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Close Brothers Group

DB:CS3
Snowflake Description

6 star dividend payer and good value.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
CS3
DB
£2B
Market Cap
  1. Home
  2. DE
  3. Diversified Financials
Company description

Close Brothers Group plc, a merchant banking company, provides financial services to small businesses and individuals in the United Kingdom. The last earnings update was 23 days ago. More info.


Add to Portfolio Compare Print
  • Close Brothers Group has significant price volatility in the past 3 months.
CS3 Share Price and Events
7 Day Returns
8%
DB:CS3
3%
DE Capital Markets
2.2%
DE Market
1 Year Returns
-29.4%
DB:CS3
-6.9%
DE Capital Markets
-17.2%
DE Market
CS3 Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Close Brothers Group (CS3) 8% -15.1% -35.4% -29.4% -31% -43.8%
DE Capital Markets 3% -17.7% -13.1% -6.9% -24.7% -54.9%
DE Market 2.2% -15.7% -24% -17.2% -23.3% -27.8%
1 Year Return vs Industry and Market
  • CS3 underperformed the Capital Markets industry which returned -6.9% over the past year.
  • CS3 underperformed the Market in Germany which returned -17.2% over the past year.
Price Volatility
CS3
Industry
5yr Volatility vs Market

CS3 Value

 Is Close Brothers Group 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 Close Brothers Group 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 Close Brothers Group.

DB:CS3 Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model Excess Returns Model
Stable EPS Weighted future Return on Equity estimates from 9 analysts.
= Stable Book Value * Return on Equity
= £10.46 * 13.5%
£1.41
Book Value of Equity per Share Weighted future Book Value estimates from 5 analysts. £10.46
Discount Rate (Cost of Equity) See below 8.8%
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:CS3
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))
= 0.753 (1 + (1- 19%) (166.5%))
1.515
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.51
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= -0.39% + (1.515 * 6.07%)
8.8%

Discounted Cash Flow Calculation for DB:CS3 using Excess Returns Model Model

The calculations below outline how an intrinsic value for Close Brothers Group 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:CS3 Value of Excess Returns
Calculation Result
Excess Returns = (Stable Return on equity – Cost of equity) (Book Value of Equity per share)
= (13.5% – 8.8%) * £10.46)
£0.49
Terminal Value of Excess Returns = Excess Returns / (Cost of Equity - Expected Growth Rate)
= £0.49 / (8.8% - -0.39%)
£5.32
Value of Equity = Book Value per share + Terminal Value of Excess Returns
= £10.46 + £5.32
£15.79
DB:CS3 Discount to Share Price
Calculation Result
Non-primary Listing Adjustment Factor 1 share in DB:CS3 represents 1.18356x of LSE:CBG
(This could be a different class, a depositary receipt, a different currency, or all of these things.)
1.18356x
Value per Share
(Listing Adjusted, EUR)
= Value per Share (GBP) x Listing Adjustment Factor
= £ 15.79 x 1.18356
€18.68
Value per share (EUR) From above. €18.68
Current discount Discount to share price of €12.38
= -1 x (€12.38 - €18.68) / €18.68
33.7%

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

Current Discount
Amount off the current price Close Brothers Group is available for.
Intrinsic value
34%
Share price is €12.38 vs Future cash flow value of €18.68
Current Discount Checks
For Close Brothers Group to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Close Brothers Group's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • Close Brothers Group's share price is below the future cash flow value, but not at a substantial discount (< 40%).
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 Close Brothers Group's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Close Brothers Group's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
DB:CS3 PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2020-01-31) in GBP £1.28
LSE:CBG Share Price ** LSE (2020-04-01) in GBP £10.46
Germany Capital Markets Industry PE Ratio Median Figure of 16 Publicly-Listed Capital Markets Companies 22.55x
Germany Market PE Ratio Median Figure of 398 Publicly-Listed Companies 16.76x

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

** Primary Listing of Close Brothers Group.

DB:CS3 PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

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

= 10.46 ÷ 1.28

8.15x

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

  • Close Brothers Group is good value based on earnings compared to the DE Capital Markets industry average.
  • Close Brothers Group is good value based on earnings compared to the Germany market.
Price based on expected Growth
Does Close Brothers Group's expected growth come at a high price?
Raw Data
DB:CS3 PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 8.15x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 10 Analysts
2.2%per year
Germany Capital Markets Industry PEG Ratio Median Figure of 6 Publicly-Listed Capital Markets Companies 1.59x
Germany Market PEG Ratio Median Figure of 254 Publicly-Listed Companies 1.18x

*Line of best fit is calculated by linear regression .

