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Royal Mail

DB:RYE
Snowflake Description

Very undervalued with excellent balance sheet.

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

Royal Mail plc, together with its subsidiaries, operates as a universal postal service provider in Europe, North America, Western United States, and Canada. The last earnings update was 159 days ago. More info.


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RYE Share Price and Events
7 Day Returns
1.6%
DB:RYE
-0%
Europe Logistics
-0.5%
DE Market
1 Year Returns
-26.5%
DB:RYE
19.4%
Europe Logistics
12.2%
DE Market
RYE Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Royal Mail (RYE) 1.6% -0.2% 19.6% -26.5% -51.9% -52.2%
Europe Logistics -0% 9.7% 12.5% 19.4% 26.3% 35.2%
DE Market -0.5% 4.4% 11.1% 12.2% 13.8% 16.6%
1 Year Return vs Industry and Market
  • RYE underperformed the Logistics industry which returned 19.4% over the past year.
  • RYE underperformed the Market in Germany which returned 12.2% over the past year.
Price Volatility
RYE
Industry
5yr Volatility vs Market

RYE Value

 Is Royal Mail 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 Royal Mail 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 Royal Mail.

DB:RYE Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 11 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 7.7%
Perpetual Growth Rate 10-Year DE Government Bond Rate 0.2%

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:RYE
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year DE Govt Bond Rate 0.2%
Equity Risk Premium S&P Global 6.7%
Logistics Unlevered Beta Simply Wall St/ S&P Global 1
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.996 (1 + (1- 19%) (24.04%))
1.127
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.13
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 0.23% + (1.127 * 6.65%)
7.72%

Discounted Cash Flow Calculation for DB:RYE using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Royal Mail is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

Note: Free cash flow to equity valuations ignore the company's cash or debt.

DB:RYE DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (GBP, Millions) Source Present Value
Discounted (@ 7.72%)
2020 269.90 Analyst x5 250.55
2021 174.13 Analyst x7 150.06
2022 224.00 Analyst x5 179.19
2023 415.00 Analyst x2 308.18
2024 522.20 Analyst x2 359.98
2025 599.33 Est @ 14.77% 383.52
2026 661.70 Est @ 10.41% 393.08
2027 710.35 Est @ 7.35% 391.73
2028 747.41 Est @ 5.22% 382.60
2029 775.20 Est @ 3.72% 368.38
Present value of next 10 years cash flows £3,167.00
DB:RYE DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= £775.20 × (1 + 0.23%) ÷ (7.72% – 0.23%)
£10,365.40
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= £10,365.40 ÷ (1 + 7.72%)10
£4,925.71
DB:RYE Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= £3,167.00 + £4,925.71
£8,092.71
Equity Value per Share
(GBP)
= Total value / Shares Outstanding
= £8,092.71 / 1,000.00
£8.09
DB:RYE Discount to Share Price
Calculation Result
Non-primary Listing Adjustment Factor 1 share in DB:RYE represents 1.11976x of LSE:RMG
(This could be a different class, a depositary receipt, a different currency, or all of these things.)
1.11976x
Value per Share
(Listing Adjusted, EUR)
= Value per Share (GBP) x Listing Adjustment Factor
= £ 8.09 x 1.11976
€9.06
Value per share (EUR) From above. €9.06
Current discount Discount to share price of €2.59
= -1 x (€2.59 - €9.06) / €9.06
71.4%

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

Current Discount
Amount off the current price Royal Mail is available for.
Intrinsic value
>50%
Share price is €2.59 vs Future cash flow value of €9.06
Current Discount Checks
For Royal Mail to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Royal Mail's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • Royal Mail's share price is below the future cash flow value, and 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 Royal Mail's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Royal Mail's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
DB:RYE PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-03-31) in GBP £0.18
LSE:RMG Share Price ** LSE (2019-11-20) in GBP £2.31
Europe Logistics Industry PE Ratio Median Figure of 24 Publicly-Listed Logistics Companies 16.43x
Germany Market PE Ratio Median Figure of 402 Publicly-Listed Companies 19.86x

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

** Primary Listing of Royal Mail.

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

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

= 2.31 ÷ 0.18

13.22x

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

  • Royal Mail is good value based on earnings compared to the Europe Logistics industry average.
  • Royal Mail is good value based on earnings compared to the Germany market.
Price based on expected Growth
Does Royal Mail's expected growth come at a high price?
Raw Data
DB:RYE PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 13.22x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 11 Analysts
16.3%per year
Europe Logistics Industry PEG Ratio Median Figure of 14 Publicly-Listed Logistics Companies 1.74x
Germany Market PEG Ratio Median Figure of 259 Publicly-Listed Companies 1.37x

*Line of best fit is calculated by linear regression .

