-3.60%
32.26%
32.71%
-36.67%
-38.67%
-76.10%
-78.54%
AI Spotlight on CBG
Company Description
Close Brothers Group plc, a merchant banking company, provides financial services to small businesses and individuals in the United Kingdom.It operates through five segments: Commercial, Retail, Property, Asset Management, and Securities.The company offers various savings products, including personal and business savings, and pension deposits.
It also provides asset finance, asset-based lending, commercial vehicle hire, short-term bridging finance, insurance premium finance, invoice discounting and factoring, and property finance products.In addition, the company offers funding services for general aviation aircraft, and various leisure and commercial vessels; sale and rent back services for the brewing sector; broker finance services to the agriculture, construction, manufacturing, and transport industries; leasing services for the construction, manufacturing, IT equipment, and specialist assets; and loan, hire purchase, leasing, and refinancing services to the professional service sector, including dental, medical, pharmacy, and veterinary sectors.Further, it provides financial education, investment management, and financial planning and advice services; self-directed services that help investors to manage their portfolio online; and services for financial advisers.
Additionally, the company offers liquidity and flexible execution services to retail stockbrokers, wealth managers, and institutional investors; market making, sales, research, and corporate broking services; and dealing, custody, and settlement services to the institutional, wealth management, and brokerage clients.Close Brothers Group plc was founded in 1878 and is headquartered in London, the United Kingdom.
Market Data
| Last Price | 307.9 |
| Change Percentage | -3.60% |
| Open | 308.2 |
| Previous Close | 319.4 |
| Market Cap ( Millions) | 459 |
| Volume | 294181 |
| Year High | 564 |
| Year Low | 179.83 |
| M A 50 | 240.69 |
| M A 200 | 385.68 |
Financial Ratios
| FCF Yield | -156.42% |
| Dividend Yield | 0.00% |
| ROE | 5.78% |
| Debt / Equity | 127.86% |
| Net Debt / EBIDTA | 872.20% |
| Price To Book | 0.25 |
| Price Earnings Ratio | 4.58 |
| Price To FCF | -0.64 |
| Price To sales | 0.36 |
| EV / EBITDA | 13.9 |
News
- Jan -31 - Close Brothers Broker Solutions appoints new operations head
- Jan -21 - Lloyds and Close Brothers shares surge after Reeves steps in on car finance case
- Jan -08 - Supreme Court hearing to decide future of UK motor finance industry
- Jan -08 - Close Brothers names new CEO as sector faces legal challenges
- Dec -20 - Close Brothers Group (LON:CBG) investors are sitting on a loss of 82% if they invested five years ago
- Dec -11 - UK’s highest court to hear appeal on car finance mis-selling
- Dec -10 - Close Brothers Motor Finance makes two key appointments
- Dec -05 - FTSE 100 reshuffle sees Vistry kicked out and Games Workshop join the UK blue-chip index
- Dec -03 - FTSE 100 reshuffle to see Vistry kicked out and Games Workshop join the UK blue-chip index
- Dec -02 - iVendi and Close Brothers team up to enhance dealer finance
- Nov -15 - Over one third of dealers are unaware of the Specialist Automotive Finance (SAF) regulations
- Nov -07 - Close Brothers AM enters strategic cooperation with SEI
- Oct -28 - Close Brothers and FirstRand to appeal UK court ruling on motor finance disclosure duties
- Oct -28 - Lloyds ‘assessing impact’ of key car finance ruling in favour of consumers
- Oct -03 - Close Brothers consolidates broker offerings
- Sep -29 - Close Brothers Group plc Just Missed Earnings - But Analysts Have Updated Their Models
- Sep -23 - Close Brothers sells wealth management unit to Oaktree for £200m amid motor finance probe
- Sep -21 - Close Brothers Group Full Year 2024 Earnings: EPS Misses Expectations
- Sep -20 - Close Brothers Group PLC (CBGPY) (Q4 2024) Earnings Call Transcript Highlights: Strong ...
- Sep -19 - Financial Services Roundup: Market Talk
Business Breakdown
Expected Mid-Term Growth
Segment n°1 -> Commercial
Expected Growth : 6.5 %
What the company do ?
Close Brothers Group plc's Commercial division provides lending and deposit-taking services to small and medium-sized businesses in the UK.
Why we expect these perspectives ?
Close Brothers Group plc's 6.5% commercial segment growth is driven by increasing demand for asset-based lending, growth in invoice finance, and expansion into new markets. Additionally, strategic acquisitions, strong relationships with SMEs, and a robust risk management framework contribute to the segment's growth.
Segment n°2 -> Retail
Expected Growth : 6.0 %
What the company do ?
Retail from Close Brothers Group plc refers to the provision of financial services and lending to small businesses and individuals in the UK.
Why we expect these perspectives ?
Close Brothers Group plc's Retail segment growth of 6.0% is driven by increasing demand for consumer credit, expansion of merchant acquiring services, and strategic partnerships. Additionally, the segment benefits from a strong online presence, diversified product offerings, and a focus on customer experience. These factors contribute to the segment's robust growth, outpacing industry averages.
Segment n°3 -> Asset Management
Expected Growth : 7.5 %
What the company do ?
Close Brothers Group plc's Asset Management segment provides investment management services to individuals, charities, and institutional clients, offering a range of investment strategies and portfolios.
Why we expect these perspectives ?
Close Brothers Group plc's 7.5% asset management growth driven by increasing demand for diversified investment products, strategic acquisitions, and expansion into new markets. Strong brand reputation, robust risk management, and investment in digital capabilities also contribute to growth. Additionally, the company's focus on sustainable and ESG-focused investments resonates with environmentally conscious clients, further boosting assets under management.
