Loading...

You're on the old version of Simply Wall St. We will no longer be supporting this site, so we recommend you switch to our brand new platform.

AJ Bell

DB:3FY
Snowflake Description

Excellent balance sheet with solid track record.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
3FY
DB
£1B
Market Cap
  1. Home
  2. DE
  3. Diversified Financials
Company description

AJ Bell plc, through its subsidiaries, operates investment platforms in the United Kingdom. The last earnings update was 114 days ago. More info.


Add to Portfolio Compare Print
  • AJ Bell has significant price volatility in the past 3 months.
3FY Share Price and Events
7 Day Returns
-5.5%
DB:3FY
12.3%
DE Capital Markets
7.2%
DE Market
1 Year Returns
-25.6%
DB:3FY
-8.8%
DE Capital Markets
-17.5%
DE Market
3FY Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
AJ Bell (3FY) -5.5% -37.7% -46.3% -25.6% - -
DE Capital Markets 12.3% -26.5% -16.8% -8.8% -29% -56.3%
DE Market 7.2% -22.3% -26.1% -17.5% -25.7% -29.1%
1 Year Return vs Industry and Market
  • 3FY underperformed the Capital Markets industry which returned -8.8% over the past year.
  • 3FY underperformed the Market in Germany which returned -17.5% over the past year.
Price Volatility
Industry
5yr Volatility vs Market

3FY Value

 Is AJ Bell undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of AJ Bell to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for AJ Bell.

DB:3FY Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model Excess Returns Model
Stable EPS Median Return on Equity from the past 5 years.
= Stable Book Value * Return on Equity
= £0.27 * 30.9%
£0.08
Book Value of Equity per Share Weighted future Book Value estimates from 3 analysts. £0.27
Discount Rate (Cost of Equity) See below 4.7%
Perpetual Growth Rate 10-Year DE Government Bond Rate -0.4%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for DB:3FY
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year DE Govt Bond Rate -0.4%
Equity Risk Premium S&P Global 6.1%
Capital Markets Unlevered Beta Simply Wall St/ S&P Global 0.75
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.754 (1 + (1- 19%) (0.05%))
0.836
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.84
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= -0.39% + (0.836 * 6.07%)
4.68%

Discounted Cash Flow Calculation for DB:3FY using Excess Returns Model Model

The calculations below outline how an intrinsic value for AJ Bell is arrived at using the Excess Return Model. This approach is used for finance firms where free cash flow is difficult to estimate.

In the Excess Return Model the value of a firm can be written as the sum of capital invested currently in the firm and the present value of excess returns that the firm expects to make in the future.

The model is sensitive to the Return on Equity of the company versus the Cost of Equity, how these are calculated is detailed below the main calculation.

Note the calculations below are per share.

See our documentation to learn about this calculation.

DB:3FY Value of Excess Returns
Calculation Result
Excess Returns = (Stable Return on equity – Cost of equity) (Book Value of Equity per share)
= (30.9% – 4.68%) * £0.27)
£0.07
Terminal Value of Excess Returns = Excess Returns / (Cost of Equity - Expected Growth Rate)
= £0.07 / (4.68% - -0.39%)
£1.40
Value of Equity = Book Value per share + Terminal Value of Excess Returns
= £0.27 + £1.40
£1.67
DB:3FY Discount to Share Price
Calculation Result
Non-primary Listing Adjustment Factor 1 share in DB:3FY represents 0.87769x of LSE:AJB
(This could be a different class, a depositary receipt, a different currency, or all of these things.)
0.87769x
Value per Share
(Listing Adjusted, EUR)
= Value per Share (GBP) x Listing Adjustment Factor
= £ 1.67 x 0.87769
€1.47
Value per share (EUR) From above. €1.47
Current discount Discount to share price of €2.66
= -1 x (€2.66 - €1.47) / €1.47
-80.7%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of AJ Bell is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for AJ Bell's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are AJ Bell's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
DB:3FY PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-09-30) in GBP £0.08
LSE:AJB Share Price ** LSE (2020-03-24) in GBP £3.03
Germany Capital Markets Industry PE Ratio Median Figure of 17 Publicly-Listed Capital Markets Companies 21.49x
Germany Market PE Ratio Median Figure of 400 Publicly-Listed Companies 16.49x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of AJ Bell.

