Arbuthnot Banking (ARBB) AI Stock Analysis

• Market Cap: £151.34M
• Dividend Yield: 5.14%
• Average Volume (3M): 2.00K
• Price to Earnings (P/E): 6.1
• Beta (1Y): 0.49
• Revenue Growth: 15.14%
• EPS Growth: -31.65%
• Country: UK
• Employees: 883
• Sector: Financial
• Sector Strength: 79
• Industry: Banks - Regional
• EPS (TTM): 0.58
• Shares Outstanding: 16,186,344
• 10 Day Avg. Volume: 3,059
• 30 Day Avg. Volume: 2,001
• PEG Ratio: 0.05
• Price to Book (P/B): 0.60
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 5.86
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 71 Outperform
• Price Target: ―

Arbuthnot Banking's overall score reflects its robust financial health and attractive valuation, which are slightly offset by bearish technical indicators. The company's strong Q4 performance and low P/E ratio make it appealing, but technical analysis suggests caution due to recent downward momentum.

Arbuthnot Banking Business Overview & Revenue Model

Company Description

Arbuthnot Banking Group (ARBB) is a UK-based financial services institution, specializing in private and commercial banking. Established in 1833, the company operates through its core subsidiaries, Arbuthnot Latham & Co., which offers personalized banking, wealth management, and investment services, and Secure Trust Bank, which provides a range of retail banking products. Arbuthnot focuses on delivering high-quality, tailored financial solutions to high-net-worth individuals, entrepreneurs, and businesses.

How the Company Makes Money

Arbuthnot Banking Group generates revenue through a variety of financial services. The primary revenue streams include interest income from loans and advances to customers, fees and commissions from wealth management and advisory services, and transaction fees related to retail banking operations. The group also earns money through investment activities, leveraging its expertise in asset management to provide returns on proprietary investments. Additionally, Arbuthnot maintains strategic partnerships and business relationships with other financial institutions, enhancing its service offerings and expanding its market reach. Factors such as interest rate fluctuations, economic conditions, and regulatory changes also significantly impact the company's earnings.

Arbuthnot Banking Financial Statement Overview

Summary

Arbuthnot Banking displays strong financial health with consistent revenue growth and a robust equity position. Profitability margins show some fluctuations, reflecting potential areas for improvement. The cash flow statement underscores the company's capacity to generate cash but also highlights the need for stable cash flow management.

Income Statement

Arbuthnot Banking demonstrated strong revenue growth over the years, with a noticeable increase from 2022 to 2023. The gross profit margin remained high due to the nature of banking operations. However, the net profit margin and EBIT margin have fluctuated, primarily due to varying net income levels, indicating some instability in profitability.

Balance Sheet

The balance sheet reveals a strong equity position with no total debt reported in the latest period, enhancing financial stability. The equity ratio shows a healthy proportion of stockholders' equity to total assets. Return on Equity has improved, indicating better profitability relative to equity.

Cash Flow

Operating cash flow has seen significant fluctuations but improved in the most recent period. Free cash flow showed positive growth, reinforcing the company’s ability to generate cash. However, the operating cash flow to net income ratio indicates variability, which could suggest potential cash flow management issues.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
229.73M	277.41M	160.48M	105.41M	90.39M
	Gross Profit
229.73M	277.41M	160.48M	105.41M	90.39M
	EBIT
39.70M	47.04M	24.68M	2.46M	2.05M
	EBITDA
0.00	0.00	0.00	0.00	0.00
	Net Income Common Stockholders
24.85M	35.38M	16.46M	6.79M	-1.33M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
911.89M	-119.82M	848.52M	888.14M	747.07M
	Total Assets
4.73B	4.34B	3.61B	3.36B	2.85B
	Total Debt
0.00	284.90M	281.49M	298.38M	286.05M
	Net Debt
-911.89M	-541.66M	-567.02M	-589.75M	-461.01M
	Total Liabilities
4.46B	4.09B	3.40B	3.16B	2.66B
	Stockholders Equity
266.96M	252.44M	211.98M	200.88M	194.02M
Cash Flow		Free Cash Flow
341.22M	-30.55M	21.80M	-3.54M	-11.59M
	Operating Cash Flow
369.16M	-24.18M	29.04M	37.49M	-4.51M
	Investing Cash Flow
-282.87M	-543.47M	-305.71M	-242.96M	99.52M
	Financing Cash Flow
-13.37M	625.08M	237.06M	346.54M	279.89M

Arbuthnot Banking Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 935.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:ARBB, the sentiment is Positive. The current price of 935 is above the 20-day moving average (MA) of 933.75, above the 50-day MA of 910.06, and above the 200-day MA of 889.78, indicating a bullish trend. The MACD of 8.30 indicates Positive momentum. The RSI at 58.13 is Neutral, neither overbought nor oversold. The STOCH value of 50.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:ARBB.

Arbuthnot Banking Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HSBA	82 Outperform	£154.57B	10.36	10.86%	5.76%	-3.40%	-7.51%
STAN	79 Outperform	$26.70B	9.69	8.79%	2.38%	2.10%	30.22%
LLOY	76 Outperform	£46.20B	12.25	8.75%	4.12%	-4.18%	-16.04%
BARC	75 Outperform	£47.32B	8.61	9.38%	2.53%	9.76%	46.29%
ARBB	71 Outperform	£151.34M	6.14	9.57%	5.14%	15.14%	-31.65%
MTRO	68 Neutral	£769.98M	18.16	3.67%	―	-11.82%	-54.07%
Sector *	64 Neutral	$12.83B	9.78	7.78%	16985.64%	12.26%	-7.81%

Arbuthnot Banking Corporate Events

Arbuthnot Banking Group Reports 2024 Financial Results Amid Strategic Growth

Arbuthnot Banking Group reported a profit before tax of £35.1m for 2024, down from £47.1m in 2023, due to increased interest expenses as deposit costs rose. Despite this, the company achieved significant growth in customer deposits, loans, and funds under management, with a notable 30% increase in its Wealth Management division. The group also opened a new head office, enhancing operational collaboration and energy. The strategic progress aligns with its ‘Future State 2’ plan, positioning Arbuthnot for future opportunities.

Arbuthnot Banking Group Reports Strong Q4 Performance

Arbuthnot Banking Group PLC has reported a strong performance in the fourth quarter of 2024, aligning with market expectations of a £34.5 million pre-tax profit for the year. This positive trading update suggests stable operational execution and reinforces Arbuthnot’s solid positioning in the banking sector, potentially benefiting stakeholders through continued financial resilience.