Segment n°4 -> Property
Expected Growth : 6.8 %
What the company do ?
Close Brothers Property Finance provides financing solutions for property developers, investors, and owners, offering tailored loans and mortgages for various property types.
Why we expect these perspectives ?
Close Brothers Group plc's 6.8% growth in Property segment is driven by increasing demand for commercial real estate, expansion into new markets, and strategic acquisitions. Additionally, the company's focus on providing tailored financial solutions to property investors and developers has contributed to its growth. Furthermore, the UK's growing economy and rising property prices have also supported the segment's expansion.
Segment n°5 -> Securities
Expected Growth : 7.2 %
What the company do ?
Securities from Close Brothers Group plc refer to investment products, such as shares, bonds, and funds, offered by the UK-based merchant banking group to individuals and institutions.
Why we expect these perspectives ?
Close Brothers Group plc's 7.2% growth is driven by its diversified business model, strong market position, and strategic acquisitions. The company's lending divisions, including Commercial and Retail, have seen significant growth, while its Winterflood business has benefited from increased market volatility. Additionally, the company's focus on digital transformation and cost savings initiatives have contributed to its overall growth.
Segment n°6 -> Group
Expected Growth : 7.0 %
What the company do ?
Close Brothers Group plc is a leading UK merchant banking group providing financial services, including lending, deposit taking, and wealth management.
Why we expect these perspectives ?
Close Brothers Group plc's 7.0% growth is driven by its diversified business model, strong market position, and strategic acquisitions. The group's lending divisions, including Commercial and Retail, have seen significant growth, while its Securities arm has benefited from increased market volatility. Additionally, the group's focus on digital transformation and cost savings initiatives have contributed to its overall growth.
Close Brothers Group Plc Products
| Product Range | What is it ? |
|---|---|
| Commercial Banking | Provides a range of banking services to small and medium-sized enterprises, including lending, deposits, and treasury management. |
| Retail Banking | Offers a range of personal banking services, including savings accounts, loans, and credit cards. |
| Asset Finance | Provides financing solutions for businesses to acquire assets such as vehicles, equipment, and technology. |
| Invoice Finance | Offers financing solutions to businesses to improve their cash flow by advancing funds against outstanding invoices. |
| Securities | Provides a range of securities-based services, including stockbroking, investment management, and wealth management. |
| Wealth Management | Offers a range of wealth management services, including investment management, financial planning, and estate planning. |
Close Brothers Group plc's Porter Forces
Threat Of Substitutes
Close Brothers Group plc operates in a niche market, providing specialized financial services. While there are substitutes available, they are not easily accessible, and the company's strong brand reputation and customer loyalty mitigate the threat of substitutes.
Bargaining Power Of Customers
Close Brothers Group plc's customers are largely institutional investors and high net worth individuals, who have limited bargaining power due to the specialized nature of the company's services.
Bargaining Power Of Suppliers
Close Brothers Group plc's suppliers are primarily technology and infrastructure providers, who have limited bargaining power due to the company's scale and negotiating power.
Threat Of New Entrants
The financial services industry is heavily regulated, and new entrants face significant barriers to entry, including high capital requirements and regulatory hurdles, making it difficult for new competitors to enter the market.
Intensity Of Rivalry
The financial services industry is highly competitive, with many established players competing for market share. Close Brothers Group plc faces intense competition from other specialized financial services providers.
Strength
Weaknesses
Opportunities
Threats
Capital Structure
| Value | |
|---|---|
| Debt Weight | 64.48% |
| Debt Cost | 4.17% |
| Equity Weight | 35.52% |
| Equity Cost | 7.94% |
| WACC | 5.51% |
| Leverage | 181.54% |
Close Brothers Group plc : Quality Control
Close Brothers Group plc passed 4 out of 9 key points:
Historical Valuation
Price/Earnings Ratio
Margin Valuation
Peers Valuation
Competitors
| Company | Rational |
|---|---|
| CMCX.L | CMC Markets plc, together with its subsidiaries, provides online retail financial services to retail, professional, stockbroking, and institutional clients in the United Kingdom, Ireland, Europe, Australia, New Zealand, Singapore, Canada, … |
| FRP.L | FRP Advisory Group plc, through its subsidiaries, provides business advisory services to companies, lenders, investors, individuals, and other stakeholders. The company's services include corporate finance advisory services comprising mergers and … |
| O4B.DE | OVB Holding AG, through its subsidiaries, provides advisory and brokerage services to private households in Europe. The company provides advisory services to clients in structuring their finances; and broking various … |
| FTK.DE | flatexDEGIRO AG provides online brokerage and IT solutions in the areas of finance and financial technology services in Europe. It operates through Financial Services (FIN) and Technologies (TECH) segments. The … |
| ALPH.L | Alpha Group International plc provides foreign exchange risk management and alternative banking solutions in the United Kingdom and internationally. The company offers forward currency contracts, option contracts, foreign exchange spot … |
Peers Metrics
DCF BETA
Expected Cash-Flows
Scoring Insights
Peers Group Analysis
🥇
OVB Holding
A-Score
1-Year Total Return ->
🥈
FRP Advisory
A-Score
1-Year Total Return ->
🥉
CMC Markets
A-Score
1-Year Total Return ->
4
Alpha Group International
A-Score
1-Year Total Return ->
5
FlatexDEGIRO
A-Score
1-Year Total Return ->
6