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

= PE Ratio ÷ Net Income Annual Growth Rate

= 13.22x ÷ 16.3%

0.81x

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

  • Royal Mail is good value based on expected growth next year.
Price based on value of assets
What value do investors place on Royal Mail's assets?
Raw Data
DB:RYE PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-03-31) in GBP £4.62
LSE:RMG Share Price * LSE (2019-11-20) in GBP £2.31
Europe Logistics Industry PB Ratio Median Figure of 28 Publicly-Listed Logistics Companies 2.51x
Germany Market PB Ratio Median Figure of 578 Publicly-Listed Companies 1.87x
DB:RYE PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

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

= 2.31 ÷ 4.62

0.5x

* Primary Listing of Royal Mail.

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

  • Royal Mail is good value based on assets compared to the Europe Logistics industry average.
X
Value checks
We assess Royal Mail'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 Logistics 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 Logistics industry average (and greater than 0)? (1 check)
  5. Royal Mail has a total score of 6/6, 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.

RYE Future Performance

 How is Royal Mail expected to perform in the next 1 to 3 years based on estimates from 11 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
16.3%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Royal Mail expected to grow at an attractive rate?
  • Royal Mail's earnings growth is expected to exceed the low risk savings rate of 0.2%.
Growth vs Market Checks
  • Royal Mail's earnings growth is expected to exceed the Germany market average.
  • Royal Mail's revenue growth is positive but not above the Germany market average.
Annual Growth Rates Comparison
Raw Data
DB:RYE Future Growth Rates Data Sources
Data Point Source Value (per year)
DB:RYE Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 11 Analysts 16.3%
DB:RYE Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 11 Analysts 2.2%
Europe Logistics Industry Earnings Growth Rate Market Cap Weighted Average 12.7%
Europe Logistics Industry Revenue Growth Rate Market Cap Weighted Average 2.4%
Germany Market Earnings Growth Rate Market Cap Weighted Average 12.9%
Germany Market Revenue Growth Rate Market Cap Weighted Average 4.8%

*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:RYE Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (7 months ago) See Below
Future Estimates Average of up to 11 Analyst Estimates (S&P Global) See Below
All numbers in GBP Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
DB:RYE Future Estimates Data
Date (Data in GBP Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2024-03-31 12,162 932 484 1
2023-03-31 11,504 842 382 2
2022-03-31 11,248 765 304 10
2021-03-31 10,967 694 249 11
2020-03-31 10,738 742 233 11
2019-11-20
DB:RYE Past Financials Data
Date (Data in GBP Millions) Revenue Cash Flow Net Income *
2019-03-31 10,581 493 175
2018-12-31 10,428 593 135
2018-09-23 10,275 693 95
2018-06-23 10,224 799 177
2018-03-25 10,172 905 259
2017-12-25 10,097 852 307
2017-09-24 10,022 798 355
2017-06-24 9,899 776 314
2017-03-26 9,776 754 272
2016-12-26 9,608 243
2016-09-25 9,439 770 213
2016-06-25 9,345 749 214

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Royal Mail's earnings are expected to grow by 16.3% yearly, however this is not considered high growth (20% yearly).
  • Royal Mail's revenue is expected to grow by 2.2% 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:RYE Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (7 months ago) See Below
Future Estimates Average of up to 11 Analyst Estimates (S&P Global) See Below

All data from Royal Mail Company Filings, last reported 7 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

DB:RYE Future Estimates Data
Date (Data in GBP Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2024-03-31 0.48 0.48 0.48 1.00
2023-03-31 0.38 0.42 0.34 2.00
2022-03-31 0.30 0.34 0.22 6.00
2021-03-31 0.25 0.30 0.18 7.00
2020-03-31 0.24 0.31 0.18 8.00
2019-11-20
DB:RYE Past Financials Data
Date (Data in GBP Millions) EPS *
2019-03-31 0.18
2018-12-31 0.13
2018-09-23 0.09
2018-06-23 0.18
2018-03-25 0.26
2017-12-25 0.31
2017-09-24 0.36
2017-06-24 0.32
2017-03-26 0.27
2016-12-26 0.24
2016-09-25 0.21
2016-06-25 0.21

*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.
  • Royal Mail is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Royal Mail'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 Europe market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Europe 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.
Royal Mail has a total score of 2/6, 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.