DB:CS3 PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 8.15x ÷ 2.2%

3.79x

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

  • Close Brothers Group is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Close Brothers Group's assets?
Raw Data
DB:CS3 PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2020-01-31) in GBP £9.56
LSE:CBG Share Price * LSE (2020-04-01) in GBP £10.46
Germany Capital Markets Industry PB Ratio Median Figure of 31 Publicly-Listed Capital Markets Companies 1.5x
Germany Market PB Ratio Median Figure of 570 Publicly-Listed Companies 1.44x
DB:CS3 PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

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

= 10.46 ÷ 9.56

1.09x

* Primary Listing of Close Brothers Group.

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

  • Close Brothers Group is good value based on assets compared to the DE Capital Markets industry average.
X
Value checks
We assess Close Brothers Group'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. Close Brothers Group has a total score of 4/6, 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.

CS3 Future Performance

 How is Close Brothers Group expected to perform in the next 1 to 3 years based on estimates from 10 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
2.2%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Close Brothers Group expected to grow at an attractive rate?
  • Close Brothers Group's earnings growth is expected to exceed the low risk savings rate of -0.4%.
Growth vs Market Checks
  • Close Brothers Group's earnings growth is positive but not above the Germany market average.
  • Close Brothers Group's revenue growth is positive but not above the Germany market average.
Annual Growth Rates Comparison
Raw Data
DB:CS3 Future Growth Rates Data Sources
Data Point Source Value (per year)
DB:CS3 Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 10 Analysts 2.2%
DB:CS3 Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 10 Analysts 3.7%
Germany Capital Markets Industry Earnings Growth Rate Market Cap Weighted Average 39.4%
Germany Capital Markets Industry Revenue Growth Rate Market Cap Weighted Average 0.8%
Germany Market Earnings Growth Rate Market Cap Weighted Average 14.5%
Germany Market Revenue Growth Rate Market Cap Weighted Average 4.1%

*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:CS3 Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 10 Analyst Estimates (S&P Global) See Below
All numbers in GBP Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
DB:CS3 Future Estimates Data
Date (Data in GBP Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2022-07-31 909 110 202 9
2021-07-31 870 113 194 10
2020-07-31 845 277 193 10
2020-04-02
DB:CS3 Past Financials Data
Date (Data in GBP Millions) Revenue Cash Flow Net Income *
2020-01-31 824 98 193
2019-10-31 823 -13 197
2019-07-31 822 -124 201
2019-04-30 818 -225 201
2019-01-31 814 -327 202
2018-10-31 809 -194 203
2018-08-01 804 -61 205
2018-01-31 789 -463 202
2017-10-31 774 -281 198
2017-07-31 760 -99 194
2017-04-30 734 56 193

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Close Brothers Group's earnings are expected to grow by 2.2% yearly, however this is not considered high growth (20% yearly).
  • Close Brothers Group's revenue is expected to grow by 3.7% 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:CS3 Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 10 Analyst Estimates (S&P Global) See Below

All data from Close Brothers Group Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

DB:CS3 Future Estimates Data
Date (Data in GBP Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2022-07-31 1.35 1.49 1.27 5.00
2021-07-31 1.31 1.37 1.25 6.00
2020-07-31 1.29 1.32 1.26 6.00
2020-04-02
DB:CS3 Past Financials Data
Date (Data in GBP Millions) EPS *
2020-01-31 1.28
2019-10-31 1.31
2019-07-31 1.33
2019-04-30 1.34
2019-01-31 1.34
2018-10-31 1.35
2018-08-01 1.36
2018-01-31 1.35
2017-10-31 1.33
2017-07-31 1.30
2017-04-30 1.30

*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.
  • Close Brothers Group is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Close Brothers Group'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.
Close Brothers Group has a total score of 1/6, 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.

CS3 Past Performance

  How has Close Brothers Group 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 Close Brothers Group'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.
  • Close Brothers Group's year on year earnings growth rate has been positive over the past 5 years.
  • Close Brothers Group's 1-year earnings growth is negative, it can't be compared to the 5-year average.
  • Close Brothers Group's 1-year earnings growth is negative, it can't be compared to the DE Capital Markets industry average.
Earnings and Revenue History
Close Brothers Group'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 Close Brothers Group Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

