Want to see GB:TPFG full AI Analyst Report?
Top Page
The Property Franchise
(LSE:TPFG)
Select Model
Select Model
Rating:77Outperform
Price Target:
516.00 p
▲(11.57% Upside)
Action:Reiterated
Date:09/15/26
The score is driven primarily by strong financial performance (profitability, low leverage, and high free-cash-flow conversion) and a constructive earnings update with in-line guidance and shareholder returns (dividend increase). This is tempered by only neutral-to-weak technicals (negative MACD and trading below longer-term averages) and acknowledged macro/regulatory sensitivities (sales volumes, mortgage rates, and deposit-interest rules).
Positive Factors
Recurring franchise platform
The broad, multi-brand franchise network provides scale and recurring fee streams, reducing reliance on individual property transactions. Its lettings weighting and 68% recurring revenue in franchising can support earnings resilience and central-service leverage over the next several quarters.
Negative Factors
Margin compression
The sharp gross-margin decline shows that profitability has not been uniformly durable despite strong overall margins. If the lower mix or cost pressure persists, it could limit operating leverage, reduce cash available for reinvestment and make future earnings growth more dependent on revenue expansion.
Read all positive and negative factors
Positive Factors
Negative Factors
Recurring franchise platform
The broad, multi-brand franchise network provides scale and recurring fee streams, reducing reliance on individual property transactions. Its lettings weighting and 68% recurring revenue in franchising can support earnings resilience and central-service leverage over the next several quarters.
Read all positive factors
The Property Franchise (TPFG) vs. iShares MSCI United Kingdom ETF (EWC)
Market Cap
£265.21M
Dividend Yield3.52%
Average Volume (3M)112.67K
Price to Earnings (P/E)14.9
Beta (1Y)-0.12
Revenue Growth8.05%
EPS Growth14.09%
CountryUK
Employees349
SectorReal Estate
Sector Strength53
IndustryReal Estate - Services
Share Statistics
EPS (TTM)0.28
Shares Outstanding63,752,007
10 Day Avg. Volume106,772
30 Day Avg. Volume112,669
Financial Highlights & Ratios
PEG Ratio0.20
Price to Book (P/B)2.11
Price to Sales (P/S)3.89
P/FCF Ratio14.71
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
£656.67Price Target Upside41.98% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering3
EPS Forecast (FY)0.42
Revenue Forecast (FY)£90.71M
The Property Franchise Business Overview & Revenue Model
Company Description
Operating within the United Kingdom, The Property Franchise Group PLC specializes in the oversight and management of residential real estate. The company provides a broad spectrum of services to both landlords and tenants, encompassing residential...
How the Company Makes Money
TPFG makes money primarily by franchising its estate agency and lettings brands and providing services to the resulting network. Key revenue streams typically include: (1) franchise fees and ongoing royalties/management service fees paid by franch...
The Property Franchise Earnings Call Summary
Earnings Call Date:Sep 09, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Apr 27, 2027
Earnings Call Sentiment Positive
The call was strongly positive overall. Management reported record first-half results, revenue and adjusted PBT growth of 7%, EPS growth of 8%, a 10% dividend increase, lower net debt, record financial services activity, strong lettings demand, and encouraging early AI results. The main challenges were lower sales volumes, Renters' Rights Act disruption, weaker licensing performance, mortgage-rate uncertainty, financial services partner departures, and regulatory risk to potential deposit-interest income. Management nevertheless maintained full-year expectations and emphasized the resilience of the business model.Positive Updates
Record First-Half Performance
Management described the first six months of 2026 as another record performance for the group. Revenue increased 7% year-over-year to GBP 43.3 million, adjusted profit before tax rose 7% to GBP 15.5 million, and adjusted basic EPS increased 8% to GBP 0.198.
Negative Updates
Managed Properties Slightly Down
The managed portfolio of 149,000 properties was slightly down on 2025. Management attributed this to the introduction of the Renters' Rights Bill and the associated risk of landlords exiting.
Read all updates
Q2-2026 Updates
Positive
Negative
Record First-Half Performance
Management described the first six months of 2026 as another record performance for the group. Revenue increased 7% year-over-year to GBP 43.3 million, adjusted profit before tax rose 7% to GBP 15.5 million, and adjusted basic EPS increased 8% to GBP 0.198.
