Rank Group

LSE:RNK

Snowflake Description

Excellent balance sheet with limited growth.

The Snowflake is generated from 30 checks in 5 different areas, read more below.

RNK

LSE

£597M

Market Cap

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Last updated 2019/05/23 21:12

Company description

The Rank Group Plc, together with its subsidiaries, provides gaming services in Great Britain, Spain, and Belgium. The last earnings update was 112 days ago. More info.

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RNK Share Price and Events

7 Day Returns

-1%

LSE:RNK

0.3%

GB Hospitality

0.5%

GB Market

1 Year Returns

-12.9%

LSE:RNK

-8.7%

GB Hospitality

-5.4%

GB Market

RNK Shareholder Return

	7 Day	30 Day	90 Day	1 Year	3 Year	5 Year
Rank Group (RNK)	-1%	-4.3%	-8.3%	-12.9%	-38.3%	-2.1%
GB Hospitality	0.3%	-0.1%	-2.9%	-8.7%	9.7%	28.7%
GB Market	0.5%	-1.7%	2.1%	-5.4%	13.8%	1.8%

1 Year Return vs Industry and Market

RNK underperformed the Hospitality industry which returned -8.7% over the past year.
RNK underperformed the Market in United Kingdom of Great Britain and Northern Ireland which returned -5.4% over the past year.

Price Volatility

RNK

Industry

5yr Volatility vs Market

Related Companies

RNK Value

Is Rank Group undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.

INTRINSIC VALUE BASED ON FUTURE CASH FLOWS

Here we compare the current share price of Rank Group to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.

Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Rank Group.

LSE:RNK Discounted Cash Flow Data Sources
Data Point	Source	Value
Valuation Model		2 Stage Free Cash Flow to Equity
Levered Free Cash Flow	Average of 3 Analyst Estimates (S&P Global)	See below
Discount Rate (Cost of Equity)	See below	7.9%
Perpetual Growth Rate	10-Year GB Government Bond Rate	1.2%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for LSE:RNK
Data Point	Calculation/ Source	Result
Risk-Free Rate	10-Year GB Govt Bond Rate	1.2%
Equity Risk Premium	S&P Global	6.7%
Hospitality Unlevered Beta	Simply Wall St/ S&P Global	0.93
Re-levered Beta	= Unlevered beta (1 + (1- tax rate) (Debt/Equity)) = 0.927 (1 + (1- 19%) (10.44%))	1.004
Levered Beta	Levered Beta limited to 0.8 to 2.0 (practical range for a stable firm)	1
Discount Rate/ Cost of Equity	= Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium) = 1.23% + (1.004 * 6.65%)	7.9%

Discounted Cash Flow Calculation for LSE:RNK using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Rank Group is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

LSE:RNK DCF 1st Stage: Next 10 year cash flow forecast
	Levered FCF (GBP, Millions)	Source	Present Value Discounted (@ 7.9%)
2019	55.97	Analyst x2	51.87
2020	56.75	Analyst x2	48.74
2021	59.45	Analyst x2	47.32
2022	61.60	Est @ 3.62%	45.44
2023	63.38	Est @ 2.9%	43.33
2024	64.90	Est @ 2.4%	41.12
2025	66.23	Est @ 2.05%	38.89
2026	67.42	Est @ 1.8%	36.69
2027	68.52	Est @ 1.63%	34.56
2028	69.55	Est @ 1.51%	32.51
Present value of next 10 years cash flows			£420.49

LSE:RNK DCF 2nd Stage: Terminal Value
	Calculation	Result
Terminal Value	= FCF₂₀₂₈ × (1 + g) ÷ (Discount Rate – g) = £69.55 × (1 + 1.23%) ÷ (7.9% – 1.23%)	£1,054.91
Present Value of Terminal Value	= Terminal Value ÷ (1 + r)¹⁰ = £1,054.91 ÷ (1 + 7.9%)¹⁰	£493.12

LSE:RNK Total Equity Value
	Calculation	Result
Total Equity Value	= Present value of next 10 years cash flows + Terminal Value = £420.49 + £493.12	£913.60
Equity Value per Share (GBP)	= Total value / Shares Outstanding = £913.60 / 390.68	£2.34

LSE:RNK Discount to Share Price
	Calculation	Result
Value per share (GBP)	From above.	£2.34
Current discount	Discount to share price of £1.53 = -1 x (£1.53 - £2.34) / £2.34	34.7%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount

Amount off the current price Rank Group is available for.

