LSE:CBG

Stock Analysis Report

Executive Summary

Close Brothers Group plc, a merchant banking company, provides financial services to small businesses and individuals in the United Kingdom.

Snowflake

Fundamentals

Established dividend payer and fair value.

Risks

  • Close Brothers Group's last earnings update was 187 days ago.

Similar Companies

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

5.9%

LSE:CBG

3.7%

GB Capital Markets

1.6%

GB Market


1 Year Return

-13.2%

LSE:CBG

11.9%

GB Capital Markets

0.3%

GB Market

CBG underperformed the Capital Markets industry which returned 11.9% over the past year.

CBG underperformed the Market in United Kingdom of Great Britain and Northern Ireland which returned 0.3% over the past year.


Share holder returns

CBGIndustryMarket
7 Day5.9%3.7%1.6%
30 Day12.1%8.3%5.0%
90 Day-0.5%13.1%1.2%
1 Year-9.4%-13.2%14.6%11.9%5.1%0.3%
3 Year14.2%0.7%84.9%72.5%23.7%9.0%
5 Year20.1%-1.7%158.0%128.4%29.9%2.5%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Close Brothers Group undervalued based on future cash flows and its price relative to the stock market?

23%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Close Brothers Group's share price is below the future cash flow value, and at a moderate discount (> 20%).

Close Brothers Group's share price is below the future cash flow value, but not at a substantial discount (< 40%).


Price Based on Earnings

Close Brothers Group is good value based on earnings compared to the GB Capital Markets industry average.

Close Brothers Group is good value based on earnings compared to the United Kingdom of Great Britain and Northern Ireland market.


Price Based on Expected Growth

Close Brothers Group is poor value based on expected growth next year.


Price Based on Value of Assets

Close Brothers Group is overvalued based on assets compared to the GB Capital Markets industry average.


Next Steps

Future Growth

How is Close Brothers Group expected to perform in the next 1 to 3 years based on estimates from 11 analysts?

2.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Close Brothers Group's revenue is expected to grow by 4.4% yearly, however this is not considered high growth (20% yearly).

Close Brothers Group's earnings are expected to grow by 2.8% yearly, however this is not considered high growth (20% yearly).

Close Brothers Group's revenue growth is expected to exceed the United Kingdom of Great Britain and Northern Ireland market average.

Close Brothers Group's earnings growth is positive but not above the United Kingdom of Great Britain and Northern Ireland market average.

Close Brothers Group's earnings growth is expected to exceed the low risk savings rate of 1.2%.


Earnings per Share Growth Estimates


Future Return on Equity

Close Brothers Group is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


Next Steps

Past Performance

How has Close Brothers Group performed over the past 5 years?

7.9%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Close Brothers Group's year on year earnings growth rate has been positive over the past 5 years.

Close Brothers Group's 1-year earnings growth is negative, it can't be compared to the 5-year average.

Close Brothers Group's 1-year earnings growth is negative, it can't be compared to the GB Capital Markets industry average.


Return on Equity

Close Brothers Group has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Close Brothers Group used its assets less efficiently than the GB Capital Markets industry average last year based on Return on Assets.


Return on Capital Employed

Unable to establish if Close Brothers Group improved its use of capital last year versus 3 years ago (Return on Capital Employed) due to insufficient past data.


Next Steps

Financial Health

How is Close Brothers Group's financial position?


Financial Position Analysis

Close Brothers Group's short term (1 year) commitments are greater than its holdings of cash and other short term assets.

Close Brothers Group's long term commitments exceed its cash and other short term assets.


Debt to Equity History and Analysis

Close Brothers Group's level of debt (190.8%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has increased over the past 5 years (145.5% vs 190.8% today).

Operating cash flow is negative therefore debt is not well covered.

Unable to confirm if the interest payments on Close Brothers Group's debt are well covered by earnings due to lack of past financial data.


Balance Sheet

Low level of unsold assets.

Debt is not covered by short term assets, assets are 0.6x debt.


Next Steps

Dividend

What is Close Brothers Group's current dividend yield, its reliability and sustainability?

4.96%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Close Brothers Group's pays a higher dividend yield than the bottom 25% of dividend payers in United Kingdom of Great Britain and Northern Ireland (1.99%).

Close Brothers Group's dividend is below the markets top 25% of dividend payers in United Kingdom of Great Britain and Northern Ireland (5.5%).

Dividends per share have been stable in the past 10 years.

Dividends per share have increased over the past 10 years.


Current Payout to Shareholders

Dividends paid are well covered by earnings (2.1x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be covered by earnings (2x coverage).


