LSE:RAT

Stock Analysis Report

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Executive Summary

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. More Details


Snowflake Analysis

Excellent balance sheet 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

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


Market Performance


7 Day Return

-0.9%

RAT

-0.7%

GB Capital Markets

-0.3%

GB Market


1 Year Return

-30.1%

RAT

-1.3%

GB Capital Markets

-16.6%

GB Market

Return vs Industry: RAT underperformed the UK Capital Markets industry which returned -0.9% over the past year.

Return vs Market: RAT underperformed the UK Market which returned -16.2% over the past year.


Shareholder returns

RATIndustryMarket
7 Day-0.9%-0.7%-0.3%
30 Day-12.5%1.2%0.7%
90 Day-3.2%-1.4%-3.4%
1 Year-26.8%-30.1%2.0%-1.3%-13.4%-16.6%
3 Year-35.0%-41.2%20.1%5.7%-9.6%-20.8%
5 Year-21.2%-32.2%61.4%32.0%14.5%-11.3%

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?

24.69x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: RAT (£14.96) is trading above our estimate of fair value (£8.79)

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 (24.7x) compared to the GB Capital Markets industry average (17x).

PE vs Market: RAT is poor value based on its PE Ratio (24.7x) compared to the UK market (18.1x).


Price to Earnings Growth Ratio

PEG Ratio: RAT is poor value based on its PEG Ratio (1.2x)


Price to Book Ratio

PB vs Industry: RAT is overvalued based on its PB Ratio (1.7x) 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 10 analysts?

21.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: RAT's forecast earnings growth (21.3% per year) is above the savings rate (1.2%).

Earnings vs Market: RAT's earnings (21.3% per year) are forecast to grow slower than the UK market (24.1% per year).

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

Revenue vs Market: RAT's revenue (4.4% per year) is forecast to grow slower than the UK market (6% per year).

High Growth Revenue: RAT's revenue (4.4% 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 (13%).


Next Steps

Past Performance

How has Rathbone Brothers performed over the past 5 years?

-5.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: RAT has a large one-off loss of £29.6M impacting its June 30 2020 financial results.

Growing Profit Margin: RAT's current net profit margins (8.4%) are higher than last year (7%).


Past Earnings Growth Analysis

Earnings Trend: RAT's earnings have declined by 5.1% per year over the past 5 years.

Accelerating Growth: RAT's earnings growth over the past year (29.3%) exceeds its 5-year average (-5.1% per year).

Earnings vs Industry: RAT earnings growth over the past year (29.3%) exceeded the Capital Markets industry 0.9%.


Return on Equity

High ROE: RAT's Return on Equity (6.7%) is considered low.


Next Steps

Financial Health

How is Rathbone Brothers's financial position?


Financial Position Analysis

Short Term Liabilities: RAT's short term assets (£3.6B) exceed its short term liabilities (£3.3B).

Long Term Liabilities: RAT's short term assets (£3.6B) exceed its long term liabilities (£99.1M).


Debt to Equity History and Analysis

Debt Level: RAT's debt to equity ratio (3.1%) is considered satisfactory.

Reducing Debt: RAT's debt to equity ratio has increased from 0.2% to 3.1% over the past 5 years.

Debt Coverage: RAT's debt is well covered by operating cash flow (5435.8%).

Interest Coverage: RAT's interest payments on its debt are well covered by EBIT (8.1x coverage).


Balance Sheet


Next Steps

Dividend

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

4.68%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: RAT's dividend (4.68%) is higher than the bottom 25% of dividend payers in the UK market (1.82%).

High Dividend: RAT's dividend (4.68%) is low compared to the top 25% of dividend payers in the UK market (5.3%).


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 (115.5%), 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 (57.7% payout ratio).


Next Steps

Management

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

1.5yrs

Average management tenure


CEO

Paul Stockton (54 yo)

1.42yrs

Tenure

UK£1,125,000

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 ($USD1.47M) is about average for companies of similar size in the UK market ($USD1.15M).

Compensation vs Earnings: Paul's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Paul Stockton
CEO & Executive Director1.42yrsUK£1.13m0.15%
£ 1.3m
Jennifer Mathias
Group Finance Director & Executive Director1.5yrsUK£737.92kno data
James Butcher
Chief Operating Officer8.75yrsno data0.092%
£ 761.7k
Shelly Patel
Head of Investor Relationsno datano datano data
Sophie Boyd-Wallis
Head of Internal Communicationsno datano datano data
Michael Webb
Head of Group Marketing & Distributionno datano data0.070%
£ 575.2k
Victoria Wellings
Head of sales deskno datano datano data
Ruppert Pepper
Director of Corporate Developmentno datano datano data
Andrew Morris
Head of Investment Management - Outside Londonno dataUK£667.00kno data
Richard Smeeton
Head of Investment Management Special Projects & Recruitmentno dataUK£761.00kno data
Ian Buckley
Chairman of Pension & Advisory Businessesno dataUK£629.00kno data
Julian Chillingworth
Chief Investment Officer of Rathbone Unit Trust Managementno datano datano data

1.5yrs

Average Tenure

55yo

Average Age

Experienced Management: RAT's management team is not considered experienced ( 1.5 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Paul Stockton
CEO & Executive Director1.42yrsUK£1.13m0.15%
£ 1.3m
Jennifer Mathias
Group Finance Director & Executive Director1.5yrsUK£737.92kno data
Mark Nicholls
Independent Chairman9.42yrsUK£180.00k0.0068%
£ 56.1k
James Pettigrew
Senior Independent Director3.42yrsUK£70.00kno data
Colin Clark
Independent Non-Executive Director2yrsUK£55.00kno data
Sarah Gentleman
Independent Non-Executive Director5.75yrsUK£70.00kno data
Terri Duhon
Independent Non-Executive Director2.25yrsUK£70.00kno data
James Dean
Independent Non-Executive Director6.92yrsUK£70.00k0.0018%
£ 15.0k

4.6yrs

Average Tenure

61yo

Average Age

Experienced Board: RAT's board of directors are considered experienced (4.6 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.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


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£823.603m
  • Shares outstanding: 55.05m
  • 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 individual investment and wealth management services for private clients, charities, trustees, and professional partners in the United Kingdom and ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/22 21:11
End of Day Share Price2020/10/22 00:00
Earnings2020/06/30
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.