LSE:AJB

Stock Analysis Report

Executive Summary

AJ Bell PLC, through its subsidiaries, operates retail investment platforms in the United Kingdom.

Snowflake

Fundamentals

Solid track record with reasonable growth potential.

Share Price & News

How has AJ Bell's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

8.3%

AJB

-0.5%

GB Capital Markets

0.2%

GB Market


1 Year Return

n/a

AJB

17.6%

GB Capital Markets

1.7%

GB Market

Return vs Industry: Insufficient data to determine how AJB performed against the UK Capital Markets industry.

Return vs Market: Insufficient data to determine how AJB performed against the UK Market.


Shareholder returns

AJBIndustryMarket
7 Day8.3%-0.5%0.2%
30 Day-4.8%-3.6%-1.7%
90 Day-5.3%2.8%-3.1%
1 Yearn/a20.5%17.6%6.7%1.7%
3 Yearn/a76.8%64.3%17.7%3.1%
5 Yearn/a148.5%119.0%36.1%5.5%

Price Volatility Vs. Market

How volatile is AJ Bell's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is AJ Bell undervalued compared to its fair value and its price relative to the market?

6.85x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: AJB (£3.96) is trading above our estimate of fair value (£1.38)

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


Price To Earnings Ratio

PE vs Industry: AJB is good value based on its PE Ratio (6.9x) compared to the Capital Markets industry average (19.3x).

PE vs Market: AJB is good value based on its PE Ratio (6.9x) compared to the UK market (16.6x).


Price to Earnings Growth Ratio

PEG Ratio: AJB is good value based on its PEG Ratio (0.4x)


Price to Book Ratio

PB vs Industry: AJB is overvalued based on its PB Ratio (21.8x) compared to the GB Capital Markets industry average (1.3x).


Next Steps

Future Growth

How is AJ Bell forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

18.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: AJB's forecast earnings growth (18.2% per year) is above the savings rate (1.2%).

Earnings vs Market: AJB's earnings (18.2% per year) are forecast to grow faster than the UK market (12.4% per year).

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

Revenue vs Market: AJB's revenue (11.2% per year) is forecast to grow faster than the UK market (3.9% per year).

High Growth Revenue: AJB's revenue (11.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: AJB's Return on Equity is forecast to be very high in 3 years time (41.8%).


Next Steps

Past Performance

How has AJ Bell performed over the past 5 years?

14.9%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: AJB's earnings have grown by 14.9% per year over the past 5 years.

Accelerating Growth: AJB's earnings growth over the past year (28.5%) exceeds its 5-year average (14.9% per year).

Earnings vs Industry: AJB earnings growth over the past year (28.5%) exceeded the Capital Markets industry 4.6%.


Return on Equity

High ROE: AJB's Return on Equity (34.5%) is considered high.


Return on Assets

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


Return on Capital Employed

ROCE Improving: Insufficient data to calculate AJB's Return on Capital Employed to determine if it has improved over the past 3 years.


Next Steps

Financial Health

How is AJ Bell'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: AJB has a low level of unsold assets or inventory.

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


Financial Institutions Analysis

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

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

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

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

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

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


Next Steps

Dividend

What is AJ Bell's current dividend yield, its reliability and sustainability?

0.76%

Current Dividend Yield


Dividend Yield vs Market

company0.8%marketbottom25%2.0%markettop25%5.4%industryaverage2.2%forecastin3Years1.9%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: AJB's dividend (0.76%) isn’t notable compared to the bottom 25% of dividend payers in the UK market (1.99%).

High Dividend: AJB's dividend (0.76%) is low compared to the top 25% of dividend payers in the UK market (5.37%).

Stable Dividend: AJB is not paying a notable dividend for the UK market, therefore no need to check if payments are stable.

Growing Dividend: AJB is not paying a notable dividend for the UK market, therefore no need to check if payments are increasing.


Current Payout to Shareholders

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


Future Payout to Shareholders

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


Next Steps

Management

What is the CEO of AJ Bell's salary, the management and board of directors tenure and is there insider trading?