DB:CS3 Past Revenue, Cash Flow and Net Income Data
Date (Data in GBP Millions) Revenue Net Income * G+A Expenses R&D Expenses
2020-01-31 823.60 192.70 566.20
2019-10-31 822.60 196.60 558.65
2019-07-31 821.60 200.50 551.10
2019-04-30 817.90 201.05 545.90
2019-01-31 814.20 201.60 540.70
2018-10-31 809.20 203.05 533.15
2018-08-01 804.20 204.50 525.60
2018-01-31 788.70 202.40 510.30
2017-10-31 774.20 198.20 500.65
2017-07-31 759.70 194.00 491.00
2017-04-30 734.05 192.95 473.35
2017-01-31 717.70 194.70 461.10
2016-10-31 693.40 190.60 448.30
2016-07-31 669.10 186.50 435.50
2016-04-30 664.95 182.75 434.40
2016-01-31 660.80 179.00 433.30
2015-10-31 654.20 176.75 428.00
2015-07-31 647.60 174.50 422.70
2015-04-30 629.20 166.75 412.60
2015-01-31 610.80 159.00 402.50
2014-10-31 597.30 152.10 396.30
2014-07-31 583.80 145.20 390.10
2014-04-30 573.50 138.05 384.30
2014-01-31 563.20 130.90 378.50
2013-10-31 547.75 125.45 371.80
2013-07-31 532.30 120.00 365.10
2013-04-30 513.85 114.30 356.50

*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.
  • Close Brothers Group has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Close Brothers Group used its assets less efficiently than the DE Capital Markets industry average last year based on Return on Assets.
  • Unable to establish if Close Brothers Group 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 Close Brothers Group'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.
Close Brothers Group has a total score of 1/6, 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.

CS3 Health

 How is Close Brothers Group'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 Close Brothers Group's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Close Brothers Group's short term (1 year) commitments are greater than its holdings of cash and other short term assets.
  • Close Brothers Group's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of Close Brothers Group'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 0.7x 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 Close Brothers Group Company Filings, last reported 2 months ago.

DB:CS3 Past Debt and Equity Data
Date (Data in GBP Millions) Total Equity Total Debt Cash & Short Term Investments
2020-01-31 1,434.60 2,598.80 1,441.80
2019-10-31 1,434.60 2,598.80 1,441.80
2019-07-31 1,406.40 2,635.90 1,519.80
2019-04-30 1,406.40 2,635.90 1,519.80
2019-01-31 1,341.00 2,558.90 1,321.20
2018-10-31 1,341.00 2,558.90 1,321.20
2018-08-01 1,303.80 2,539.20 1,188.50
2018-01-31 1,277.20 2,190.80 1,232.80
2017-10-31 1,277.20 2,190.80 1,232.80
2017-07-31 1,236.00 2,057.00 1,115.00
2017-04-30 1,236.00 2,057.00 1,115.00
2017-01-31 1,141.00 2,369.40 1,405.30
2016-10-31 1,141.00 2,369.40 1,405.30
2016-07-31 1,096.90 1,984.60 1,215.40
2016-04-30 1,096.90 1,984.60 1,215.40
2016-01-31 1,026.50 1,776.20 1,151.40
2015-10-31 1,026.50 1,776.20 1,151.40
2015-07-31 1,009.90 1,799.70 1,283.90
2015-04-30 1,009.90 1,799.70 1,283.90
2015-01-31 940.40 1,736.80 1,215.40
2014-10-31 940.40 1,736.80 1,215.40
2014-07-31 917.60 1,488.90 1,371.60
2014-04-30 917.60 1,488.90 1,371.60
2014-01-31 864.70 1,256.40 1,123.10
2013-10-31 864.70 1,256.40 1,123.10
2013-07-31 836.50 1,235.00 1,146.60
2013-04-30 836.50 1,235.00 1,146.60
  • Close Brothers Group's level of debt (181.2%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has been reduced over the past 5 years (184.6% vs 181.2% today).
  • Debt is not well covered by operating cash flow (3.8%, less than 20% of total debt).
  • Unable to confirm if the interest payments on Close Brothers Group's debt are well covered by earnings due to lack of past financial data.
X
Financial health checks
We assess Close Brothers Group'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. Close Brothers Group has a total score of 1/6, 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.

CS3 Dividends

 What is Close Brothers Group'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
6.31%
Current annual income from Close Brothers Group dividends. Estimated to be 6.72% next year.
If you bought €2,000 of Close Brothers Group shares you are expected to receive €126 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?
  • Close Brothers Group's pays a higher dividend yield than the bottom 25% of dividend payers in Germany (1.65%).
  • Close Brothers Group's dividend is above the markets top 25% of dividend payers in Germany (4.87%).
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:CS3 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 10 Analyst Estimates (S&P Global) See Below
Germany Capital Markets Industry Average Dividend Yield Market Cap Weighted Average of 14 Stocks 3.2%
Germany Market Average Dividend Yield Market Cap Weighted Average of 322 Stocks 3.8%
Germany Minimum Threshold Dividend Yield 10th Percentile 0.9%
Germany Bottom 25% Dividend Yield 25th Percentile 1.6%
Germany Top 25% Dividend Yield 75th Percentile 4.9%

Industry and Market average data is calculated daily.

