LSE:REC

Stock Analysis Report

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Executive Summary

Record plc, through its subsidiaries, provides currency management services in the United Kingdom, North America, Continental Europe, Australia, and internationally. More Details


Snowflake Analysis

Flawless balance sheet with solid track record.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: REC is not significantly more volatile than the rest of UK stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: REC's weekly volatility (6%) has been stable over the past year.


Market Performance


7 Day Return

-2.8%

REC

-0.3%

GB Capital Markets

-0.4%

GB Market


1 Year Return

100.3%

REC

15.2%

GB Capital Markets

2.0%

GB Market

Return vs Industry: REC exceeded the UK Capital Markets industry which returned 15.7% over the past year.

Return vs Market: REC exceeded the UK Market which returned 1.1% over the past year.


Shareholder returns

RECIndustryMarket
7 Day-2.8%-0.3%-0.4%
30 Day34.2%4.8%3.3%
90 Day37.8%11.2%4.9%
1 Year113.8%100.3%18.8%15.2%8.0%2.0%
3 Year67.5%34.1%52.4%35.1%10.6%-2.6%
5 Year247.4%145.7%116.1%79.9%38.7%12.1%

Long-Term Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

21.2x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: REC (£0.65) is trading above our estimate of fair value (£0.42)

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


Price To Earnings Ratio

PE vs Industry: REC is poor value based on its PE Ratio (21.2x) compared to the GB Capital Markets industry average (20.9x).

PE vs Market: REC is good value based on its PE Ratio (21.2x) compared to the UK market (23.8x).


Price to Earnings Growth Ratio

PEG Ratio: REC is good value based on its PEG Ratio (0.8x)


Price to Book Ratio

PB vs Industry: REC is overvalued based on its PB Ratio (4.9x) compared to the GB Capital Markets industry average (1.5x).


Next Steps

Future Growth

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

25.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: REC's forecast earnings growth (25.3% per year) is above the savings rate (1%).

Earnings vs Market: REC's earnings (25.3% per year) are forecast to grow faster than the UK market (23.2% per year).

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

Revenue vs Market: REC's revenue (12.4% per year) is forecast to grow faster than the UK market (7.3% per year).

High Growth Revenue: REC's revenue (12.4% 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 REC's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Record performed over the past 5 years?

1.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: REC has high quality earnings.

Growing Profit Margin: REC's current net profit margins (23.2%) are lower than last year (24.3%).


Past Earnings Growth Analysis

Earnings Trend: REC's earnings have grown by 1.4% per year over the past 5 years.

Accelerating Growth: REC's earnings growth over the past year (4.6%) exceeds its 5-year average (1.4% per year).

Earnings vs Industry: REC earnings growth over the past year (4.6%) exceeded the Capital Markets industry -2%.


Return on Equity

High ROE: REC's Return on Equity (23.2%) is considered high.


Next Steps

Financial Health

How is Record's financial position?


Financial Position Analysis

Short Term Liabilities: REC's short term assets (£26.8M) exceed its short term liabilities (£5.1M).

Long Term Liabilities: REC's short term assets (£26.8M) exceed its long term liabilities (£607.0K).


Debt to Equity History and Analysis

Debt Level: REC is debt free.

Reducing Debt: REC has not had any debt for past 5 years.

Debt Coverage: REC has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: REC has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet


Next Steps

Dividend

What is Record current dividend yield, its reliability and sustainability?

4.16%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: REC's dividend (4.16%) is higher than the bottom 25% of dividend payers in the UK market (1.48%).

High Dividend: REC's dividend (4.16%) is low compared to the top 25% of dividend payers in the UK market (4.58%).


Stability and Growth of Payments

Stable Dividend: REC's dividend payments have been volatile in the past 10 years.

Growing Dividend: REC's dividend payments have fallen over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (74.9%), REC's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: REC's dividends in 3 years are not forecast to be well covered by earnings (90.1% payout ratio).


Next Steps

Management

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

7.9yrs

Average management tenure


CEO

Leslie Meier (65 yo)

1

Tenure

UK£742,894

Compensation

Ms. Leslie Hill Meier serves as Chief Executive Director at Record plc since February 13, 2020 and served as its Head of Client Team until February 13, 2020. She serves as an Executive Director of Record P...


CEO Compensation Analysis

Compensation vs Market: Leslie's total compensation ($USD1.04M) is above average for companies of similar size in the UK market ($USD570.95K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Leslie Meier
CEO & Executive Director1yrUK£742.89k7.74%
£ 9.7m
Steve Cullen
CFO & Executive Director7.92yrsUK£239.44k0.74%
£ 929.4k
Bob F. A. Noyen
Chief Investment Officer21.08yrsUK£675.12k4.14%
£ 5.2m
Joel Sleigh
Chief Operating Officer7.92yrsno data2.88%
£ 3.6m
Grady Laurie
Head of Compliance & Riskno datano datano data
Sally Francis-Cole
Global Head of Sales & Head of Client Team1yrno datano data
Kevin Ayles
Head of Human Resourcesno datano data0.072%
£ 90.0k
James Rockall
Head of Trading & Directorno datano datano data
Dmitri Tikhonov
MD & Head of Portfolio Managementno datano data0.15%
£ 188.1k
Andrey Rumyantsev
Head of Investment Strategy & Directorno datano datano data
James Mills
Head of Portfolio Implementation & Director7.83yrsno datano data
Sandeep Prashar
Head of Front Office Risk Management10.08yrsno datano data

7.9yrs

Average Tenure

49yo

Average Age

Experienced Management: REC's management team is seasoned and experienced (7.9 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Leslie Meier
CEO & Executive Director1yrUK£742.89k7.74%
£ 9.7m
Steve Cullen
CFO & Executive Director7.92yrsUK£239.44k0.74%
£ 929.4k
Neil Record
Chairman38.08yrsUK£94.09k30.29%
£ 38.0m
Timothy P. Edwards
Independent Non-executive Director2.92yrsUK£43.50k0.031%
£ 39.1k
Rosina Tufnell
Senior Independent Director2.33yrsUK£63.50k0.078%
£ 97.7k
Rosemary Hilary
Independent Non-Executive Director4.67yrsUK£50.04kno data

4.7yrs

Average Tenure

64yo

Average Age

Experienced Board: REC's board of directors are considered experienced (4.7 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: REC insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

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


Top Shareholders

Company Information

Record plc's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Record plc
  • Ticker: REC
  • Exchange: LSE
  • Founded: 1983
  • Industry: Asset Management and Custody Banks
  • Sector: Diversified Financials
  • Market Cap: UK£125.489m
  • Shares outstanding: 192.76m
  • Website: https://www.recordcm.com

Number of Employees


Location

  • Record plc
  • Morgan House
  • Madeira Walk
  • Windsor
  • Berkshire
  • SL4 1EP
  • United Kingdom

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
RECLSE (London Stock Exchange)YesOrdinary SharesGBGBPNov 2007

Biography

Record plc, through its subsidiaries, provides currency management services in the United Kingdom, North America, Continental Europe, Australia, and internationally. The company offers passive, dynamic, an...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/03/01 19:59
End of Day Share Price2021/03/01 00:00
Earnings2020/09/30
Annual Earnings2020/03/31


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.