DB:3FY PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= LSE:AJB Share Price ÷ EPS (both in GBP)

= 3.03 ÷ 0.08

40.28x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • AJ Bell is overvalued based on earnings compared to the DE Capital Markets industry average.
  • AJ Bell is overvalued based on earnings compared to the Germany market.
Price based on expected Growth
Does AJ Bell's expected growth come at a high price?
Raw Data
DB:3FY PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 40.28x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 5 Analysts
13.5%per year
Germany Capital Markets Industry PEG Ratio Median Figure of 7 Publicly-Listed Capital Markets Companies 1.49x
Germany Market PEG Ratio Median Figure of 252 Publicly-Listed Companies 1.22x

*Line of best fit is calculated by linear regression .

DB:3FY PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 40.28x ÷ 13.5%

2.99x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • AJ Bell is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on AJ Bell's assets?
Raw Data
DB:3FY PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-09-30) in GBP £0.21
LSE:AJB Share Price * LSE (2020-03-24) in GBP £3.03
Germany Capital Markets Industry PB Ratio Median Figure of 32 Publicly-Listed Capital Markets Companies 1.61x
Germany Market PB Ratio Median Figure of 574 Publicly-Listed Companies 1.42x
DB:3FY PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= LSE:AJB Share Price ÷ Book Value per Share (both in GBP)

= 3.03 ÷ 0.21

14.32x

* Primary Listing of AJ Bell.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • AJ Bell is overvalued based on assets compared to the DE Capital Markets industry average.
X
Value checks
We assess AJ Bell's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Capital Markets industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Capital Markets industry average (and greater than 0)? (1 check)
  5. AJ Bell has a total score of 0/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

3FY Future Performance

 How is AJ Bell expected to perform in the next 1 to 3 years based on estimates from 5 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
13.5%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is AJ Bell expected to grow at an attractive rate?
  • AJ Bell's earnings growth is expected to exceed the low risk savings rate of -0.4%.
Growth vs Market Checks
  • AJ Bell's earnings growth is positive but not above the Germany market average.
  • AJ Bell's revenue growth is expected to exceed the Germany market average.
Annual Growth Rates Comparison
Raw Data
DB:3FY Future Growth Rates Data Sources
Data Point Source Value (per year)
DB:3FY Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 5 Analysts 13.5%
DB:3FY Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 5 Analysts 8.8%
Germany Capital Markets Industry Earnings Growth Rate Market Cap Weighted Average 41.2%
Germany Capital Markets Industry Revenue Growth Rate Market Cap Weighted Average 1%
Germany Market Earnings Growth Rate Market Cap Weighted Average 14.1%
Germany Market Revenue Growth Rate Market Cap Weighted Average 4.2%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
DB:3FY Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (5 months ago) See Below
Future Estimates Average of up to 5 Analyst Estimates (S&P Global) See Below
All numbers in GBP Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
DB:3FY Future Estimates Data
Date (Data in GBP Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2024-09-30 163 67 53 1
2023-09-30 157 57 53 2
2022-09-30 134 47 38 4
2021-09-30 123 39 32 5
2020-09-30 115 40 30 5
2020-03-28
DB:3FY Past Financials Data
Date (Data in GBP Millions) Revenue Cash Flow Net Income *
2019-09-30 105 32 30
2019-06-30 101 31 28
2019-03-31 97 31 25
2018-12-31 93 30 24
2018-09-30 90 29 23
2018-06-30 86 25 21
2018-03-31 81 22 20
2017-12-31 78 19 19
2017-09-30 75 16 18
2017-06-30 74 16 17
2017-03-31 72 16 16
2016-12-31 68 16 14

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • AJ Bell's earnings are expected to grow by 13.5% yearly, however this is not considered high growth (20% yearly).
  • AJ Bell's revenue is expected to grow by 8.8% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
DB:3FY Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (5 months ago) See Below
Future Estimates Average of up to 5 Analyst Estimates (S&P Global) See Below

