Polar Capital Holdings (POLR) AI Stock Analysis

• Market Cap: £543.66M
• Dividend Yield: 8.73%
• Average Volume (3M): 366.11K
• Price to Earnings (P/E): 13.9
• Beta (1Y): 1.74
• Revenue Growth: 7.71%
• EPS Growth: -7.39%
• Country: UK
• Employees: 204
• Sector: Financial
• Sector Strength: 70
• Industry: Asset Management
• EPS (TTM): 0.18
• Shares Outstanding: 101,568,375
• 10 Day Avg. Volume: 543,945
• 30 Day Avg. Volume: 366,114
• PEG Ratio: -0.98
• Price to Book (P/B): 3.07
• Price to Sales (P/S): 1.86
• P/FCF Ratio: 6.46
• 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: £725.00
• Price Target Upside: 28.55% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 3
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 76 Outperform
• Price Target: 614.00p ▲(8.87% Upside)

Polar Capital Holdings scores well due to its strong financial performance and attractive valuation. The company's robust cash flow management and low leverage are significant strengths. Recent corporate events, including record AuM growth and strategic initiatives, enhance its market position. Technical indicators suggest a neutral trend, with no immediate bullish or bearish signals.

Positive Factors

Cash Generation

Strong free cash flow growth enhances the company's ability to reinvest in its business, support dividends, and weather economic downturns.

Financial Leverage

Low leverage reduces financial risk and increases flexibility, allowing the company to capitalize on growth opportunities without excessive debt burden.

Operational Efficiency

Strong operational margins indicate effective cost management and operational efficiency, supporting sustained profitability and competitive positioning.

Negative Factors

Profit Margin Decline

A significant drop in gross profit margin could indicate rising costs or competitive pressures, potentially impacting long-term profitability.

Revenue Growth Pressure

While revenue growth is positive, the modest rate suggests challenges in accelerating growth, which could limit future expansion opportunities.

Earnings Decline

A decline in EPS growth reflects reduced profitability, which may hinder the company's ability to increase shareholder value and reinvest in growth.

Polar Capital Holdings Business Overview & Revenue Model

Company Description

Polar Capital Holdings plc is a publicly owned investment manager. The firm provides its services to professional and institutional investors. It launches and manages equity and balanced mutual funds. The firm also launches and manages hedge funds for its clients. The firm invests in public equity markets across the globe. The firm typically invests in companies in technology, healthcare and financial sectors. Polar Capital Holdings plc was founded in December 2000 and is based in London, United Kingdom with an additional office in Tokyo, Japan.

How the Company Makes Money

Polar Capital generates revenue primarily through management fees and performance fees charged to its investment funds. Management fees are typically assessed as a percentage of the assets under management (AUM), providing a stable income stream as long as AUM remains constant or grows. Performance fees are earned when the fund's returns exceed a predefined benchmark or hurdle rate, incentivizing the firm to achieve strong investment performance. Additionally, the company benefits from investment advisory and consulting services offered to institutional clients. Strategic partnerships with institutional investors and financial advisors also play a significant role in expanding its client base and enhancing revenue opportunities.

Polar Capital Holdings Financial Statement Overview

Summary

Polar Capital Holdings exhibits a strong financial position with effective cash flow management and low leverage. While revenue and profit margins have faced some pressure, the company maintains healthy operational margins and a solid equity base. The positive cash flow growth and efficient conversion of income into cash are notable strengths, supporting the company's ability to invest in future growth and weather potential market fluctuations.

Income Statement

Polar Capital Holdings shows a stable revenue growth rate of 4.41% in the latest year, indicating a positive trend after previous fluctuations. The gross profit margin has decreased from 88.51% to 47.76%, which is a significant drop, suggesting increased costs or pricing pressures. The net profit margin also decreased to 15.90%, reflecting reduced profitability. However, the EBIT and EBITDA margins remain healthy at 23.34% and 31.12%, respectively, indicating efficient operational management.

Balance Sheet

The company maintains a low debt-to-equity ratio of 0.046, indicating prudent financial leverage. Return on equity is strong at 26.26%, showcasing effective use of equity to generate profits. The equity ratio stands at 61.07%, reflecting a solid equity base relative to total assets, which enhances financial stability.

