DB:RNKA

Stock Analysis Report

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Executive Summary

The Rank Group Plc, together with its subsidiaries, provides gaming services in Great Britain, Spain, and Belgium.


Snowflake Analysis

Very undervalued established dividend payer.


Similar Companies

Share Price & News

How has Rank Group's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: RNKA has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

0.5%

RNKA

-1.7%

DE Hospitality

0.2%

DE Market


1 Year Return

-5.8%

RNKA

-34.4%

DE Hospitality

4.5%

DE Market

Return vs Industry: RNKA exceeded the German Hospitality industry which returned -35.2% over the past year.

Return vs Market: RNKA underperformed the German Market which returned 3.9% over the past year.


Shareholder returns

RNKAIndustryMarket
7 Day0.5%-1.7%0.2%
30 Day-8.6%-7.9%6.4%
90 Day-19.0%9.7%16.9%
1 Year-1.9%-5.8%-31.5%-34.4%6.8%4.5%
3 Year-28.5%-36.4%-48.8%-55.8%3.0%-5.0%
5 Year-44.6%-53.3%-50.9%-61.2%9.9%-4.8%

Price Volatility Vs. Market

How volatile is Rank Group's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Rank Group undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: RNKA (€1.6) is trading below our estimate of fair value (€3.67)

Significantly Below Fair Value: RNKA is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: RNKA is good value based on its PE Ratio (11.6x) compared to the DE Hospitality industry average (20.3x).

PE vs Market: RNKA is good value based on its PE Ratio (11.6x) compared to the German market (21.1x).


Price to Earnings Growth Ratio

PEG Ratio: RNKA is good value based on its PEG Ratio (0.4x)


Price to Book Ratio

PB vs Industry: RNKA is good value based on its PB Ratio (1.4x) compared to the DE Hospitality industry average (2x).


Next Steps

Future Growth

How is Rank Group forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

28.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: RNKA's forecast earnings growth (28.7% per year) is above the savings rate (0.2%).

Earnings vs Market: RNKA's earnings (28.7% per year) are forecast to grow faster than the German market (22.3% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: RNKA's revenue (9.8% per year) is forecast to grow faster than the German market (5.9% per year).

High Growth Revenue: RNKA's revenue (9.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: RNKA's Return on Equity is forecast to be low in 3 years time (19.8%).


Next Steps

Past Performance

How has Rank Group performed over the past 5 years?

-11.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: RNKA has a large one-off loss of £28.9M impacting its December 31 2019 financial results.

Growing Profit Margin: RNKA's current net profit margins (6.6%) are higher than last year (4.3%).


Past Earnings Growth Analysis

Earnings Trend: RNKA's earnings have declined by -11.1% per year over the past 5 years.

Accelerating Growth: RNKA's earnings growth over the past year (65.4%) exceeds its 5-year average (-11.1% per year).

Earnings vs Industry: RNKA earnings growth over the past year (65.4%) exceeded the Hospitality industry -15.6%.


Return on Equity

High ROE: RNKA's Return on Equity (12%) is considered low.


Next Steps

Financial Health

How is Rank Group's financial position?


Financial Position Analysis

Short Term Liabilities: RNKA's short term assets (£143.4M) do not cover its short term liabilities (£245.0M).

Long Term Liabilities: RNKA's short term assets (£143.4M) do not cover its long term liabilities (£364.3M).


Debt to Equity History and Analysis

Debt Level: RNKA's debt to equity ratio (41.2%) is considered high.

Reducing Debt: RNKA's debt to equity ratio has reduced from 56.7% to 41.2% over the past 5 years.

Debt Coverage: RNKA's debt is well covered by operating cash flow (85%).

Interest Coverage: RNKA's interest payments on its debt are well covered by EBIT (12.8x coverage).


Balance Sheet


Next Steps

Dividend

What is Rank Group current dividend yield, its reliability and sustainability?

5.28%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: RNKA's dividend (5.28%) is higher than the bottom 25% of dividend payers in the German market (1.24%).

High Dividend: RNKA's dividend (5.28%) is in the top 25% of dividend payers in the German market (3.82%)


Stability and Growth of Payments

Stable Dividend: RNKA's dividend payments have been volatile in the past 10 years.

Growing Dividend: RNKA's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (66.5%), RNKA's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: RNKA's dividends in 3 years are forecast to be well covered by earnings (32.5% payout ratio).


Next Steps

  • Explore strong dividend paying companies in the Consumer Services industry.