All data from AJ Bell Company Filings, last reported 5 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

DB:3FY Future Estimates Data
Date (Data in GBP Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2024-09-30 0.13 0.13 0.13 1.00
2023-09-30 0.11 0.11 0.11 1.00
2022-09-30 0.09 0.10 0.09 3.00
2021-09-30 0.08 0.09 0.07 3.00
2020-09-30 0.07 0.08 0.07 3.00
2020-03-28
DB:3FY Past Financials Data
Date (Data in GBP Millions) EPS *
2019-09-30 0.08
2019-06-30 0.07
2019-03-31 0.06
2018-12-31 0.06
2018-09-30 0.06
2018-06-30 0.05
2018-03-31 0.05
2017-12-31 0.05
2017-09-30 0.04
2017-06-30 0.04
2017-03-31 0.04
2016-12-31 0.04

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • AJ Bell is expected to efficiently use shareholders’ funds in the future (Return on Equity greater than 20%).
X
Future performance checks
We assess AJ Bell's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Germany market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Germany market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
AJ Bell has a total score of 3/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

3FY Past Performance

  How has AJ Bell performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare AJ Bell's growth in the last year to its industry (Capital Markets).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • AJ Bell's year on year earnings growth rate has been positive over the past 5 years.
  • AJ Bell's 1-year earnings growth exceeds its 5-year average (34% vs 19.5%)
  • AJ Bell's earnings growth has exceeded the DE Capital Markets industry average in the past year (34% vs 5.1%).
Earnings and Revenue History
AJ Bell's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from AJ Bell Company Filings, last reported 5 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

DB:3FY Past Revenue, Cash Flow and Net Income Data
Date (Data in GBP Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-09-30 104.86 30.35 65.38
2019-06-30 100.83 27.89 64.11
2019-03-31 96.79 25.43 61.06
2018-12-31 93.23 24.04 59.19
2018-09-30 89.67 22.65 59.10
2018-06-30 85.54 21.22 56.68
2018-03-31 81.42 19.79 54.25
2017-12-31 78.46 18.68 52.75
2017-09-30 75.49 17.57 51.25
2017-06-30 73.54 16.56 51.64
2017-03-31 71.58 15.54 52.02
2016-12-31 68.01 14.49 49.70
2016-09-30 64.45 13.44 47.37
2016-06-30 61.76 13.26 45.07
2016-03-31 59.08 13.07 42.78
2015-12-31 58.05 12.70 42.21
2015-09-30 57.01 12.33 41.65
2015-06-30 56.11 12.38 40.52
2015-03-31 55.20 12.43 39.39
2014-12-31 54.33 12.47 38.49
2014-09-30 53.47 12.52 37.58
2014-06-30 53.73 13.42 36.62
2014-03-31 54.00 14.32 35.66
2013-12-31 55.51 16.24 34.49
2013-09-30 57.01 18.16 33.32
2013-06-30 56.97 19.50 31.41
2013-03-31 56.92 20.84 29.50

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • AJ Bell has efficiently used shareholders’ funds last year (Return on Equity greater than 20%).
  • AJ Bell used its assets more efficiently than the DE Capital Markets industry average last year based on Return on Assets.
  • Unable to establish if AJ Bell improved its use of capital last year versus 3 years ago (Return on Capital Employed) due to insufficient past data.
X
Past performance checks
We assess AJ Bell's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Capital Markets industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
AJ Bell has a total score of 5/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

3FY Health

 How is AJ Bell's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up AJ Bell's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • AJ Bell is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • AJ Bell's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of AJ Bell's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • Debt is not covered by short term assets, assets are -8.2885148262049E+17x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from AJ Bell Company Filings, last reported 5 months ago.

