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RNK

Rank GroupLSE:RNK Stock Report

Last Price

UK£1.57

Market Cap

UK£737.3m

7D

1.4%

1Y

12.8%

Updated

20 Jan, 2022

Data

Company Financials +
RNK fundamental analysis
Snowflake Score
Valuation3/6
Future Growth5/6
Past Performance0/6
Financial Health1/6
Dividends0/6

RNK Stock Overview

The Rank Group Plc, together with its subsidiaries, provides gaming services in Great Britain, Spain, Belgium, and India.

Rewards

Trading at 58.5% below our estimate of its fair value

Earnings are forecast to grow 122.08% per year

Risk Analysis

No risks detected for RNK from our risk checks.

Rank Group Competitors

Flutter Entertainment

LSE:FLTR

UK£19.8b

Entain

LSE:ENT

UK£10.1b

Playtech

LSE:PTEC

UK£2.2b

888 Holdings

LSE:888

UK£994.0m

Price History & Performance

Summary of all time highs, changes and price drops for Rank Group
Historical stock prices
Current Share PriceUK£1.57
52 Week HighUK£2.17
52 Week LowUK£1.20
Beta2.35
1 Month Change8.10%
3 Month Change-0.76%
1 Year Change12.75%
3 Year Change7.66%
5 Year Change-20.87%
Change since IPO-67.02%

Recent News & Updates

Oct 08
It Looks Like The Rank Group Plc's (LON:RNK) CEO May Expect Their Salary To Be Put Under The Microscope

It Looks Like The Rank Group Plc's (LON:RNK) CEO May Expect Their Salary To Be Put Under The Microscope

Shareholders will probably not be too impressed with the underwhelming results at The Rank Group Plc ( LON:RNK...

Jun 02
We Think Rank Group (LON:RNK) Has A Fair Chunk Of Debt

We Think Rank Group (LON:RNK) Has A Fair Chunk Of Debt

Some say volatility, rather than debt, is the best way to think about risk as an investor, but Warren Buffett famously...

Mar 10
A Look At The Intrinsic Value Of The Rank Group Plc (LON:RNK)

A Look At The Intrinsic Value Of The Rank Group Plc (LON:RNK)

Today we will run through one way of estimating the intrinsic value of The Rank Group Plc ( LON:RNK ) by estimating the...

Feb 12
We Think Rank Group (LON:RNK) Has A Fair Chunk Of Debt

We Think Rank Group (LON:RNK) Has A Fair Chunk Of Debt

Legendary fund manager Li Lu (who Charlie Munger backed) once said, 'The biggest investment risk is not the volatility...

Shareholder Returns

RNKGB HospitalityGB Market
7D1.4%-0.2%-0.5%
1Y12.8%2.5%8.7%

Return vs Industry: RNK exceeded the UK Hospitality industry which returned 2.1% over the past year.

Return vs Market: RNK exceeded the UK Market which returned 8.3% over the past year.

Price Volatility

Is RNK's price volatile compared to industry and market?
RNK volatility
RNK Average Weekly Movement4.7%
Hospitality Industry Average Movement5.4%
Market Average Movement5.0%
10% most volatile stocks in GB Market10.7%
10% least volatile stocks in GB Market2.5%

Stable Share Price: RNK is not significantly more volatile than the rest of UK stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: RNK's weekly volatility (5%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
19374,138John O'Reillyhttps://www.rank.com

The Rank Group Plc, together with its subsidiaries, provides gaming services in Great Britain, Spain, Belgium, and India. It operates through Grosvenor Venues, Mecca Venues, Digital, and International Venues segments. The company 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 sports betting and food, drink, and live entertainment.

