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The Property Franchise Group PLC (GB:TPFG)
LSE:TPFG
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The Property Franchise (TPFG) AI Stock Analysis

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GB:TPFG

The Property Franchise

(LSE:TPFG)

Rating:74Outperform
Price Target:
601.00p
▲(2.91% Upside)
The Property Franchise is well-positioned with strong financial performance and positive corporate events driving growth. Technical analysis suggests stability, though momentum is limited. While valuation is on the higher side, the dividend yield offers some compensation. Overall, the stock presents a solid investment opportunity, especially given its robust growth trajectory in the real estate services industry.
Positive Factors
Revenue Growth
Significant revenue growth across multiple divisions indicates strong business expansion and effective strategic initiatives, enhancing long-term market position.
Franchise Model Strength
A robust franchise model with diversified revenue streams provides resilience against market cyclicality and supports sustained growth.
Cash Flow Generation
Strong cash flow generation supports business operations and growth without heavy reliance on external financing, ensuring financial stability.
Negative Factors
Earnings Per Share Decline
A decline in EPS growth may indicate challenges in translating revenue growth into shareholder value, affecting investor confidence and long-term valuation.
Debt Increase
Rising debt levels may strain financial resources, potentially impacting cash flow and limiting investment in growth opportunities.
Cash Reserves Decrease
A reduction in cash reserves could limit the company's ability to navigate financial uncertainties and invest in strategic initiatives.

The Property Franchise (TPFG) vs. iShares MSCI United Kingdom ETF (EWC)

The Property Franchise Business Overview & Revenue Model

Company DescriptionThe 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 MoneyThe Property Franchise Group generates revenue primarily through franchise fees and royalties paid by its franchisees. Upon joining the network, franchisees pay an initial franchise fee, which provides them with the rights to operate under TPFG's brand and access various support services. Additionally, TPFG earns ongoing royalties based on a percentage of the franchisees' sales revenue, creating a consistent income stream tied to the success of its franchisees. The company may also generate income through ancillary services, such as training programs, marketing support, and technology solutions offered to franchisees. Strategic partnerships with property technology firms and marketing agencies further enhance TPFG's service offerings and can contribute to its revenue through commission-based arrangements or shared services agreements.

The Property Franchise Financial Statement Overview

Summary
The Property Franchise demonstrates strong financial performance with impressive revenue and profit growth, evidenced by robust profit margins and a significant revenue growth rate. The balance sheet is solid with low leverage, although careful management of debt levels is necessary. Cash flow generation is strong, supporting business operations effectively.
Income Statement
85
Very Positive
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
78
Positive
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
82
Very Positive
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.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue67.31M27.28M27.16M24.04M11.02M
Gross Profit44.97M21.88M19.80M18.78M9.44M
EBITDA20.77M11.31M11.40M9.39M5.65M
Net Income10.19M7.39M7.23M3.47M3.78M
Balance Sheet
Total Assets203.98M57.68M57.81M60.37M25.20M
Cash, Cash Equivalents and Short-Term Investments4.16M7.64M6.68M8.41M8.77M
Total Debt17.07M4.54M7.36M13.83M86.00K
Total Liabilities59.89M16.87M20.63M27.01M4.62M
Stockholders Equity144.16M40.81M37.16M33.35M20.56M
Cash Flow
Free Cash Flow14.38M8.59M8.49M8.69M5.24M
Operating Cash Flow14.68M9.02M9.01M8.95M5.42M
Investing Cash Flow-15.76M-414.00K-234.00K-13.73M-54.00K
Financing Cash Flow-2.40M-7.65M-10.51M4.42M-604.00K

The Property Franchise Technical Analysis

Technical Analysis Sentiment
Positive
Last Price584.00
Price Trends
50DMA
551.58
Positive
100DMA
522.28
Positive
200DMA
465.11
Positive
Market Momentum
MACD
5.51
Negative
RSI
75.49
Negative
STOCH
70.40
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:TPFG, the sentiment is Positive. The current price of 584 is above the 20-day moving average (MA) of 563.60, above the 50-day MA of 551.58, and above the 200-day MA of 465.11, indicating a bullish trend. The MACD of 5.51 indicates Negative momentum. The RSI at 75.49 is Negative, neither overbought nor oversold. The STOCH value of 70.40 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:TPFG.