35%

Share price is £1.53 vs Future cash flow value of £2.34

Current Discount Checks

For Rank Group to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.

Rank Group's share price is below the future cash flow value, and at a moderate discount (> 20%).
Rank Group's share price is below the future cash flow value, but not at a substantial discount (< 40%).

PRICE RELATIVE TO MARKET

We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Rank Group's earnings, growth and assets is considered below, and whether this is a fair price.

Price based on past earnings

Are Rank Group's earnings available for a low price, and how does this compare to other companies in the same industry?

Raw Data

LSE:RNK PE (Price to Earnings) Ratio Data Sources
Data Point	Source	Value
Earnings Per Share *	Company Filings (2018-12-31) in GBP	£0.08
LSE:RNK Share Price **	LSE (2019-05-23) in GBP	£1.53
United Kingdom of Great Britain and Northern Ireland Hospitality Industry PE Ratio	Median Figure of 34 Publicly-Listed Hospitality Companies	18.11x
United Kingdom of Great Britain and Northern Ireland Market PE Ratio	Median Figure of 789 Publicly-Listed Companies	16.47x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Rank Group.

LSE:RNK PE (Price to Earnings) Ratio Calculation
	Calculation	Outcome
PE Ratio	= LSE:RNK Share Price ÷ EPS (both in GBP) = 1.53 ÷ 0.08	20.24x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

Rank Group is overvalued based on earnings compared to the GB Hospitality industry average.
Rank Group is overvalued based on earnings compared to the United Kingdom of Great Britain and Northern Ireland market.

Price based on expected Growth

Does Rank Group's expected growth come at a high price?

Raw Data

LSE:RNK PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point	Source	Value
PE Ratio	See PE Ratio Section	20.24x
Net Income Annual Growth Rate	See Future Growth Section. Line of Best Fit* through Consensus Estimate Earnings of 3 Analysts	14.2%per year
United Kingdom of Great Britain and Northern Ireland Hospitality Industry PEG Ratio	Median Figure of 28 Publicly-Listed Hospitality Companies	2.05x
United Kingdom of Great Britain and Northern Ireland Market PEG Ratio	Median Figure of 574 Publicly-Listed Companies	1.46x

*Line of best fit is calculated by linear regression .

LSE:RNK PEG (Price to Earnings to Growth) Ratio Calculation
	Calculation	Outcome
PEG Ratio	= PE Ratio ÷ Net Income Annual Growth Rate = 20.24x ÷ 14.2%	1.42x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

Rank Group is poor value based on expected growth next year.

Price based on value of assets

What value do investors place on Rank Group's assets?

Raw Data

LSE:RNK PB (Price to Book) Ratio Data Sources
Data Point	Source	Value
Book Value per Share	Company Filings (2018-12-31) in GBP	£1.01
LSE:RNK Share Price *	LSE (2019-05-23) in GBP	£1.53
United Kingdom of Great Britain and Northern Ireland Hospitality Industry PB Ratio	Median Figure of 54 Publicly-Listed Hospitality Companies	1.38x
United Kingdom of Great Britain and Northern Ireland Market PB Ratio	Median Figure of 1,369 Publicly-Listed Companies	1.5x

LSE:RNK PB (Price to Book) Ratio Calculation
	Calculation	Outcome
PB Ratio	= LSE:RNK Share Price ÷ Book Value per Share (both in GBP) = 1.53 ÷ 1.01	1.51x

* Primary Listing of Rank Group.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

Rank Group is overvalued based on assets compared to the GB Hospitality industry average.

Value checks

We assess Rank Group's value by looking at:

Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
Is the PE ratio less than the market average, and/ or less than the Hospitality industry average (and greater than 0)? (2 checks)
Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
Is the PB ratio less than the Hospitality industry average (and greater than 0)? (1 check)

Full details on the Value part of the Simply Wall St company analysis model.

RNK Future Performance

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

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!

14.2%

Expected annual growth in earnings.

Earnings growth vs Low Risk Savings

Is Rank Group expected to grow at an attractive rate?

