LSE:RAT

Stock Analysis Report

Executive Summary

Rathbone Brothers Plc, through its subsidiaries, provides personalized investment and wealth management services for private clients, charities, and trustees in the United Kingdom and Jersey.

Snowflake

Fundamentals

Excellent balance sheet with reasonable growth potential and pays a dividend.


Similar Companies

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

4.0%

LSE:RAT

0.6%

GB Capital Markets

-0.3%

GB Market


1 Year Return

-8.8%

LSE:RAT

4.9%

GB Capital Markets

-5.3%

GB Market

RAT underperformed the Capital Markets industry which returned 4.5% over the past year.

RAT underperformed the Market in United Kingdom of Great Britain and Northern Ireland which returned -5.7% over the past year.


Share holder returns

RATIndustryMarket
7 Day4.0%0.6%-0.3%
30 Day4.3%-0.6%-3.9%
90 Day-5.4%0.8%-2.2%
1 Year-6.3%-8.8%8.1%4.9%-0.9%-5.3%
3 Year30.7%21.0%58.9%46.3%18.9%5.1%
5 Year20.3%5.8%109.3%77.6%28.1%1.1%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

46.65x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

Rathbone Brothers's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).

Rathbone Brothers's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).


Price Based on Earnings

Rathbone Brothers is overvalued based on earnings compared to the GB Capital Markets industry average.

Rathbone Brothers is overvalued based on earnings compared to the United Kingdom of Great Britain and Northern Ireland market.


Price Based on Expected Growth

Rathbone Brothers is poor value based on expected growth next year.


Price Based on Value of Assets

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


Next Steps

Future Growth

How is Rathbone Brothers expected to perform in the next 1 to 3 years based on estimates from 7 analysts?

27.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Rathbone Brothers's revenue is expected to grow by 5.8% yearly, however this is not considered high growth (20% yearly).

Rathbone Brothers's earnings are expected to grow significantly at over 20% yearly.

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

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

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


Earnings per Share Growth Estimates


Future Return on Equity

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


Next Steps

Past Performance

How has Rathbone Brothers performed over the past 5 years?

3.0%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Rathbone Brothers's year on year earnings growth rate has been positive over the past 5 years, however the most recent earnings are below average.

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

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


Return on Equity

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


Return on Assets

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


Return on Capital Employed

Rathbone Brothers's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Rathbone Brothers's financial position?


Financial Position Analysis

Rathbone Brothers is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Rathbone Brothers's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

Rathbone Brothers's level of debt (4.2%) compared to net worth is satisfactory (less than 40%).

Unable to establish if Rathbone Brothers's debt level has increased without past 5-year debt data.

Debt is well covered by operating cash flow (1586.5%, greater than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 8.9x coverage).


Balance Sheet

Low level of unsold assets.

Debt is covered by short term assets, assets are 143.5x debt.


Next Steps

Dividend

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

3.33%

Expected Dividend Yield


Upcoming Dividend Payment

Purchase Rathbone Brothers before the 'Buy Limit' to receive their next dividend payment.


Dividend Yield and Payments Analysis

Rathbone Brothers's pays a higher dividend yield than the bottom 25% of dividend payers in United Kingdom of Great Britain and Northern Ireland (2.08%).

Rathbone Brothers's dividend is below the markets top 25% of dividend payers in United Kingdom of Great Britain and Northern Ireland (5.77%).

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 not well covered by earnings (0.7x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be well covered by earnings (2.1x coverage).


Next Steps

Management

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

0.3yrs

Average management tenure


CEO

Paul Stockton (53yo)

0.3yrs

Tenure

UK£1,033,000

Compensation

Mr. Paul Robert Stockton has been Executive Director of Rathbone Investment Management Limited since April 01, 2019. Mr. Stockton has been Executive Director of Rathbone Brothers plc since September 24, 20 ...


CEO Compensation Analysis

Paul's remuneration is about average for companies of similar size in United Kingdom of Great Britain and Northern Ireland.

Paul's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Management Age and Tenure

0.3yrs

Average Tenure

54yo

Average Age

The average tenure for the Rathbone Brothers management team is less than 2 years, this suggests a new team.


