Brooks Macdonald (BRK) AI Stock Analysis

• Market Cap: £220.02M
• Dividend Yield: 5.14%
• Average Volume (3M): 23.15K
• Price to Earnings (P/E): 13.3
• Beta (1Y): 0.52
• Revenue Growth: -13.29%
• EPS Growth: 63.87%
• Country: UK
• Employees: 485
• Sector: Financial
• Sector Strength: 70
• Industry: Asset Management
• EPS (TTM): 0.64
• Shares Outstanding: 15,877,209
• 10 Day Avg. Volume: 18,164
• 30 Day Avg. Volume: 23,147
• PEG Ratio: 0.40
• Price to Book (P/B): 1.78
• Price to Sales (P/S): 2.48
• P/FCF Ratio: 11.43
• 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: £1,750.00
• Price Target Upside: 22.81% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1
• EPS Forecast (FY): 1.36
• Revenue Forecast (FY): £121.25M

• Rating: 72 Outperform
• Price Target: 1,582.00 p ▲(11.02% Upside)
• Action: Reiterated Date: 01/04/26
• Date: Action: Reiterated 01/04/26

The score is driven primarily by strong financial position (low leverage and solid margins), partially offset by revenue/FCF softness and mixed technical momentum. Valuation is supported by the ~4.9% dividend yield but constrained by a ~24.9 P/E.

Positive Factors

Low leverage / strong balance sheet

Very low debt-to-equity (~0.10) gives enduring financial flexibility: it reduces refinancing and interest risks, supports steady dividend and buyback capacity, and allows the firm to invest in growth or absorb AUM shocks without needing external capital if market volatility recurs.

Recurring AUM fee business model

A fee model tied to AUM creates durable, recurring revenue that scales with asset growth and market appreciation. High client retention and steady inflows translate into predictable fee income and operating leverage, helping margins remain resilient over multi-month horizons.

Solid operating margins

Robust EBIT and EBITDA margins indicate structural operating efficiency and pricing power in advisory services. These margins provide buffer against top-line softness, enable reinvestment in client servicing, and support cash distributions while fixed costs are spread over larger AUM.

Negative Factors

2025 revenue decline

A 4.5% year-over-year revenue decline signals pressure on fee income, possibly from net outflows, lower market values, or weaker advisory activity. If sustained, it reduces fee scalability, forces tougher cost choices, and can erode the operating leverage that underpins profitability.

Free cash flow deterioration & data gaps

A ~25% FCF drop and missing operating cash coverage reduce visibility into cash conversion quality. Persistent FCF weakness constrains investments, dividends, and strategic initiatives and raises the risk of funding sensitivity during prolonged market or client AUM weakness.

Earnings volatility and weaker ROE

Declining ROE and volatile net income point to weaker earnings quality and lower capital efficiency. Over time this can lessen shareholder returns, reduce internal funding for growth, and signal challenges in sustaining prior profitability levels without structural improvements.

Brooks Macdonald Business Overview & Revenue Model

Company Description

Brooks Macdonald Group plc, through its subsidiaries, provides a range of investment and wealth management services to private clients, pension funds, professional intermediaries, and trustees in the United Kingdom and the Channel Islands. It operates through two segments, UK Investment Management and International. The company offers financial planning advisory services to high-net-worth individuals, families, and businesses; and multi-asset and specialist fund products to the retail sector. Brooks Macdonald Group plc was founded in 1991 and is headquartered in London, the United Kingdom.

How the Company Makes Money

Brooks Macdonald primarily makes money by charging fees for managing client assets and providing wealth management services. The main revenue stream is recurring management fees based on assets under management (AUM) for discretionary investment management/portfolio management mandates; as client assets grow (from market performance and net inflows), these fee revenues typically rise, and they can fall when AUM declines. The company also earns revenue from financial planning and advisory services (for example, ongoing advice/service fees and, where applicable, fees for specific planning work). In addition, it may generate platform- or custody-related charges and other ancillary client service fees tied to administering and servicing portfolios (exact product-level fee categories and relative contributions: null). Overall profitability is driven by the level of AUM, client retention and net inflows, fee rates, and operating leverage (the ability to spread fixed costs across a larger AUM base). Significant partnerships or specific third-party distribution/strategic partnership arrangements contributing to earnings: null.

Brooks Macdonald Financial Statement Overview

Summary

Strong balance sheet (very low leverage with ~0.10 debt-to-equity) and solid profitability (2025 EBIT margin ~18%, EBITDA margin ~28%) support the score. Offsetting factors are weakening 2025 revenue (~-4.5% YoY), earnings volatility, and a meaningful 2025 free cash flow decline (~-25%) with some missing/0 reporting fields that reduce latest-period transparency.

Income Statement

Profitability is solid, with 2025 EBIT margin at ~18% and EBITDA margin at ~28%, and net margin improving to ~9.6% versus ~5.0% in 2024. However, the revenue trend weakened in 2025 (about -4.5% year over year) after modest growth in prior years, and net income has been volatile (down sharply in 2024 before rebounding in 2025). Gross margin is not consistently reported (2025 shows 0%), which reduces transparency on underlying cost trends.

Balance Sheet

The balance sheet is conservatively positioned with low leverage: debt-to-equity remains very low (about 0.10 in 2025, and even lower in earlier years). Equity is substantial and has been relatively steady, supporting financial flexibility. Returns on equity are positive but have moderated from stronger levels in 2021–2022 (mid-teens) to lower levels in 2024–2025 (mid-single digits to ~7%), indicating profitability is not as efficient as it was.