Rank Group's earnings growth is expected to exceed the low risk savings rate of 1.2%.

Growth vs Market Checks

Rank Group's earnings growth is expected to exceed the United Kingdom of Great Britain and Northern Ireland market average.
Rank Group's revenue growth is positive but not above the United Kingdom of Great Britain and Northern Ireland market average.

Annual Growth Rates Comparison

Raw Data

LSE:RNK Future Growth Rates Data Sources
Data Point	Source	Value (per year)
LSE:RNK Future Earnings Growth Rate	Line of Best Fit* through Consensus Estimate Earnings of 3 Analysts	14.2%
LSE:RNK Future Revenue Growth Rate	Line of Best Fit* through Consensus Estimate Revenue of 3 Analysts	4.2%
United Kingdom of Great Britain and Northern Ireland Hospitality Industry Earnings Growth Rate	Market Cap Weighted Average	12%
United Kingdom of Great Britain and Northern Ireland Hospitality Industry Revenue Growth Rate	Market Cap Weighted Average	5.8%
United Kingdom of Great Britain and Northern Ireland Market Earnings Growth Rate	Market Cap Weighted Average	10.9%
United Kingdom of Great Britain and Northern Ireland Market Revenue Growth Rate	Market Cap Weighted Average	5%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations

Raw Data

LSE:RNK Analysts Growth Expectations Data Sources
Data Point	Source	Value
Past Financials	Company Filings (4 months ago)	See Below
Future Estimates	Average of up to 3 Analyst Estimates (S&P Global)	See Below

All numbers in GBP Millions and using Trailing twelve months (TTM) annual period rather than quarterly.

LSE:RNK Future Estimates Data
Date (Data in GBP Millions)	Revenue	Cash Flow	Net Income *	Avg. No. Analysts
2021-06-30	789	116	59	3
2020-06-30	770	113	56	3
2019-06-30	759	114	55	1

LSE:RNK Past Financials Data
Date (Data in GBP Millions)	Revenue	Cash Flow	Net Income *
2018-12-31	685	82	30
2018-09-30	688	84	33
2018-06-30	691	86	36
2018-03-31	699	97	48
2017-12-31	706	108	60
2017-09-30	707	103	61
2017-06-30	707	99	63
2017-03-31	709	92	62
2016-12-31	711	84	61
2016-09-30	710	81	66
2016-06-30	709	78	71
2016-03-31	709	92	70

*GAAP earnings excluding extraordinary items.

High Growth Checks

Rank Group's earnings are expected to grow by 14.2% yearly, however this is not considered high growth (20% yearly).
Rank Group's revenue is expected to grow by 4.2% yearly, however this is not considered high growth (20% yearly).

Past and Future Earnings per Share

The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.

Raw Data

LSE:RNK Past and Future Earnings per Share
Data Point	Source	Value
Past Financials	Company Filings (4 months ago)	See Below
Future Estimates	Average of up to 3 Analyst Estimates (S&P Global)	See Below

All data from Rank Group Company Filings, last reported 4 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

LSE:RNK Future Estimates Data
Date (Data in GBP Millions)	EPS *	EPS High Estimate	EPS Low Estimate	Avg. No. Analysts
2021-06-30	0.15	0.15	0.15	2.00
2020-06-30	0.14	0.15	0.14	2.00
2019-06-30	0.14	0.14	0.14	2.00

LSE:RNK Past Financials Data
Date (Data in GBP Millions)	EPS *
2018-12-31	0.08
2018-09-30	0.08
2018-06-30	0.09
2018-03-31	0.12
2017-12-31	0.15
2017-09-30	0.16
2017-06-30	0.16
2017-03-31	0.16
2016-12-31	0.16
2016-09-30	0.17
2016-06-30	0.18
2016-03-31	0.18

*GAAP earnings excluding extraordinary items.

Performance in 3 years

In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.

Rank Group is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).

Future performance checks

We assess Rank Group's future performance by looking at:

Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United Kingdom of Great Britain and Northern Ireland market? (1 check)
Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United Kingdom of Great Britain and Northern Ireland market? (1 check)
Is the annual earnings growth rate expected to be above 20%? (1 check)
Is the annual revenue growth rate expected to be above 20%? (1 check)
Is the Return on Equity in 3 years expected to be over 20%? (1 check)

Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Rank Group has a total score of 2/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

RNK Past Performance

How has Rank Group performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.

