AIM:RBGP

Stock Analysis Report

Executive Summary

RBG Holdings plc provides commercial legal and professional services to companies, banks, entrepreneurs, and individuals in the United Kingdom, rest of Europe, North America, and internationally.

Rewards

Trading at 79% below its fair value

Earnings are forecast to grow 37.65% per year

Revenue grew by 18.8% over the past year

Risk Analysis

Unstable dividend track record

Highly volatile share price over past 3 months

Profit margins (18.4%) are lower than last year (30.4%)

Latest financial reports are more than 6 months old

+ 1 more risk


Snowflake Analysis

Very undervalued with flawless balance sheet and pays a dividend.

Share Price & News

How has RBG Holdings's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: RBGP's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-5.6%

RBGP

-8.8%

GB Professional Services

-5.4%

GB Market


1 Year Return

-40.4%

RBGP

-4.7%

GB Professional Services

-25.2%

GB Market

Return vs Industry: RBGP underperformed the UK Professional Services industry which returned -2.9% over the past year.

Return vs Market: RBGP underperformed the UK Market which returned -25% over the past year.


Shareholder returns

RBGPIndustryMarket
7 Day-5.6%-8.8%-5.4%
30 Day-41.4%-18.4%-20.6%
90 Day-44.9%-18.3%-29.1%
1 Year-37.4%-40.4%-2.5%-4.7%-21.5%-25.2%
3 Yearn/a18.0%10.0%-15.3%-25.9%
5 Yearn/a62.0%42.9%-3.6%-25.1%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is RBG Holdings 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: RBGP (£0.51) is trading below our estimate of fair value (£2.43)

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


Price To Earnings Ratio

PE vs Industry: RBGP is good value based on its PE Ratio (8.9x) compared to the Professional Services industry average (15.3x).

PE vs Market: RBGP is good value based on its PE Ratio (8.9x) compared to the UK market (12.5x).


Price to Earnings Growth Ratio

PEG Ratio: RBGP is good value based on its PEG Ratio (0.2x)


Price to Book Ratio

PB vs Industry: RBGP is good value based on its PB Ratio (1.2x) compared to the GB Professional Services industry average (2.3x).


Next Steps

Future Growth

How is RBG Holdings forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

37.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: RBGP's forecast earnings growth (37.6% per year) is above the savings rate (0.5%).

Earnings vs Market: RBGP's earnings (37.6% per year) are forecast to grow faster than the UK market (15.6% per year).

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

Revenue vs Market: RBGP's revenue (17.5% per year) is forecast to grow faster than the UK market (2.4% per year).

High Growth Revenue: RBGP's revenue (17.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if RBGP's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has RBG Holdings performed over the past 5 years?

-27.9%

Last years earnings growth


Earnings and Revenue History

Quality Earnings: RBGP has high quality earnings.

Growing Profit Margin: RBGP's current net profit margins (18.4%) are lower than last year (30.4%).


Past Earnings Growth Analysis

Earnings Trend: Insufficient data to determine if RBGP's year-on-year earnings growth rate was positive over the past 5 years.

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

Earnings vs Industry: RBGP had negative earnings growth (-27.9%) over the past year, making it difficult to compare to the Professional Services industry average (12%).


Return on Equity

High ROE: RBGP's Return on Equity (9.9%) is considered low.


Next Steps

Financial Health

How is RBG Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: RBGP's short term assets (£19.5M) exceed its short term liabilities (£2.7M).

Long Term Liabilities: RBGP's short term assets (£19.5M) exceed its long term liabilities (£144.1K).


Debt to Equity History and Analysis

Debt Level: RBGP is debt free.

Reducing Debt: RBGP had no debt 5 years ago.

Debt Coverage: RBGP has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: RBGP has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet

Inventory Level: RBGP has a low level of unsold assets or inventory.

Debt Coverage by Assets: Insufficient data to determine if RBGP's debt is covered by short term assets.


Next Steps

Dividend

What is RBG Holdings's current dividend yield, its reliability and sustainability?

11.76%

Current Dividend Yield


Upcoming Dividend Payment


Dividend Yield vs Market

Notable Dividend: RBGP's dividend (11.76%) is higher than the bottom 25% of dividend payers in the UK market (2.67%).

High Dividend: RBGP's dividend (11.76%) is in the top 25% of dividend payers in the UK market (7.36%)


Stability and Growth of Payments

Stable Dividend: Too early to tell whether RBGP's dividend payments have been stable as they only just started paying a dividend.

Growing Dividend: Too early to tell if RBGP's dividend payments are increasing as they only just started paying a dividend.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (73.1%), RBGP's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: RBGP's dividends in 3 years are forecast to be covered by earnings (61.2% payout ratio).


Next Steps

Management

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

1.3yrs

Average board tenure


CEO

Nicky Foulston (52yo)

no data

Tenure

UK£303,733

Compensation

Ms. Nicola Foulston, also known as Nicky, has been Chief Executive Officer of Rosenblatt Solicitors since September 1, 2016. Ms. Foulston servers as the Chief Executive Officer of Rosenblatt Group plc and  ...


CEO Compensation Analysis

Compensation vs Market: Nicky's total compensation ($USD376.53K) is about average for companies of similar size in the UK market ($USD334.31K).

Compensation vs Earnings: Insufficient data to compare Nicky's compensation with company performance.


Board Members

NamePositionTenureCompensationOwnership
Nicola Foulston
CEO & Directorno dataUK£303.73k13.39% £5.8m
Robert Parker
CFO & Director1.25yrsno datano data
Jon Lovitt
Company Secretary & Director0.33yrno datano data
Keith Hamill
Non-Executive Chairman0.25yrno datano data
Marianne Laing Ismail
Non-Executive Director1.25yrsno datano data

1.3yrs

Average Tenure

59yo

Average Age

Experienced Board: RBGP's board of directors are not considered experienced ( 1.3 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

RBG Holdings plc's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: RBG Holdings plc
  • Ticker: RBGP
  • Exchange: AIM
  • Founded: 1989
  • Industry: Research and Consulting Services
  • Sector: Commercial Services
  • Market Cap: UK£43.652m
  • Shares outstanding: 85.59m
  • Website: https://www.rbgholdings.co.uk

Number of Employees


Location

  • RBG Holdings plc
  • 9-13 St. Andrew Street
  • London
  • Greater London
  • EC4A 3AF
  • United Kingdom

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
RBGPAIM (London Stock Exchange AIM Market)YesOrdinary SharesGBGBPMay 2018

Biography

RBG Holdings plc provides commercial legal and professional services to companies, banks, entrepreneurs, and individuals in the United Kingdom, rest of Europe, North America, and internationally. It operates through Real Estate, Employment, Corporate, and Dispute Resolution segments. The company offers legal advice in respect of construction, planning, real estate, and residential property development services; employment and pension services; corporate, private client, and taxation services; and commercial dispute resolution. It also provides a range of legal services in the areas of banking and finance, insolvency and financial restructuring, financial services, IP/technology/media, regulatory, and tax resolution. The company was formerly known as Rosenblatt Group Plc and changed its name to RBG Holdings plc in September 2019. RBG Holdings plc was founded in 1989 and is based in London, the United Kingdom. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/03 00:17
End of Day Share Price2020/04/02 00:00
Earnings2018/12/31
Annual Earnings2018/12/31


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.