Next Steps

Management

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

6.6yrs

Average management tenure


CEO

Per Prebensen (62yo)

10.4yrs

Tenure

UK£2,545,000

Compensation

Mr. Preben Prebensen has been the Chief Executive Officer of Close Brothers Group PLC at Winterflood Securities Limited since April 1, 2009. Mr. Prebensen has been the Chief Executive Officer of Close Brot ...


CEO Compensation Analysis

Per's remuneration is higher than average for companies of similar size in United Kingdom of Great Britain and Northern Ireland.

Per's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

6.6yrs

Average Tenure

61yo

Average Age

The average tenure for the Close Brothers Group management team is over 5 years, this suggests they are a seasoned and experienced team.


Board Age and Tenure

5.0yrs

Average Tenure

62yo

Average Age

The tenure for the Close Brothers Group board of directors is about average.


Insider Trading

No 3 month open market individual insider trading information.


Recent Insider Transactions

SellUK£290,62522 Oct 18
Elizabeth Anne Lee
EntityIndividual
Shares19,000
Max PriceUK£15.37
SellUK£490,45527 Sep 18
Jonathan A. Howell
EntityIndividual
Shares30,577
Max PriceUK£16.04

Ownership Breakdown


Management Team

  • Nancy Curtin (61yo)

    Chief Investment Officer and Head of Bespoke

    • Tenure: 0yrs
  • Per Prebensen (62yo)

    CEO & Director

    • Tenure: 10.4yrs
    • Compensation: UK£2.55m
  • Sophie A. Gillingham

    Director of Investor Relations

    • Tenure: 0yrs
  • Andreas Reinert

    Managing Director of Food & Consumer Goods - Germany

    • Tenure: 12.9yrs
  • Nigel Mottershead

    Head of Credit

    • Tenure: 8.8yrs
  • Rebekah Etherington

    Group Head of Human Resources

    • Tenure: 9.9yrs
  • Robert Sack

    Group Chief Risk Officer

    • Tenure: 4.4yrs
  • Martyn Atkinson

    Group Chief Operating Officer

    • Tenure: 0.6yrs
  • Mike Morgan (54yo)

    Group Finance Director & Director

    • Tenure: 0.8yrs
  • Angela Yotov

    General Counsel

    • Tenure: 0.08yrs

Board Members

  • Bridget Macaskill (71yo)

    Independent Non-Executive Director

    • Tenure: 5.8yrs
    • Compensation: UK£117.00k
  • Mike Biggs (67yo)

    Chairman of the Board

    • Tenure: 2.3yrs
    • Compensation: UK£306.00k
  • Geoffrey M. Howe (70yo)

    Senior Independent Director

    • Tenure: 4.8yrs
    • Compensation: UK£102.00k
  • Oliver Roebling Corbett (54yo)

    Independent Non-Executive Director

    • Tenure: 5.3yrs
    • Compensation: UK£107.00k
  • Per Prebensen (62yo)

    CEO & Director

    • Tenure: 10.4yrs
    • Compensation: UK£2.55m
  • Peter Duffy (53yo)

    Independent Non-Executive Director

    • Tenure: 0.7yrs
  • Lesley Jones

    Independent Non-Executive Director

    • Tenure: 5.8yrs
    • Compensation: UK£108.00k
  • Mike Morgan (54yo)

    Group Finance Director & Director

    • Tenure: 0.8yrs

Company Information

Close Brothers Group plc's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Close Brothers Group plc
  • Ticker: CBG
  • Exchange: LSE
  • Founded: 1878
  • Industry: Diversified Capital Markets
  • Sector: Diversified Financials
  • Market Cap: UK£2.117b
  • Shares outstanding: 150.28m
  • Website: https://www.closebrothers.com

Number of Employees


Location

  • Close Brothers Group plc
  • 10 Crown Place
  • London
  • Greater London
  • EC2A 4FT
  • United Kingdom

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
CBGP.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJan 1992
CBGLSE (London Stock Exchange)YesOrdinary SharesGBGBPJan 1992
CS3DB (Deutsche Boerse AG)YesOrdinary SharesDEEURJan 1992
CBGLBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBGBPJan 1992
CBGP.YOTCPK (Pink Sheets LLC)UNSPONSORD ADRUSUSDFeb 2009

Biography

Close Brothers Group plc, a merchant banking company, provides financial services to small businesses and individuals in the United Kingdom. It operates through five segments: Commercial, Retail, Property, ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/09/15 20:36
End of Day Share Price2019/09/13 00:00
Earnings2019/01/31
Annual Earnings2018/07/31


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.