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Rathbone Brothers

LSE:RAT
Snowflake Description

Excellent balance sheet average dividend payer.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
RAT
LSE
£813M
Market Cap
  1. Home
  2. GB
  3. Diversified Financials
Company description

Rathbone Brothers Plc, through its subsidiaries, provides personalized investment and wealth management services for private clients, charities, and trustees in the United Kingdom and Jersey. The last earnings update was 38 days ago. More info.


Add to Portfolio Compare Print
  • Rathbone Brothers has significant price volatility in the past 3 months.
RAT Share Price and Events
7 Day Returns
15.2%
LSE:RAT
8.5%
GB Capital Markets
6%
GB Market
1 Year Returns
-33.2%
LSE:RAT
1.2%
GB Capital Markets
-22.7%
GB Market
RAT Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Rathbone Brothers (RAT) 15.2% -10.4% -30.1% -33.2% -37.9% -29.9%
GB Capital Markets 8.5% -12.2% -17.6% 1.2% 30.5% 62.5%
GB Market 6% -20.3% -28.1% -22.7% -24.6% -22%
1 Year Return vs Industry and Market
  • RAT underperformed the Capital Markets industry which returned 1.2% over the past year.
  • RAT underperformed the Market in United Kingdom of Great Britain and Northern Ireland which returned -22.7% over the past year.
Price Volatility
RAT
Industry
5yr Volatility vs Market

Value

 Is Rathbone Brothers 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 Rathbone Brothers 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 Rathbone Brothers.

LSE:RAT 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
= £8.68 * 9.4%
£0.82
Book Value of Equity per Share Median Book Value from the past 5 years. £8.68
Discount Rate (Cost of Equity) See below 5.8%
Perpetual Growth Rate 10-Year GB Government Bond Rate 0.5%

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 LSE:RAT
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year GB Govt Bond Rate 0.5%
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))
= 0.752 (1 + (1- 19%) (9.95%))
0.874
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.87
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 0.53% + (0.874 * 6.07%)
5.84%

Discounted Cash Flow Calculation for LSE:RAT using Excess Returns Model Model

The calculations below outline how an intrinsic value for Rathbone Brothers 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.

LSE:RAT Value of Excess Returns
Calculation Result
Excess Returns = (Stable Return on equity – Cost of equity) (Book Value of Equity per share)
= (9.4% – 5.84%) * £8.68)
£0.31
Terminal Value of Excess Returns = Excess Returns / (Cost of Equity - Expected Growth Rate)
= £0.31 / (5.84% - 0.53%)
£5.83
Value of Equity = Book Value per share + Terminal Value of Excess Returns
= £8.68 + £5.83
£14.51
LSE:RAT Discount to Share Price
Calculation Result
Value per share (GBP) From above. £14.51
Current discount Discount to share price of £14.88
= -1 x (£14.88 - £14.51) / £14.51
-2.6%

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

  • The current share price of Rathbone Brothers 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 Rathbone Brothers's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Rathbone Brothers's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
LSE:RAT PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-12-31) in GBP £0.50
LSE:RAT Share Price ** LSE (2020-03-27) in GBP £14.88
United Kingdom of Great Britain and Northern Ireland Capital Markets Industry PE Ratio Median Figure of 44 Publicly-Listed Capital Markets Companies 15.01x
United Kingdom of Great Britain and Northern Ireland Market PE Ratio Median Figure of 747 Publicly-Listed Companies 12.54x

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

** Primary Listing of Rathbone Brothers.

LSE:RAT PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

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

= 14.88 ÷ 0.50

29.61x

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

  • Rathbone Brothers is overvalued based on earnings compared to the GB Capital Markets industry average.
  • Rathbone Brothers is overvalued based on earnings compared to the United Kingdom of Great Britain and Northern Ireland market.
Price based on expected Growth
Does Rathbone Brothers's expected growth come at a high price?
Raw Data
LSE:RAT PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 29.61x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 7 Analysts
23.2%per year
United Kingdom of Great Britain and Northern Ireland Capital Markets Industry PEG Ratio Median Figure of 22 Publicly-Listed Capital Markets Companies 0.85x
United Kingdom of Great Britain and Northern Ireland Market PEG Ratio Median Figure of 531 Publicly-Listed Companies 0.98x

*Line of best fit is calculated by linear regression .

