (P/B): 1.79
• Price to Sales (P/S): 3.84
• P/FCF Ratio: 17.96
• 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: £641.00
• Price Target Upside: 23.98% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 76 Outperform
• Price Target: 594.00p ▲(14.89% Upside)

The Property Franchise Group's overall stock score is driven by strong financial performance and positive corporate events. The company's robust revenue growth and profitability, combined with strategic initiatives and executive confidence, position it well for future growth. However, technical analysis indicates potential short-term challenges, and valuation metrics suggest the stock is fairly priced.

Positive Factors

Revenue Growth

Exceptional revenue growth reflects strong market demand and effective business strategies, positioning the company for sustained expansion.

Profitability

High profit margins indicate efficient operations and pricing power, supporting long-term financial health and shareholder value.

Cash Flow Generation

Strong cash flow generation enhances financial flexibility, enabling reinvestment in growth opportunities and reducing reliance on external financing.

Negative Factors

Debt Management

Rising debt levels and declining cash reserves may limit financial flexibility, posing risks to long-term stability if not managed carefully.

Cash Reserves

Diminishing cash reserves can impact the company's ability to invest in growth and weather financial downturns, necessitating prudent cash management.

Debt Increase

Increasing debt levels may strain financial resources and elevate risk, requiring effective debt management to maintain financial health.

The Property Franchise Business Overview & Revenue Model

Company Description

The Property Franchise Group PLC manages residential real estate properties in the United Kingdom. The company provides residential letting, estate agency, and property management services to tenants and landlords; and financial services. The company was formerly known as MartinCo PLC and changed its name to The Property Franchise Group PLC in March 2017. The Property Franchise Group PLC was founded in 1986 and is headquartered in Bournemouth, the United Kingdom.

How the Company Makes Money

TPFG generates revenue primarily through franchise fees and royalties from its network of franchisees. Franchisees pay an initial setup fee and ongoing royalties based on their sales performance, which creates a steady income stream for TPFG. Additionally, the company earns revenue from ancillary services such as training, marketing support, and technology solutions offered to franchisees. Strategic partnerships with financial service providers and property-related service companies also contribute to its earnings, enhancing the value proposition for franchisees and expanding TPFG's market reach.

The Property Franchise Financial Statement Overview

Summary

The Property Franchise demonstrates strong financial performance with significant revenue growth, high profitability, and robust cash flow generation. The income statement shows impressive revenue and profit growth, while the balance sheet reflects a solid financial position with low leverage. Cash flow is efficiently managed, supporting business operations and growth.

Income Statement

The Property Franchise has shown impressive revenue and profit growth. The gross profit margin stands at approximately 66.8% and the net profit margin is around 15.1%, highlighting strong profitability. EBIT and EBITDA margins are also robust at 22.6% and 30.8%, respectively. The revenue growth rate from 2023 to 2024 is an exceptional 146.8%, indicating significant business expansion. Overall, the income statement portrays a company with strong revenue growth and healthy profit margins.

Balance Sheet

The balance sheet reflects a solid financial position with a low debt-to-equity ratio of 0.12, indicating low financial leverage. The return on equity (ROE) is strong at 7.1%, suggesting effective management of equity capital to generate profits. The equity ratio is high at 70.7%, demonstrating financial stability and a strong capital structure. However, the decrease in cash reserves and an increase in total debt could be potential risks if not controlled.

Cash Flow

The cash flow statement is robust, with a significant free cash flow growth rate of 67.3% from 2023 to 2024. The operating cash flow to net income ratio is excellent at 1.44, indicating efficient conversion of net income into cash. The free cash flow to net income ratio is also strong at around 1.41, reflecting effective cash management and the ability to support business operations and growth without relying heavily on external financing.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	80.78M	67.31M	27.28M	27.16M	24.04M	11.02M
Gross Profit	27.00M	44.97M	21.88M	19.80M	18.78M	9.44M
EBITDA	28.77M	20.77M	11.31M	11.40M	9.39M	5.65M
Net Income	15.88M	10.19M	7.39M	7.23M	3.47M	3.78M
Balance Sheet
Total Assets	205.61M	203.98M	57.68M	57.81M	60.37M	25.20M
Cash, Cash Equivalents and Short-Term Investments	7.30M	4.16M	7.64M	6.68M	8.41M	8.77M
Total Debt	22.26M	17.07M	4.54M	7.36M	13.83M	86.00K
Total Liabilities	57.37M	59.89M	16.87M	20.63M	27.01M	4.62M
Stockholders Equity	148.32M	144.16M	40.81M	37.16M	33.35M	20.56M
Cash Flow
Free Cash Flow	21.27M	14.38M	8.59M	8.49M	8.69M	5.24M
Operating Cash Flow	21.56M	14.68M	9.02M	9.01M	8.95M	5.42M
Investing Cash Flow	-3.94M	-15.76M	-414.00K	-234.00K	-13.73M	-54.00K
Financing Cash Flow	-16.02M	-2.40M	-7.65M	-10.51M	4.42M	-604.00K