Board Age and Tenure

3.4yrs

Average Tenure

60yo

Average Age

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


Insider Trading

No 3 month open market individual insider trading information.


Recent Insider Transactions

SellUK£39,99717 Apr 19
James Butcher
EntityIndividual
Role
Chief Operating Officer
Chief Operating Officer
Shares1,670
Max PriceUK£23.95
SellUK£265,39727 Feb 19
Michael Webb
EntityIndividual
Role
Head of Marketing
Head of Group Marketing & Distribution and Chief Executive of Rathbone Unit Trust Management Limited
Shares12,058
Max PriceUK£22.01
SellUK£111,54024 Sep 18
Michael Webb
EntityIndividual
Role
Head of Marketing
Head of Group Marketing & Distribution and Chief Executive of Rathbone Unit Trust Management Limited
Shares4,400
Max PriceUK£25.35

Ownership Breakdown


Management Team

  • Andrew Morris (54yo)

    Head of Investment Management - Outside London

    • Tenure: 0.0yrs
    • Compensation: UK£667.00k
  • Richard Smeeton (54yo)

    Head of Investment Management Special Projects & Recruitment

    • Tenure: 0.0yrs
    • Compensation: UK£761.00k
  • Paul Stockton (53yo)

    Executive Director & CEO

    • Tenure: 0.3yrs
    • Compensation: UK£1.03m
  • Mike Webb

    Head of Group Marketing & Distribution and Chief Executive of Rathbone Unit Trust Management Limited

    • Tenure: 0.0yrs
  • James Butcher

    Chief Operating Officer

    • Tenure: 7.6yrs
  • Jennifer Mathias

    Group Finance Director & Executive Director

    • Tenure: 0.3yrs
  • Shelly Patel

    Head of Investor Relations

    • Tenure: 0.0yrs
  • Victoria Wellings

    Head of sales desk

    • Tenure: 0.0yrs
  • Ruppert Pepper

    Director of Corporate Development

    • Tenure: 0.0yrs
  • Sophie Boyd-Wallis

    Head of Internal Communications

    • Tenure: 0.0yrs

Board Members

  • Mark Nicholls (70yo)

    Independent Chairman

    • Tenure: 8.3yrs
    • Compensation: UK£160.00k
  • Jim Pettigrew (61yo)

    Senior Independent Director

    • Tenure: 2.3yrs
    • Compensation: UK£60.00k
  • Paul Stockton (53yo)

    Executive Director & CEO

    • Tenure: 0.3yrs
    • Compensation: UK£1.03m
  • Colin Clark (60yo)

    Independent Non-Executive Director

    • Tenure: 0.8yrs
    • Compensation: UK£9.00k
  • Sarah Gentleman (48yo)

    Independent Non-Executive Director

    • Tenure: 4.6yrs
    • Compensation: UK£60.00k
  • Terri Duhon (46yo)

    Independent Non-Executive Director

    • Tenure: 1.1yrs
    • Compensation: UK£28.00k
  • Jennifer Mathias

    Group Finance Director & Executive Director

    • Tenure: 0.3yrs
  • James Dean (62yo)

    Independent Non-Executive Director

    • Tenure: 5.8yrs
    • Compensation: UK£60.00k
  • RichardMcCourt McCourt

    Head of Investment Process and Risk

    • Tenure: 0.0yrs

Company Information

Rathbone Brothers Plc's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Rathbone Brothers Plc
  • Ticker: RAT
  • Exchange: LSE
  • Founded: 1742
  • Industry: Asset Management and Custody Banks
  • Sector: Diversified Financials
  • Market Cap: UK£1.198b
  • Shares outstanding: 54.34m
  • Website: https://www.rathbones.com

Number of Employees


Location

  • Rathbone Brothers Plc
  • 8 Finsbury Circus
  • London
  • Greater London
  • EC2M 7AZ
  • United Kingdom

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
RATLSE (London Stock Exchange)YesOrdinary SharesGBGBPJan 1992
RTBB.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJan 1992
RATLBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBGBPJan 1992

Biography

Rathbone Brothers Plc, through its subsidiaries, provides personalized investment and wealth management services for private clients, charities, and trustees in the United Kingdom and Jersey. Its services  ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/08/19 20:35
End of Day Share Price2019/08/19 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.