LSE:RAT PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 29.61x ÷ 23.2%

1.28x

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

  • Rathbone Brothers is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Rathbone Brothers's assets?
Raw Data
LSE:RAT PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-12-31) in GBP £9.02
LSE:RAT Share Price * LSE (2020-03-27) in GBP £14.88
United Kingdom of Great Britain and Northern Ireland Capital Markets Industry PB Ratio Median Figure of 82 Publicly-Listed Capital Markets Companies 1.16x
United Kingdom of Great Britain and Northern Ireland Market PB Ratio Median Figure of 1,322 Publicly-Listed Companies 1.08x
LSE:RAT PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

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

= 14.88 ÷ 9.02

1.65x

* Primary Listing of Rathbone Brothers.

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

  • Rathbone Brothers is overvalued based on assets compared to the GB Capital Markets industry average.
X
Value checks
We assess Rathbone Brothers'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. Rathbone Brothers 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.

Future Performance

 How is Rathbone Brothers expected to perform in the next 1 to 3 years based on estimates from 7 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
23.2%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Rathbone Brothers expected to grow at an attractive rate?
  • Rathbone Brothers's earnings growth is expected to exceed the low risk savings rate of 0.5%.
Growth vs Market Checks
  • Rathbone Brothers's earnings growth is expected to exceed the United Kingdom of Great Britain and Northern Ireland market average.
  • Rathbone Brothers's revenue growth is positive but not above the United Kingdom of Great Britain and Northern Ireland market average.
Annual Growth Rates Comparison
Raw Data
LSE:RAT Future Growth Rates Data Sources
Data Point Source Value (per year)
LSE:RAT Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 7 Analysts 23.2%
LSE:RAT Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 7 Analysts 1.1%
United Kingdom of Great Britain and Northern Ireland Capital Markets Industry Earnings Growth Rate Market Cap Weighted Average 17.7%
United Kingdom of Great Britain and Northern Ireland Capital Markets Industry Revenue Growth Rate Market Cap Weighted Average 3.2%
United Kingdom of Great Britain and Northern Ireland Market Earnings Growth Rate Market Cap Weighted Average 15.4%
United Kingdom of Great Britain and Northern Ireland Market Revenue Growth Rate Market Cap Weighted Average 2.6%

*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
LSE:RAT Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 7 Analyst Estimates (S&P Global) See Below
All numbers in GBP Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
LSE:RAT Future Estimates Data
Date (Data in GBP Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2023-12-31 277 65
2022-12-31 389 254 60 6
2021-12-31 372 235 45 7
2020-12-31 351 26 34 7
2020-03-29
LSE:RAT Past Financials Data
Date (Data in GBP Millions) Revenue Cash Flow Net Income *
2019-12-31 381 500 27
2019-09-30 372 408 26
2019-06-30 362 315 25
2019-03-31 350 213 36
2018-12-31 338 112 46
2018-09-30 330 27 53
2018-06-30 321 -59 61
2018-03-31 315 146 54
2017-12-31 309 352 47
2017-09-30 301 417 44
2017-06-30 293 483 42
2017-03-31 282 525 40

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Rathbone Brothers's earnings are expected to grow significantly at over 20% yearly.
  • Rathbone Brothers's revenue is expected to grow by 1.1% 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
LSE:RAT 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 7 Analyst Estimates (S&P Global) See Below

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

LSE:RAT Future Estimates Data
Date (Data in GBP Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2023-12-31
2022-12-31 1.01 1.31 0.72 2.00
2021-12-31 0.65 1.14 0.42 4.00
2020-12-31 0.50 0.77 0.34 4.00
2020-03-29
LSE:RAT Past Financials Data
Date (Data in GBP Millions) EPS *
2019-12-31 0.50
2019-09-30 0.49
2019-06-30 0.47
2019-03-31 0.68
2018-12-31 0.89
2018-09-30 1.04
2018-06-30 1.19
2018-03-31 1.06
2017-12-31 0.93
2017-09-30 0.89
2017-06-30 0.85
2017-03-31 0.82

*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.
  • Rathbone Brothers is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Rathbone Brothers'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 United Kingdom of Great Britain and Northern Ireland market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United Kingdom of Great Britain and Northern Ireland 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.
Rathbone Brothers 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.

