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Close Brothers Group

Market Cap

UK£2.3b

Last Updated

2021/08/01 17:53 UTC

Data Sources

Company Financials +

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

Adequate balance sheet and fair value.


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 less volatile than 75% of UK stocks over the past 3 months, typically moving +/- 3% a week.

Volatility Over Time: CBG's weekly volatility (3%) has been stable over the past year.


Market Performance


7 Day Return

0.9%

CBG

0.1%

GB Banks

0.3%

GB Market


1 Year Return

40.8%

CBG

44.0%

GB Banks

22.5%

GB Market

Return vs Industry: CBG underperformed the UK Banks industry which returned 44% over the past year.

Return vs Market: CBG exceeded the UK Market which returned 22.5% over the past year.


Shareholder returns

CBGIndustryMarket
7 Day0.9%0.1%0.3%
30 Day1.0%-2.7%-0.8%
90 Day-2.8%-4.4%1.5%
1 Year47.9%40.8%47.0%44.0%27.8%22.5%
3 Year12.2%-1.1%-23.9%-31.0%13.3%0.9%
5 Year45.8%18.3%4.8%-11.6%39.6%13.2%

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?

27.3%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: CBG (£15.43) is trading below our estimate of fair value (£21.22)

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


Price To Earnings Ratio

PE vs Industry: CBG is poor value based on its PE Ratio (21.1x) compared to the UK Banks industry average (12.9x).

PE vs Market: CBG is good value based on its PE Ratio (21.1x) compared to the UK market (23.5x).


Price to Earnings Growth Ratio

PEG Ratio: CBG is poor value based on its PEG Ratio (2.3x)


Price to Book Ratio

PB vs Industry: CBG is overvalued based on its PB Ratio (1.6x) compared to the GB Banks industry average (0.6x).


Future Growth

How is Close Brothers Group forecast to perform in the next 1 to 3 years based on estimates from 15 analysts?

9.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CBG's forecast earnings growth (9.2% per year) is above the savings rate (0.9%).

Earnings vs Market: CBG's earnings (9.2% per year) are forecast to grow slower than the UK market (14.8% per year).

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

Revenue vs Market: CBG's revenue (4.3% per year) is forecast to grow slower than the UK market (4.8% per year).

High Growth Revenue: CBG's revenue (4.3% 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 (14.5%).


Past Performance

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

-6.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CBG has high quality earnings.

Growing Profit Margin: CBG's current net profit margins (13.9%) are lower than last year (23.4%).


Past Earnings Growth Analysis

Earnings Trend: CBG's earnings have declined by 6.3% 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 (-42.9%) over the past year, making it difficult to compare to the Banks industry average (30%).


Return on Equity

High ROE: CBG's Return on Equity (7.4%) is considered low.


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 (8.3x) is low.

Allowance for Bad Loans: CBG has a low allowance for bad loans (72%).

Low Risk Liabilities: 61% 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 (65%).

Low Risk Deposits: CBG's Loans to Deposits ratio (122%) is appropriate.

Level of Bad Loans: CBG has a high level of bad loans (4.6%).


Dividend

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

2.33%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: CBG's dividend (2.33%) is higher than the bottom 25% of dividend payers in the UK market (1.31%).

High Dividend: CBG's dividend (2.33%) is low compared to the top 25% of dividend payers in the UK market (3.94%).


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 fallen over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: At its current payout ratio (79.4%), CBG's payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: CBG's dividends in 3 years are forecast to be covered by earnings (53.2% payout ratio).


Next Steps

Management

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

2.7yrs

Average management tenure


CEO

Adrian Sainsbury (53 yo)

0.83

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

Experienced Management: CBG's management team is considered experienced (2.7 years average tenure).


Board Members

Experienced Board: CBG's board of directors are not considered experienced ( 2.7 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£2.310b
  • Shares outstanding: 149.68m
  • Website: https://www.closebrothers.com

Number of Employees


Location

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

Listings


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 Analysis2021/08/01 17:53
End of Day Share Price2021/07/30 00:00
Earnings2021/01/31
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.