Rathbones Group Plc (RAT.L) | Investment Case

1. Company Snapshot

1.a. Company Description

Rathbones Group Plc, through its subsidiaries, provides individual investment and wealth management services for private clients, charities, trustees, and professional partners in the United Kingdom and Jersey.The company operates in two segments, Investment Management and Funds.Its services include discretionary investment management, unit trust management, financial planning and advisory, managed portfolio, and banking and loan services, as well as trust, tax, and legal advisory services.

The company was formerly known as Rathbone Brothers Plc and changed its name to Rathbones Group Plc in December 2021.Rathbones Group Plc was founded in 1742 and is headquartered in London, the United Kingdom.

Show Full description

1.b. Last Insights on RAT

Rathbones Group Plc's recent performance has been positively influenced by analyst revisions, with a fair value estimate increase from £21.11 to £21.30, indicating a fine-tuning of their view on the stock. Institutional owners hold 80% of the company, implying significant influence over its direction. The company's involvement in various financial services activities, including wealth management, has positioned it well within the sector. Additionally, its recent disclosures and market talks covering financial services have contributed to a cautiously optimistic outlook.

1.c. Company Highlights

Last Price	2155
Change Percentage	-1.37%
Open	2180
Previous Close	2185
Market Cap ( Millions)	2253
Volume	65405
Year High	2250
Year Low	1374
M A 50	2072.12
M A 200	1868.98

FCF Yield	58.51%
Dividend Yield	4.36%
ROE	4.76%
Debt / Equity	6.97%
Net Debt / EBIDTA	-523.73%
Price To Book	1.71
Price Earnings Ratio	35.8
Price To FCF	1.71
Price To sales	2.47
EV / EBITDA	1.63

2. Transcript Summary

Unfortunately this company is not part of our coverage yet. But as part of your subscription plan you can request it by clicking just below and we'll process.

Request Coverage

3. NewsRoom

Stock market sectors that could be more vulnerable to AI disruption

Feb -18

Source:

Stock market sectors that could be more vulnerable to AI disruption

Feb -18

Source:

St. James’s Place Leads European Wealth Managers’ Tumble on AI Threat

Feb -11

Source:

St. James’s Place Leads European Wealth Managers’ Tumble on AI Threat

Feb -11

Source:

Wealth Stocks Drop Outside the U.S.

Feb -11

Source:

What Is Changing The Story Behind Rathbones Group (LSE:RAT) And Its Fair Value Target?

Feb -01

Source:

Rathbones names Phil Towner as CEO of Vision IFP

Jan -23

Source:

What Analysts Think Is Shaping The Rathbones Group (LSE:RAT) Story Versus Sector Peers

Jan -17

Source:

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (5.50%)

6. Segments

Investment Management

Expected Growth: 5.5%

Growing demand for bespoke portfolio management services, increasing wealth among high net worth individuals, and rising adoption of tailored investment solutions drive growth in Rathbones Group Plc's Investment Management segment.

Asset Management

Expected Growth: 5.5%

Growing demand for bespoke portfolio management and discretionary fund management services, driven by increasing wealth among high net worth individuals and charities, is expected to drive Rathbones Group Plc's Asset Management segment growth.

7. Detailed Products

Wealth Management

Rathbones Group Plc provides wealth management services to individuals, charities, and trusts, offering personalized investment management, financial planning, and wealth protection.

Unit Trusts

Rathbones Group Plc offers a range of unit trusts, providing investors with diversified investment portfolios and access to a broad range of asset classes.

Inheritance Tax Planning

Rathbones Group Plc provides inheritance tax planning services, helping clients to minimize their inheritance tax liability and ensure the smooth transfer of wealth to future generations.

Pensions and Retirement Planning

Rathbones Group Plc offers pensions and retirement planning services, helping clients to plan for a secure retirement and achieve their long-term financial goals.

Charity Investment Management

Rathbones Group Plc provides investment management services to charities, helping them to achieve their investment objectives and further their charitable goals.

Trustee Investment Services

Rathbones Group Plc offers trustee investment services, providing investment management and administrative support to trustees and executors.

