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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.

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1.b. Last Insights on RAT

Rathbones Group Plc's recent performance was driven by its resilient business model, which has enabled the company to maintain a strong dividend yield amidst market volatility. The UK's FTSE 100 index has faced challenges due to weak trade data from China and global economic uncertainties, but Rathbones' established presence in the wealth management sector has provided a measure of stability. The company's ability to navigate these fluctuations has been further underscored by its recent inclusion in lists of top UK dividend stocks, highlighting its appeal to income-seeking investors.

1.c. Company Highlights

2. Transcript Summary

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3. NewsRoom

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Cost of comfortable retirement hits £3.1m for Gen Z

Oct -01

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Form 8.3 - IQE Plc

Sep -09

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Taylor Wimpey (LSE:TW.): A Fresh Look at Valuation After a Year of Share Price Pressure

Sep -09

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Assessing Diageo (LSE:DGE) Shares: Is the Current Valuation a Missed Opportunity?

Sep -09

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Does Lloyds Offer More Value After Latest UK Interest Rate Decision?

Sep -09

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HSBC sees gradual unwinding of OPEC+ voluntary cuts over next year

Sep -09

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HSBC HOLDINGS PLC ANNOUNCES RESULTS OF ITS TENDER OFFERS FOR FOUR SERIES OF NOTES

Sep -09

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Form 8.3 - UNITE GROUP PLC

Sep -09

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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

Strength

Weaknesses

Opportunities

Threats

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

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Julius Bär

A-Score: 6.4/10

Value: 6.4

Growth: 6.4

Quality: 6.0

Yield: 8.1

Momentum: 5.0

Volatility: 6.7

1-Year Total Return ->

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Stock-Card
Rathbones

A-Score: 6.3/10

Value: 6.5

Growth: 4.3

Quality: 7.2

Yield: 7.5

Momentum: 4.0

Volatility: 8.0

1-Year Total Return ->

View Full Report
Stock-Card
Hargreaves Lansdown

A-Score: 5.1/10

Value: 3.3

Growth: 5.1

Quality: 9.4

Yield: 1.9

Momentum: 5.0

Volatility: 6.0

1-Year Total Return ->

View Full Report
Stock-Card
Latour

A-Score: 4.6/10

Value: 1.4

Growth: 7.3

Quality: 6.4

Yield: 3.1

Momentum: 1.5

Volatility: 8.0

1-Year Total Return ->

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Stock-Card
Burford Capital

A-Score: 4.1/10

Value: 4.1

Growth: 8.1

Quality: 5.9

Yield: 1.9

Momentum: 2.5

Volatility: 2.0

1-Year Total Return ->

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Stock-Card
Alba

A-Score: 3.9/10

Value: 3.4

Growth: 1.6

Quality: 6.5

Yield: 1.9

Momentum: 10.0

Volatility: 0.3

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

18.44$

Current Price

18.44$

Potential

-0.00%

Expected Cash-Flows