Past earnings growth

Below we compare Rank Group's growth in the last year to its industry (Hospitality).

Past Earnings growth analysis

We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.

Rank Group's year on year earnings growth rate has been positive over the past 5 years, however the most recent earnings are below average.
Rank Group's 1-year earnings growth is negative, it can't be compared to the 5-year average.
Rank Group's 1-year earnings growth is negative, it can't be compared to the GB Hospitality industry average.

Earnings and Revenue History

Rank Group's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.

Raw Data

All data from Rank Group Company Filings, last reported 4 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

LSE:RNK Past Revenue, Cash Flow and Net Income Data
Date (Data in GBP Millions)	Revenue	Net Income *
2018-12-31	685.00	29.50
2018-09-30	688.00	32.70
2018-06-30	691.00	35.90
2018-03-31	698.55	47.90
2017-12-31	706.10	59.90
2017-09-30	706.65	61.40
2017-06-30	707.20	62.90
2017-03-31	709.15	62.10
2016-12-31	711.10	61.30
2016-09-30	709.80	66.20
2016-06-30	708.50	71.10
2016-03-31	709.30	69.85
2015-12-31	710.10	68.60
2015-09-30	705.40	63.80
2015-06-30	700.70	59.00
2015-03-31	692.75	53.10
2014-12-31	684.80	47.20
2014-09-30	681.65	32.30
2014-06-30	678.50	17.40
2014-03-31	660.55	13.00
2013-12-31	642.60	8.60
2013-09-30	619.40	18.75
2013-06-30	596.20	28.90
2012-12-31	564.03	116.83
2012-09-30	560.08	114.58
2012-06-30	556.13	112.33

*GAAP earnings excluding extraordinary items.

Performance last year

We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.

Rank Group has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
Rank Group used its assets less efficiently than the GB Hospitality industry average last year based on Return on Assets.
Rank Group's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).

Past performance checks

We assess Rank Group's performance over the past 5 years by checking for:

Has earnings increased in past 5 years? (1 check)
Has the earnings growth in the last year exceeded that of the Hospitality industry? (1 check)
Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
Is the Return on Equity (ROE) higher than 20%? (1 check)
Is the Return on Assets (ROA) above industry average? (1 check)
Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)

The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Rank Group has a total score of 1/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

RNK Health

How is Rank Group's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Rank Group's finances.

The net worth of a company is the difference between its assets and liabilities.

Net Worth

Rank Group's short term (1 year) commitments are greater than its holdings of cash and other short term assets.
Rank Group's cash and other short term assets cover its long term commitments.

Balance sheet

This treemap shows a more detailed breakdown of Rank Group's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.

Assets

Liabilities and shares

The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.

High level of physical assets or inventory.
Debt is covered by short term assets, assets are 1.7x debt.

Historical Debt

Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.

Raw Data

All data from Rank Group Company Filings, last reported 4 months ago.

LSE:RNK Past Debt and Equity Data
Date (Data in GBP Millions)	Total Equity	Total Debt	Cash & Short Term Investments
2018-12-31	395.70	62.30	70.00
2018-09-30	395.70	62.30	70.00
2018-06-30	396.50	59.70	50.40
2018-03-31	396.50	59.70	50.40
2017-12-31	393.90	94.70	98.40
2017-09-30	393.90	94.70	98.40
2017-06-30	390.60	91.60	79.00
2017-03-31	390.60	91.60	79.00
2016-12-31	362.20	104.50	71.50
2016-09-30	362.20	104.50	71.50
2016-06-30	352.60	102.20	61.00
2016-03-31	352.60	102.20	61.00
2015-12-31	322.90	122.20	70.30
2015-09-30	322.90	122.20	70.30
2015-06-30	294.40	143.10	89.60
2015-03-31	294.40	143.10	89.60
2014-12-31	272.80	167.90	73.10
2014-09-30	272.80	167.90	73.10
2014-06-30	242.30	183.90	47.10
2014-03-31	242.30	183.90	47.10
2013-12-31	230.70	196.90	62.50
2013-09-30	230.70	196.90	62.50
2013-06-30	241.90	168.50	65.00
2012-12-31	237.10	29.80	92.00
2012-09-30	237.10	29.80	92.00
2012-06-30	228.00	30.90	72.50

Rank Group's level of debt (15.7%) compared to net worth is satisfactory (less than 40%).
The level of debt compared to net worth has been reduced over the past 5 years (85.2% vs 15.7% today).
Debt is well covered by operating cash flow (131.9%, greater than 20% of total debt).
Interest payments on debt are well covered by earnings (EBIT is 31.2x coverage).