The Property Franchise Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 517.00
• 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:TPFG, the sentiment is Negative. The current price of 517 is above the 20-day moving average (MA) of 513.55, above the 50-day MA of 508.70, and above the 200-day MA of 515.27, indicating a bearish trend. The MACD of -1.56 indicates Positive momentum. The RSI at 45.02 is Neutral, neither overbought nor oversold. The STOCH value of 14.29 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GB:TPFG.

The Property Franchise Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FOXT	78 Outperform	£170.92M	11.31	11.42%	2.05%	10.84%	113.75%
TPFG	76 Outperform	£323.86M	20.39	10.87%	3.66%	97.27%	25.80%
WINK	75 Outperform	£24.66M	15.15	24.60%	7.10%	7.02%	-12.85%
LSL	71 Outperform	£271.58M	15.96	―	3.59%	20.46%	―
MTVW	68 Neutral	£362.61M	16.80	5.35%	5.88%	-6.52%	-20.26%
FLK	66 Neutral	£3.59M	35.71	2.37%	6.43%	-6.18%	-66.67%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%

The Property Franchise Corporate Events

The Property Franchise Group Reports Strong Growth and Strategic Expansion

The Property Franchise Group PLC has reported significant organic growth for the year ending December 2025, with profits expected to meet market expectations. The company has seen an 11% year-on-year revenue increase in the second half of the year, driven by strategic initiatives like the Privilege programme and strong mortgage and sales transactions. Despite increased property taxes, TPFG anticipates limited impact on its business, expecting further growth in 2026 due to its strong franchise model and diversified revenue streams. The company has also secured a new lending facility with Barclays to support franchisee expansion.

The most recent analyst rating on (GB:TPFG) stock is a Hold with a £518.00 price target. To see the full list of analyst forecasts on The Property Franchise stock, see the GB:TPFG Stock Forecast page.

The Property Franchise Group Appoints New Joint Broker

The Property Franchise Group PLC has appointed Joh. Berenberg, Gossler & Co. KG, London Branch as its Joint Broker, alongside Canaccord Genuity Limited. This strategic move may enhance the company’s market presence and investor relations, potentially impacting its operations and stakeholder engagement positively.

The most recent analyst rating on (GB:TPFG) stock is a Hold with a £518.00 price target. To see the full list of analyst forecasts on The Property Franchise stock, see the GB:TPFG Stock Forecast page.

Executive Director Increases Stake in The Property Franchise Group

The Property Franchise Group PLC announced that Michelle Brook, an Executive Director, purchased 10,000 ordinary shares at 480.50p each, raising her total shareholding to 218,968 shares. This transaction, conducted on the London Stock Exchange’s AIM market, highlights a significant personal investment by a key executive, potentially signaling confidence in the company’s future performance and stability, which could positively influence stakeholder perceptions.

The most recent analyst rating on (GB:TPFG) stock is a Hold with a £518.00 price target. To see the full list of analyst forecasts on The Property Franchise stock, see the GB:TPFG Stock Forecast page.

TPFG CEO Increases Shareholding, Signaling Confidence in Future Prospects

The Property Franchise Group PLC announced that its CEO, Gareth Samples, has increased his stake in the company by purchasing 10,000 ordinary shares at a price of 481.96p each, bringing his total shareholding to 625,651 shares. This move indicates confidence in the company’s future prospects and may positively influence stakeholder sentiment, reinforcing the company’s position in the property franchising industry.

The most recent analyst rating on (GB:TPFG) stock is a Hold with a £518.00 price target. To see the full list of analyst forecasts on The Property Franchise stock, see the GB:TPFG Stock Forecast page.