AIM:TAM

Stock Analysis Report

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Executive Summary

Tatton Asset Management plc provides fund management, regulatory, and compliance and business consulting services to independent financial advisors in the United Kingdom. More Details


Snowflake Analysis

Outstanding track record with flawless balance sheet.

Share Price & News

How has Tatton Asset Management's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: TAM has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-1.2%

TAM

0.3%

GB Capital Markets

0.1%

GB Market


1 Year Return

37.3%

TAM

2.1%

GB Capital Markets

-13.1%

GB Market

Return vs Industry: TAM exceeded the UK Capital Markets industry which returned -1.6% over the past year.

Return vs Market: TAM exceeded the UK Market which returned -15.4% over the past year.


Shareholder returns

TAMIndustryMarket
7 Day-1.2%0.3%0.1%
30 Day-12.5%-2.4%-2.2%
90 Day-11.9%0.1%-4.2%
1 Year42.4%37.3%5.6%2.1%-9.8%-13.1%
3 Year54.1%38.8%23.1%8.3%-8.6%-19.5%
5 Yearn/a69.1%38.2%15.9%-9.7%

Price Volatility Vs. Market

How volatile is Tatton Asset Management's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Tatton Asset Management undervalued compared to its fair value and its price relative to the market?

16.82x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: TAM (£2.52) is trading above our estimate of fair value (£2.34)

Significantly Below Fair Value: TAM is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: TAM's PE Ratio (16.8x) is in line with the GB Capital Markets industry average.

PE vs Market: TAM is good value based on its PE Ratio (16.8x) compared to the UK market (17.6x).


Price to Earnings Growth Ratio

PEG Ratio: TAM is poor value based on its PEG Ratio (3.4x)


Price to Book Ratio

PB vs Industry: TAM is overvalued based on its PB Ratio (7.9x) compared to the GB Capital Markets industry average (1.1x).


Next Steps

Future Growth

How is Tatton Asset Management forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

5.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: TAM's forecast earnings growth (5% per year) is above the savings rate (1.2%).

Earnings vs Market: TAM's earnings (5% per year) are forecast to grow slower than the UK market (24.1% per year).

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

Revenue vs Market: TAM's revenue (7.3% per year) is forecast to grow faster than the UK market (6.3% per year).

High Growth Revenue: TAM's revenue (7.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: TAM's Return on Equity is forecast to be high in 3 years time (39.5%)


Next Steps

  • Explore growth companies in the Diversified Financials industry.

Past Performance

How has Tatton Asset Management performed over the past 5 years?

36.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: TAM has high quality earnings.

Growing Profit Margin: TAM's current net profit margins (39.1%) are higher than last year (27.7%).


Past Earnings Growth Analysis

Earnings Trend: TAM's earnings have grown significantly by 36.9% per year over the past 5 years.

Accelerating Growth: TAM's earnings growth over the past year (72.1%) exceeds its 5-year average (36.9% per year).

Earnings vs Industry: TAM earnings growth over the past year (72.1%) exceeded the Capital Markets industry 0.3%.


Return on Equity

High ROE: TAM's Return on Equity (47%) is considered outstanding.


Next Steps

Financial Health

How is Tatton Asset Management's financial position?


Financial Position Analysis

Short Term Liabilities: TAM's short term assets (£16.2M) exceed its short term liabilities (£6.4M).

Long Term Liabilities: TAM's short term assets (£16.2M) exceed its long term liabilities (£808.0K).


Debt to Equity History and Analysis

Debt Level: TAM is debt free.

Reducing Debt: TAM has no debt compared to 5 years ago when its debt to equity ratio was 36.4%.

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

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


Balance Sheet


Next Steps

Dividend

What is Tatton Asset Management current dividend yield, its reliability and sustainability?

3.81%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: TAM's dividend (3.81%) is higher than the bottom 25% of dividend payers in the UK market (1.83%).

High Dividend: TAM's dividend (3.81%) is low compared to the top 25% of dividend payers in the UK market (5.28%).


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, TAM has been paying a dividend for less than 10 years.

Growing Dividend: TAM's dividend payments have increased, but the company has only paid a dividend for 3 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (64.1%), TAM's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: TAM's dividends in 3 years are forecast to be covered by earnings (75% payout ratio).


Next Steps

Management

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

UK£344k

CEO Compensation


CEO

Paul Hogarth (61 yo)

no data

Tenure

UK£343,622

Compensation

Mr. Paul Henry Hogarth serves as Chief Executive Officer and Director of Tatton Asset Mgmt Plc. Mr. Hogarth founded Bankhall PMS Limited in 1993. Mr. Hogarth is Founder and Senior Partner at Paradigm Manag ...


CEO Compensation Analysis

Compensation vs Market: Paul's total compensation ($USD444.36K) is below average for companies of similar size in the UK market ($USD681.54K).

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


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

Tatton Asset Management plc's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Tatton Asset Management plc
  • Ticker: TAM
  • Exchange: AIM
  • Founded: 2017
  • Industry: Asset Management and Custody Banks
  • Sector: Diversified Financials
  • Market Cap: UK£141.994m
  • Shares outstanding: 56.35m
  • Website: https://www.tattonassetmanagement.com

Number of Employees


Location

  • Tatton Asset Management plc
  • Paradigm House
  • Lower Meadow Road
  • Wilmslow
  • Cheshire
  • SK9 3ND
  • United Kingdom

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
2T7BST (Boerse-Stuttgart)YesOrdinary SharesDEEURJul 2017
TAMAIM (London Stock Exchange AIM Market)YesOrdinary SharesGBGBPJul 2017

Biography

Tatton Asset Management plc provides fund management, regulatory, and compliance and business consulting services to independent financial advisors in the United Kingdom. The company operates through two s ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/09/30 22:38
End of Day Share Price2020/09/30 00:00
Earnings2020/03/31
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.