Show me more healthy companies in the Hospitality industry

Financial health checks

We assess Rank Group's financial health by checking for:

Are short term assets greater than short term liabilities? (1 check)
Are short term assets greater than long term liabilities? (1 check)
Has the debt to equity ratio increased in the past 5 years? (1 check)
Is the debt to equity ratio over 40%? (1 check)
Is the debt covered by operating cash flow? (1 check)
Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)

For companies that are loss making and have been so on average in the past we replace the last 2 checks with:

Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)

Full details on the Health part of the Simply Wall St company analysis model.

RNK Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.

Annual Dividend Income

4.88%

Current annual income from Rank Group dividends. Estimated to be 5.39% next year.

If you bought £2,000 of Rank Group shares you are expected to receive £98 in your first year as a dividend.

Dividend Amount

Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?

Rank Group's pays a higher dividend yield than the bottom 25% of dividend payers in United Kingdom of Great Britain and Northern Ireland (1.98%).
Rank Group's dividend is below the markets top 25% of dividend payers in United Kingdom of Great Britain and Northern Ireland (5.3%).

Annualized Historical and Future Dividends

It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.

Raw Data

LSE:RNK Annualized Past and Future Dividends
Data Point	Source	Value
Past Annualized Dividend Yield	S&P Global Market Data	See Below
Past Dividends per Share	Company Filings/ Annualized Dividend Payments	See Below
Future Dividends per Share Estimates	Average of up to 3 Analyst Estimates (S&P Global)	See Below
United Kingdom of Great Britain and Northern Ireland Hospitality Industry Average Dividend Yield	Market Cap Weighted Average of 32 Stocks	3.2%
United Kingdom of Great Britain and Northern Ireland Market Average Dividend Yield	Market Cap Weighted Average of 706 Stocks	4.3%
United Kingdom of Great Britain and Northern Ireland Minimum Threshold Dividend Yield	10th Percentile	1%
United Kingdom of Great Britain and Northern Ireland Bottom 25% Dividend Yield	25th Percentile	2%
United Kingdom of Great Britain and Northern Ireland Top 25% Dividend Yield	75th Percentile	5.3%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

LSE:RNK Future Dividends Estimate Data
Date (Data in £)	Dividend per Share (annual)	Avg. No. Analysts
2021-06-30	0.09	3.00
2020-06-30	0.08	4.00
2019-06-30	0.08	3.00

LSE:RNK Past Annualized Dividends Data
Date (Data in £)	Dividend per share (annual)	Avg. Yield (%)
2018-09-14	0.075	4.744
2018-08-16	0.075	4.352
2017-09-15	0.073	3.534
2017-08-17	0.073	3.179
2017-01-26	0.067	3.082
2016-08-23	0.065	3.239
2016-01-29	0.058	2.422
2015-09-17	0.056	2.022
2015-08-20	0.056	2.147
2014-08-14	0.045	2.456
2014-02-04	0.042	2.694
2013-08-15	0.041	2.798
2013-01-31	0.049	3.029
2012-09-20	0.046	3.116
2012-08-17	0.046	3.431
2012-02-09	0.021	1.706
2011-07-28	0.027	2.028
2011-03-15	0.024	1.621
2011-02-25	0.024	1.842
2010-07-29	0.015	1.194
2010-03-01	0.014	1.194
2010-02-25	0.014	1.300

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

Rank Group has been paying a dividend for less than 10 years and during this time payments have been volatile (annual drop of over 20%).
Dividend payments have increased, but Rank Group only paid a dividend in the past 9 years.

Current Payout to shareholders

What portion of Rank Group's earnings are paid to the shareholders as a dividend.

Dividends paid are not well covered by earnings (1x coverage).

