St. James's Place (LSE:STJ) - Share price, News & Analysis

Q: What is the Fair Price of STJ when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

STJ (£11.36) is trading below our estimate of [[fair value]] (£18.58)

STJ fundamental analysis
Snowflake Score
Valuation	3/6
Future Growth	3/6
Past Performance	3/6
Financial Health	3/6
Dividends	3/6

STJ Stock Overview

St. James's Place plc is a publicly owned investment manager.

Rewards

Trading at 38.9% below our estimate of its fair value

Earnings are forecast to grow 15.21% per year

Earnings have grown 17.1% per year over the past 5 years

Risk Analysis

Dividend of 4.57% is not well covered by earnings

Profit margins (1.6%) are lower than last year (3.3%)

St. James's Place Competitors

3i Group

LSE:III

UK£10.8b

RIT Capital Partners

LSE:RCP

UK£3.8b

Intermediate Capital Group

LSE:ICP

UK£4.0b

Schroders

LSE:SDR

UK£7.4b

Price History & Performance

Summary of all time highs, changes and price drops for St. James's Place
Historical stock prices
Current Share Price	UK£11.36
52 Week High	UK£17.43
52 Week Low	UK£10.85
Beta	1.29
1 Month Change	-12.01%
3 Month Change	-21.57%
1 Year Change	-23.09%
3 Year Change	0%
5 Year Change	-5.02%
Change since IPO	1,190.91%

Recent News & Updates

Apr 04

St. James's Place (LON:STJ) Is Paying Out A Larger Dividend Than Last Year

St. James's Place plc's ( LON:STJ ) dividend will be increasing to UK£0.40 on 27th of May. This will take the dividend...

Shareholder Returns

	STJ	GB Capital Markets	GB Market
7D	-0.2%	4.4%	2.2%
1Y	-23.1%	-15.9%	-6.8%

Return vs Industry: STJ underperformed the UK Capital Markets industry which returned -15.9% over the past year.

Return vs Market: STJ underperformed the UK Market which returned -6.8% over the past year.

Price Volatility

Is STJ's price volatile compared to industry and market?
STJ volatility
STJ Average Weekly Movement	4.2%
Capital Markets Industry Average Movement	4.2%
Market Average Movement	5.5%
10% most volatile stocks in GB Market	10.7%
10% least volatile stocks in GB Market	2.8%

Stable Share Price: STJ is not significantly more volatile than the rest of UK stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: STJ's weekly volatility (4%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1991	2,673	Andrew Croft	https://www.sjp.co.uk

St. James's Place plc is a publicly owned investment manager. The firm launches and manages equity, fixed income, and balanced mutual funds for its clients. It invests in public equity and fixed income market across the globe.

St. James's Place Fundamentals Summary

How do St. James's Place's earnings and revenue compare to its market cap?
STJ fundamental statistics
Market Cap	UK£6.30b
Earnings (TTM)	UK£286.70m
Revenue (TTM)	UK£18.03b

21.5x

P/E Ratio

0.3x

P/S Ratio

Is STJ overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
STJ income statement (TTM)
Revenue	UK£18.03b
Cost of Revenue	UK£0
Gross Profit	UK£2.77b
Other Expenses	UK£2.49b
Earnings	UK£286.70m

Last Reported Earnings

Dec 31, 2021

Next Earnings Date

Jul 28, 2022

Earnings per share (EPS)	0.53
Gross Margin	15.39%
Net Profit Margin	1.59%
Debt/Equity Ratio	48.2%

How did STJ perform over the long term?

See historical performance and comparison

Dividends

4.6%

Current Dividend Yield

97%

Payout Ratio

We’ve recently updated our valuation analysis.

Valuation

Is STJ undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for STJ?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for STJ. This is calculated by dividing STJ's market cap by their current preferred multiple.
What is STJ's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	UK£6.30b

STJ key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	n/a
Enterprise Value/EBITDA	n/a
PEG Ratio	1.4x

Price to Earnings Ratio vs Peers

How does STJ's PE Ratio compare to its peers?

STJ PE Ratio vs Peers

The above table shows the PE ratio for STJ vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PE	Estimated Growth	Market Cap
Peer Average	6.7x
III 3i Group	2.7x	-14.0%	UK£10.8b
RCP RIT Capital Partners	4.4x	n/a	UK£3.8b
ICP Intermediate Capital Group	7.3x	-6.8%	UK£4.0b
SDR Schroders	12.2x	5.7%	UK£7.4b
STJ St. James's Place	21.5x	15.2%	UK£6.3b

Forward PE

Price-To-Earnings vs Peers: STJ is expensive based on its Price-To-Earnings Ratio (21.5x) compared to the peer average (6.7x).