Cash Flow

Free cash flow growth is robust at 18.74%, indicating improved cash generation capabilities. The operating cash flow to net income ratio is 0.80, suggesting that the company efficiently converts its earnings into cash. The free cash flow to net income ratio is nearly 1, demonstrating that the company effectively translates its profits into free cash flow.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	235.30M	222.11M	197.25M	185.10M	219.42M	218.45M
Gross Profit	0.00	106.07M	174.59M	160.39M	187.52M	201.24M
EBITDA	70.96M	69.11M	58.53M	53.71M	67.70M	77.84M
Net Income	39.10M	35.31M	40.79M	35.61M	48.92M	62.72M
Balance Sheet
Total Assets	196.96M	220.13M	217.62M	241.68M	249.85M	255.73M
Cash, Cash Equivalents and Short-Term Investments	161.43M	180.53M	146.33M	190.02M	198.91M	193.87M
Total Debt	0.00	6.15M	7.51M	9.26M	3.14M	4.36M
Total Liabilities	70.74M	85.68M	81.72M	98.83M	93.61M	104.29M
Stockholders Equity	126.21M	134.44M	135.90M	142.85M	156.25M	151.44M
Cash Flow
Free Cash Flow	56.09M	63.85M	41.66M	49.21M	66.64M	91.50M
Operating Cash Flow	56.12M	64.02M	41.91M	49.70M	67.19M	91.66M
Investing Cash Flow	14.87M	3.91M	13.11M	-19.91M	-39.02M	-20.05M
Financing Cash Flow	-50.27M	-45.44M	-62.92M	-39.94M	-51.78M	-28.32M

Polar Capital Holdings Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 564.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:POLR, the sentiment is Positive. The current price of 564 is above the 20-day moving average (MA) of 541.30, above the 50-day MA of 532.91, and above the 200-day MA of 459.68, indicating a bullish trend. The MACD of 11.88 indicates Negative momentum. The RSI at 73.68 is Negative, neither overbought nor oversold. The STOCH value of 76.43 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:POLR.

Polar Capital Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
POLR	76 Outperform	£543.66M	13.93	31.19%	8.73%	7.71%	-7.39%
JUP	73 Outperform	£900.18M	15.78	7.11%	2.70%	-4.38%	―
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
ASHM	67 Neutral	£1.21B	15.00	9.75%	9.91%	-28.89%	-12.14%
LIO	64 Neutral	£156.60M	12.64	9.72%	21.31%	-15.65%	-12.27%
IPX	62 Neutral	£181.43M	9.40	16.48%	17.93%	-16.53%	-44.15%
IPO	50 Neutral	£503.55M	-4.06	-14.23%	―	―	33.10%

Polar Capital Holdings Corporate Events

Polar Capital COO Gifts 3,719 Shares to Spouse in Notified PDMR Transaction

Polar Capital Holdings has disclosed an off-market transfer of 3,719 ordinary shares in the company by its Chief Operating Officer, Nicholas Farren, to his wife, who is classified as a person closely associated, executed as a gift for nil consideration on 5 January 2026. The transaction, made in compliance with market disclosure rules for senior management dealings, does not change the overall number of shares in issue but provides transparency to investors and regulators regarding the internal shareholdings and personal estate planning of a key executive.

The most recent analyst rating on (GB:POLR) stock is a Buy with a £614.00 price target. To see the full list of analyst forecasts on Polar Capital Holdings stock, see the GB:POLR Stock Forecast page.

Polar Capital Achieves Record AuM Amidst Market Volatility

Polar Capital Holdings reported a 25% increase in Assets under Management (AuM) to £26.7 billion for the six months ending September 30, 2025, marking a new all-time high. Despite facing industry headwinds and net outflows, the company benefited from its significant technology exposure and robust market performance. The firm declared an interim dividend, reflecting confidence in its financial stability, and received industry accolades for its boutique status and sector specialization.

The most recent analyst rating on (GB:POLR) stock is a Buy with a £615.00 price target. To see the full list of analyst forecasts on Polar Capital Holdings stock, see the GB:POLR Stock Forecast page.

Polar Capital Announces Interim Results Presentation

Polar Capital Holdings plc has announced an upcoming live online presentation to discuss its interim results for the period ending 30 September 2025. The presentation, led by CEO Iain Evans and CFO Samir Ayub, is scheduled for 18 November 2025 and is open to all shareholders, offering a platform for engagement through a Q&A session. This initiative reflects Polar Capital’s commitment to transparency and stakeholder engagement, potentially enhancing its market position and investor relations.

The most recent analyst rating on (GB:POLR) stock is a Buy with a £615.00 price target. To see the full list of analyst forecasts on Polar Capital Holdings stock, see the GB:POLR Stock Forecast page.

Polar Capital’s Key Executives Exercise Share Options

Polar Capital Holdings PLC announced that its Employee Benefit Trust has transferred 7,425 ordinary shares in relation to the exercise of share options under the 2020 Sharesave Scheme by its CEO, Iain Evans, and Group Company Secretary, Tracey Lago. This transaction reflects the company’s ongoing commitment to employee incentive programs, potentially impacting its internal operations and aligning management interests with shareholder value.

The most recent analyst rating on (GB:POLR) stock is a Buy with a £625.00 price target. To see the full list of analyst forecasts on Polar Capital Holdings stock, see the GB:POLR Stock Forecast page.