DB:3FY Past Debt and Equity Data
Date (Data in GBP Millions) Total Equity Total Debt Cash & Short Term Investments
2019-09-30 86.06 0.00 69.07
2019-06-30 86.06 0.00 69.07
2019-03-31 73.79 0.00 55.77
2018-12-31 73.79 0.00 55.77
2018-09-30 64.04 0.00 49.70
2018-06-30 64.04 0.00 49.70
2018-03-31 65.41 0.00 45.34
2017-12-31 65.41 0.00 45.34
2017-09-30 61.36 0.00 42.14
2017-06-30 61.36 0.00 42.14
2017-03-31 57.57 0.19 36.83
2016-12-31 57.57 0.19 36.83
2016-09-30 53.79 0.85 39.51
2016-06-30 53.79 0.85 69.31
2016-03-31 47.20 0.00 28.77
2015-12-31 47.20 0.00 28.77
2015-09-30 52.27 0.00 54.55
2015-06-30 52.27 0.00 54.55
2015-03-31 49.34 0.00 31.58
2014-12-31 49.34 0.00 31.58
2014-09-30 49.39 0.00 33.22
2014-06-30 49.39 0.00 33.22
2014-03-31 46.95 0.00 54.68
2013-12-31 46.95 0.00 54.68
2013-09-30 46.68 0.00 32.51
2013-06-30 46.68 0.00 32.51
2013-03-31 42.51 0.00 47.86
  • AJ Bell's level of debt (0%) compared to net worth is satisfactory (less than 40%).
  • The level of debt compared to net worth has been reduced over the past 5 years (0% vs 0% today).
  • Operating cash flow is negative therefore debt is not well covered.
  • AJ Bell has no debt, therefore coverage of interest payments is not a concern.
X
Financial health checks
We assess AJ Bell's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. AJ Bell has a total score of 5/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

3FY Dividends

 What is AJ Bell's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
2.2%
Current annual income from AJ Bell dividends. Estimated to be 2.18% next year.
If you bought €2,000 of AJ Bell shares you are expected to receive €44 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • AJ Bell's pays a higher dividend yield than the bottom 25% of dividend payers in Germany (1.68%).
  • AJ Bell's dividend is below the markets top 25% of dividend payers in Germany (4.96%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
DB:3FY Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 5 Analyst Estimates (S&P Global) See Below
Germany Capital Markets Industry Average Dividend Yield Market Cap Weighted Average of 15 Stocks 3.4%
Germany Market Average Dividend Yield Market Cap Weighted Average of 320 Stocks 3.9%
Germany Minimum Threshold Dividend Yield 10th Percentile 0.9%
Germany Bottom 25% Dividend Yield 25th Percentile 1.7%
Germany Top 25% Dividend Yield 75th Percentile 5%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

DB:3FY Future Dividends Estimate Data
Date (Data in £) Dividend per Share (annual) Avg. No. Analysts
2024-09-30 0.08 1.00
2023-09-30 0.09 2.00
2022-09-30 0.06 4.00
2021-09-30 0.07 5.00
2020-09-30 0.05 4.00
2020-03-28
DB:3FY Past Annualized Dividends Data
Date (Data in £) Dividend per share (annual) Avg. Yield (%)
2019-12-05 0.067 1.802
2019-05-23 0.030 0.755

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • It is too early to tell whether AJ Bell has stable dividend payments.
  • AJ Bell only just started paying a dividend, it is too early to tell if payments are increasing.
Current Payout to shareholders
What portion of AJ Bell's earnings are paid to the shareholders as a dividend.
  • Dividends paid are covered by earnings (1.6x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be covered by earnings (1.5x coverage).
X
Income/ dividend checks
We assess AJ Bell's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.9%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can AJ Bell afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. AJ Bell has a total score of 3/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

3FY Management

 What is the CEO of AJ Bell's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Andy Bell
COMPENSATION £1,906,000
CEO Bio

