company background image
RIV

River and Mercantile GroupLSE:RIV Stock Report

Last Price

UK£3.00

Market Cap

UK£251.6m

7D

1.7%

1Y

35.1%

Updated

21 Jan, 2022

Data

Company Financials +
RIV fundamental analysis
Snowflake Score
Valuation0/6
Future Growth1/6
Past Performance3/6
Financial Health6/6
Dividends2/6

RIV Stock Overview

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

River and Mercantile Group Competitors

Schroders

LSE:SDR

UK£8.7b

Ashmore Group

LSE:ASHM

UK£1.8b

Impax Asset Management Group

AIM:IPX

UK£1.4b

Jupiter Fund Management

LSE:JUP

UK£1.3b

Price History & Performance

Summary of all time highs, changes and price drops for River and Mercantile Group
Historical stock prices
Current Share PriceUK£3.00
52 Week HighUK£3.28
52 Week LowUK£2.00
Beta0.88
1 Month Change-1.64%
3 Month Change25.00%
1 Year Change35.14%
3 Year Change32.74%
5 Year Change17.65%
Change since IPO55.84%

Recent News & Updates

Nov 20
River and Mercantile Group's (LON:RIV) Dividend Will Be UK£0.033

River and Mercantile Group's (LON:RIV) Dividend Will Be UK£0.033

River and Mercantile Group PLC ( LON:RIV ) has announced that it will pay a dividend of UK£0.033 per share on the 31st...

Shareholder Returns

RIVGB Capital MarketsGB Market
7D1.7%-1.3%-1.3%
1Y35.1%-3.0%7.8%

Return vs Industry: RIV exceeded the UK Capital Markets industry which returned -2.3% over the past year.

Return vs Market: RIV exceeded the UK Market which returned 8.7% over the past year.

Price Volatility

Is RIV's price volatile compared to industry and market?
RIV volatility
RIV Average Weekly Movement7.9%
Capital Markets Industry Average Movement4.1%
Market Average Movement5.0%
10% most volatile stocks in GB Market10.8%
10% least volatile stocks in GB Market2.5%

Stable Share Price: RIV is more volatile than 75% of UK stocks over the past 3 months, typically moving +/- 8% a week.

Volatility Over Time: RIV's weekly volatility (8%) has been stable over the past year, but is still higher than 75% of UK stocks.

About the Company

FoundedEmployeesCEOWebsite
n/a300James Barhamhttps://www.riverandmercantile.com

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 solutions, and equity solutions. It invests in the public equity markets across the globe.

River and Mercantile Group Fundamentals Summary

How do River and Mercantile Group's earnings and revenue compare to its market cap?
RIV fundamental statistics
Market CapUK£251.59m
Earnings (TTM)UK£8.21m
Revenue (TTM)UK£74.28m

30.7x

P/E Ratio

3.4x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
RIV income statement (TTM)
RevenueUK£74.28m
Cost of RevenueUK£44.10m
Gross ProfitUK£30.18m
ExpensesUK£21.97m
EarningsUK£8.21m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)0.098
Gross Margin40.63%
Net Profit Margin11.05%
Debt/Equity Ratio0%

How did RIV perform over the long term?

See historical performance and comparison

Dividends

3.4%

Current Dividend Yield

103%

Payout Ratio

Valuation

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

30.65x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: RIV (£3) is trading above our estimate of fair value (£2.6)

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


Price To Earnings Ratio

PE vs Industry: RIV is poor value based on its PE Ratio (30.7x) compared to the UK Capital Markets industry average (11.1x).

PE vs Market: RIV is poor value based on its PE Ratio (30.7x) compared to the UK market (19.1x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: RIV is overvalued based on its PB Ratio (4.2x) compared to the GB Capital Markets industry average (1.6x).


Future Growth

How is River and Mercantile Group forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

-28.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: RIV's earnings are forecast to decline over the next 3 years (-28.9% per year).

Earnings vs Market: RIV's earnings are forecast to decline over the next 3 years (-28.9% per year).

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

Revenue vs Market: RIV's revenue (7.2% per year) is forecast to grow faster than the UK market (4.9% per year).

High Growth Revenue: RIV's revenue (7.2% 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


Past Performance

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

-9.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: RIV has high quality earnings.

Growing Profit Margin: RIV's current net profit margins (11.1%) are higher than last year (7.6%).


Past Earnings Growth Analysis

Earnings Trend: RIV's earnings have declined by 9.6% per year over the past 5 years.

Accelerating Growth: RIV's earnings growth over the past year (53.6%) exceeds its 5-year average (-9.6% per year).

Earnings vs Industry: RIV earnings growth over the past year (53.6%) underperformed the Capital Markets industry 66.7%.


Return on Equity

High ROE: RIV's Return on Equity (13.7%) is considered low.


Financial Health

How is River and Mercantile Group's financial position?


Financial Position Analysis

Short Term Liabilities: RIV's short term assets (£57.8M) exceed its short term liabilities (£21.1M).

Long Term Liabilities: RIV's short term assets (£57.8M) exceed its long term liabilities (£2.3M).


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


Dividend

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

3.37%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: RIV's dividend (3.37%) is higher than the bottom 25% of dividend payers in the UK market (1.37%).

High Dividend: RIV's dividend (3.37%) is low compared to the top 25% of dividend payers in the UK market (4.04%).


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 (103.2%), 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 (85% payout ratio).


Next Steps

  • Explore strong dividend paying companies in the Diversified Financials industry.

Management

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

2.5yrs

Average management tenure


CEO

James Barham (58 yo)

2.5yrs

Tenure

UK£954,325

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 ($USD1.29M) is above average for companies of similar size in the UK market ($USD811.52K).

Compensation vs Earnings: James's compensation has increased by more than 20% in the past year.


Leadership Team

Experienced Management: RIV's management team is considered experienced (2.5 years average tenure).


Board Members

Experienced Board: RIV's board of directors are considered experienced (3.3 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.


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 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
  • Implied Market Cap: UK£251.588m
  • Shares outstanding: 83.86m
  • 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


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/01/21 21:26
End of Day Share Price2022/01/21 00:00
Earnings2021/06/30
Annual Earnings2021/06/30


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.