LSE:AJB

Stock Analysis Report

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Executive Summary

AJ Bell plc, through its subsidiaries, operates investment platforms in the United Kingdom. More Details


Snowflake Analysis

Flawless balance sheet with solid track record.


Similar Companies

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

-1.8%

AJB

-1.9%

GB Capital Markets

-1.9%

GB Market


1 Year Return

7.0%

AJB

1.1%

GB Capital Markets

-14.5%

GB Market

Return vs Industry: AJB exceeded the UK Capital Markets industry which returned 1.5% over the past year.

Return vs Market: AJB exceeded the UK Market which returned -14.2% over the past year.


Shareholder returns

AJBIndustryMarket
7 Day-1.8%-1.9%-1.9%
30 Day-9.7%-1.5%-1.7%
90 Day-4.7%-0.9%-4.4%
1 Year8.3%7.0%4.5%1.1%-11.3%-14.5%
3 Yearn/a22.9%8.2%-9.0%-20.3%
5 Yearn/a66.3%36.0%15.3%-10.6%

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?

49.35x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: AJB (£4.22) is trading above our estimate of fair value (£1.74)

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


Price To Earnings Ratio

PE vs Industry: AJB is poor value based on its PE Ratio (50.5x) compared to the GB Capital Markets industry average (17x).

PE vs Market: AJB is poor value based on its PE Ratio (50.5x) compared to the UK market (18.1x).


Price to Earnings Growth Ratio

PEG Ratio: AJB is poor value based on its PEG Ratio (3.6x)


Price to Book Ratio

PB vs Industry: AJB is overvalued based on its PB Ratio (18.5x) compared to the GB Capital Markets industry average (1.2x).


Next Steps

Future Growth

How is AJ Bell forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?

13.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: AJB's forecast earnings growth (14.2% per year) is above the savings rate (1.2%).

Earnings vs Market: AJB's earnings (14.2% per year) are forecast to grow slower than the UK market (24.2% per year).

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

Revenue vs Market: AJB's revenue (8.9% per year) is forecast to grow faster than the UK market (6% per year).

High Growth Revenue: AJB's revenue (8.9% 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 high in 3 years time (34.1%)


Next Steps

Past Performance

How has AJ Bell performed over the past 5 years?

22.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: AJB has a high level of non-cash earnings.

Growing Profit Margin: AJB's current net profit margins (29.6%) are higher than last year (26.3%).


Past Earnings Growth Analysis

Earnings Trend: AJB's earnings have grown significantly by 22.4% per year over the past 5 years.

Accelerating Growth: AJB's earnings growth over the past year (34%) exceeds its 5-year average (22.4% per year).

Earnings vs Industry: AJB earnings growth over the past year (34%) exceeded the Capital Markets industry 0.9%.


Return on Equity

High ROE: AJB's Return on Equity (36.6%) is considered high.


Next Steps

Financial Health

How is AJ Bell's financial position?


Financial Position Analysis

Short Term Liabilities: AJB's short term assets (£98.0M) exceed its short term liabilities (£12.7M).

Long Term Liabilities: AJB's short term assets (£98.0M) exceed its long term liabilities (£17.2M).


Debt to Equity History and Analysis

Debt Level: AJB is debt free.

Reducing Debt: AJB had no debt 5 years ago.

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

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


Balance Sheet


Next Steps

Dividend

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

1.61%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: AJB's dividend (1.58%) isn’t notable compared to the bottom 25% of dividend payers in the UK market (1.83%).

High Dividend: AJB's dividend (1.58%) is low compared to the top 25% of dividend payers in the UK market (5.36%).


Stability and Growth of Payments

Stable Dividend: Too early to tell whether AJB's dividend payments have been stable as they only just started paying a dividend.

Growing Dividend: Too early to tell if AJB's dividend payments are increasing as they only just started paying a dividend.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (57.8%), AJB's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: AJB's dividends in 3 years are forecast to be covered by earnings (65% payout ratio).


Next Steps

Management

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

4.7yrs

Average board tenure


CEO

Andy Bell

no data

Tenure

UK£1,906,000

Compensation

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 ...


CEO Compensation Analysis

Compensation vs Market: Andy's total compensation ($USD2.48M) is above average for companies of similar size in the UK market ($USD1.72M).

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


Board Members

NamePositionTenureCompensationOwnership
Andrew Bell
CEO, Member of the Management Board & Directorno dataUK£1.91m23.66%
£ 398.9m
Michael Summersgill
CFO, Member of the Management Board & Director9.33yrsUK£767.00k0.36%
£ 6.1m
Mohamed Tagari
CTO & Director0.92yrno data0.0039%
£ 65.9k
Eamonn Flanagan
Independent Non-Executive Director2.58yrsUK£45.00k0.037%
£ 623.2k
Simon Turner
Non-Executive Directorno dataUK£45.00k0.066%
£ 1.1m
Leslie Platts
Independent Chairman of the Board6.75yrsUK£100.00k0.10%
£ 1.8m
Laura Carstensen
Senior Independent Directorno dataUK£45.00k0.013%
£ 214.6k

4.7yrs

Average Tenure

59yo

Average Age

Experienced Board: AJB's board of directors are considered experienced (4.7 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: AJB insiders have only sold shares 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

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£1.686b
  • Shares outstanding: 408.76m
  • 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
3FYDB (Deutsche Boerse AG)YesOrdinary SharesDEEURDec 2018
3FYBST (Boerse-Stuttgart)YesOrdinary SharesDEEURDec 2018
AJBLBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBGBPDec 2018

Biography

AJ Bell plc, through its subsidiaries, operates investment platforms in the United Kingdom. The company offers AJ Bell Investcentre, which provides a suite of products, services, investment solutions, and ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/20 21:09
End of Day Share Price2020/10/20 00:00
Earnings2020/03/31
Annual Earnings2019/09/30


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.