The Property Franchise Peers Comparison

Overall Rating
UnderperformOutperform
Sector (65)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
76
Outperform
£4.56M29.873.44%5.06%0.55%-45.82%
74
Outperform
£365.94M23.0310.87%3.08%97.27%25.80%
71
Outperform
£170.43M11.1111.42%2.09%10.84%113.75%
65
Neutral
$2.15B12.123.79%4.89%3.15%1.96%
64
Neutral
£281.06M16.3122.40%3.41%20.46%
£26.20M14.7926.28%6.35%
$1.73B24.087.57%2.90%
* Real Estate Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
GB:TPFG
The Property Franchise
584.00
134.95
30.05%
GB:FLK
Fletcher King
44.50
-3.05
-6.41%
GB:FOXT
Foxtons
57.00
-5.04
-8.12%
GB:LSL
LSL Property Services
279.00
-32.28
-10.37%
GB:WINK
M Winkworth
203.00
9.74
5.04%
SVLPF
Savills
12.79
-2.10
-14.10%

The Property Franchise Corporate Events

Business Operations and StrategyFinancial Disclosures
The Property Franchise Group Reports Strong First Half Growth in 2025
Positive
Aug 4, 2025

The Property Franchise Group PLC reported significant organic growth in the first half of 2025, with a 50% increase in group revenue to £40.3 million. The company saw growth across its franchising, financial services, and licensing divisions, with notable increases in franchising revenue and financial services revenue. The Group’s strategic initiatives, such as the rollout of the Privilege programme and leveraging AI opportunities, are expected to continue driving growth. The company’s diversified revenue streams and strong franchise model position it well against market cyclicality, with expectations for continued growth in the remainder of the year.

The most recent analyst rating on (GB:TPFG) stock is a Buy with a £5.93 price target. To see the full list of analyst forecasts on The Property Franchise stock, see the GB:TPFG Stock Forecast page.

Executive/Board ChangesBusiness Operations and Strategy
The Property Franchise Group Grants Share Options to Executives
Positive
Jul 17, 2025

The Property Franchise Group PLC has announced the grant and vesting of share options and awards to key executives and employees as part of its Share Option Plan. This move aims to incentivize the management team by linking rewards to performance metrics such as total shareholder return and adjusted earnings per share over a three-year period. The awards recognize the executives’ roles in executing the company’s strategic plans and are expected to align their interests with those of shareholders, potentially impacting the company’s operational focus and market positioning.

The most recent analyst rating on (GB:TPFG) stock is a Buy with a £5.93 price target. To see the full list of analyst forecasts on The Property Franchise stock, see the GB:TPFG Stock Forecast page.

Business Operations and Strategy
Octopus Investments Increases Stake in The Property Franchise Group
Neutral
Jul 7, 2025

The Property Franchise Group PLC announced a change in the voting rights held by Octopus Investments Limited, which increased from 4.16% to 5.11%. This acquisition of voting rights signifies a strengthened position for Octopus Investments in the company, potentially impacting future decision-making and strategic directions.

The most recent analyst rating on (GB:TPFG) stock is a Buy with a £5.93 price target. To see the full list of analyst forecasts on The Property Franchise stock, see the GB:TPFG Stock Forecast page.

Business Operations and Strategy
Octopus Investments Increases Stake in The Property Franchise Group
Neutral
Jun 18, 2025

The Property Franchise Group PLC has announced a change in its voting rights structure, as Octopus Investments Limited has increased its stake in the company. The acquisition of voting rights by Octopus Investments Limited, raising their holding from 3.34% to 4.16%, signifies a strategic move that could influence the company’s future decisions and impact its market positioning.

