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

Reasonable growth potential average dividend payer.


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

-6.3%

RAT

-1.3%

GB Capital Markets

-0.4%

GB Market


1 Year Return

-5.3%

RAT

19.7%

GB Capital Markets

2.9%

GB Market

Return vs Industry: RAT underperformed the UK Capital Markets industry which returned 19.7% over the past year.

Return vs Market: RAT underperformed the UK Market which returned 2.9% over the past year.


Shareholder returns

RATIndustryMarket
7 Day-6.3%-1.3%-0.4%
30 Day-8.5%-3.1%-1.4%
90 Day-0.5%3.0%-2.1%
1 Year-2.6%-5.3%22.6%19.7%8.0%2.9%
3 Year27.8%18.3%77.2%64.6%18.0%3.6%
5 Year31.7%15.7%148.0%118.6%35.8%6.4%

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?

45.81x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: RAT (£21.65) is trading above our estimate of fair value (£13.75)

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 (45.8x) compared to the Capital Markets industry average (18.9x).

PE vs Market: RAT is poor value based on its PE Ratio (45.8x) compared to the UK market (16.8x).


Price to Earnings Growth Ratio

PEG Ratio: RAT is poor value based on its PEG Ratio (1.8x)


Price to Book Ratio

PB vs Industry: RAT is overvalued based on its PB Ratio (2.4x) compared to the GB Capital Markets industry average (1.3x).


Next Steps

Future Growth

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

25.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: RAT's forecast earnings growth (25.5% per year) is above the savings rate (1.2%).

Earnings vs Market: RAT's earnings (25.5% per year) are forecast to grow faster than the UK market (12.6% per year).

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

Revenue vs Market: RAT's revenue (5.6% per year) is forecast to grow faster than the UK market (3.9% per year).

High Growth Revenue: RAT's revenue (5.6% 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%).


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

Earnings Trend: RAT's earnings have grown by 3% 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 (-58.4%) over the past year, making it difficult to compare to the Capital Markets industry average (4.6%).


Return on Equity

High ROE: RAT's Return on Equity (5.3%) is considered low.


Return on Assets

ROA vs Industry: RAT's Return on Assets is below or equal to the Capital Markets industry average last year.


Return on Capital Employed

ROCE Improving: RAT's Return on Capital Employed has declined over the past 3 years.


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 143.470300x 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?

3.05%

Current Dividend Yield


Dividend Yield vs Market

company3.0%marketbottom25%2.0%markettop25%5.4%industryaverage2.1%forecastin3Years3.4%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: RAT's dividend (3.05%) is higher than the bottom 25% of dividend payers in the UK market (2.01%).

High Dividend: RAT's dividend (3.05%) is low compared to the top 25% of dividend payers in the UK market (5.36%).

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 (141.8%), 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 well covered by earnings (49.8% payout ratio).


Next Steps

Management

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

0.5yrs

Average management tenure


CEO

Paul Stockton (53yo)

0.4yrs

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

Compensation vs. Market: Paul has recently become CEO, making it difficult to compare their total compensation against companies of similar size in the UK market.

Compensation vs Earnings: 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

0.5yrs

Average Tenure

54yo

Average Age

Experienced Management: RAT's management team is not considered experienced ( 0.5 years average tenure), which suggests a new team.


Board Age and Tenure

3.6yrs

Average Tenure

60yo

Average Age

Experienced Board: RAT's board of directors are considered experienced (3.6 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


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

Ownership Breakdown


Management Team

  • Andrew Morris (54yo)

    Head of Investment Management - Outside London

    • Tenure: 0yrs
    • Compensation: UK£667.00k
  • Richard Smeeton (54yo)

    Head of Investment Management Special Projects & Recruitment

    • Tenure: 0yrs
    • Compensation: UK£761.00k
  • Paul Stockton (53yo)

    Executive Director & CEO

    • Tenure: 0.4yrs
    • Compensation: UK£1.03m
  • Mike Webb

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

    • Tenure: 0yrs
  • James Butcher

    Chief Operating Officer

    • Tenure: 7.8yrs
  • Jennifer Mathias

    Group Finance Director & Executive Director

    • Tenure: 0.5yrs
  • Shelly Patel

    Head of Investor Relations

    • Tenure: 0yrs
  • Victoria Wellings

    Head of sales desk

    • Tenure: 0yrs
  • Ruppert Pepper

    Director of Corporate Development

    • Tenure: 0yrs
  • Sophie Boyd-Wallis

    Head of Internal Communications

    • Tenure: 0yrs

Board Members

  • Mark Nicholls (70yo)

    Independent Chairman

    • Tenure: 8.4yrs
    • Compensation: UK£160.00k
  • Jim Pettigrew (61yo)

    Senior Independent Director

    • Tenure: 2.4yrs
    • Compensation: UK£60.00k
  • Paul Stockton (53yo)

    Executive Director & CEO

    • Tenure: 0.4yrs
    • Compensation: UK£1.03m
  • Colin Clark (60yo)

    Independent Non-Executive Director

    • Tenure: 1yrs
    • Compensation: UK£9.00k
  • Sarah Gentleman (48yo)

    Independent Non-Executive Director

    • Tenure: 4.8yrs
    • Compensation: UK£60.00k
  • Terri Duhon (46yo)

    Independent Non-Executive Director

    • Tenure: 1.3yrs
    • Compensation: UK£28.00k
  • Jennifer Mathias

    Group Finance Director & Executive Director

    • Tenure: 0.5yrs
  • James Dean (62yo)

    Independent Non-Executive Director

    • Tenure: 5.9yrs
    • Compensation: UK£60.00k

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£1.181b
  • Shares outstanding: 54.56m
  • 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 Analysis2019/10/21 20:33
End of Day Share Price2019/10/21 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.