Past Performance

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

LSE:RAT Past Revenue, Cash Flow and Net Income Data
Date (Data in GBP Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-12-31 381.24 26.92
2019-09-30 371.69 26.05
2019-06-30 362.13 25.19 15.84
2019-03-31 350.26 35.68 15.84
2018-12-31 338.39 46.17
2018-09-30 329.65 53.38 6.05
2018-06-30 320.91 60.60 12.09
2018-03-31 314.76 53.71 12.09
2017-12-31 308.61 46.83 12.09
2017-09-30 300.97 44.46 11.94
2017-06-30 293.34 42.08 11.78
2017-03-31 281.76 40.12 11.78
2016-12-31 270.19 38.16 11.78
2016-09-30 258.65 38.14 11.34
2016-06-30 247.12 38.13 10.90
2016-03-31 242.85 42.25 10.90
2015-12-31 238.57 46.37 10.90
2015-09-30 233.65 41.77 11.22
2015-06-30 228.73 37.17 11.54
2015-03-31 222.45 36.42 11.54
2014-12-31 216.18 35.68 11.54
2014-09-30 208.21 38.31 11.19
2014-06-30 200.24 40.94 10.84
2014-03-31 192.07 37.85 10.84
2013-12-31 183.91 34.75 10.84
2013-09-30 179.30 33.20 10.18
2013-06-30 174.69 31.64 9.53
2013-03-31 170.12 30.31 9.53

*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.
  • Rathbone Brothers has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Rathbone Brothers used its assets less efficiently than the GB Capital Markets industry average last year based on Return on Assets.
  • Rathbone Brothers's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Rathbone Brothers'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.
Rathbone Brothers 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.

Health

 How is Rathbone Brothers'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 Rathbone Brothers's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Rathbone Brothers is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Rathbone Brothers's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Rathbone Brothers'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 covered by short term assets, assets are 155.7x 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 Rathbone Brothers Company Filings, last reported 2 months ago.

LSE:RAT Past Debt and Equity Data
Date (Data in GBP Millions) Total Equity Total Debt Cash & Short Term Investments
2019-12-31 485.39 19.93 5.77
2019-09-30 485.39 19.93 5.77
2019-06-30 474.75 19.87 4.88
2019-03-31 474.75 19.87 4.88
2018-12-31 464.14 19.81 4.46
2018-09-30 464.14 19.81 4.46
2018-06-30 447.83 23.54
2018-03-31 447.83 23.54
2017-12-31 363.28 21.03 54.78
2017-09-30 363.28 21.03 54.78
2017-06-30 342.44 28.71
2017-03-31 342.44 28.71
2016-12-31 324.81 19.88
2016-09-30 324.81 19.88
2016-06-30 279.74 22.98
2016-03-31 279.74 22.98
2015-12-31 300.19 19.79
2015-09-30 300.19 19.79
2015-06-30 282.39 0.00
2015-03-31 282.39 0.00
2014-12-31 271.27 0.00
2014-09-30 271.27 0.00
2014-06-30 274.96 0.00
2014-03-31 274.96 0.00
2013-12-31 251.00 0.00
2013-09-30 251.00 0.00
2013-06-30 244.97 0.61
2013-03-31 244.97 0.61
  • Rathbone Brothers's level of debt (4.1%) compared to net worth is satisfactory (less than 40%).
  • Unable to establish if Rathbone Brothers's debt level has increased without past 5-year debt data.
  • Debt is well covered by operating cash flow (2507.2%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 7.3x coverage).
X
Financial health checks
We assess Rathbone Brothers'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. Rathbone Brothers 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.

Dividends

 What is Rathbone Brothers'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
4.7%
Current annual income from Rathbone Brothers dividends. Estimated to be 5.01% next year.
If you bought £2,000 of Rathbone Brothers shares you are expected to receive £94 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?
  • Rathbone Brothers's pays a higher dividend yield than the bottom 25% of dividend payers in United Kingdom of Great Britain and Northern Ireland (2.7%).
  • Rathbone Brothers's dividend is below the markets top 25% of dividend payers in United Kingdom of Great Britain and Northern Ireland (7.3%).
Upcoming dividend payment

Purchase Rathbone Brothers before the 'Ex-dividend' to receive their next dividend payment.

