AIM:RQIH

Stock Analysis Report

Randall & Quilter Investment Holdings

Executive Summary

Randall & Quilter Investment Holdings Ltd., together with its subsidiaries, owns and manages insurance companies worldwide.

Rewards

PE ratio (6.2x) is below the UK market (12.6x)

Revenue is forecast to grow 64.34% per year

Earnings grew by 261.9% over the past year

Risk Analysis

Earnings are forecast to decline by an average of -9.1% per year for the next 3 years

High level of non-cash earnings

Unstable dividend track record

Latest financial reports are more than 6 months old

+ 1 more risk


Snowflake Analysis

Proven track record average dividend payer.

Share Price & News

How has Randall & Quilter Investment Holdings's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: RQIH has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-1.3%

RQIH

2.9%

GB Insurance

1.7%

GB Market


1 Year Return

-9.4%

RQIH

-29.4%

GB Insurance

-21.8%

GB Market

Return vs Industry: RQIH exceeded the UK Insurance industry which returned -33.5% over the past year.

Return vs Market: RQIH exceeded the UK Market which returned -23.6% over the past year.


Shareholder returns

RQIHIndustryMarket
7 Day-1.3%2.9%1.7%
30 Day6.4%-11.3%-12.0%
90 Day-16.1%-26.9%-25.3%
1 Year-4.7%-9.4%-21.5%-29.4%-17.9%-21.8%
3 Year49.9%27.4%-17.0%-31.5%-11.8%-22.8%
5 Year53.1%16.4%-9.0%-32.0%0.1%-22.4%

Price Volatility Vs. Market

How volatile is Randall & Quilter Investment Holdings's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Randall & Quilter Investment Holdings undervalued compared to its fair value and its price relative to the market?

6.13x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: RQIH (£1.5) is trading above our estimate of fair value (£1.32)

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


Price To Earnings Ratio

PE vs Industry: RQIH is good value based on its PE Ratio (6.2x) compared to the Insurance industry average (12.3x).

PE vs Market: RQIH is good value based on its PE Ratio (6.2x) compared to the UK market (12.6x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: RQIH is good value based on its PB Ratio (0.8x) compared to the GB Insurance industry average (1.2x).


Next Steps

Future Growth

How is Randall & Quilter Investment Holdings forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

-9.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: RQIH's earnings are forecast to decline over the next 3 years (-9.1% per year).

Earnings vs Market: RQIH's earnings are forecast to decline over the next 3 years (-9.1% per year).

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

Revenue vs Market: RQIH's revenue (64.3% per year) is forecast to grow faster than the UK market (2.5% per year).

High Growth Revenue: RQIH's revenue (64.3% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if RQIH's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Randall & Quilter Investment Holdings performed over the past 5 years?

57.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: RQIH has a high level of non-cash earnings.

Growing Profit Margin: RQIH's current net profit margins (51.1%) are higher than last year (5%).


Past Earnings Growth Analysis

Earnings Trend: RQIH's earnings have grown significantly by 57.3% per year over the past 5 years.

Accelerating Growth: RQIH's earnings growth over the past year (261.9%) exceeds its 5-year average (57.3% per year).

Earnings vs Industry: RQIH earnings growth over the past year (261.9%) exceeded the Insurance industry 4.5%.


Return on Equity

High ROE: RQIH's Return on Equity (11.9%) is considered low.


Next Steps

Financial Health

How is Randall & Quilter Investment Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: RQIH's short term assets (£1.1B) exceed its short term liabilities (£452.0K).

Long Term Liabilities: RQIH's short term assets (£1.1B) do not cover its long term liabilities (£1.3B).


Debt to Equity History and Analysis

Debt Level: RQIH's debt to equity ratio (34.8%) is considered satisfactory.

Reducing Debt: RQIH's debt to equity ratio has increased from 20.4% to 34.8% over the past 5 years.

Debt Coverage: RQIH's operating cash flow is negative, therefore debt is not well covered.

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


Balance Sheet


Next Steps

Dividend

What is Randall & Quilter Investment Holdings's current dividend yield, its reliability and sustainability?

6.17%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: RQIH's dividend (6.13%) is higher than the bottom 25% of dividend payers in the UK market (2.59%).