RYE Past Performance

  How has Royal Mail 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 Royal Mail's growth in the last year to its industry (Logistics).
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.
  • Royal Mail's year on year earnings growth rate was negative over the past 5 years and the most recent earnings are below average.
  • Royal Mail's 1-year earnings growth is negative, it can't be compared to the 5-year average.
  • Royal Mail's 1-year earnings growth is negative, it can't be compared to the Europe Logistics industry average.
Earnings and Revenue History
Royal Mail'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 Royal Mail Company Filings, last reported 7 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

DB:RYE Past Revenue, Cash Flow and Net Income Data
Date (Data in GBP Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-03-31 10,581.00 175.00 2,771.00
2018-12-31 10,428.00 135.00 2,701.50
2018-09-23 10,275.00 95.00 2,632.00
2018-06-23 10,223.50 177.00 2,570.00
2018-03-25 10,172.00 259.00 2,508.00
2017-12-25 10,097.00 307.00 2,449.00
2017-09-24 10,022.00 355.00 2,390.00
2017-06-24 9,899.00 313.50 2,319.50
2017-03-26 9,776.00 272.00 2,249.00
2016-12-26 9,607.50 242.50 2,125.50
2016-09-25 9,439.00 213.00 2,002.00
2016-06-25 9,345.00 214.00 1,936.00
2016-03-27 9,251.00 215.00 1,870.00
2015-12-27 9,248.00 251.50 1,875.50
2015-09-27 9,245.00 288.00 1,881.00
2015-06-27 9,286.50 306.50 1,890.50
2015-03-29 9,328.00 325.00 1,900.00
2014-12-29 9,394.50 253.50 1,883.00
2014-09-28 9,315.00 180.00 1,894.00
2014-06-28 9,292.00 1,229.50 1,874.00
2014-03-30 9,357.00 1,275.00 1,942.00
2013-12-30 9,383.50 1,322.50 1,995.50
2013-09-29 9,311.00 1,368.00 1,976.00
2013-06-30 9,415.00 298.00 1,975.00
2013-03-31 9,146.00 525.00 1,912.00
2012-12-31 8,874.50 183.50 1,904.00

*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.
  • Royal Mail has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Royal Mail used its assets less efficiently than the Europe Logistics industry average last year based on Return on Assets.
  • Royal Mail's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Royal Mail'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 Logistics 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.
Royal Mail has a total score of 0/6, 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.

RYE Health

 How is Royal Mail'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 Royal Mail's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Royal Mail's short term (1 year) commitments are greater than its holdings of cash and other short term assets.
  • Royal Mail's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Royal Mail'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.
  • High level of physical assets or inventory.
  • Debt is covered by short term assets, assets are 3.8x 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 Royal Mail Company Filings, last reported 7 months ago.

DB:RYE Past Debt and Equity Data
Date (Data in GBP Millions) Total Equity Total Debt Cash & Short Term Investments
2019-03-31 4,619.00 431.00 236.00
2018-12-31 4,619.00 431.00 236.00
2018-09-23 4,241.00 562.00 218.00
2018-06-23 4,241.00 562.00 218.00
2018-03-25 4,436.00 437.00 600.00
2017-12-25 4,436.00 437.00 600.00
2017-09-24 4,202.00 440.00 229.00
2017-06-24 4,202.00 440.00 229.00
2017-03-26 4,998.00 463.00 299.00
2016-12-26 4,998.00 463.00 299.00
2016-09-25 5,214.00 538.00 248.00
2016-06-25 5,214.00 538.00 248.00
2016-03-27 4,467.00 392.00 368.00
2015-12-27 4,467.00 392.00 368.00
2015-09-27 3,874.00 364.00 199.00
2015-06-27 3,874.00 364.00 199.00
2015-03-29 3,996.00 366.00 343.00
2014-12-29 3,846.00 366.00 343.00
2014-09-28 2,742.00 639.00 353.00
2014-06-28 2,742.00 639.00 353.00
2014-03-30 2,401.00 602.00 367.00
2013-12-30 2,401.00 602.00 367.00
2013-09-29 2,394.00 973.00 555.00
2013-06-30 1,376.00 973.00 489.00
2013-03-31 1,405.00 973.00 352.00
2012-12-31 1,405.00 973.00 352.00
  • Royal Mail's level of debt (9.3%) 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 (25% vs 9.3% today).
  • Debt is well covered by operating cash flow (114.4%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 49.5x coverage).
X
Financial health checks
We assess Royal Mail'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. Royal Mail 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.

