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RAT

Rathbone BrothersLSE:RAT Stock Report

Market Cap

UK£1.2b

7D

2.3%

1Y

34.0%

Updated

23 Oct, 2021

Data

Company Financials +
RAT fundamental analysis
Snowflake Score
Valuation0/6
Future Growth2/6
Past Performance2/6
Financial Health5/6
Dividends5/6

RAT Overview

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

Rathbone Brothers Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Rathbone Brothers
Historical stock prices
Current Share PriceUK£20.20
52 Week HighUK£14.02
52 Week LowUK£20.85
Beta0.66
1 Month Change0.50%
3 Month Change9.07%
1 Year Change33.95%
3 Year Change-10.06%
5 Year Change12.53%
Change since IPO441.55%

Recent News & Updates

Jul 31
Rathbone Brothers (LON:RAT) Is Paying Out A Larger Dividend Than Last Year

Rathbone Brothers (LON:RAT) Is Paying Out A Larger Dividend Than Last Year

The board of Rathbone Brothers Plc ( LON:RAT ) has announced that it will be increasing its dividend on the 5th of...

Shareholder Returns

RATGB Capital MarketsGB Market
7D2.3%-0.3%-0.2%
1Y34.0%13.3%23.2%

Return vs Industry: RAT exceeded the UK Capital Markets industry which returned 12.7% over the past year.

Return vs Market: RAT exceeded the UK Market which returned 23.1% over the past year.

Price Volatility

Is RAT's price volatile compared to industry and market?
RAT volatility
RAT Beta0.66
Industry Beta0.80
Market Beta1

Stable Share Price: RAT is less volatile than 75% of UK stocks over the past 3 months, typically moving +/- 3% a week.

Volatility Over Time: RAT's weekly volatility (3%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
17421,600Paul Stocktonhttps://www.rathbones.com

Rathbone Brothers Plc, through its subsidiaries, provides individual investment and wealth management services for private clients, charities, trustees, and professional partners in the United Kingdom and Jersey. The company operates in two segments, Investment Management and Funds. Its services include discretionary investment management, unit trust management, financial planning, unitized portfolio, managed portfolio, select portfolio, and banking and loan services, as well as trust, legal, estate, and tax advisory services.

Rathbone Brothers Fundamentals Summary

How do Rathbone Brothers's earnings and revenue compare to its market cap?
RAT fundamental statistics
Market CapUK£1.18b
Earnings (TTM)UK£45.19m
Revenue (TTM)UK£428.60m

26.0x

P/E Ratio

2.7x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
RAT income statement (TTM)
RevenueUK£428.60m
Cost of RevenueUK£26.68m
Gross ProfitUK£401.92m
ExpensesUK£356.73m
EarningsUK£45.19m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

Feb 24, 2022

Earnings per share (EPS)0.78
Gross Margin93.77%
Net Profit Margin10.54%
Debt/Equity Ratio3.6%

How did RAT perform over the long term?

See historical performance and comparison

Dividends

3.7%

Current Dividend Yield

88%

Payout Ratio

Valuation

Is Rathbone Brothers undervalued compared to its fair value and its price relative to the market?

26.02x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: RAT (£20.2) is trading above our estimate of fair value (£11.22)

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


Price To Earnings Ratio

PE vs Industry: RAT is poor value based on its PE Ratio (26x) compared to the UK Capital Markets industry average (13x).

PE vs Market: RAT is poor value based on its PE Ratio (26x) compared to the UK market (21.3x).


Price to Earnings Growth Ratio

PEG Ratio: RAT is poor value based on its PEG Ratio (2.1x)


Price to Book Ratio

PB vs Industry: RAT's PB Ratio (2x) is in line with the GB Capital Markets industry average.


Future Growth

How is Rathbone Brothers forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

12.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: RAT's forecast earnings growth (12.6% per year) is above the savings rate (0.9%).

Earnings vs Market: RAT's earnings (12.6% per year) are forecast to grow slower than the UK market (12.9% per year).

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

Revenue vs Market: RAT's revenue (7.1% per year) is forecast to grow faster than the UK market (4.9% per year).

High Growth Revenue: RAT's revenue (7.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: RAT's Return on Equity is forecast to be low in 3 years time (17.7%).


Past Performance

How has Rathbone Brothers performed over the past 5 years?

-6.6%

Historical annual earnings growth


Earnings and Revenue History

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

Growing Profit Margin: RAT's current net profit margins (10.5%) are higher than last year (8.4%).


Past Earnings Growth Analysis

Earnings Trend: RAT's earnings have declined by 6.6% per year over the past 5 years.

Accelerating Growth: RAT's earnings growth over the past year (38.7%) exceeds its 5-year average (-6.6% per year).

Earnings vs Industry: RAT earnings growth over the past year (38.7%) underperformed the Capital Markets industry 56.1%.


Return on Equity

High ROE: RAT's Return on Equity (7.6%) is considered low.


Financial Health

How is Rathbone Brothers's financial position?


Financial Position Analysis

Short Term Liabilities: RAT's short term assets (£2.8B) exceed its short term liabilities (£2.4B).

Long Term Liabilities: RAT's short term assets (£2.8B) exceed its long term liabilities (£82.9M).


Debt to Equity History and Analysis

Debt Level: RAT's debt to equity ratio (3.6%) is considered satisfactory.

Reducing Debt: RAT's debt to equity ratio has reduced from 8.2% to 3.6% over the past 5 years.

Debt Coverage: RAT's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: RAT's interest payments on its debt are well covered by EBIT (27x coverage).


Balance Sheet


Dividend

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

3.66%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: RAT's dividend (3.66%) is higher than the bottom 25% of dividend payers in the UK market (1.4%).

High Dividend: RAT's dividend (3.66%) is low compared to the top 25% of dividend payers in the UK market (4.07%).


Stability and Growth of Payments

Stable Dividend: RAT's dividends per share have been stable in the past 10 years.

Growing Dividend: RAT's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: At its current payout ratio (88.5%), RAT's payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: RAT's dividends in 3 years are forecast to be covered by earnings (50.1% payout ratio).


Next Steps

Management

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

3.3yrs

Average board tenure


CEO

Paul Stockton (55 yo)

2.42yrs

Tenure

UK£1,367,000

Compensation

Mr. Paul Robert Stockton serves as Chief Executive Officer and Executive Director of Rathbone Investment Management Limited. Mr. Stockton has been Executive Director of Rathbone Brothers plc since Septembe...


CEO Compensation Analysis

Compensation vs Market: Paul's total compensation ($USD1.88M) is above average for companies of similar size in the UK market ($USD1.41M).

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


Board Members

Experienced Board: RAT's board of directors are considered experienced (3.3 years average tenure).


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 been diluted in the past year, with total shares outstanding growing by 5.7%.


Top Shareholders

Company Information

Rathbone Brothers Plc's 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£1.176b
  • Shares outstanding: 58.22m
  • Website: https://www.rathbones.com

Number of Employees


Location

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

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/10/23 17:56
End of Day Share Price2021/10/22 00:00
Earnings2021/06/30
Annual Earnings2020/12/31


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.