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 Analysis

Average dividend payer with moderate growth potential.


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

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


Market Performance


7 Day Return

-7.2%

RAT

-4.3%

GB Capital Markets

-5.4%

GB Market


1 Year Return

-19.3%

RAT

23.7%

GB Capital Markets

2.0%

GB Market

Return vs Industry: RAT underperformed the UK Capital Markets industry which returned 23.7% over the past year.

Return vs Market: RAT underperformed the UK Market which returned 1.4% over the past year.


Shareholder returns

RATIndustryMarket
7 Day-7.2%-4.3%-5.4%
30 Day-8.2%0.04%-4.2%
90 Day-15.4%4.3%-2.6%
1 Year-17.0%-19.3%26.8%23.7%7.6%2.0%
3 Year-13.2%-19.7%66.4%54.6%11.4%-2.7%
5 Year-6.6%-18.0%119.3%93.2%29.0%-0.6%

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 compared to its fair value and its price relative to the market?

36.17x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: RAT (£18.18) is trading above our estimate of fair value (£14.71)

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 (36.2x) compared to the Capital Markets industry average (20.4x).

PE vs Market: RAT is poor value based on its PE Ratio (36.2x) compared to the UK market (17.7x).


Price to Earnings Growth Ratio

PEG Ratio: RAT is poor value based on its PEG Ratio (1.7x)


Price to Book Ratio

PB vs Industry: RAT is overvalued based on its PB Ratio (2x) compared to the GB Capital Markets industry average (1.5x).


Next Steps

Future Growth

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

21.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: RAT's forecast earnings growth (21.7% per year) is above the savings rate (0.5%).

Earnings vs Market: RAT's earnings (21.7% per year) are forecast to grow faster than the UK market (13% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: RAT's revenue (2.6% per year) is forecast to grow slower than the UK market (3.8% per year).

High Growth Revenue: RAT's revenue (2.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if RAT's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Rathbone Brothers performed over the past 5 years?

-1.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: RAT has a large one-off loss of £36.8M impacting its December 31 2019 financial results.

Growing Profit Margin: RAT's current net profit margins (7.1%) are lower than last year (13.6%).


Past Earnings Growth Analysis

Earnings Trend: RAT's earnings have declined by -1.4% per year over the past 5 years.

Accelerating Growth: RAT's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: RAT had negative earnings growth (-41.7%) over the past year, making it difficult to compare to the Capital Markets industry average (15.5%).


Return on Equity

High ROE: RAT's Return on Equity (5.5%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Rathbone Brothers'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: RAT has a low level of unsold assets or inventory.

Debt Coverage by Assets: RAT's debt is covered by short term assets (assets are 155.7x debt).


Financial Institutions Analysis

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

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

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

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

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

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


Next Steps

Dividend

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

3.85%

Current Dividend Yield


Upcoming Dividend Payment

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


Dividend Yield vs Market

company3.9%marketbottom25%1.9%markettop25%5.4%industryaverage2.1%forecastin3Years4.3%

Current dividend yield vs market & industry

Notable Dividend: RAT's dividend (3.85%) is higher than the bottom 25% of dividend payers in the UK market (1.9%).

High Dividend: RAT's dividend (3.85%) is low compared to the top 25% of dividend payers in the UK market (5.34%).


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: With its high payout ratio (139.3%), RAT's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: RAT's dividends in 3 years are forecast to be covered by earnings (54.3% payout ratio).


Next Steps

Management

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

0.8yrs

Average management tenure


CEO

Paul Stockton (53yo)

0.8yrs

Tenure

UK£1,033,000

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 ($USD1.34M) is about average for companies of similar size in the UK market ($USD1.85M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Paul Stockton
Executive Director & CEO0.8yrsUK£1.03m0.13% £1.3m
Jennifer Mathias
Group Finance Director & Executive Director0.8yrsno datano data
James Butcher
Chief Operating Officer8.1yrsno data0.083% £824.0k
Shelly Patel
Head of Investor Relations0yrsno datano data
Sophie Boyd-Wallis
Head of Internal Communications0yrsno datano data
Michael Webb
Head of Group Marketing & Distribution and Chief Executive of Rathbone Unit Trust Management Limited0yrsno data0.059% £584.7k
Victoria Wellings
Head of sales desk0yrsno datano data
Ruppert Pepper
Director of Corporate Development0yrsno datano data
Andrew Morris
Head of Investment Management - Outside London0yrsUK£667.00kno data
Richard Smeeton
Head of Investment Management Special Projects & Recruitment0yrsUK£761.00kno data

0.8yrs

Average Tenure

54yo

Average Age

Experienced Management: RAT's management team is not considered experienced ( 0.8 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Paul Stockton
Executive Director & CEO0.8yrsUK£1.03m0.13% £1.3m
Jennifer Mathias
Group Finance Director & Executive Director0.8yrsno datano data
Mark Nicholls
Independent Chairman8.8yrsUK£160.00k0.0069% £68.1k
James Pettigrew
Senior Independent Director2.8yrsUK£60.00kno data
Colin Clark
Independent Non-Executive Director1.3yrsUK£9.00kno data
Sarah Gentleman
Independent Non-Executive Director5.1yrsUK£60.00kno data
Terri Duhon
Independent Non-Executive Director1.6yrsUK£28.00kno data
James Dean
Independent Non-Executive Director6.3yrsUK£60.00k0.0018% £18.2k

3.9yrs

Average Tenure

60yo

Average Age

Experienced Board: RAT's board of directors are considered experienced (3.9 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 2.9%.


Top Shareholders

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£993.110m
  • Shares outstanding: 54.63m
  • 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 include discretionary investment management, unit trusts, financial planning, banking and loan, and unitized portfolio services, as well as trust, legal, estate, and tax advisory services. The company was founded in 1742 and is headquartered in London, the United Kingdom. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/26 20:35
End of Day Share Price2020/02/26 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


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.