5.8yrs

Average board tenure


CEO

Andy Bell 0

0yrs

Tenure

0

Mr. Andrew James Bell, also known as Andy, serves as the Chief Executive Officer of AJ Bell Holdings Limited and Bell Potter Securities Ltd. (formerly Bell Securities Limited). He serves as Member of the M ...


Board Age and Tenure

5.8yrs

Average Tenure

61.5yo

Average Age

Experienced Board: AJB's board of directors are considered experienced (5.8 years average tenure).


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

BuyUK£26,31519 Jun 19
Christopher Robinson
EntityIndividual
Role
Member of Management Board
Group Legal Services Director
Shares6,980
Max PriceUK£3.77
SellUK£26,31519 Jun 19
Christopher Robinson
EntityIndividual
Role
Member of Management Board
Group Legal Services Director
Shares6,980
Max PriceUK£3.77
SellUK£202,16811 Jun 19
Roger Stott
EntityIndividual
Role
Member of Management Board
Group Finance Director & Member of the Management Board
Shares49,918
Max PriceUK£4.05
SellUK£152,43704 Jun 19
Roger Stott
EntityIndividual
Role
Member of Management Board
Group Finance Director & Member of the Management Board
Shares37,500
Max PriceUK£4.07
SellUK£37,00921 Mar 19
Simon Turner
EntityIndividual
Role
Member of the Board of Directors
Non-Executive Director
Shares12,279
Max PriceUK£3.01

Ownership Breakdown


Management Team

  • Andy Bell

    CEO, Member of the Management Board & Director

    • Tenure: 0yrs
  • Kevin Doran

    Chief Investment Officer

    • Tenure: 0yrs
  • Fergus Lyons

    Member of the Management Board & MD of AJ Bell Investcentre

    • Tenure: 0yrs
  • Richard Taylor

    Chief Operating Officer

    • Tenure: 0yrs
  • Charles Galbraith

    Member of the Management Board & MD of AJ Bell Youinvest

    • Tenure: 0yrs
  • Michael Summersgill

    CFO, Member of the Management Board & Director

    • Tenure: 8.3yrs
  • Roger Stott

    Group Finance Director & Member of the Management Board

    • Tenure: 0yrs
  • Robin Larby

    Technical Resources Director

    • Tenure: 0yrs
  • Christopher Robinson

    Group Legal Services Director

    • Tenure: 0yrs
  • Louis Petherick

    Chief Risk Officer & Member of the Management Board

    • Tenure: 0yrs

Board Members

  • Eamonn Flanagan (55yo)

    Independent Non-Executive Director

    • Tenure: 1.6yrs
  • Simon Turner (68yo)

    Non-Executive Director

    • Tenure: 0yrs
  • Andy Bell

    CEO, Member of the Management Board & Director

    • Tenure: 0yrs
  • Les Platts (65yo)

    Chairman of the Board

    • Tenure: 5.8yrs
  • Michael Summersgill

    CFO, Member of the Management Board & Director

    • Tenure: 8.3yrs
  • Laura Carstensen (58yo)

    Senior Independent Director

    • Tenure: 0yrs

Company Information

AJ Bell plc's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: AJ Bell plc
  • Ticker: AJB
  • Exchange: LSE
  • Founded: 1995
  • Industry: Asset Management and Custody Banks
  • Sector: Diversified Financials
  • Market Cap: UK£1.613b
  • Shares outstanding: 407.36m
  • Website: https://www.ajbell.co.uk

Number of Employees


Location

  • AJ Bell plc
  • 4 Exchange Quay
  • Salford Quays
  • Manchester
  • Greater Manchester
  • M5 3EE
  • United Kingdom

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
AJBLSE (London Stock Exchange)YesOrdinary SharesGBGBPDec 2018
AJBLSE (London Stock Exchange)ORD GBP0.000125 (WI)GBGBPDec 2018
3FYBST (Boerse-Stuttgart)YesOrdinary SharesDEEURDec 2018
AJBLBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBGBPDec 2018

Biography

AJ Bell PLC, through its subsidiaries, operates retail investment platforms in the United Kingdom. Its platforms offer investment administration, dealing, and custody services to regulated financial advise ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/21 21:14
End of Day Share Price2019/10/21 00:00
Earnings2019/03/31
Annual Earnings2018/09/30


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.