RYE Dividends

 What is Royal Mail'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
10.81%
Current annual income from Royal Mail dividends. Estimated to be 6.76% next year.
If you bought €2,000 of Royal Mail shares you are expected to receive €216 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?
  • Royal Mail's pays a higher dividend yield than the bottom 25% of dividend payers in Germany (1.35%).
  • Royal Mail's dividend is above the markets top 25% of dividend payers in Germany (3.7%).
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:RYE 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 11 Analyst Estimates (S&P Global) See Below
Europe Logistics Industry Average Dividend Yield Market Cap Weighted Average of 19 Stocks 2.7%
Germany Market Average Dividend Yield Market Cap Weighted Average of 335 Stocks 2.9%
Germany Minimum Threshold Dividend Yield 10th Percentile 0.7%
Germany Bottom 25% Dividend Yield 25th Percentile 1.3%
Germany Top 25% Dividend Yield 75th Percentile 3.7%

Industry and Market average data is calculated daily.

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

DB:RYE Future Dividends Estimate Data
Date (Data in £) Dividend per Share (annual) Avg. No. Analysts
2024-03-31 0.18 4.00
2023-03-31 0.16 4.00
2022-03-31 0.15 12.00
2021-03-31 0.15 11.00
2020-03-31 0.15 11.00
2019-11-20
DB:RYE Past Annualized Dividends Data
Date (Data in £) Dividend per share (annual) Avg. Yield (%)
2019-06-14 0.250 11.760
2019-05-22 0.250 12.344
2018-06-18 0.240 7.367
2018-05-17 0.240 4.678
2017-05-25 0.230 5.163
2017-05-18 0.230 5.354
2016-11-17 0.225 5.271
2016-06-03 0.221 4.380
2016-05-19 0.221 4.248
2015-05-29 0.210 4.472
2015-05-21 0.210 4.064
2014-11-19 0.134 3.076
2014-08-04 0.133 3.098

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

  • Whilst dividend payments have been stable, Royal Mail has been paying a dividend for less than 10 years.
  • Dividend payments have increased, but Royal Mail only paid a dividend in the past 5 years.
Current Payout to shareholders
What portion of Royal Mail's earnings are paid to the shareholders as a dividend.
  • Dividends paid are not well covered by earnings (0.7x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be covered by earnings (1.8x coverage).
X
Income/ dividend checks
We assess Royal Mail's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.7%) - 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 Royal Mail afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Royal Mail 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.

RYE Management

 What is the CEO of Royal Mail'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
Rico Back
COMPENSATION £753,600
TENURE AS CEO 1.4 years
CEO Bio

Mr. Rico Back has been Group CEO and Director of Royal Mail Group Ltd since June 1, 2018. He serves as the Chief Executive Officer, President and Managing Editor at General Logistics Systems France S.A. Mr. Back has been the Chief Executive Officer of General Logistics Systems International Holding B.V (GLS) at Royal Mail plc since October 1999 and serves as its Member of Executive Board. Mr. Back serves as Member of Executive Board of General Logistics Systems International Holding B.V (GLS).

CEO Compensation
  • Insufficient data for Rico to compare compensation growth.
  • Rico's remuneration is lower than average for companies of similar size in Germany.
Management Team Tenure

Average tenure of the Royal Mail management team in years:

1.4
Average Tenure
  • The average tenure for the Royal Mail management team is less than 2 years, this suggests a new team.
Management Team

Rico Back

TITLE
Group CEO & Director
COMPENSATION
£754K
TENURE
1.4 yrs

Stuart Simpson

TITLE
Chief Finance & Operating Officer and Director
COMPENSATION
£544K
TENURE
2.3 yrs

Shane O'Riordain

TITLE
MD of Corporate Affairs
TENURE
1.4 yrs

Mark Amsden

TITLE
Group General Counsel
TENURE
0.6 yrs

Mel Tomlin

TITLE
Chief of Staff & Member of Executive Board
TENURE
1.4 yrs

Sally Ashford

TITLE
Chief HR Officer & Member of Executive Board
AGE
49
TENURE
1.4 yrs

Christian Herrlich

TITLE
Group Chief Information Officer & Member of the Executive Board
TENURE
1.3 yrs

