LSE:RIV

Stock Analysis Report

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Executive Summary

River and Mercantile Group PLC is an asset management holding company. More Details


Snowflake Analysis

Flawless balance sheet with reasonable growth potential.


Similar Companies

Share Price & News

How has River and Mercantile Group's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: RIV is not significantly more volatile than the rest of UK stocks over the past 3 months, typically moving +/- 7% a week.

Volatility Over Time: RIV's weekly volatility (7%) has been stable over the past year.


Market Performance


7 Day Return

0%

RIV

-5.6%

GB Capital Markets

1.2%

GB Market


1 Year Return

-14.3%

RIV

11.2%

GB Capital Markets

4.6%

GB Market

Return vs Industry: RIV underperformed the UK Capital Markets industry which returned 11.2% over the past year.

Return vs Market: RIV underperformed the UK Market which returned 4.6% over the past year.


Shareholder returns

RIVIndustryMarket
7 Day0%-5.6%1.2%
30 Day-7.0%-6.6%0.9%
90 Day28.3%0.06%2.4%
1 Year-9.2%-14.3%14.8%11.2%10.6%4.6%
3 Year-24.9%-37.5%39.5%23.7%8.6%-4.5%
5 Year13.5%-13.5%99.0%65.5%39.5%12.5%

Long-Term Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is River and Mercantile Group undervalued compared to its fair value and its price relative to the market?

28.3%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: RIV (£2.08) is trading below our estimate of fair value (£2.89)

Significantly Below Fair Value: RIV is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: RIV is poor value based on its PE Ratio (32.5x) compared to the GB Capital Markets industry average (20.1x).

PE vs Market: RIV is poor value based on its PE Ratio (32.5x) compared to the UK market (24.1x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: RIV is overvalued based on its PB Ratio (3x) compared to the GB Capital Markets industry average (1.6x).


Next Steps

Future Growth

How is River and Mercantile Group forecast to perform in the next 1 to 3 years based on estimates from 3 analysts?

27.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: RIV's forecast earnings growth (27.9% per year) is above the savings rate (1%).

Earnings vs Market: RIV's earnings (27.9% per year) are forecast to grow faster than the UK market (22.8% per year).

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

Revenue vs Market: RIV's revenue (10.8% per year) is forecast to grow faster than the UK market (6.7% per year).

High Growth Revenue: RIV's revenue (10.8% 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 RIV's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has River and Mercantile Group performed over the past 5 years?

6.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: RIV has high quality earnings.

Growing Profit Margin: RIV's current net profit margins (7.6%) are lower than last year (16.6%).


Past Earnings Growth Analysis

Earnings Trend: RIV's earnings have grown by 6.4% per year over the past 5 years.

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

Earnings vs Industry: RIV had negative earnings growth (-58.8%) over the past year, making it difficult to compare to the Capital Markets industry average (-1.9%).


Return on Equity

High ROE: RIV's Return on Equity (9.2%) is considered low.


Next Steps

Financial Health

How is River and Mercantile Group's financial position?


Financial Position Analysis

Short Term Liabilities: RIV's short term assets (£51.0M) exceed its short term liabilities (£19.3M).

Long Term Liabilities: RIV's short term assets (£51.0M) exceed its long term liabilities (£3.3M).


Debt to Equity History and Analysis

Debt Level: RIV is debt free.

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

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

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


Balance Sheet


Next Steps

Dividend

What is River and Mercantile Group current dividend yield, its reliability and sustainability?

4.65%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: RIV's dividend (4.65%) is higher than the bottom 25% of dividend payers in the UK market (1.49%).

High Dividend: RIV's dividend (4.65%) is in the top 25% of dividend payers in the UK market (4.51%)


Stability and Growth of Payments

Stable Dividend: RIV has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: RIV's dividend payments have increased, but the company has only paid a dividend for 7 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (141.6%), RIV's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: RIV's dividends in 3 years are forecast to be covered by earnings (81.9% payout ratio).


Next Steps

Management

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

1.7yrs

Average management tenure


CEO

James Barham (57 yo)

1.67yrs

Tenure

UK£395,063

Compensation

Mr. James Barham is Chairman, Chief Executive Officer and Executive Director at River and Mercantile Asset Management LLP and is an Executive Director since March 27, 2014. Mr. Barham is Global Head of Dis...


CEO Compensation Analysis

Compensation vs Market: James's total compensation ($USD545.33K) is about average for companies of similar size in the UK market ($USD570.00K).

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


Leadership Team

NamePositionTenureCompensationOwnership
James Barham
CEO & Executive Director1.67yrsUK£395.06k1.94%
£ 3.4m
Simon Wilson
CFO & Executive Director0.83yrUK£253.10k0.0075%
£ 13.1k
Fran Fahey
Group Chief Operating Officerno datano datano data
Sean Breslin
Head of Legal & Complianceno datano data0.019%
£ 32.7k
David Peach
Group HR Directorno datano datano data
David Rosenblum
Managing Director2.75yrsno datano data
Tom Cassara
Managing Director2.75yrsno datano data
Ryan McGlothlin
Managing Directorno datano datano data
Tim Horan
Managing Director of Australia & New Zealand2.75yrsno datano data
David Hanratty
Global Head of Distribution1.5yrsno data0.072%
£ 124.5k
Roger Lewis
Group Head of ESG0.083yrno datano data
Sally Buckmaster
Group Company Secretaryno datano datano data

1.7yrs

Average Tenure

Experienced Management: RIV's management team is not considered experienced ( 1.7 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
James Barham
CEO & Executive Director1.67yrsUK£395.06k1.94%
£ 3.4m
Simon Wilson
CFO & Executive Director0.83yrUK£253.10k0.0075%
£ 13.1k
Martin Gilbert
Deputy Chairman0.17yrno datano data
Miriam Greenwood
Independent Non-Executive Director1.83yrsUK£51.75k0.0085%
£ 14.8k
Jonathan Sherlock Dawson
Chairman3.42yrsUK£150.00k0.12%
£ 209.2k
John Misselbrook
Independent Non-Executive Director3.08yrsUK£51.75k0.0036%
£ 6.2k
Angela Crawford-Ingle
Senior Independent Non-Executive Directorno dataUK£69.75k0.030%
£ 51.7k

2.5yrs

Average Tenure

67yo

Average Age

Experienced Board: RIV's board of directors are not considered experienced ( 2.5 years average tenure), which suggests a new board.


Ownership

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


Insider Trading Volume

Insider Buying: RIV insiders have bought more shares than they have sold 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

River and Mercantile Group PLC's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: River and Mercantile Group PLC
  • Ticker: RIV
  • Exchange: LSE
  • Founded: NaN
  • Industry: Asset Management and Custody Banks
  • Sector: Diversified Financials
  • Market Cap: UK£173.857m
  • Shares outstanding: 83.79m
  • Website: https://www.riverandmercantile.com

Number of Employees


Location

  • River and Mercantile Group PLC
  • 30 Coleman Street
  • London
  • Greater London
  • EC2R 5AL
  • United Kingdom

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
RIVLSE (London Stock Exchange)YesOrdinary SharesGBGBPJun 2014
RIVLBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBGBPJun 2014

Biography

River and Mercantile Group PLC is an asset management holding company. Through its subsidiaries, the firm engages in advisory, fiduciary management, long-term asset management, pension funds, derivative so...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/03/06 19:04
End of Day Share Price2021/03/05 00:00
Earnings2020/06/30
Annual Earnings2020/06/30


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.