AIM:BRK

Stock Analysis Report

Executive Summary

Brooks Macdonald Group plc, through its subsidiaries, provides a range of investment and wealth management services to private clients, pension funds, professional intermediaries, and trustees in the United Kingdom and the Channel Islands.

Snowflake

Fundamentals

High growth potential with proven track record and pays a dividend.


Similar Companies

Share Price & News

How has Brooks Macdonald Group's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

1.1%

BRK

-1.3%

GB Capital Markets

-0.3%

GB Market


1 Year Return

10.6%

BRK

19.8%

GB Capital Markets

3.0%

GB Market

Return vs Industry: BRK underperformed the UK Capital Markets industry which returned 19.8% over the past year.

Return vs Market: BRK exceeded the UK Market which returned 3% over the past year.


Shareholder returns

BRKIndustryMarket
7 Day1.1%-1.3%-0.3%
30 Day5.1%-2.3%-0.9%
90 Day5.0%2.8%-2.0%
1 Year13.7%10.6%22.7%19.8%8.0%3.0%
3 Year27.5%18.7%77.2%64.6%18.0%3.6%
5 Year65.4%48.5%148.0%118.6%35.8%6.4%

Price Volatility Vs. Market

How volatile is Brooks Macdonald Group's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Brooks Macdonald Group undervalued compared to its fair value and its price relative to the market?

46.19x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Undervalued: BRK (£20.6) is trading above our estimate of fair value (£5.51)

Significantly Undervalued: BRK is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: BRK is poor value based on its PE Ratio (46.2x) compared to the Capital Markets industry average (18.9x).

PE vs Market: BRK is poor value based on its PE Ratio (46.2x) compared to the UK market (16.7x).


Price to Earnings Growth Ratio

Low PEG Ratio: BRK is good value based on its PEG Ratio (0.9x)


Price to Book Ratio

PB vs Industry: BRK is overvalued based on its PB Ratio (3.2x) compared to the GB Capital Markets industry average (1.4x).


Next Steps

Future Growth

How is Brooks Macdonald Group forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

49.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: BRK's forecast earnings growth (49.3% per year) is above the savings rate (1.2%).

Earnings vs Market: BRK's earnings (49.3% per year) are forecast to grow faster than the UK market (12.6% per year).

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

Revenue vs Market: BRK's revenue (7.4% per year) is forecast to grow faster than the UK market (3.9% per year).

High Growth Revenue: BRK's revenue (7.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: BRK's Return on Equity is forecast to be high in 3 years time (21.1%)


Next Steps

Past Performance

How has Brooks Macdonald Group performed over the past 5 years?

-17.6%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: BRK's earnings have declined by -17.6% per year over the past 5 years.

Accelerating Growth: BRK's earnings growth over the past year (9.1%) exceeds its 5-year average (-17.6% per year).

Earnings vs Industry: BRK earnings growth over the past year (9.1%) exceeded the Capital Markets industry 4.6%.


Return on Equity

High ROE: BRK's Return on Equity (7%) is considered low.


Return on Assets

ROA vs Industry: BRK has a higher Return on Assets than the Capital Markets industry average last year.


Return on Capital Employed

ROCE Improving: BRK has significantly improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is Brooks Macdonald 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

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

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


Financial Institutions Analysis

Asset Level: BRK's level of assets compared to its equity is low.

Allowance for Bad Loans: Insufficient data to determine if BRK has a sufficient allowance for bad loans.

Low Risk Liabilities: BRK reports no customer deposits, loans are made up entirely of externally borrowed funds.

Loan Level: Insufficient data to determine if BRK has an acceptable proportion of non-loan assets held.

Low Risk Deposits: BRK has advanced significantly more loans than the customer deposits it holds.

Level of Bad Loans: Insufficient data to determine if BRK has an appropriate level of bad loans.


Next Steps

Dividend

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

2.48%

Current Dividend Yield


Dividend Yield vs Market

company2.5%marketbottom25%2.0%markettop25%5.4%industryaverage2.1%forecastin3Years3.3%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: BRK's dividend (2.48%) is higher than the bottom 25% of dividend payers in the UK market (2.01%).

High Dividend: BRK's dividend (2.48%) is low compared to the top 25% of dividend payers in the UK market (5.36%).

Stable Dividend: BRK's dividends per share have been stable in the past 10 years.

Growing Dividend: BRK's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (114.4%), BRK's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: BRK's dividends in 3 years are forecast to be well covered by earnings (38.3% payout ratio).


Next Steps

Management

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

2.3yrs

Average management tenure


CEO

Caroline Connellan (45yo)

2.5yrs

Tenure

UK£935,000

Compensation

Ms. Caroline Mary Connellan has been Chief Executive Officer of Brooks Macdonald Group plc since April 11, 2017 and serves as its Director. Ms. Connellan has more than 20 years' experience in financial ser ...


CEO Compensation Analysis

Compensation vs. Market: Caroline's total compensation ($USD1.20M) is about average for companies of similar size in the UK market ($USD875.35K).