Dividends are usually paid every 3 or 6 months, you can time your share purchase to take advantage of upcoming dividend payments.
Dividend payment calendar
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
LSE:RAT 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 7 Analyst Estimates (S&P Global) See Below
United Kingdom of Great Britain and Northern Ireland Capital Markets Industry Average Dividend Yield Market Cap Weighted Average of 40 Stocks 2.7%
United Kingdom of Great Britain and Northern Ireland Market Average Dividend Yield Market Cap Weighted Average of 630 Stocks 6%
United Kingdom of Great Britain and Northern Ireland Minimum Threshold Dividend Yield 10th Percentile 1.4%
United Kingdom of Great Britain and Northern Ireland Bottom 25% Dividend Yield 25th Percentile 2.7%
United Kingdom of Great Britain and Northern Ireland Top 25% Dividend Yield 75th Percentile 7.3%

Industry and Market average data is calculated daily.

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

LSE:RAT Future Dividends Estimate Data
Date (Data in £) Dividend per Share (annual) Avg. No. Analysts
2023-12-31
2022-12-31 0.76 6.00
2021-12-31 0.75 7.00
2020-12-31 0.73 7.00
2020-03-29
LSE:RAT Past Annualized Dividends Data
Date (Data in £) Dividend per share (annual) Avg. Yield (%)
2020-02-20 0.700 4.634
2019-04-04 0.660 3.030
2018-04-06 0.610 2.540
2017-04-07 0.570 2.216
2016-04-18 0.550 2.828
2016-02-24 0.550 2.551
2015-05-14 0.520 2.373
2014-04-10 0.490 2.422
2014-02-20 0.490 2.735
2013-08-02 0.480 2.995
2013-02-20 0.470 3.086
2012-02-21 0.460 3.578
2012-02-20 0.460 3.587
2011-02-17 0.440 3.955
2011-02-16 0.440 3.579
2010-03-19 0.420 4.599
2010-02-24 0.420 5.035
2009-07-29 0.420 4.950

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 Rathbone Brothers'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 (1.6x coverage).
X
Income/ dividend checks
We assess Rathbone Brothers's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.4%) - 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 Rathbone Brothers afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Rathbone Brothers has a total score of 4/6, see the detailed checks below.


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

Management

 What is the CEO of Rathbone Brothers'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
Paul Stockton
COMPENSATION £1,033,000
AGE 53
TENURE AS CEO 0.8 years
CEO Bio

Mr. Paul Robert Stockton serves as Chief Executive Officer and Executive Director of Rathbone Investment Management Limited. Mr. Stockton has been Executive Director of Rathbone Brothers plc since September 24, 2008 and Chief Executive Officer since May 9, 2019. He was Group Finance Director of Rathbone Brothers plc from 2008 until April 01, 2019. He was Managing Director of Rathbone Investment Management Limited from May 1, 2018 to April 1, 2019 and previously served as Director from September 24, 2008. He served as Divisional Finance Director of the Phoenix Group. Mr. Stockton served as the Managing Director and Head of Finance at Euroclear SA/NV since July 2005. He served as a Member of the Euroclear Group Management Team. He served as Finance Director of Gerrard Limited. Mr. Stockton served as a Director of Finance at Old Mutual Plc since 2001. In 1999, he joined Old Mutual Plc as Group Financial Controller. He served as Non-Executive Director of Financial Services Compensation Scheme since December 2011. Mr. Stockton qualified as a Chartered Accountant at PricewaterhouseCoopers in 1992.

CEO Compensation
  • Paul's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.
  • Paul's remuneration is about average for companies of similar size in United Kingdom of Great Britain and Northern Ireland.
Management Team Tenure

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

0.9
Average Tenure
54
Average Age
  • The average tenure for the Rathbone Brothers management team is less than 2 years, this suggests a new team.
Management Team

Paul Stockton

TITLE
Executive Director & CEO
COMPENSATION
£1M
AGE
53
TENURE
0.8 yrs

Jennifer Mathias

TITLE
Group Finance Director & Executive Director
TENURE
0.9 yrs

James Butcher

TITLE
Chief Operating Officer
TENURE
8.2 yrs

Shelly Patel

TITLE
Head of Investor Relations

Sophie Boyd-Wallis

TITLE
Head of Internal Communications

Mike Webb

TITLE
Head of Group Marketing & Distribution and Chief Executive of Rathbone Unit Trust Management Limited