The most recent analyst rating on (GB:TPFG) stock is a Buy with a £5.93 price target. To see the full list of analyst forecasts on The Property Franchise stock, see the GB:TPFG Stock Forecast page.

M&A TransactionsBusiness Operations and Strategy
Property Franchise Group Announces Change in Voting Rights
Neutral
Jun 12, 2025

The Property Franchise Group PLC has announced a change in its voting rights structure due to an acquisition or disposal by Octopus Investments Limited. As of June 11, 2025, Octopus Investments holds 3.34% of the voting rights in the company, which could influence the company’s decision-making processes and impact its strategic direction.

The most recent analyst rating on (GB:TPFG) stock is a Buy with a £5.93 price target. To see the full list of analyst forecasts on The Property Franchise stock, see the GB:TPFG Stock Forecast page.

Business Operations and Strategy
The Property Franchise Group PLC Announces Change in Major Holdings
Neutral
Jun 12, 2025

The Property Franchise Group PLC has announced a change in its major holdings, with Richard Martin reducing his voting rights from 10.42% to 7.28%. This adjustment in voting rights could impact the company’s governance and decision-making processes, potentially influencing its strategic direction and stakeholder interests.

The most recent analyst rating on (GB:TPFG) stock is a Buy with a £5.93 price target. To see the full list of analyst forecasts on The Property Franchise stock, see the GB:TPFG Stock Forecast page.

Business Operations and Strategy
Change in Major Holdings for The Property Franchise Group
Neutral
Jun 10, 2025

The Property Franchise Group PLC has announced a change in its major holdings, with Gresham House Asset Management Limited reducing its voting rights from 15.89% to 14.71%. This adjustment in holdings may influence the company’s governance and strategic decision-making, potentially impacting its market positioning and stakeholder interests.

The most recent analyst rating on (GB:TPFG) stock is a Buy with a £5.93 price target. To see the full list of analyst forecasts on The Property Franchise stock, see the GB:TPFG Stock Forecast page.

Shareholder MeetingsBusiness Operations and Strategy
The Property Franchise Group PLC Passes All Resolutions at AGM
Positive
May 29, 2025

The Property Franchise Group PLC announced that all proposed resolutions were passed at its recent Annual General Meeting. This development underscores the company’s stable governance and continued strategic direction, reinforcing its position as a leading player in the UK property franchising market.

The most recent analyst rating on (GB:TPFG) stock is a Buy with a £5.93 price target. To see the full list of analyst forecasts on The Property Franchise stock, see the GB:TPFG Stock Forecast page.

Business Operations and Strategy
The Property Franchise Group to Present at Mello 2025 Conference
Positive
May 23, 2025

The Property Franchise Group PLC announced its participation in the Mello 2025 investor conference, where CEO Gareth Samples and CFO Ben Dodds will present. This engagement highlights TPFG’s proactive approach to investor relations and its commitment to maintaining a strong presence in the property franchising industry.

The most recent analyst rating on (GB:TPFG) stock is a Buy with a £5.93 price target. To see the full list of analyst forecasts on The Property Franchise stock, see the GB:TPFG Stock Forecast page.

Business Operations and Strategy
Canaccord Genuity Increases Stake in The Property Franchise Group
Neutral
May 15, 2025

The Property Franchise Group PLC has announced a change in major holdings, with Canaccord Genuity Group Inc. increasing its voting rights to 5.0324% as of May 13, 2025. This acquisition indicates a strategic move by Canaccord Genuity, potentially impacting the company’s shareholder dynamics and influence within the market.

The most recent analyst rating on (GB:TPFG) stock is a Buy with a £5.93 price target. To see the full list of analyst forecasts on The Property Franchise stock, see the GB:TPFG Stock Forecast page.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Aug 04, 2025