Future Payout to shareholders

Dividends after 3 years are expected to be covered by earnings (1.8x coverage).

Income/ dividend checks

We assess Rank Group's dividend by checking for:

Firstly is the company paying a notable dividend (greater than 1%) - if not then the rest of the checks are ignored.
Is current dividend yield above the bottom 25% of dividend payers? (1 check)
Is current dividend yield above the top 25% of dividend payers? (1 check)
Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
If they have paid a dividend for 10 years has it increased in this time? (1 check)
How sustainable is the dividend, can Rank Group afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)

Full details on the Dividends part of the Simply Wall St company analysis model.

RNK Management

What is the CEO of Rank Group's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.

CEO

John O'Reilly

COMPENSATION	£528,996
AGE	58
TENURE AS CEO	1 years

CEO Bio

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 internationally. He previously led and grew Ladbrokes' digital operations and was an Executive Director on the Ladbrokes plc board from 2006 until August 2010. He was a senior executive with Gala Coral Group between August 2011 and April 2015 where, as managing director of Coral Interactive (Gibraltar) Ltd. He was non-executive chairman of Grand Parade Ltd. from June 2015 to August 2016. He served as a Non-executive director of William Hill PLC since January 2017 until April 2018. He serves as a Non-Executive Director of Weatherbys Limited. He was non-executive director at Telecity Group plc from September 2007 to January 2016.

CEO Compensation

Insufficient data for John to compare compensation growth.
John's remuneration is lower than average for companies of similar size in United Kingdom of Great Britain and Northern Ireland.

Management Team Tenure

Average tenure and age of the Rank Group management team in years:

0.8

Average Tenure

Average Age

The average tenure for the Rank Group management team is less than 2 years, this suggests a new team.

Management Team

John O'Reilly

TITLE

CEO & Director

COMPENSATION

£529K

AGE

58

TENURE

1 yrs

Alan Morgan

TITLE

MD of Retail & Executive Director

40

TENURE

1.3 yrs

2.5

Average Tenure

Average Age

The average tenure for the Rank Group board of directors is less than 3 years, this suggests a new board.

TENURE

0.3 yrs

Who owns this company?

Recent Insider Trading

No 3 month insider trading information.

Recent Insider Transactions

Announced	Type	Name	Entity	Role		Start	End	Shares	Max Price (£)	Value (£)
02. Jul 18	Buy	John O'Reilly	Individual			29. Jun 18	29. Jun 18	160,000	£1.90	£304,000

Management checks

We assess Rank Group's management by checking for:

Is the CEO's compensation unreasonable compared to market cap? (1 check)
Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
Is the average tenure of the management team less than 2 years? (1 check)
Is the average tenure of the board of directors team less than 3 years? (1 check)

Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

RNK News

Simply Wall St News

Did The Rank Group Plc (LON:RNK) Insiders Buy Up More Shares?

We often see insiders buying up shares in companies that perform well over the long term. … So shareholders might well want to know whether insiders have been buying or selling shares in The Rank Group Plc (LON:RNK). … That means that an insider was happy to buy shares at above the current price.

Simply Wall St - 1 month ago – Full article

The Rank Group Plc (LON:RNK) Delivered A Weaker ROE Than Its Industry

This article is for those who would like to learn about Return On Equity (ROE). … Another way to think of that is that for every £1 worth of equity in the company, it was able to earn £0.091. … Return on Equity = Net Profit ÷ Shareholders' Equity

Simply Wall St - 4 months ago – Full article

The Rank Group Plc (LON:RNK): A Look At Return On Capital

and want to begin learning the link between The Rank Group Plc (LON:RNK)’s return fundamentals and stock market performance. … Rank Group stock represents an ownership share in the company. … Thus, to understand how your money can grow by investing in Rank Group, you need to look at what the company returns to owners for the use of their capital, which can be done in many ways but today we will use return on capital employed (ROCE)

Simply Wall St - 5 months ago – Full article

Will The Rank Group Plc (LON:RNK) Continue To Underperform Its Industry?

The Rank Group Plc (LON:RNK) performed in line with its casinos and gaming industry on the basis of its ROE – producing a return of 9.05% relative to the peer average of 10.46% over the past 12 months. … But what is more interesting is whether RNK can sustain or improve on this level of return. … See our latest analysis for Rank Group