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Close Brothers Group

Executive Summary

Close Brothers Group plc, a merchant banking company, provides financial services to small businesses and individuals in the United Kingdom. More Details


Snowflake Analysis

Average dividend payer with mediocre balance sheet.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: CBG is not significantly more volatile than the rest of UK stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: CBG's weekly volatility (6%) has been stable over the past year.


Market Performance


7 Day Return

-2.9%

CBG

-0.2%

GB Banks

-0.2%

GB Market


1 Year Return

-8.1%

CBG

-25.2%

GB Banks

-6.8%

GB Market

Return vs Industry: CBG exceeded the UK Banks industry which returned -30.6% over the past year.

Return vs Market: CBG exceeded the UK Market which returned -10.7% over the past year.


Shareholder returns

CBGIndustryMarket
7 Day-2.9%-0.2%-0.2%
30 Day25.7%29.9%14.7%
90 Day25.6%32.5%7.6%
1 Year-4.5%-8.1%-25.0%-25.2%-3.1%-6.8%
3 Year12.1%-1.5%-33.9%-40.3%2.6%-9.9%
5 Year23.0%-0.5%-15.1%-29.2%31.1%1.5%

Long-Term Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

18.6x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: CBG (£13.54) is trading above our estimate of fair value (£11.4)

Significantly Below Fair Value: CBG is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: CBG is poor value based on its PE Ratio (18.6x) compared to the GB Banks industry average (10.7x).

PE vs Market: CBG is good value based on its PE Ratio (18.6x) compared to the UK market (21.1x).


Price to Earnings Growth Ratio

PEG Ratio: CBG is good value based on its PEG Ratio (1x)


Price to Book Ratio

PB vs Industry: CBG is overvalued based on its PB Ratio (1.4x) compared to the GB Banks industry average (0.6x).


Next Steps

Future Growth

How is Close Brothers Group forecast to perform in the next 1 to 3 years based on estimates from 12 analysts?

19.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CBG's forecast earnings growth (19.1% per year) is above the savings rate (1.2%).

Earnings vs Market: CBG's earnings (19.1% per year) are forecast to grow slower than the UK market (27.1% per year).

High Growth Earnings: CBG's earnings are forecast to grow, but not significantly.

Revenue vs Market: CBG's revenue (7.5% per year) is forecast to grow faster than the UK market (6.8% per year).

High Growth Revenue: CBG's revenue (7.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: CBG's Return on Equity is forecast to be low in 3 years time (12.8%).


Next Steps

Past Performance

How has Close Brothers Group performed over the past 5 years?

-1.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CBG has high quality earnings.

Growing Profit Margin: CBG's current net profit margins (14.6%) are lower than last year (24.4%).


Past Earnings Growth Analysis

Earnings Trend: CBG's earnings have declined by 1.3% per year over the past 5 years.

Accelerating Growth: CBG's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: CBG had negative earnings growth (-45.4%) over the past year, making it difficult to compare to the Banks industry average (-25.7%).


Return on Equity

High ROE: CBG's Return on Equity (7.6%) is considered low.


Next Steps

Financial Health

How is Close Brothers Group's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet


Financial Institutions Analysis

Asset Level: CBG's Assets to Equity ratio (7.6x) is low.

Allowance for Bad Loans: CBG has a low allowance for bad loans (64%).

Low Risk Liabilities: 63% of CBG's liabilities are made up of primarily low risk sources of funding.

Loan Level: CBG has an appropriate level of Loans to Assets ratio (69%).

Low Risk Deposits: CBG's Loans to Deposits ratio (127%) is high.

Level of Bad Loans: CBG has a high level of bad loans (4.4%).


Next Steps

Dividend

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

2.95%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: CBG's dividend (2.95%) is higher than the bottom 25% of dividend payers in the UK market (1.69%).

High Dividend: CBG's dividend (2.95%) is low compared to the top 25% of dividend payers in the UK market (4.96%).


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (54.9%), CBG's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: CBG's dividends in 3 years are forecast to be well covered by earnings (47.4% payout ratio).


Next Steps

Management

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

2.0yrs

Average management tenure


CEO

Adrian Sainsbury (52 yo)

0.17

Tenure

Mr. Adrian John Sainsbury has been Chief Executive Officer and Executive Director of Close Brothers Group PLC since September 21, 2020. Mr. Sainsbury served as Managing Director of Banking Division at Clos...


Leadership Team

NamePositionTenureCompensationOwnership
Michael Morgan
CFO, Group Finance Director & Executive Director2yrsUK£1.05m0.043%
£ 820.7k
Adrian Sainsbury
CEO & Executive Director0.17yrno data0.000040%
£ 770.8
Martyn Atkinson
Group Chief Operating Officer1.75yrsno datano data
Sophie A. Gillingham
Director of Investor Relationsno datano datano data
Camila Sugimura
Deputy Head of Investor Relationsno datano datano data
Angela Yotov
Group General Counsel1.25yrsno datano data
Rebekah Etherington
Group Head of Human Resources11.08yrsno data0.022%
£ 416.2k
Andreas Reinert
Managing Director of Food & Consumer Goods - Germany14.08yrsno datano data
Nigel Mottershead
Head of Credit10yrsno datano data
Robert Sack
Group Chief Risk Officer5.58yrsno data0.013%
£ 242.6k
Christophe Brière
Managing Directorno datano datano data
Andrew Hess
Managing Director of West End of London1.83yrsno datano data

2.0yrs

Average Tenure

55yo

Average Age

Experienced Management: CBG's management team is considered experienced (2 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Michael Morgan
CFO, Group Finance Director & Executive Director2yrsUK£1.05m0.043%
£ 820.7k
Adrian Sainsbury
CEO & Executive Director0.17yrno data0.000040%
£ 770.8
Bridget Macaskill
Independent Non-Executive Director7yrsUK£118.00k0.0017%
£ 32.4k
Michael Biggs
Chairman of the Board3.5yrsUK£304.00k0.00034%
£ 6.6k
Oliver Roebling Corbett
Interim Senior Independent Directorno dataUK£113.00kno data
Peter Duffy
Independent Non-Executive Director1.83yrsUK£75.00k0.00057%
£ 11.0k
Lesley Jones
Independent Non-Executive Director6.92yrsUK£114.00kno data
Sally Angela Williams
Independent Non-Executive Director0.83yrUK£48.00kno data

2.0yrs

Average Tenure

55yo

Average Age

Experienced Board: CBG's board of directors are not considered experienced ( 2 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

Close Brothers Group plc's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Close Brothers Group plc
  • Ticker: CBG
  • Exchange: LSE
  • Founded: 1878
  • Industry: Diversified Banks
  • Sector: Banks
  • Market Cap: UK£1.927b
  • Shares outstanding: 148.92m
  • Website: https://www.closebrothers.com

Number of Employees


Location

  • Close Brothers Group plc
  • 10 Crown Place
  • London
  • Greater London
  • EC2A 4FT
  • United Kingdom

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
CBGP.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJan 1992
CBGLSE (London Stock Exchange)YesOrdinary SharesGBGBPJan 1992
CS3DB (Deutsche Boerse AG)YesOrdinary SharesDEEURJan 1992
CBGLBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBGBPJan 1992
CBGP.YOTCPK (Pink Sheets LLC)UNSPONSORD ADRUSUSDFeb 2009

Biography

Close Brothers Group plc, a merchant banking company, provides financial services to small businesses and individuals in the United Kingdom. It operates through five segments: Commercial, Retail, Property,...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/12/01 19:34
End of Day Share Price2020/12/01 00:00
Earnings2020/07/31
Annual Earnings2020/07/31


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.