Achim Dünnwald

TITLE
Chief Strategy & Transformation Officer and Member of the Executive Board
TENURE
0.7 yrs

James Rietkerk

TITLE
Member of the Executive Board
TENURE
1.4 yrs

Catherine Nash

TITLE
Director of Investor Relations
Board of Directors Tenure

Average tenure and age of the Royal Mail board of directors in years:

1
Average Tenure
63
Average Age
  • The average tenure for the Royal Mail board of directors is less than 3 years, this suggests a new board.
Board of Directors

Keith Williams

TITLE
Non-Executive Chairman
COMPENSATION
£66K
AGE
63
TENURE
0.5 yrs

Rico Back

TITLE
Group CEO & Director
COMPENSATION
£754K
TENURE
1.4 yrs

Stuart Simpson

TITLE
Chief Finance & Operating Officer and Director
COMPENSATION
£544K
TENURE
2.3 yrs

Michael Findlay

TITLE
Non-Executive Director
AGE
51
TENURE
0.5 yrs

Lynne Peacock

TITLE
Non-Executive Director
AGE
66

Sarah Elizabeth Hogg

TITLE
Senior Independent Non-Executive Director
AGE
73
TENURE
0.1 yrs

Rita Griffin

TITLE
Non-Executive Director
COMPENSATION
£66K
TENURE
2.9 yrs

Simon Thompson

TITLE
Non-Executive Director
COMPENSATION
£63K
TENURE
2 yrs

Maria da Cunha da Silva

TITLE
Non-Executive Director
AGE
56
TENURE
0.5 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 (€)
05. Jun 19 Buy Rico Back Individual 04. Jun 19 04. Jun 19 150,000 €2.24 €335,553
23. May 19 Buy Rico Back Individual 23. May 19 23. May 19 200,000 €2.36 €470,736
23. May 19 Buy Rico Back Individual 23. May 19 23. May 19 100,000 €2.27 €226,864
05. Dec 18 Buy Arthur Owen Individual 04. Dec 18 04. Dec 18 78,028 €3.44 €268,647
X
Management checks
We assess Royal Mail'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. Royal Mail 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.

RYE News

Simply Wall St News

RYE Company Info

Description

Royal Mail plc, together with its subsidiaries, operates as a universal postal service provider in Europe, North America, Western United States, and Canada. It offers parcels and letter delivery services under the Royal Mail and Parcelforce Worldwide brands. The company also provides services for the collection, sorting, and delivery of parcels and letters; and catering and marketing mail services. In addition, it operates ground-based parcel delivery networks in Europe comprising the GLS network that covers 41 European countries and nation states through wholly-owned and partner companies. Further, the company provides express parcel delivery and logistics services. Additionally, it engages in property holdings activities; and provision of facilities management services. The company serves consumers, sole-traders, small and medium-sized enterprises, large businesses, retailers, and other postal operators, as well as B2B and B2C sectors. Royal Mail plc was incorporated in 2013 and is headquartered in London, the United Kingdom.

Details
Name: Royal Mail plc
RYE
Exchange: DB
Founded: 2013
£2,699,684,990
1,000,000,000
Website: http://www.royalmailgroup.com
Address: Royal Mail plc
100 Victoria Embankment,
London,
Greater London, EC4Y 0HQ,
United Kingdom
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
LSE RMG Ordinary Shares London Stock Exchange GB GBP 11. Oct 2013
OTCPK ROYM.F Ordinary Shares Pink Sheets LLC US USD 11. Oct 2013
DB RYE Ordinary Shares Deutsche Boerse AG DE EUR 11. Oct 2013
BATS-CHIXE RMGL Ordinary Shares BATS 'Chi-X Europe' GB GBP 11. Oct 2013
OTCPK ROYM.Y ADR EACH REPR 2 ORD GBP0.01 Pink Sheets LLC US USD 06. Dec 2013
Number of employees
Current staff
Staff numbers
136,872
Royal Mail employees.
Industry
Air Freight and Logistics
Transportation
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/11/20 21:35
End of day share price update: 2019/11/20 00:00
Last estimates confirmation: 2019/11/20
Last earnings filing: 2019/06/14
Last earnings reported: 2019/03/31
Last annual earnings reported: 2019/03/31


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.