Rank Group Fundamentals Summary

How do Rank Group's earnings and revenue compare to its market cap?
RNK fundamental statistics
Market CapUK£737.31m
Earnings (TTM)-UK£97.00m
Revenue (TTM)UK£329.60m

2.2x

P/S Ratio

-7.6x

P/E Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
RNK income statement (TTM)
RevenueUK£329.60m
Cost of RevenueUK£305.40m
Gross ProfitUK£24.20m
ExpensesUK£121.20m
Earnings-UK£97.00m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

Jan 27, 2022

Earnings per share (EPS)-0.21
Gross Margin7.34%
Net Profit Margin-29.43%
Debt/Equity Ratio32.4%

How did RNK perform over the long term?

See historical performance and comparison

Valuation

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 (£1.57) is trading below our estimate of fair value (£3.79)

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


Price To Earnings Ratio

PE vs Industry: RNK is unprofitable, so we can't compare its PE Ratio to the UK Hospitality industry average.

PE vs Market: RNK is unprofitable, so we can't compare its PE Ratio to the UK market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate RNK's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: RNK is good value based on its PB Ratio (2x) compared to the GB Hospitality industry average (2.2x).


Future Growth

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

122.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: RNK is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (0.9%).

Earnings vs Market: RNK is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: RNK's is expected to become profitable in the next 3 years.

Revenue vs Market: RNK's revenue (25.3% per year) is forecast to grow faster than the UK market (4.8% per year).

High Growth Revenue: RNK's revenue (25.3% per year) is forecast to grow faster 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 (16.1%).


Past Performance

How has Rank Group performed over the past 5 years?

-55.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: RNK is currently unprofitable.

Growing Profit Margin: RNK is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: RNK is unprofitable, and losses have increased over the past 5 years at a rate of 55.7% per year.

Accelerating Growth: Unable to compare RNK's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: RNK is unprofitable, making it difficult to compare its past year earnings growth to the Hospitality industry (168.4%).


Return on Equity

High ROE: RNK has a negative Return on Equity (-26.83%), as it is currently unprofitable.


Financial Health

How is Rank Group's financial position?


Financial Position Analysis

Short Term Liabilities: RNK's short term assets (£98.8M) do not cover its short term liabilities (£216.4M).

Long Term Liabilities: RNK's short term assets (£98.8M) do not cover its long term liabilities (£280.5M).


Debt to Equity History and Analysis

Debt Level: RNK's net debt to equity ratio (15.1%) is considered satisfactory.

Reducing Debt: RNK's debt to equity ratio has increased from 26.4% to 32.4% over the past 5 years.

Debt Coverage: RNK's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: Insufficient data to determine if RNK's interest payments on its debt are well covered by EBIT.


Balance Sheet


Dividend

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

2.34%

Forecast Dividend Yield


Dividend Yield vs Market

Notable Dividend: Unable to evaluate RNK's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate RNK's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if RNK's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if RNK's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: RNK is not paying a notable dividend for the UK market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of RNK's dividend in 3 years as they are not forecast to pay a notable one for the UK market.


Next Steps

Management

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

3.5yrs

Average management tenure


CEO

John O'Reilly (61 yo)

3.67yrs

Tenure

UK£746,862

Compensation

Mr. John O'Reilly has been the Chief Executive Officer and Director of The Rank Group Plc since May 7, 2018. He has experience in the betting and gaming industry, both in the UK and internationally. He pre...


CEO Compensation Analysis

Compensation vs Market: John's total compensation ($USD1.02M) is about average for companies of similar size in the UK market ($USD1.06M).

Compensation vs Earnings: John's compensation has increased whilst the company is unprofitable.


Leadership Team

Experienced Management: RNK's management team is considered experienced (3.5 years average tenure).


Board Members

Experienced Board: RNK's board of directors are considered experienced (3.7 years average tenure).


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.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

The Rank Group Plc's 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
  • Implied Market Cap: UK£737.308m
  • Shares outstanding: 468.43m
  • Website: https://www.rank.com

Number of Employees


Location

  • The Rank Group Plc
  • TOR
  • Saint-Cloud Way
  • Maidenhead
  • Berkshire
  • SL6 8BN
  • United Kingdom

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/01/20 21:12
End of Day Share Price2022/01/20 00:00
Earnings2021/06/30
Annual Earnings2021/06/30


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.