AIM:POLR

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

Executive Summary

Polar Capital Holdings plc is a publicly owned investment manager. More Details


Snowflake Analysis

Flawless balance sheet 6 star dividend payer.


Similar Companies

Share Price & News

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


Latest Share Price and Events

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

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


Market Performance


7 Day Return

0.7%

POLR

-1.5%

GB Capital Markets

-0.3%

GB Market


1 Year Return

12.5%

POLR

-1.3%

GB Capital Markets

-11.0%

GB Market

Return vs Industry: POLR exceeded the UK Capital Markets industry which returned -1% over the past year.

Return vs Market: POLR exceeded the UK Market which returned -10% over the past year.


Shareholder returns

POLRIndustryMarket
7 Day0.7%-1.5%-0.3%
30 Day18.2%4.4%10.2%
90 Day16.4%0.2%6.4%
1 Year20.0%12.5%2.0%-1.3%-7.4%-11.0%
3 Year47.2%24.7%23.7%9.0%0.9%-11.5%
5 Year118.0%59.4%64.9%35.2%26.5%-2.5%

Long-Term Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Polar Capital Holdings undervalued compared to its fair value and its price relative to the market?

17.2%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: POLR (£6.1) is trading below our estimate of fair value (£7.37)

Significantly Below Fair Value: POLR is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: POLR is good value based on its PE Ratio (13.5x) compared to the GB Capital Markets industry average (18.9x).

PE vs Market: POLR is good value based on its PE Ratio (13.5x) compared to the UK market (20.4x).


Price to Earnings Growth Ratio

PEG Ratio: POLR is poor value based on its PEG Ratio (1.3x)


Price to Book Ratio

PB vs Industry: POLR is overvalued based on its PB Ratio (5x) compared to the GB Capital Markets industry average (1.3x).


Next Steps

Future Growth

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

10.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: POLR's forecast earnings growth (10.2% per year) is above the savings rate (1.2%).

Earnings vs Market: POLR's earnings (10.2% per year) are forecast to grow slower than the UK market (27.3% per year).

High Growth Earnings: POLR's earnings are forecast to grow, but not significantly.

Revenue vs Market: POLR's revenue (7.4% per year) is forecast to grow faster than the UK market (6.7% per year).

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


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: POLR's Return on Equity is forecast to be high in 3 years time (35.5%)


Next Steps

Past Performance

How has Polar Capital Holdings performed over the past 5 years?

23.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: POLR has high quality earnings.

Growing Profit Margin: POLR's current net profit margins (26.9%) are lower than last year (28.6%).


Past Earnings Growth Analysis

Earnings Trend: POLR's earnings have grown significantly by 23% per year over the past 5 years.

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

Earnings vs Industry: POLR had negative earnings growth (-16.3%) over the past year, making it difficult to compare to the Capital Markets industry average (1.8%).


Return on Equity

High ROE: POLR's Return on Equity (36.8%) is considered high.


Next Steps

Financial Health

How is Polar Capital Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: POLR's short term assets (£163.8M) exceed its short term liabilities (£51.8M).

Long Term Liabilities: POLR's short term assets (£163.8M) exceed its long term liabilities (£6.0M).


Debt to Equity History and Analysis

Debt Level: POLR is debt free.

Reducing Debt: POLR has not had any debt for past 5 years.

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

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


Balance Sheet


Next Steps

Dividend

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

5.41%

Current Dividend Yield


Upcoming Dividend Payment


Dividend Yield vs Market

Notable Dividend: POLR's dividend (5.41%) is higher than the bottom 25% of dividend payers in the UK market (1.72%).

High Dividend: POLR's dividend (5.41%) is in the top 25% of dividend payers in the UK market (4.94%)


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (75%), POLR's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: POLR's dividends in 3 years are forecast to be covered by earnings (68.4% payout ratio).


Next Steps

Management

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

2.4yrs

Average management tenure


CEO

Gavin Rochussen (60 yo)

3.33yrs

Tenure

UK£745,000

Compensation

Mr. Gavin Mark Rochussen is Chief Executive Officer and Executive Director of Polar Capital Holdings plc since joining on July 17, 2017. Mr. Rochussen is Chief Executive Officer at Polar Capital LLP. He is...


CEO Compensation Analysis

Compensation vs Market: Gavin's total compensation ($USD993.25K) is about average for companies of similar size in the UK market ($USD1.05M).

Compensation vs Earnings: Gavin's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Gavin Rochussen
CEO & Executive Director3.33yrsUK£745.00k1.48%
£ 8.5m
John Mansell
Executive Director18.33yrsUK£586.00k2.06%
£ 11.9m
Samir Ayub
Group Finance Director1.33yrsno datano data
Nick Farren
Chief Operating Officer1.33yrsno datano data
Alexander Black
Chief Investment Officerno datano datano data
Andy Chen
Head of Research2.42yrsno datano data
Nicholas Brandt
Director of Salesno datano datano data
Jorry Nøddekær
Head of the EM and Asian Team2.42yrsno datano data
Peter Leane
Head of Nordic Region2.42yrsno datano data
Alexander Macdonald
Group Head of Sustainability0.083yrno datano data
Neil Taylor
Group Company Secretaryno datano datano data
Michael Vise
Fund Manager of Europe & Investment Analystno datano datano data

2.4yrs

Average Tenure

60yo

Average Age

Experienced Management: POLR's management team is considered experienced (2.4 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Gavin Rochussen
CEO & Executive Director3.33yrsUK£745.00k1.48%
£ 8.5m
John Mansell
Executive Director18.33yrsUK£586.00k2.06%
£ 11.9m
James Michael Cayzer-Colvin
Non-Executive Director18.67yrsUK£60.00k0.0045%
£ 25.9k
Brian Jonathan Ashford-Russell
Founder & Non-Executive Director18.67yrsUK£58.00k4.66%
£ 26.8m
Andrew John Ross
Independent Non-Executive Director0.58yrno data0.027%
£ 152.5k
Winifred Robbins
Independent Non-Executive Director3.42yrsUK£70.00k0.011%
£ 61.0k
Robert Bovet
Director of Polar Capital Funds Plcno datano datano data
David Lamb
Independent Chairman0.33yrno data0.027%
£ 152.5k
Alexa Coates
Independent Non-Executive Director2.33yrsUK£70.00k0.0021%
£ 12.2k

3.4yrs

Average Tenure

61yo

Average Age

Experienced Board: POLR's board of directors are considered experienced (3.4 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.


Recent Insider Transactions

Ownership Breakdown

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


Top Shareholders

Company Information

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


Key Information

  • Name: Polar Capital Holdings plc
  • Ticker: POLR
  • Exchange: AIM
  • Founded: 2000
  • Industry: Asset Management and Custody Banks
  • Sector: Diversified Financials
  • Market Cap: UK£574.771m
  • Shares outstanding: 94.22m
  • Website: https://www.polarcapital.co.uk

Number of Employees


Location

  • Polar Capital Holdings plc
  • 4 Matthew Parker Street
  • London
  • Greater London
  • SW1H 9NP
  • United Kingdom

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
POLRAIM (London Stock Exchange AIM Market)YesOrdinary SharesGBGBPFeb 2007
PLRR.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDFeb 2007

Biography

Polar Capital Holdings plc is a publicly owned investment manager. The firm provides its services to professional and institutional investors. It launches and manages equity and balanced mutual funds. The ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/11/26 20:01
End of Day Share Price2020/11/26 00:00
Earnings2020/09/30
Annual Earnings2020/03/31


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.