Compensation vs Earnings: Caroline's compensation has increased by more than 20% in the past year.


Management Age and Tenure

2.3yrs

Average Tenure

45.5yo

Average Age

Experienced Management: BRK's management team is considered experienced (2.3 years average tenure).


Board Age and Tenure

2.1yrs

Average Tenure

56.5yo

Average Age

Experienced Board: BRK's board of directors are not considered experienced ( 2.1 years average tenure), which suggests a new board.


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

SellUK£19,84330 May 19
Caroline Connellan
EntityIndividual
Role
Chief Executive Officer
CEO & Executive Director
Shares1,015
Max PriceUK£19.55
BuyUK£19,87430 May 19
Caroline Connellan
EntityIndividual
Role
Chief Executive Officer
CEO & Executive Director
Shares1,015
Max PriceUK£19.58
BuyUK£25,21505 Apr 19
Alan Carruthers
EntityIndividual
Role
Chairman of the Board
Independent Chairman of the Board
Shares1,450
Max PriceUK£17.39
BuyUK£24,91105 Apr 19
Benjamin Thorpe
EntityIndividual
Role
Member of the Board of Directors
Finance Director & Executive Director
Shares1,450
Max PriceUK£17.18
BuyUK£25,01305 Apr 19
Caroline Connellan
EntityIndividual
Role
Chief Executive Officer
CEO & Executive Director
Shares1,450
Max PriceUK£17.25
BuyUK£25,01305 Apr 19
Richard Price
EntityIndividual
Role
Member of the Board of Directors
Independent Non-Executive Director
Shares1,450
Max PriceUK£17.25
BuyUK£5,16005 Apr 19
John Linwood
EntityIndividual
Role
Member of the Board of Directors
Independent Non-Executive Director
Shares300
Max PriceUK£17.20

Ownership Breakdown


Management Team

  • Richard Spencer (56yo)

    Chief Investment Officer

    • Tenure: 0yrs
    • Compensation: UK£181.00k
  • Andrew Shepherd (46yo)

    CEO of International Business & Group Deputy Chief Executive

    • Tenure: 4.2yrs
    • Compensation: UK£511.00k
  • John Wallace

    MD & Co-Head of UK Investment Management (UKIM)

    • Tenure: 2.6yrs
  • Simon Broomfield

    General Counsel & Company Secretary

    • Tenure: 0yrs
  • Caroline Connellan (45yo)

    CEO & Executive Director

    • Tenure: 2.5yrs
    • Compensation: UK£935.00k
  • Jason Wood

    Chief Operating Officer

    • Tenure: 2yrs
  • Ben Thorpe (42yo)

    Finance Director & Executive Director

    • Tenure: 1.2yrs
  • Priti Verma

    Chief Risk Officer

    • Tenure: 1.2yrs
  • Adrian Keane-Munday

    MD of Financial Planning and Marketing & Propositions Director

    • Tenure: 0.8yrs
  • Tom Emery

    HR Director

    • Tenure: 2.8yrs

Board Members

  • Colin Harris (64yo)

    Senior Independent Director

    • Tenure: 4.8yrs
    • Compensation: UK£67.00k
  • Alan Carruthers (56yo)

    Independent Chairman of the Board

    • Tenure: 0.6yrs
  • David Stewart (54yo)

    Independent Non-Executive Director

    • Tenure: 1.4yrs
    • Compensation: UK£4.00k
  • Diane Seymour-Williams (60yo)

    Independent Non-Executive Director

    • Tenure: 8.1yrs
    • Compensation: UK£57.00k
  • John Linwood (57yo)

    Independent Non-Executive Director

    • Tenure: 1.1yrs
  • Richard Price (58yo)

    Independent Non-Executive Director

    • Tenure: 5.2yrs
    • Compensation: UK£57.00k
  • Caroline Connellan (45yo)

    CEO & Executive Director

    • Tenure: 2.5yrs
    • Compensation: UK£935.00k
  • Ben Thorpe (42yo)

    Finance Director & Executive Director

    • Tenure: 1.2yrs

Company Information

Brooks Macdonald Group plc's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Brooks Macdonald Group plc
  • Ticker: BRK
  • Exchange: AIM
  • Founded: 1991
  • Industry: Asset Management and Custody Banks
  • Sector: Diversified Financials
  • Market Cap: UK£281.993m
  • Shares outstanding: 13.69m
  • Website: https://www.brooksmacdonald.com

Number of Employees


Location

  • Brooks Macdonald Group plc
  • 72 Welbeck Street
  • London
  • Greater London
  • W1G 0AY
  • United Kingdom

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
BRKAIM (London Stock Exchange AIM Market)YesOrdinary SharesGBGBPMar 2005

Biography

Brooks Macdonald Group plc, through its subsidiaries, provides a range of investment and wealth management services to private clients, pension funds, professional intermediaries, and trustees in the Unite ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/18 20:42
End of Day Share Price2019/10/18 00:00
Earnings2019/06/30
Annual Earnings2019/06/30


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.