Price to Earnings Ratio vs Industry

How does STJ's PE Ratio compare vs other companies in the GB Capital Markets Industry?

Price-To-Earnings vs Industry: STJ is expensive based on its Price-To-Earnings Ratio (21.5x) compared to the UK Capital Markets industry average (9.6x)

Price to Earnings Ratio vs Fair Ratio

What is STJ's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

STJ PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	21.5x
Fair PE Ratio	22.8x

Price-To-Earnings vs Fair Ratio: STJ is good value based on its Price-To-Earnings Ratio (21.5x) compared to the estimated Fair Price-To-Earnings Ratio (22.8x).

Share Price vs Fair Value

What is the Fair Price of STJ when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: STJ (£11.36) is trading below our estimate of fair value (£18.58)

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

Price to Earnings Growth Ratio

PEG Ratio: STJ is poor value based on its PEG Ratio (1.4x)

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Future Growth

How is St. James's Place forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?

Future Growth Score

3/6

Future Growth Score 3/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

15.2%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: STJ's forecast earnings growth (15.2% per year) is above the savings rate (0.9%).

Earnings vs Market: STJ's earnings (15.2% per year) are forecast to grow faster than the UK market (11% per year).

High Growth Earnings: STJ's earnings are forecast to grow, but not significantly.

Revenue vs Market: STJ's revenue is expected to decline over the next 3 years (-83.2% per year).

High Growth Revenue: STJ's revenue is forecast to decline over the next 3 years (-83.2% per year).

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: STJ's Return on Equity is forecast to be high in 3 years time (35%)

Discover growth companies

Past Performance

How has St. James's Place performed over the past 5 years?

Past Performance Score

3/6

Past Performance Score 3/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

17.1%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: STJ has high quality earnings.

Growing Profit Margin: STJ's current net profit margins (1.6%) are lower than last year (3.3%).

Past Earnings Growth Analysis

Earnings Trend: STJ's earnings have grown by 17.1% per year over the past 5 years.

Accelerating Growth: STJ's earnings growth over the past year (9.4%) is below its 5-year average (17.1% per year).

Earnings vs Industry: STJ earnings growth over the past year (9.4%) underperformed the Capital Markets industry 47.5%.

Return on Equity

High ROE: STJ's Return on Equity (25.7%) is considered high.

Discover strong past performing companies

Financial Health

How is St. James's Place's financial position?

Financial Health Score

3/6

Financial Health Score 3/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: STJ's short term assets (£11.9B) exceed its short term liabilities (£7.8B).

Long Term Liabilities: STJ's short term assets (£11.9B) do not cover its long term liabilities (£146.8B).

Debt to Equity History and Analysis

Debt Level: STJ has more cash than its total debt.

Reducing Debt: STJ's debt to equity ratio has increased from 29.6% to 48.2% over the past 5 years.

Debt Coverage: STJ's debt is well covered by operating cash flow (264.9%).

Interest Coverage: Insufficient data to determine if STJ's interest payments on its debt are well covered by EBIT.

Balance Sheet

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Dividend

What is St. James's Place current dividend yield, its reliability and sustainability?

Dividend Score

3/6

Dividend Score 3/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

4.57%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: STJ's dividend (4.57%) is higher than the bottom 25% of dividend payers in the UK market (1.86%).

High Dividend: STJ's dividend (4.57%) is low compared to the top 25% of dividend payers in the UK market (5.17%).

Stability and Growth of Payments

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

Growing Dividend: STJ's dividend payments have increased over the past 10 years.

Earnings Payout to Shareholders

Earnings Coverage: With its high payout ratio (97.5%), STJ's dividend payments are not well covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: With its low cash payout ratio (20%), STJ's dividend payments are well covered by cash flows.

Discover strong dividend paying companies

Management

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

5.4yrs

Average management tenure

CEO

Andrew Croft (56 yo)

4.42yrs

Tenure

UK£3,260,753

Compensation

Mr. Andrew Croft has been the Chief Executive Officer of St. James’s Place plc since January 1, 2018 and serves as its Executive Director since September 1, 2004. Mr. Croft also serves as Member of Executi...

CEO Compensation Analysis

Compensation vs Market: Andrew's total compensation ($USD3.95M) is about average for companies of similar size in the UK market ($USD3.23M).

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

Leadership Team

Experienced Management: STJ's management team is seasoned and experienced (5.4 years average tenure).

Board Members

Experienced Board: STJ's board of directors are not considered experienced ( 2.7 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: STJ 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.

Data	Last Updated (UTC time)
Company Analysis	2022/06/29 00:00
End of Day Share Price	2022/06/29 00:00
Earnings	2021/12/31
Annual Earnings	2021/12/31