Victoria Wellings

TITLE
Head of sales desk

Ruppert Pepper

TITLE
Director of Corporate Development

Andrew Morris

TITLE
Head of Investment Management - Outside London
COMPENSATION
£667K
AGE
54

Richard Smeeton

TITLE
Head of Investment Management Special Projects & Recruitment
COMPENSATION
£761K
AGE
54
Board of Directors Tenure

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

4
Average Tenure
60
Average Age
  • The tenure for the Rathbone Brothers board of directors is about average.
Board of Directors

Mark Nicholls

TITLE
Independent Chairman
COMPENSATION
£160K
AGE
70
TENURE
8.8 yrs

Paul Stockton

TITLE
Executive Director & CEO
COMPENSATION
£1M
AGE
53
TENURE
11.5 yrs

Jennifer Mathias

TITLE
Group Finance Director & Executive Director
TENURE
0.9 yrs

James Dean

TITLE
Independent Non-Executive Director
COMPENSATION
£60K
AGE
62
TENURE
6.3 yrs

Sarah Gentleman

TITLE
Independent Non-Executive Director
COMPENSATION
£60K
AGE
48
TENURE
5.2 yrs

Terri Duhon

TITLE
Independent Non-Executive Director
COMPENSATION
£28K
AGE
46
TENURE
1.7 yrs

Jim Pettigrew

TITLE
Senior Independent Director
COMPENSATION
£60K
AGE
61
TENURE
2.8 yrs

Colin Clark

TITLE
Independent Non-Executive Director
COMPENSATION
£9K
AGE
60
TENURE
1.4 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 (£)
17. Apr 19 Sell James Butcher Individual 15. Apr 19 15. Apr 19 -1,670 £23.95 £-39,997
X
Management checks
We assess Rathbone Brothers'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. Rathbone Brothers 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.

News

Simply Wall St News

It Might Not Be A Great Idea To Buy Rathbone Brothers Plc (LON:RAT) For Its Next Dividend

Readers hoping to buy Rathbone Brothers Plc (LON:RAT) for its dividend will need to make their move shortly, as the stock is about to trade ex-dividend. … Readers will understand then, why we're concerned to see Rathbone Brothers's earnings per share have dropped 9.1% a year over the past five years. … Earnings per share are in decline and Rathbone Brothers is paying out what we feel is an uncomfortably high percentage of its profit as dividends.

Simply Wall St -

Don't Sell Rathbone Brothers Plc (LON:RAT) Before You Read This

We'll look at Rathbone Brothers Plc's (LON:RAT) P/E ratio and reflect on what it tells us about the company's share price. … View our latest analysis for Rathbone Brothers How Do I Calculate A Price To Earnings Ratio? … The formula for price to earnings is: Price to Earnings Ratio = Price per Share ÷ Earnings per Share (EPS) Or for Rathbone Brothers: P/E of 45.59 = £21.55 ÷ £0.47 (Based on the trailing twelve months to June 2019.) Is A High Price-to-Earnings Ratio Good?

Simply Wall St -

Rathbone Brothers Plc (LON:RAT): What's The Analyst Consensus Outlook?

The latest earnings update Rathbone Brothers Plc (LON:RAT) released in February 2019 revealed that the business faced a minor headwind with earnings declining from UK£47m to UK£46m, a change of -1.4%. … Investors may find it useful to understand how market analysts view Rathbone Brothers's earnings growth outlook over the next couple of years and whether the future looks brighter. … View our latest analysis for Rathbone Brothers Analysts' outlook for the coming year seems buoyant, with earnings rising by a robust 15%.

Simply Wall St -

What Should You Know About Rathbone Brothers Plc's (LON:RAT) Future?

In December 2018, Rathbone Brothers Plc (LON:RAT) released its earnings update. … View our latest analysis for Rathbone Brothers What can we expect from Rathbone Brothers in the longer term? … LSE:RAT Past and Future Earnings, July 9th 2019 From the current net income level of UK£46m and the final forecast of UK£73m by 2022, the annual rate of growth for RAT’s earnings is 15%.

Simply Wall St -

Should You Buy Rathbone Brothers Plc (LON:RAT) For Its Dividend?