Mr. Andrew James Bell, also known as Andy, serves as the Chief Executive Officer of AJ Bell Holdings Limited and Bell Potter Securities Ltd. (formerly Bell Securities Limited). He serves as Member of the Management Board and Director of AJ Bell Holdings Limited. Mr. Bell set up AJ Bell in August 1995 and served as Managing Director at AJ Bell Limited. He is the Founder of Sippdeal. Mr. Bell joined a major insurance company as an actuarial student. Mr. Bell worked in an actuarial consultancy since 1993. His professional career has been spent dealing with SSAS, SIPP and FURBS, and providing expert witness reports on a variety of litigation and complaint cases. Mr. Bell serves as an Executive Director of Bell Potter Securities at Bell Financial Group Limited. He serves as Executive Director of Bell Potter Securities Ltd. He joined Bell in 1978 and he has been involved in sales and distribution, servicing retail and corporate clients. He serves as an Executive Director of Bell Potter Securities and a Manager at Bell Financial Group Limited. He served as an Executive Director of Bell Financial Group Limited since September 25, 2007. He serves as Director of Bell Group Holdings Pty. Limited. He served as a Director of Sandon Capital Investments Limited from May 20, 2013 to October 2, 2013. Mr. Bell holds a Bachelor of Commerce and Masters of Business Administration from University of Melbourne. After a sabbatical coaching football and tennis in America, Mr. Bell qualified as a Fellow of the Institute of Actuaries in 1993. He graduated from Nottingham University in 1987 with a first class degree in Mathematics.

CEO Compensation
  • Andy's compensation has been consistent with company performance over the past year, both up more than 20%.
  • Andy's remuneration is about average for companies of similar size in Germany.
Management Team

Andy Bell

TITLE
CEO, Member of the Management Board & Director
COMPENSATION
£2M

Michael Summersgill

TITLE
CFO, Member of the Management Board & Director
COMPENSATION
£767K
TENURE
8.8 yrs

Richard Taylor

TITLE
Chief Operating Officer

Fergus Lyons

TITLE
Member of the Management Board & MD of AJ Bell Investcentre

Charles Galbraith

TITLE
Member of the Management Board & MD of AJ Bell Youinvest

Roger Stott

TITLE
Group Finance Director & Member of the Management Board

Christopher Robinson

TITLE
Group Legal Services Director

Louis Petherick

TITLE
Chief Risk Officer & Member of the Management Board

Kevin Doran

TITLE
Chief Investment Officer

Robin Larby

TITLE
Technical Resources Director
Board of Directors Tenure

Average tenure and age of the AJ Bell board of directors in years:

4.1
Average Tenure
58
Average Age
  • The tenure for the AJ Bell board of directors is about average.
Board of Directors

Les Platts

TITLE
Independent Chairman of the Board
COMPENSATION
£100K
AGE
65
TENURE
6.2 yrs

Andy Bell

TITLE
CEO, Member of the Management Board & Director
COMPENSATION
£2M

Michael Summersgill

TITLE
CFO, Member of the Management Board & Director
COMPENSATION
£767K
TENURE
8.8 yrs