Cash Flow

Cash generation is generally healthy: free cash flow has closely tracked earnings, including ~0.93x of net income in 2025 and ~0.95x in 2024. That said, free cash flow declined meaningfully in 2025 (about -25%), and operating cash flow also fell versus 2024. The operating cash flow coverage figure is missing/0 in 2025, limiting visibility into near-term cash conversion quality for the latest period.

Breakdown	TTM	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement
Total Revenue	117.76M	111.29M	128.26M	123.78M	122.21M	118.21M
Gross Profit	52.35M	0.00	20.33M	21.57M	26.92M	22.19M
EBITDA	21.69M	30.94M	18.72M	31.95M	39.26M	34.85M
Net Income	6.73M	10.66M	6.46M	18.15M	23.41M	19.64M
Balance Sheet
Total Assets	206.52M	232.66M	192.96M	195.26M	189.15M	185.87M
Cash, Cash Equivalents and Short-Term Investments	13.29M	35.01M	45.64M	54.18M	62.11M	55.52M
Total Debt	27.81M	14.92M	3.81M	5.14M	6.03M	6.87M
Total Liabilities	57.31M	78.21M	40.63M	37.91M	40.72M	51.87M
Stockholders Equity	149.21M	154.45M	152.34M	157.34M	148.43M	134.00M
Cash Flow
Free Cash Flow	10.00M	24.12M	35.08M	21.26M	27.34M	27.42M
Operating Cash Flow	16.75M	25.97M	36.89M	24.96M	30.54M	31.10M
Investing Cash Flow	-6.37M	-5.49M	-29.42M	-18.05M	-9.35M	-11.34M
Financing Cash Flow	-27.67M	-25.05M	-16.10M	-14.88M	-14.76M	-15.03M

Brooks Macdonald Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1425.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:BRK, the sentiment is Negative. The current price of 1425 is below the 20-day moving average (MA) of 1515.95, below the 50-day MA of 1576.18, and below the 200-day MA of 1643.19, indicating a bearish trend. The MACD of -49.54 indicates Positive momentum. The RSI at 36.21 is Neutral, neither overbought nor oversold. The STOCH value of 8.33 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GB:BRK.

Brooks Macdonald Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SDR	76 Outperform	£8.88B	11.95	12.35%	5.37%	4.78%	-4.86%
QLT	74 Outperform	£2.28B	20.62	-0.05%	3.40%	-28.04%	-102.43%
BRK	72 Outperform	£220.02M	13.32	7.58%	5.14%	-13.29%	63.87%
RAT	70 Outperform	£2.08B	17.89	4.75%	4.91%	14.05%	-3.07%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
JTC	67 Neutral	£2.20B	52.21	-3.61%	1.03%	16.90%	-165.00%
AJB	65 Neutral	£1.79B	21.09	49.89%	2.43%	17.97%	25.51%

Brooks Macdonald Corporate Events

Brooks Macdonald Director Increases Stake with £394,000 Share Purchase

Brooks Macdonald Group plc reported that non-executive director Euan Munro purchased 26,000 ordinary shares in the company on 13 March 2026 at a price of 1,515.7692p per share on the London Stock Exchange. The director’s share purchase, disclosed under UK Market Abuse Regulation, increases board-level equity ownership and may be read by investors as a sign of confidence in the group’s prospects and long-term positioning in the wealth management market.

The most recent analyst rating on (GB:BRK) stock is a Hold with a £1486.00 price target. To see the full list of analyst forecasts on Brooks Macdonald stock, see the GB:BRK Stock Forecast page.

Brooks Macdonald posts higher revenue and assets as growth strategy gains traction

Brooks Macdonald reported a 5% rise in total funds under management and advice to £20.1bn for the six months to 31 December 2025, with funds under management at £17.8bn and advised assets at £2.3bn. Revenue grew 12% to £58.2m, driven by stronger financial planning and fee income, while net inflows turned positive at £2m after a period of outflows.

Higher underlying operating expenses, largely reflecting organic investment and acquisition-related costs, pushed underlying profit before tax down 12% to £13.6m and halved statutory profit before tax to £6.2m. The group nevertheless lifted its interim dividend by 3% to 31p and highlighted progress on its ‘Reignite Growth’ strategy, including the integration of Brooks Financial, digital upgrades, AI deployment and cost efficiencies that support scale, improved client service and ongoing double-digit growth in managed portfolio assets.

The most recent analyst rating on (GB:BRK) stock is a Hold with a £1800.00 price target. To see the full list of analyst forecasts on Brooks Macdonald stock, see the GB:BRK Stock Forecast page.

Brooks Macdonald Returns to Positive Net Flows as FUMA Hits £20.1bn

Brooks Macdonald reported a 3% rise in funds under management and advice to £20.1 billion for the quarter to 31 December 2025, driven by a return to positive net inflows and solid market performance. Total funds under management reached £17.8 billion, with bespoke portfolios up 2% to £8.9 billion and managed portfolio services up 6% to £7.8 billion, while assets under advice held steady at £5.3 billion. The group’s net inflows of £50 million marked its first quarter of positive net flows since FY 2023 and a sharp turnaround from net outflows of £151 million a year earlier, underpinned by improved performance in its bespoke portfolios and strong demand for its platform-based managed portfolios, including its business-to-business investment solutions for financial advisers. Management positioned the figures as evidence that its ‘Reignite Growth’ strategy is gaining traction, with continued momentum in platform MPS and investment performance supporting its efforts to strengthen market positioning in the UK wealth management sector.

The most recent analyst rating on (GB:BRK) stock is a Hold with a £1744.00 price target. To see the full list of analyst forecasts on Brooks Macdonald stock, see the GB:BRK Stock Forecast page.