8. Rathbones Group Plc's Porter Forces

Forces Ranking

Threat Of Substitutes

Rathbone Group Plc operates in a highly competitive industry, and there are many substitutes available to clients. However, the company's strong brand reputation and diversified investment management services help to mitigate the threat of substitutes.

Bargaining Power Of Customers

Rathbone Group Plc's clients are primarily high net worth individuals and institutional investors, who have limited bargaining power due to the company's strong brand reputation and customized investment solutions.

Bargaining Power Of Suppliers

Rathbone Group Plc has a diversified supply chain, and its suppliers have limited bargaining power due to the company's scale and negotiating power.

Threat Of New Entrants

The wealth management industry has high barriers to entry, including regulatory hurdles and the need for significant capital investment. This limits the threat of new entrants to Rathbone Group Plc.

Intensity Of Rivalry

The wealth management industry is highly competitive, with many established players competing for market share. Rathbone Group Plc faces intense competition from other wealth management companies, which can lead to pricing pressure and higher marketing expenses.

9. SWOT Analysis

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

	Value
Debt Weight	4.54%
Debt Cost	7.25%
Equity Weight	95.46%
Equity Cost	7.25%
WACC	7.25%
Leverage	4.75%

11. Quality Control: Rathbones Group Plc passed 5 out of 9 key points

Strong Liquidity

Low Debt

Strong Interest Coverage

Healthy Cash Flow

Operating Efficiency

Strong Return On Equity

Consistent Revenue Growth

Consistent Operating Cash Flow Growth

Margin Improvement

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Rathbones

A-Score: 6.7/10

Value: 6.5

Growth: 4.4

Quality: 7.5

Yield: 7.5

Momentum: 6.0

Volatility: 8.3

1-Year Total Return ->

Julius Bär

A-Score: 6.1/10

Value: 5.5

Growth: 6.4

Quality: 6.4

Yield: 7.5

Momentum: 4.0

Volatility: 6.7

1-Year Total Return ->

Hargreaves Lansdown

A-Score: 5.1/10

Value: 3.2

Growth: 5.1

Quality: 9.4

Yield: 1.9

Momentum: 5.0

Volatility: 6.3

1-Year Total Return ->

Alba

A-Score: 4.9/10

Value: 5.4

Growth: 1.6

Quality: 6.6

Yield: 1.9

Momentum: 10.0

Volatility: 3.7

1-Year Total Return ->

Latour

A-Score: 4.7/10

Value: 1.3

Growth: 7.4

Quality: 6.4

Yield: 3.1

Momentum: 2.5

Volatility: 7.7

1-Year Total Return ->

Burford Capital

A-Score: 3.7/10

Value: 4.1

Growth: 8.0

Quality: 5.6

Yield: 1.9

Momentum: 0.5

Volatility: 2.3

1-Year Total Return ->

Peers Metrics

12.e Scoring ^Insights

12.f DCF ^BETA

Parameters

Short Term Growth

-10.43%

Short term Time

10.0

Long-Term Growth

2.00%

WACC

7.25%

Rathbones Group Plc - GB0002148343

1. Company Snapshot

1.a. Company Description

1.b. Last Insights on RAT

1.c. Company Highlights

Weak Momentum

Average Growth

Fairly Valued

Lower Growth

Stable Momentum

Average Quality

Average Yield

Medium Volatility

Revenues Beats

Earnings Miss

Higher Yield

2. Transcript Summary

3. NewsRoom

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (5.50%)

6. Segments

Investment Management

Expected Growth: 5.5%

Asset Management

Expected Growth: 5.5%

7. Detailed Products

Wealth Management

Unit Trusts

Inheritance Tax Planning

Pensions and Retirement Planning

Charity Investment Management

Trustee Investment Services

8. Rathbones Group Plc's Porter Forces

Forces Ranking

Threat Of Substitutes

Bargaining Power Of Customers

Bargaining Power Of Suppliers

Threat Of New Entrants

Intensity Of Rivalry

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

11. Quality Control: Rathbones Group Plc passed 5 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

21.55$

Current Price

21.55$

Potential

-0.00%

Expected Cash-Flows

12.e Scoring ^Insights

12.f DCF ^BETA