Mo Tagari

TITLE
CTO & Director
AGE
40
TENURE
0.3 yrs

Eamonn Flanagan

TITLE
Independent Non-Executive Director
COMPENSATION
£45K
AGE
55
TENURE
2 yrs

Laura Carstensen

TITLE
Senior Independent Director
COMPENSATION
£45K
AGE
58

Simon Turner

TITLE
Non-Executive Director
COMPENSATION
£45K
AGE
68
Who owns this company?
Recent Insider Trading
  • AJ Bell individual insiders have sold more shares than they have bought in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (€) Value (€)
17. Mar 20 Buy Mohamed Tagari Individual 16. Mar 20 16. Mar 20 7,802 €2.80 €21,882
27. Feb 20 Sell Christopher Robinson Individual 25. Feb 20 25. Feb 20 -5,040 €4.60 €-23,174
27. Feb 20 Buy Christopher Robinson Individual 25. Feb 20 25. Feb 20 5,040 €4.60 €23,174
28. Jan 20 Sell Louis Petherick Individual 24. Jan 20 24. Jan 20 -48,234 €4.65 €-224,123
20. Dec 19 Sell Andrew Bell Individual 18. Dec 19 18. Dec 19 -5,500,000 €4.94 €-27,156,928
16. Dec 19 Sell Louis Petherick Individual 13. Dec 19 13. Dec 19 -6,877 €5.18 €-35,617
13. Dec 19 Sell Louis Petherick Individual 11. Dec 19 11. Dec 19 -153,959 €4.75 €-731,363
13. Dec 19 Sell Roger Stott Individual 11. Dec 19 11. Dec 19 -421,565 €4.75 €-2,002,591
12. Dec 19 Sell Laura Carstensen Individual 11. Dec 19 11. Dec 19 -52,045 €4.75 €-247,233
12. Dec 19 Sell Michael Summersgill Individual 11. Dec 19 11. Dec 19 -439,309 €4.75 €-2,086,881
12. Dec 19 Sell Leslie Platts Individual 11. Dec 19 11. Dec 19 -66,993 €4.75 €-318,242
12. Dec 19 Sell Charles Galbraith Individual 11. Dec 19 11. Dec 19 -700,000 €4.75 €-3,325,260
12. Dec 19 Sell Fergus Lyons Individual 11. Dec 19 11. Dec 19 -898,750 €4.75 €-4,269,397
12. Dec 19 Sell Simon Turner Individual 11. Dec 19 11. Dec 19 -30,000 €4.75 €-142,511
12. Dec 19 Sell Eamonn Flanagan Individual 11. Dec 19 11. Dec 19 -15,500 €4.75 €-73,631
19. Jun 19 Sell Christopher Robinson Individual 18. Jun 19 18. Jun 19 -6,980 €4.22 €-29,485
19. Jun 19 Buy Christopher Robinson Individual 18. Jun 19 18. Jun 19 6,980 €4.22 €29,485
11. Jun 19 Sell Roger Stott Individual 10. Jun 19 10. Jun 19 -49,918 €4.54 €-226,651
04. Jun 19 Sell Roger Stott Individual 03. Jun 19 03. Jun 19 -37,500 €4.58 €-171,798
X
Management checks
We assess AJ Bell's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. AJ Bell has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

3FY News

Simply Wall St News

3FY Company Info

Description

AJ Bell plc, through its subsidiaries, operates investment platforms in the United Kingdom. The company offers AJ Bell Investcentre, which provides a suite of products, services, investment solutions, and online tools for regulated financial advisers and wealth managers to help them manage retail customers’ portfolio; and AJ Bell Youinvest that includes the provision of proprietary investment content and investment solutions through in-house funds, ready-made portfolios, and selected funds for execution-only retail customers. It also provides adviser-led and D2C pension administration services to customers with bespoke SIPP and SSAS accounts; and dealing, settlement, and custody services to institutional investment businesses, as well as publishes shares magazine and other proprietary investment content. AJ Bell plc was founded in 1995 and is headquartered in Manchester, the United Kingdom.

Details
Name: AJ Bell plc
3FY
Exchange: DB
Founded: 1995
£1,383,329,760
408,491,454
Website: http://www.ajbell.co.uk
Address: AJ Bell plc
4 Exchange Quay,
Salford Quays,
Manchester,
Greater Manchester, M5 3EE,
United Kingdom
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
LSE AJB Ordinary Shares London Stock Exchange GB GBP 07. Dec 2018
DB 3FY Ordinary Shares Deutsche Boerse AG DE EUR 07. Dec 2018
BST 3FY Ordinary Shares Boerse-Stuttgart DE EUR 07. Dec 2018
BATS-CHIXE AJBL Ordinary Shares BATS 'Chi-X Europe' GB GBP 07. Dec 2018
LSE AJB ORD GBP0.000125 (WI) London Stock Exchange GB GBP 07. Dec 2018
Number of employees
Current staff
Staff numbers
853
AJ Bell employees.
Industry
Asset Management and Custody Banks
Diversified Financials
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2020/03/28 23:31
End of day share price update: 2020/03/24 00:00
Last estimates confirmation: 2020/03/17
Last earnings filing: 2019/12/05
Last earnings reported: 2019/09/30
Last annual earnings reported: 2019/09/30


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.