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1. Company Snapshot

1.a. Company Description

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.


The firm was formerly known as St. James's Place Capital plc.St. James's Place plc was founded in 1991 and is based in Cirencester, United Kingdom.

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1.b. Last Insights on STJ

St. James's Place has introduced a new charging structure, reducing costs for some clients, effective next month. This move follows the company's decision to scrap exit charges, a controversial fee that previously applied to some clients. The wealth manager's chief investment officer, Justin Onuekwusi, recently commented on market conditions, citing concerns over US Federal Reserve independence. Additionally, the company's boss warned of a retirement crisis for cash savers due to high inflation levels. A recent rating from a reputable source was not found. No information on share buybacks was available.

1.c. Company Highlights

2. St. James's Place: Navigating Economic Uncertainty With Strong Growth

SJP reported a robust first half, with revenues growing by 17% to reach £674 million, driven by higher new business flows, increased AUM, and effective cost control. The company also delivered an earnings per share (EPS) of 0.445, significantly exceeding analysts' expectations of 0.35. This strong performance reflects SJP's ability to capitalize on market opportunities while maintaining a disciplined approach to expenses. The company's focus on client retention and attracting new clients through its advice model is paying off, evidenced by the 95% client retention rate and a 20% increase in net inflows compared to the first half of 2024.

Publication Date: Aug -07

📋 Highlights
  • Record Funds Under Management (FUM):: GBP 198.5 billion as of H1 2025, double net inflows compared to H1 2024.
  • Underlying Cash Result Growth:: 17% increase, with a target to double by 2030 driven by new business and FUM growth.
  • Shareholder Return Strategy:: 20% release from ongoing servicing provision, earmarked for buyback after client communication.
  • Client Retention Rate:: 95%, attributed to brand strength, improved advice, and long-term adviser-client relationships (avg. 10 years).
  • Fee Structure & Margin Stability:: New 55 bps ongoing advice fee, with margins projected to remain within 43-45% range.

Fee Structure Changes and Market Expansion

SJP's new fee structure, implemented in August, is designed to enhance transparency and competitiveness. While the exact impact on margins is yet to be fully determined, the company projects to remain within the 43-45% range. This new structure is expected to improve client experience and strengthen SJP's reputation in the market. Furthermore, SJP is exploring expansion into alternative investments in the second half of next year, recognizing the growing demand for these asset classes. This move aligns with the company's strategy to offer a diversified investment portfolio to its clients and capitalize on new market opportunities.

Client Focus and Market Outlook

"Our client retention rate is a testament to the long-term relationships we build and the value we provide," stated a company spokesperson during the earnings call, highlighting the importance of customer satisfaction. SJP's success is also attributed to its strong brand, positive narrative, and improved advice offering, which resonate with clients seeking financial security and guidance. While economic uncertainty persists, SJP remains optimistic about the market outlook, emphasizing the need for stability and certainty for consumers and businesses to thrive.

Valuation and Future Prospects

SJP's current valuation metrics suggest the market anticipates continued growth and profitability. The P/E ratio of 17.73 and the P/B ratio of 5.55 indicate a premium valuation compared to some of its peers, reflecting investor confidence in the company's long-term prospects. The dividend yield of 1.48% also presents an attractive income stream for investors. However, the negative free cash flow yield of -9.58% warrants further scrutiny, as it suggests that the company is investing heavily in growth, potentially impacting future profitability.

3. NewsRoom

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Labour’s Budget uncertainty ‘damaged’ pensions, Britain’s biggest wealth manager claims

Dec -04

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UK mid-caps outperform in calm post-Budget trade

Nov -27

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How Recent Developments Are Shaping the Story for St. James's Place

Nov -24

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Lone Star Acquires Multi-Asset Real Estate Portfolio from St. James’s Place

Nov -17

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How Recent Developments Are Rewriting the Story for St. James's Place

Nov -07

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Surge in offshore bond sales as UK investors look to cut tax bills

Nov -01

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How Recent Developments Are Reshaping the St. James's Place Investment Story

Oct -22

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UK stocks spooked by new Trump threat of fresh tariffs on China

Oct -10

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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

Wealth Management

Expected Growth: 5.5%

Growing demand for personalized financial planning, increasing wealth among high-net-worth individuals, and rising need for investment management and wealth protection services drive the growth of St. James's Place plc's Wealth Management segment.

7. Detailed Products

Wealth Management

St. James's Place provides bespoke wealth management services to individuals, families, and businesses, offering personalized investment portfolios and financial planning.

Pensions and Retirement

St. James's Place offers a range of pension and retirement products, including self-invested personal pensions (SIPPs) and small self-administered schemes (SSAS).

Investments

St. James's Place provides access to a diverse range of investment products, including unit trusts, open-ended investment companies (OEICs), and structured products.

Protection

St. James's Place offers a range of protection products, including life insurance, critical illness cover, and income protection.

Estate Planning

St. James's Place provides estate planning services, including will writing, trusts, and inheritance tax planning.

Business Protection

St. James's Place offers business protection products, including key person insurance, shareholder protection, and business loan protection.

8. St. James's Place plc's Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for St. James's Place plc is medium due to the presence of alternative financial services providers, but the company's strong brand and customer loyalty mitigate this threat.

Bargaining Power Of Customers

The bargaining power of customers is low for St. James's Place plc, as customers have limited negotiating power due to the company's strong brand and diversified product offerings.

Bargaining Power Of Suppliers

The bargaining power of suppliers is medium for St. James's Place plc, as the company relies on a network of financial advisors and partners, but has some flexibility in negotiating prices and terms.

Threat Of New Entrants

The threat of new entrants is low for St. James's Place plc, as the company operates in a highly regulated industry with significant barriers to entry, including capital requirements and regulatory hurdles.

Intensity Of Rivalry

The intensity of rivalry is high for St. James's Place plc, as the company operates in a highly competitive industry with many established players, and must continually innovate and differentiate itself to maintain market share.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 21.42%
Debt Cost 3.95%
Equity Weight 78.58%
Equity Cost 9.91%
WACC 8.63%
Leverage 27.25%

11. Quality Control: St. James's Place plc passed 2 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
Beazley

A-Score: 6.5/10

Value: 6.2

Growth: 6.7

Quality: 9.0

Yield: 3.8

Momentum: 7.0

Volatility: 6.3

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Ringkjøbing Landbobank

A-Score: 6.3/10

Value: 4.7

Growth: 6.0

Quality: 7.6

Yield: 1.2

Momentum: 9.5

Volatility: 9.0

1-Year Total Return ->

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Stock-Card
RIT Capital Partners

A-Score: 6.2/10

Value: 5.0

Growth: 3.8

Quality: 8.6

Yield: 3.1

Momentum: 7.0

Volatility: 10.0

1-Year Total Return ->

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Stock-Card
Direct Line Insurance

A-Score: 5.9/10

Value: 6.5

Growth: 2.6

Quality: 6.6

Yield: 5.0

Momentum: 10.0

Volatility: 4.7

1-Year Total Return ->

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Stock-Card
St. James's Place

A-Score: 5.7/10

Value: 5.8

Growth: 4.7

Quality: 5.7

Yield: 4.4

Momentum: 9.5

Volatility: 4.0

1-Year Total Return ->

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Stock-Card
Bure Equity

A-Score: 3.5/10

Value: 5.4

Growth: 3.0

Quality: 4.6

Yield: 0.6

Momentum: 1.5

Volatility: 6.0

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

13.73$

Current Price

13.73$

Potential

-0.00%

Expected Cash-Flows