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

DB:CS3 Future Dividends Estimate Data
Date (Data in £) Dividend per Share (annual) Avg. No. Analysts
2022-07-31 0.73 11.00
2021-07-31 0.70 12.00
2020-07-31 0.68 12.00
2020-04-02
DB:CS3 Past Annualized Dividends Data
Date (Data in £) Dividend per share (annual) Avg. Yield (%)
2019-09-30 0.660 4.787
2019-09-24 0.660 4.804
2018-10-01 0.630 4.356
2018-09-25 0.630 3.966
2018-03-21 0.610 3.995
2017-11-16 0.600 4.044
2017-04-24 0.580 3.829
2016-10-03 0.570 3.950
2016-09-27 0.570 4.135
2015-10-16 0.535 4.131
2015-09-22 0.535 3.582
2014-09-24 0.490 3.230
2014-03-13 0.460 3.437
2013-10-18 0.445 3.315
2013-09-24 0.445 3.635
2013-03-12 0.425 4.079
2012-10-19 0.415 4.514
2012-09-25 0.415 4.879
2011-10-19 0.400 5.587
2011-09-27 0.400 5.636
2011-03-15 0.390 5.154
2010-10-15 0.390 4.688
2010-09-28 0.390 5.221
2009-10-16 0.390 5.518
2009-09-29 0.390 5.067

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

  • Dividends per share have been stable in the past 10 years.
  • Dividends per share have increased over the past 10 years.
Current Payout to shareholders
What portion of Close Brothers Group's earnings are paid to the shareholders as a dividend.
  • Dividends paid are covered by earnings (1.9x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be covered by earnings (1.9x coverage).
X
Income/ dividend checks
We assess Close Brothers Group'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 Close Brothers Group afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Close Brothers Group has a total score of 6/6, see the detailed checks below.


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

CS3 Management

 What is the CEO of Close Brothers Group'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
Preben Prebensen
COMPENSATION £2,808,000
AGE 62
TENURE AS CEO 11 years
CEO Bio

Mr. Preben Prebensen has been the Chief Executive Officer of Close Brothers Group PLC at Winterflood Securities Limited since April 1, 2009. Mr. Prebensen has been the Chief Executive Officer of Close Brothers Limited since November 17, 2016 and serves as its Director. He has been an Executive Director at Close Brothers Group PLC since April 1, 2009. He served as the Chief Executive Officer of Catlin Underwriting Limited (formerly, Wellington Underwriting PLC.), from September 20, 2004 to 2006. Mr. Prebensen served as the Chief Investment Officer of Catlin Group Ltd. from 2007 to February 28, 2009. He spent his career in a number of senior positions at JP Morgan over 23 years, including Chairman of the London Management Committee and co-Head of European Investment Banking. His expertise included capital structures, capital raising, divestitures, Defense strategies and risk management projects. Mr. Prebensen joined Catlin in December 2006. He served as Deputy Chief Executive of Catlin. He served as the Chairman of Close Brothers Limited. He serves as the Chairman of Wellington Underwriting Agencies Limited, the managing agent of Syndicate 2020. He has been Non-Executive Director at The British Land Company PLC since September 1, 2017. He has been a Director of Catlin Underwriting Limited since September 20, 2004. He was the representative of Wellington (Five) Limited until January 31, 2006. He served as a Member of the Council at Society of Lloyd's. Mr. Prebensen retired from the Council of Lloyd’s by rotation on December 31, 2005.

