LSE:REC

Stock Analysis Report

Executive Summary

Record plc, through its subsidiaries, provides currency management services.

Snowflake

Fundamentals

Outstanding track record and fair value.

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

10.2%

REC

-0.5%

GB Capital Markets

0.2%

GB Market


1 Year Return

24.1%

REC

17.6%

GB Capital Markets

1.7%

GB Market

Return vs Industry: REC exceeded the UK Capital Markets industry which returned 17.6% over the past year.

Return vs Market: REC exceeded the UK Market which returned 1.7% over the past year.


Shareholder returns

RECIndustryMarket
7 Day10.2%-0.5%0.2%
30 Day8.4%-3.6%-1.7%
90 Day14.4%2.8%-3.1%
1 Year36.0%24.1%20.5%17.6%6.7%1.7%
3 Year68.2%34.9%76.8%64.3%17.7%3.1%
5 Year61.5%16.7%148.5%119.0%36.1%5.5%

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?

34.1%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: REC (£0.37) is trading below our estimate of fair value (£0.56)

Significantly Below Fair Value: REC is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: REC is good value based on its PE Ratio (11.2x) compared to the Capital Markets industry average (19.3x).

PE vs Market: REC is good value based on its PE Ratio (11.2x) compared to the UK market (16.6x).


Price to Earnings Growth Ratio

PEG Ratio: REC's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: REC is overvalued based on its PB Ratio (2.6x) compared to the GB Capital Markets industry average (1.3x).


Next Steps

Future Growth

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

-11.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: REC's earnings are forecast to decline over the next 3 years (-11.4% per year).

Earnings vs Market: REC's earnings are forecast to decline over the next 3 years (-11.4% per year).

High Growth Earnings: REC's earnings are forecast to decline over the next 3 years.

Revenue vs Market: REC's revenue is expected to decline over the next 3 years (-2.1% per year).

High Growth Revenue: REC's revenue is forecast to decline over the next 3 years (-2.1% 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?

3.3%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: REC's earnings have grown by 3.3% per year over the past 5 years.

Accelerating Growth: REC's earnings growth over the past year (4.6%) exceeds its 5-year average (3.3% per year).

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


Return on Equity

High ROE: REC's Return on Equity (23.5%) is considered high.


Return on Assets

ROA vs Industry: REC has a higher Return on Assets than the Capital Markets industry average last year.


Return on Capital Employed

ROCE Improving: REC has significantly improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is Record'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: REC has a low level of unsold assets or inventory.

Debt Coverage by Assets: Insufficient data to determine if REC's debt is covered by short term assets.


Financial Institutions Analysis

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

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

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

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

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

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


Next Steps

Dividend

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

8.17%

Current Dividend Yield


Dividend Yield vs Market

company8.2%marketbottom25%2.0%markettop25%5.4%industryaverage2.2%forecastin3Years6.6%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: REC's dividend (8.17%) is higher than the bottom 25% of dividend payers in the UK market (1.99%).

High Dividend: REC's dividend (8.17%) is in the top 25% of dividend payers in the UK market (5.37%)

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 (70.3%), 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 (102.7% payout ratio).


Next Steps

Management

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

6.6yrs

Average management tenure


CEO

James Wood-Collins (47yo)

9yrs

Tenure

UK£689,019

Compensation

Mr. James Wood-Collins has been the Chief Executive Officer of Record Plc since October 1, 2010 and served as its Head of Client. Mr. Wood-collins is also Chief Executive Officer since 2010 and Executive D ...


CEO Compensation Analysis

Compensation vs. Market: James's total compensation ($USD894.27K) is about average for companies of similar size in the UK market ($USD318.91K).

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


Management Age and Tenure

6.6yrs

Average Tenure

49yo

Average Age

Experienced Management: REC's management team is seasoned and experienced (6.6 years average tenure).


Board Age and Tenure

5.0yrs

Average Tenure

57yo

Average Age

Experienced Board: REC's board of directors are considered experienced (5 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£42,10814 Mar 19
James Wood-Collins
EntityIndividual
Role
Chief Executive Officer
CEO & Executive Director
Shares146,716
Max PriceUK£0.29

Ownership Breakdown


Management Team

  • Bob F. A. Noyen (57yo)

    Chief Investment Officer & Executive Director

    • Tenure: 0yrs
    • Compensation: UK£689.46k
  • James Wood-Collins (47yo)

    CEO & Executive Director

    • Tenure: 9yrs
    • Compensation: UK£689.02k
  • Leslie Meier (64yo)

    Head of Client Team & Executive Director

    • Tenure: 0yrs
    • Compensation: UK£690.14k
  • Joel Sleigh (49yo)

    Chief Operating Officer and Director

    • Tenure: 6.6yrs
  • Dmitri Tikhonov (46yo)

    Head of Portfolio Management and Director

    • Tenure: 0yrs
  • Jim Rockall (40yo)

    Head of Trading & Director

    • Tenure: 0yrs
  • Kevin Ayles (48yo)

    Head of Human Resources & Director

    • Tenure: 0yrs
  • Grady Laurie (50yo)

    Head of Compliance & Risk and Director

    • Tenure: 0yrs
  • Steve Cullen (51yo)

    CFO & Executive Director

    • Tenure: 6.6yrs
    • Compensation: UK£245.09k
  • Alex Prisaca

    CTO & Director

    • Tenure: 0.8yrs

Board Members

  • Neil Record (66yo)

    Chairman

    • Tenure: 36.8yrs
    • Compensation: UK£93.86k
  • Bob F. A. Noyen (57yo)

    Chief Investment Officer & Executive Director

    • Tenure: 0yrs
    • Compensation: UK£689.46k
  • Tim Edwards

    Independent Non-executive Director

    • Tenure: 1.6yrs
    • Compensation: UK£43.50k
  • James Wood-Collins (47yo)

    CEO & Executive Director

    • Tenure: 9yrs
    • Compensation: UK£689.02k
  • Leslie Meier (64yo)

    Head of Client Team & Executive Director

    • Tenure: 0yrs
    • Compensation: UK£690.14k
  • Jane Tufnell (55yo)

    Senior Independent Director

    • Tenure: 1yrs
    • Compensation: UK£53.50k
  • Rosemary Hilary (64yo)

    Non-Executive Director

    • Tenure: 3.3yrs
    • Compensation: UK£49.86k
  • Steve Cullen (51yo)

    CFO & Executive Director

    • Tenure: 6.6yrs
    • Compensation: UK£245.09k

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£70.663m
  • Shares outstanding: 196.07m
  • 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. The company offers currency and dynamic hedging, currency for return, and other risk management products. Its clients include pe ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/21 21:17
End of Day Share Price2019/10/21 00:00
Earnings2019/03/31
Annual Earnings2019/03/31


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.