Rank Group
Market Cap
UK£568.1m
Last Updated
2020/07/04 20:54 UTC
Data Sources
Company Financials +
Executive Summary
The Rank Group Plc, together with its subsidiaries, provides gaming services in Great Britain, Spain, and Belgium.
Rewards
Risk Analysis
Snowflake Analysis
Undervalued with reasonable growth potential and pays a dividend.
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: RNK has not had significant price volatility in the past 3 months.
Market Performance
7 Day Return
-5.0%
RNK
3.3%
GB Hospitality
0.1%
GB Market
1 Year Return
-9.7%
RNK
-36.8%
GB Hospitality
-15.3%
GB Market
Return vs Industry: RNK exceeded the UK Hospitality industry which returned -36.8% over the past year.
Return vs Market: RNK exceeded the UK Market which returned -15.3% over the past year.
Shareholder returns
| RNK | Industry | Market | |
|---|---|---|---|
| 7 Day | -5.0% | 3.3% | 0.1% |
| 30 Day | -10.1% | -8.8% | -2.7% |
| 90 Day | 15.4% | 13.0% | 16.9% |
| 1 Year | -6.0%-9.7% | -34.6%-36.8% | -11.4%-15.3% |
| 3 Year | -28.1%-36.0% | -22.8%-30.1% | -3.4%-15.2% |
| 5 Year | -26.8%-38.3% | -8.7%-24.9% | 15.4%-10.3% |
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
3 months ago | Simply Wall St
Do You Know What The Rank Group Plc's (LON:RNK) P/E Ratio Means?4 months ago | Simply Wall St
Boasting A 12% Return On Equity, Is The Rank Group Plc (LON:RNK) A Top Quality Stock?4 months ago | Simply Wall St
Here's What We Like About The Rank Group Plc (LON:RNK)'s Upcoming DividendValuation
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: RNK (£1.45) is trading below our estimate of fair value (£3.21)
Significantly Below Fair Value: RNK is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: RNK is good value based on its PE Ratio (11.6x) compared to the Hospitality industry average (18.4x).
PE vs Market: RNK is good value based on its PE Ratio (11.6x) compared to the UK market (14.9x).
Price to Earnings Growth Ratio
PEG Ratio: RNK is good value based on its PEG Ratio (0.4x)
Price to Book Ratio
PB vs Industry: RNK is overvalued based on its PB Ratio (1.4x) compared to the GB Hospitality industry average (1x).
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: RNK's forecast earnings growth (28.7% per year) is above the savings rate (1.2%).
Earnings vs Market: RNK's earnings (28.7% per year) are forecast to grow faster than the UK market (21.7% per year).
High Growth Earnings: earnings are expected to grow significantly over the next 3 years.
Revenue vs Market: RNK's revenue (9.8% per year) is forecast to grow faster than the UK market (3.4% per year).
High Growth Revenue: RNK'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: RNK'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: RNK has a large one-off loss of £28.9M impacting its December 31 2004 financial results.
Growing Profit Margin: RNK's current net profit margins (6.6%) are higher than last year (4.3%).
Past Earnings Growth Analysis
Earnings Trend: RNK's earnings have declined by -11.1% per year over the past 5 years.
Accelerating Growth: RNK's earnings growth over the past year (65.4%) exceeds its 5-year average (-11.1% per year).
Earnings vs Industry: RNK earnings growth over the past year (65.4%) exceeded the Hospitality industry -15.1%.
Return on Equity
High ROE: RNK'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: RNK's short term assets (£143.4M) do not cover its short term liabilities (£245.0M).
Long Term Liabilities: RNK's short term assets (£143.4M) do not cover its long term liabilities (£364.3M).
Debt to Equity History and Analysis
Debt Level: RNK's debt to equity ratio (41.2%) is considered high.
Reducing Debt: RNK's debt to equity ratio has reduced from 56.7% to 41.2% over the past 5 years.
Debt Coverage: RNK's debt is well covered by operating cash flow (85%).
Interest Coverage: RNK'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?
5.26%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: RNK's dividend (5.26%) is higher than the bottom 25% of dividend payers in the UK market (2%).
High Dividend: RNK's dividend (5.26%) is low compared to the top 25% of dividend payers in the UK market (5.6%).
Stability and Growth of Payments
Stable Dividend: RNK's dividend payments have been volatile in the past 10 years.
Growing Dividend: RNK's dividend payments have increased over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its reasonable payout ratio (66.5%), RNK's dividend payments are covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: RNK's dividends in 3 years are forecast to be well covered by earnings (32.5% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
1.9yrs
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 ($USD723.51K) is below average for companies of similar size in the UK market ($USD1.18M).
Compensation vs Earnings: John's compensation has been consistent with company performance over the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| CEO & Director | 2.17yrs | UK£580.33k | 0.065% £366.4k | |
| CFO & Executive Director | 1.17yrs | UK£86.32k | 0.0064% £36.4k | |
| Chief Information Officer | 1.92yrs | no data | no data | |
| Director of Investor Relations & Corporate Communications | 1.83yrs | no data | no data | |
| Group General Counsel & Company Secretary | 2.5yrs | no data | no data | |
| Head of Communications and Head of PR | no data | no data | no data | |
| Retail Marketing Director | 0.92yr | no data | no data | |
| Human Resources Director | 3yrs | no data | no data | |
| Head of Marketing - Digital | 6.75yrs | no data | no data | |
| Chief Transformation Officer | 1.75yrs | no data | no data |
1.9yrs
Average Tenure
Experienced Management: RNK's management team is not considered experienced ( 1.9 years average tenure), which suggests a new team.
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| CEO & Director | 2.17yrs | UK£580.33k | 0.065% £366.4k | |
| CFO & Executive Director | 1.17yrs | UK£86.32k | 0.0064% £36.4k | |
| Senior Independent Director | 5.08yrs | UK£52.50k | 0.0053% £30.0k | |
| Independent Non-Executive Director | 4.83yrs | UK£52.47k | no data | |
| Independent Non Executive Director | 4.33yrs | UK£57.50k | no data | |
| Non-Executive Director | 1.5yrs | no data | 0.033% £189.0k | |
| Independent Chairman | 0.75yr | UK£59.00k | no data | |
| Non-Executive Director | 0.67yr | no data | no data |
1.8yrs
Average Tenure
60yo
Average Age
Experienced Board: RNK'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: RNK
- Exchange: LSE
- Founded: 1937
- Industry: Casinos and Gaming
- Sector: Consumer Services
- Market Cap: UK£568.054m
- 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
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| RANK.F | OTCPK (Pink Sheets LLC) | Yes | Ordinary Shares | US | USD | Jan 1980 |
| RNK | LSE (London Stock Exchange) | Yes | Ordinary Shares | GB | GBP | Jan 1980 |
| RNKA | DB (Deutsche Boerse AG) | Yes | Ordinary Shares | DE | EUR | Jan 1980 |
| RNKL | BATS-CHIXE (BATS 'Chi-X Europe') | Yes | Ordinary Shares | GB | GBP | Jan 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
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/07/04 20:54 |
| End of Day Share Price | 2020/07/03 00:00 |
| Earnings | 2019/12/31 |
| Annual Earnings | 2019/06/30 |
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.