High Dividend: RQIH's dividend (6.13%) is low compared to the top 25% of dividend payers in the UK market (7.08%).


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (38.7%), RQIH's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: RQIH's dividends in 3 years are forecast to be covered by earnings (52.2% payout ratio).


Next Steps

Management

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

0.8yrs

Average management tenure


CEO

Alan Quilter (67yo)

2.25s

Tenure

UK£305,000

Compensation

Mr. Alan Kevin Quilter has been Chief Executive Officer at Randall & Quilter Investment Holdings plc since January 2018. He served as Group Finance Director of Randall & Quilter Investment Holdings plc sin ...


CEO Compensation Analysis

Compensation vs Market: Alan's total compensation ($USD0.00) is below average for companies of similar size in the UK market ($USD990.28K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Kenneth Randall
Group Executive Chairmanno dataUK£387.00k6.47% £19.4m
Alan Quilter
Group CEO & Director2.25yrsUK£305.00k1.61% £4.8m
William Spiegel
Deputy Executive Group Chairman0.25yrno datano data
Sangeeta Johnson
Head of Operationsno datano datano data
Terry McGinness
Group Chief Information Officerno datano datano data
George Clarke
Group General Counselno datano datano data
Pamela Sellers-Hoelsken
Executive Vice President of US Insurance Divisionno datano datano data
Paul Corver
Group Head of Legacy M&Ano datano datano data
Eric Haller
Senior Vice President of M&A for North America - Insurance Acquisitions Departmentno datano datano data
Steven Goate
Head of Broker Services - Insurance Services Departmentno datano datano data

0.8yrs

Average Tenure

67yo

Average Age

Experienced Management: RQIH's management team is not considered experienced ( 0.8 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Kenneth Randall
Group Executive Chairmanno dataUK£387.00k6.47% £19.4m
Alan Quilter
Group CEO & Director2.25yrsUK£305.00k1.61% £4.8m
William Spiegel
Deputy Executive Group Chairman0.25yrno datano data
Dennis Purkiss
Executive Chairman of Underwriting Managementno datano datano data
Nicholas Dove
Chairman of R&Q Quest Management Services Limitedno datano datano data
Philip Barnes
Independent Non-Executive Director6.92yrsUK£77.00kno data
Alastair H. Campbell
Senior Independent Director0.33yrUK£75.00kno data
Joanne Fox
Non-Executive Director0.92yrno datano data

0.6yrs

Average Tenure

66yo

Average Age

Experienced Board: RQIH's board of directors are not considered experienced ( 0.6 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: 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 been diluted in the past year, with total shares outstanding growing by 28.7%.


Top Shareholders

Company Information

Randall & Quilter Investment Holdings Ltd's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Randall & Quilter Investment Holdings Ltd
  • Ticker: RQIH
  • Exchange: AIM
  • Founded: 1991
  • Industry: Insurance Brokers
  • Sector: Insurance
  • Market Cap: UK£299.554m
  • Shares outstanding: 201.04m
  • Website: https://www.rqih.com

Number of Employees


Location

  • Randall & Quilter Investment Holdings Ltd
  • FB Perry Building
  • 40 Church Street
  • Hamilton
  • HM HX
  • Bermuda

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
RQIHAIM (London Stock Exchange AIM Market)YesOrdinary SharesGBGBPDec 2007

Biography

Randall & Quilter Investment Holdings Ltd., together with its subsidiaries, owns and manages insurance companies worldwide. The company operates through Live, Legacy, and Other segments. It acquires legacy portfolios and insurance debt; and provides capital support to Lloyd’s syndicates. The company provides exit and restructuring solutions through acquisition, portfolio transfer reinsurance, insurance business transfer, and SIR/deductible reimbursement policies. It also offers program management services and solutions, as well as acts bail bond insurer. In addition, the company operates as an underwriting manager for active insurers; participator and manager of Lloyd’s Syndicates; purchaser of insurance receivables; and service provider to the non-life insurance market. Randall & Quilter Investment Holdings Ltd. was founded in 1991 and is headquartered in Hamilton, Bermuda. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/08 04:20
End of Day Share Price2020/04/07 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.