Dividend paying stocks like Rathbone Brothers Plc (LON:RAT) tend to be popular with investors, and for good reason - some research suggests a significant amount of all stock market returns come from reinvested dividends. … In this case, Rathbone Brothers likely looks attractive to investors, given its 3.0% dividend yield and a payment history of over ten years. … Conclusion To summarise, shareholders should always check that Rathbone Brothers's dividends are affordable, that its dividend payments are relatively stable, and that it has decent prospects for growing its earnings and dividend.

Simply Wall St -

Need To Know: Rathbone Brothers Plc (LON:RAT) Insiders Have Been Selling Shares

So shareholders might well want to know whether insiders have been buying or selling shares in Rathbone Brothers Plc (LON:RAT). … As Peter Lynch said, 'insiders might sell their shares for any number of reasons, but they buy them for only one: they think the price will rise.' Check out our latest analysis for Rathbone Brothers Rathbone Brothers Insider Transactions Over The Last Year Over the last year, we can see that the biggest insider sale was by the Head of Group Marketing & Distribution and Chief Executive of Rathbone Unit Trust Management Limited, Michael Webb, for UK£265k worth of shares, at about UK£22.01 per share. … Rathbone Brothers Insiders Are Selling The Stock Over the last three months, we've seen significant insider selling at Rathbone Brothers.

Simply Wall St -

Here's Why Rathbone Brothers (LON:RAT) Can Manage Its Debt Responsibly

LSE:RAT Historical Debt, June 13th 2019 How Strong Is Rathbone Brothers's Balance Sheet? … Rathbone Brothers may have net cash on the balance sheet, but it is still interesting to look at how well the business converts its earnings before interest and tax (EBIT) to free cash flow, because that will influence both its need for, and its capacity to manage debt. … Happily for any shareholders, Rathbone Brothers actually produced more free cash flow than EBIT over the last three years.

Simply Wall St -

Did Rathbone Brothers's (LON:RAT) Share Price Deserve to Gain 17%?

Just take a look at Rathbone Brothers Plc (LON:RAT), which is up 17%, over three years, soundly beating the market return of 14% (not including dividends). … There will continue to be wide discrepancies between price and value in the marketplace...' One way to examine how market sentiment has changed over time is to look at the interaction between a company's share price and its earnings per share (EPS). … During the three years of share price growth, Rathbone Brothers actually saw its earnings per share (EPS) drop 3.1% per year.

Simply Wall St -

A Spotlight On Rathbone Brothers Plc's (LON:RAT) Fundamentals

Help shape the future of investing tools and you could win a $250 gift card! … By this I mean, I look at stocks holistically, from their financial health to their future outlook. … that has been able to sustain great financial health over the past.

Simply Wall St -

Want To Invest In Rathbone Brothers Plc (LON:RAT) Today? Read This First

Rathbone Brothers Plc (LON:RAT) is considered a high-growth stock, but its last closing price of £24 left some investors wondering if this high future earnings potential can be rationalized by its current price tag. … Check out our latest analysis for Rathbone Brothers? … Rathbone Brothers's extremely high growth potential in the near future is attracting investors

Simply Wall St -

Company Info

Description

Rathbone Brothers Plc, through its subsidiaries, provides personalized investment and wealth management services for private clients, charities, and trustees in the United Kingdom and Jersey. Its services include discretionary investment management, unit trusts, financial planning, banking and loan, and unitized portfolio services, as well as trust, legal, estate, and tax advisory services. The company was founded in 1742 and is headquartered in London, the United Kingdom.

Details
Name: Rathbone Brothers Plc
RAT
Exchange: LSE
Founded: 1742
£813,063,154
54,641,341
Website: http://www.rathbones.com
Address: Rathbone Brothers Plc
8 Finsbury Circus,
London,
Greater London, EC2M 7AZ,
United Kingdom
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
LSE RAT Ordinary Shares London Stock Exchange GB GBP 02. Jan 1992
OTCPK RTBB.F Ordinary Shares Pink Sheets LLC US USD 02. Jan 1992
BATS-CHIXE RATL Ordinary Shares BATS 'Chi-X Europe' GB GBP 02. Jan 1992
Number of employees
Current staff
Staff numbers
1,400
Rathbone Brothers employees.
Industry
Asset Management and Custody Banks
Diversified Financials
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2020/03/29 20:39
End of day share price update: 2020/03/27 00:00
Last estimates confirmation: 2020/03/24
Last earnings filing: 2020/02/20
Last earnings reported: 2019/12/31
Last annual earnings reported: 2019/12/31


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.