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

Average tenure and age of the Close Brothers Group management team in years:

9.4
Average Tenure
61
Average Age
  • The average tenure for the Close Brothers Group management team is over 5 years, this suggests they are a seasoned and experienced team.
Management Team

Preben Prebensen

TITLE
CEO & Director
COMPENSATION
£3M
AGE
62
TENURE
11 yrs

Mike Morgan

TITLE
Group Finance Director & Director
COMPENSATION
£1M
AGE
54
TENURE
1.4 yrs

Martyn Atkinson

TITLE
Group Chief Operating Officer
TENURE
1.2 yrs

Nancy Curtin

TITLE
Chief Investment Officer and Head of Bespoke
AGE
61

Sophie A. Gillingham

TITLE
Director of Investor Relations

Camila Sugimura

TITLE
Deputy Head of Investor Relations

Angela Yotov

TITLE
Group General Counsel
TENURE
0.7 yrs

Rebekah Etherington

TITLE
Group Head of Human Resources
TENURE
10.5 yrs

Andreas Reinert

TITLE
Managing Director of Food & Consumer Goods - Germany
TENURE
13.5 yrs

Nigel Mottershead

TITLE
Head of Credit
AGE
61
TENURE
9.4 yrs
Board of Directors Tenure

Average tenure and age of the Close Brothers Group board of directors in years:

5.4
Average Tenure
62
Average Age
  • The tenure for the Close Brothers Group board of directors is about average.
Board of Directors

Mike Biggs

TITLE
Chairman of the Board
COMPENSATION
£305K
AGE
67
TENURE
2.9 yrs

Preben Prebensen

TITLE
CEO & Director
COMPENSATION
£3M
AGE
62
TENURE
11 yrs

Mike Morgan

TITLE
Group Finance Director & Director
COMPENSATION
£1M
AGE
54
TENURE
1.4 yrs

Bridget Macaskill

TITLE
Independent Non-Executive Director
COMPENSATION
£118K
AGE
71
TENURE
6.4 yrs

Lesley Jones

TITLE
Independent Non-Executive Director
COMPENSATION
£110K
AGE
65
TENURE
6.3 yrs

Oliver Roebling Corbett

TITLE
Independent Non-Executive Director
COMPENSATION
£107K
AGE
54
TENURE
5.8 yrs

Geoffrey M. Howe

TITLE
Senior Independent Director
COMPENSATION
£102K
AGE
70
TENURE
5.4 yrs

Peter Duffy

TITLE
Independent Non-Executive Director
COMPENSATION
£42K
AGE
53
TENURE
1.3 yrs

Sally Angela Williams

TITLE
Independent Non-Executive Director
AGE
53
TENURE
0.3 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month open market individual insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (€) Value (€)
29. Nov 19 Sell Robert Sack Individual 27. Nov 19 27. Nov 19 -4,635 €17.12 €-79,355
29. Nov 19 Buy Robert Sack Individual 27. Nov 19 27. Nov 19 9,845 €17.12 €168,554
25. Nov 19 Sell Preben Prebensen Individual 22. Nov 19 22. Nov 19 -150,000 €16.78 €-2,517,047
25. Oct 19 Sell Michael Morgan Individual 02. Sep 19 02. Sep 19 -97 €14.18 €-1,375
11. Oct 19 Sell Preben Prebensen Individual 08. Oct 19 11. Oct 19 -250,000 €15.02 €-3,586,883
X
Management checks
We assess Close Brothers Group'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. Close Brothers Group 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.

CS3 News

Simply Wall St News

CS3 Company Info

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 deposit products, including fixed term deposits and notice accounts. 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 agriculture, construction, manufacturing, and transport industries; leasing services for construction, manufacturing, IT equipment, and specialist assets; loan, hire purchase, leasing, and refinancing services to the professional service sector, including dental, medical, pharmacy, and veterinary sectors; and technology services for technology funding, acquisition, management, and recovery. 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.

Details
Name: Close Brothers Group plc
CS3
Exchange: DB
Founded: 1878
£1,769,549,244
149,223,692
Website: http://www.closebrothers.com
Address: Close Brothers Group plc
10 Crown Place,
London,
Greater London, EC2A 4FT,
United Kingdom
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
LSE CBG Ordinary Shares London Stock Exchange GB GBP 02. Jan 1992
OTCPK CBGP.F Ordinary Shares Pink Sheets LLC US USD 02. Jan 1992
DB CS3 Ordinary Shares Deutsche Boerse AG DE EUR 02. Jan 1992
BATS-CHIXE CBGL Ordinary Shares BATS 'Chi-X Europe' GB GBP 02. Jan 1992
OTCPK CBGP.Y UNSPONSORD ADR Pink Sheets LLC US USD 12. Feb 2009
Number of employees
Current staff
Staff numbers
3,000
Close Brothers Group employees.
Industry
Diversified Capital Markets
Diversified Financials
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2020/04/02 00:27
End of day share price update: 2020/04/01 00:00
Last estimates confirmation: 2020/03/30
Last earnings filing: 2020/03/10
Last earnings reported: 2020/01/31
Last annual earnings reported: 2019/07/31


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.