Management

How experienced are the management team and are they aligned to shareholders interests?

1.8yrs

Average management tenure


CEO

John O'Reilly (60yo)

2.17yrs

Tenure

UK£580,328

Compensation

Mr. John O'Reilly has been the Chief Executive Officer and Director of The Rank Group Plc since May 7, 2018. He has over 25 years of experience in the betting and gaming industry, both in the UK and intern ...


CEO Compensation Analysis

Compensation vs Market: John's total compensation ($USD733.77K) is below average for companies of similar size in the German market ($USD1.43M).

Compensation vs Earnings: John's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
John O'Reilly
CEO & Director2.17yrsUK£580.33k0.065% £408.4k
William Floydd
CFO & Executive Director1.17yrsUK£86.32k0.0064% £40.5k
Jonathan Plumb
Chief Information Officer1.92yrsno datano data
Sarah Powell
Director of Investor Relations & Corporate Communications1.83yrsno datano data
Luisa Wright
Group General Counsel & Company Secretary2.5yrsno datano data
Lesly Hughes
Head of Communications and Head of PRno datano datano data
Catrin White
Retail Marketing Director0.92yrno datano data
David Balls
Human Resources Director3yrsno datano data
Aaron O'Sullivan
Head of Marketing - Digital6.75yrsno datano data
Jim Marsh
Chief Transformation Officer1.75yrsno datano data
Stuart Boyd
Managing Director of Rank Interactive1.5yrsno datano data
Jonathon Swaine
Venues Managing Director0.75yrno datano data

1.8yrs

Average Tenure

48yo

Average Age

Experienced Management: RNKA's management team is not considered experienced ( 1.8 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
John O'Reilly
CEO & Director2.17yrsUK£580.33k0.065% £408.4k
William Floydd
CFO & Executive Director1.17yrsUK£86.32k0.0064% £40.5k
Christopher Bell
Senior Independent Director5.08yrsUK£52.50k0.0053% £33.4k
Susan Hooper
Independent Non-Executive Director4.83yrsUK£52.47kno data
Steven Esom
Independent Non Executive Director4.33yrsUK£57.50kno data
Hong Cheong Tang
Non-Executive Director1.5yrsno data0.033% £210.7k
Alexander Thursby
Independent Chairman0.75yrUK£59.00kno data
Karen Whitworth
Non-Executive Director0.67yrno datano data

1.8yrs

Average Tenure

60yo

Average Age

Experienced Board: RNKA's board of directors are not considered experienced ( 1.8 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

The Rank Group Plc's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: The Rank Group Plc
  • Ticker: RNKA
  • Exchange: DB
  • Founded: 1937
  • Industry: Casinos and Gaming
  • Sector: Consumer Services
  • Market Cap: UK£566.491m
  • Listing Market Cap: UK£633.111m
  • Shares outstanding: 390.68m
  • Website: https://www.rank.com

Number of Employees


Location

  • The Rank Group Plc
  • TOR
  • Saint-Cloud Way
  • Maidenhead
  • Berkshire
  • SL6 8BN
  • United Kingdom

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
RANK.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJan 1980
RNKLSE (London Stock Exchange)YesOrdinary SharesGBGBPJan 1980
RNKADB (Deutsche Boerse AG)YesOrdinary SharesDEEURJan 1980
RNKLBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBGBPJan 1980

Biography

The Rank Group Plc, together with its subsidiaries, provides gaming services in Great Britain, Spain, and Belgium. The company operates through Grosvenor Venues, Mecca Venues, UK Digital, and Enracha segments. It offers a range of casino table games, including roulette, blackjack, baccarat, and poker; electronic roulette and slots machine games; and community games, such as bingo, as well as social and bingo clubs. The company also operates digital channels, including live casino and sports betting, bingo, and slot games; and offers support services to interactive gaming. It operates 84 licensed bingo venues in Great Britain under the Mecca brand name; 1 licensed bingo venue in Great Britain under the brand name of Luda; 52 licensed casinos in Great Britain and 1 licensed casino in Belgium under the Grosvenor Casinos brand name; and 9 licensed bingo venues in Spain under the brand name of Enracha. The company, formerly known as Rank Organisation Ltd., was founded in 1937 and is based in Maidenhead, the United Kingdom. The Rank Group Plc is a subsidiary of Guoco Group Limited. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/07/13 05:37
End of Day Share Price2020/07/10 00:00
Earnings2019/12/31
Annual Earnings2019/06/30


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.