Read all positive updates
Company Guidance
Management said full year trading remains in line with expectations and described 10% annual adjusted PBT growth as a realistic target, with organic growth having always been between 5% and 10%; sales transactions are expected to be 1.05 million-1.08 million this year and, for the second half of 2026 and 2027, somewhere between 1 million and 1.1 million transactions, while mortgage rates above 6% and above 5.5% would have a detrimental effect on volume. AI is expected to launch over the next four to six weeks, with the financial services product expected to become a platform product from September and 100-200 franchisees wanting to take the technology; agent conversion will be pursued in half two 2026, with one in 20 of 18,500 independent estate agents potentially doubling the franchise business. Pooled deposits could reach a ceiling is probably in the range of about GBP 130 million, with about GBP 30 million currently in the account and a potential GBP 1.3 million worth of financial benefit to us a year, while debt capacity was described as easily the ability to be able to get GBP 60 million-GBP 75 million.The Property Franchise Financial Statement Overview
Summary
Income Statement
84
Very Positive
Balance Sheet
86
Very Positive
Cash Flow
88
Very Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 87.28M | 84.26M | 67.31M | 27.28M | 27.16M | 24.04M |
| Gross Profit | 49.95M | 41.91M | 44.97M | 21.88M | 19.80M | 18.78M |
| EBITDA | 30.84M | 31.85M | 20.77M | 11.31M | 11.40M | 9.39M |
| Net Income | 18.13M | 19.05M | 10.19M | 7.39M | 7.23M | 3.47M |
Balance Sheet | ||||||
| Total Assets | 203.26M | 206.36M | 203.98M | 57.68M | 57.81M | 60.37M |
| Cash, Cash Equivalents and Short-Term Investments | 5.03M | 10.88M | 4.16M | 7.64M | 6.68M | 8.41M |
| Total Debt | 16.22M | 16.79M | 17.07M | 4.54M | 7.36M | 13.83M |
| Total Liabilities | 48.53M | 51.32M | 59.89M | 16.87M | 20.63M | 27.01M |
| Stockholders Equity | 154.73M | 155.07M | 144.16M | 40.81M | 37.16M | 33.35M |
Cash Flow | ||||||
| Free Cash Flow | 22.44M | 22.28M | 14.38M | 8.59M | 8.49M | 8.69M |
| Operating Cash Flow | 22.59M | 22.42M | 14.68M | 9.02M | 9.01M | 8.95M |
| Investing Cash Flow | -3.67M | -4.04M | -15.76M | -414.00K | -234.00K | -13.73M |
| Financing Cash Flow | -21.19M | -11.66M | -2.40M | -7.65M | -10.51M | 4.42M |
The Property Franchise Technical Analysis
Neutral
462.50
Price Trends
430.95
Negative
447.57
Negative
449.69
Negative
Market Momentum
-4.50
Negative
45.64
Neutral
70.00
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:TPFG, the sentiment is Neutral. The current price of 462.5 is above the 20-day moving average (MA) of 413.55, above the 50-day MA of 430.95, and above the 200-day MA of 449.69, indicating a neutral trend. The MACD of -4.50 indicates Negative momentum. The RSI at 45.64 is Neutral, neither overbought nor oversold. The STOCH value of 70.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for GB:TPFG.
The Property Franchise Peers Comparison
UnderperformOutperform
Sector (65)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | £265.21M | 14.91 | 11.70% | 3.52% | 8.05% | 14.09% | |
70 Outperform | £337.26M | 16.57 | 5.05% | 6.07% | -0.42% | -13.35% | |
69 Neutral | £23.56M | 14.99 | 24.02% | 7.14% | -5.69% | -2.22% | |
68 Neutral | £249.03M | 14.87 | 21.39% | 3.13% | 5.64% | 13.14% | |
67 Neutral | £112.54M | 13.45 | 5.76% | 3.07% | -0.77% | -44.83% | |
65 Neutral | $2.17B | 12.19 | 3.79% | 4.94% | 3.15% | 1.96% | |
53 Neutral | £3.23M | 3,150.00 | 0.02% | 7.14% | -10.04% | -99.33% |
* Real Estate Sector Average
GB:TPFG
The Property Franchise
417.50
-95.11
-18.55%
GB:FLK
Fletcher King
31.50
6.52
26.10%
GB:FOXT
Foxtons
37.05
-16.44
-30.73%
GB:LSL
LSL Property Services
257.00
19.32
8.13%
GB:WINK
M Winkworth
182.50
1.38
0.76%
GB:MTVW
Mountview Estates
8,550.00
-711.02
-7.68%
The Property Franchise Corporate Events
Business Operations and StrategyDividendsFinancial DisclosuresM&A TransactionsProduct-Related Announcements
Property Franchise Group posts record H1 as platform expansion boosts growth
Positive
Sep 9, 2026
The Property Franchise Group reported a record first-half performance for the six months to 30 June 2026, underscoring the resilience of its diversified, franchised model in a subdued UK sales market. Group revenue rose 7% to £43.3m, driven b...
Business Operations and StrategyRegulatory Filings and Compliance
Property Franchise Group Aligns Registered Office with Grantham Headquarters
Neutral
Sep 9, 2026
The Property Franchise Group PLC has changed its registered office address effective 9 September 2026 from Bournemouth to The Old Court House, 60a London Road, Grantham, aligning its corporate registration with its Grantham headquarters. The move ...
Business Operations and StrategyFinancial Disclosures
Property Franchise Group schedules September interim results and investor briefings
Positive
Aug 18, 2026
The Property Franchise Group PLC, the UK’s largest multi-brand property franchisor with over 1,900 outlets and 18 brands, plans to report its interim results for the six months to 30 June 2026 on 9 September 2026. The group, which combines r...
Business Operations and StrategyFinancial Disclosures
Property Franchise Group Delivers Record H1 and Expands Platform Amid Subdued Sales Market
Positive
Aug 5, 2026
The Property Franchise Group reported record first-half results, underscoring the resilience of its diversified franchise, financial services and licensing platform in a subdued UK housing market. The Group’s focus on recurring revenue from ...
Business Operations and StrategyExecutive/Board Changes
Property Franchise Group Tightens Executive Incentives With New Share Options
Positive
Jun 26, 2026
The Property Franchise Group has granted nominal cost options over 920,000 ordinary shares to executives and employees under its share option plan, seeking to reward contributions to strategic goals and sharpen alignment with shareholders. The lar...
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.