Rathbones Group PLC (GB:RAT)
LSE:RAT
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Rathbones Group PLC
(LSE:RAT)
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Rating:67Neutral
Price Target:
1,758.00 p
▼(-15.68% Downside)
Action:Downgraded
Date:06/17/26
The score is driven primarily by solid financial performance (profitability improvement and low leverage) and supportive valuation (P/E ~13.2 with ~6.1% yield). These positives are tempered by very weak technicals (price below all key moving averages with bearish momentum) and lingering operational risks highlighted on the earnings call (net outflows and near-term margin/cost headwinds).
Positive Factors
Conservative balance sheet
Low leverage and a materially larger equity base provide structural financial resilience. This conservatism supports capital returns (dividends and buybacks), gives flexibility to absorb client outflows or market stress, and underpins investment for systems and M&A without over-reliance on debt.
Negative Factors
Volatile cash generation
Highly variable free cash flow reduces confidence in the firm's ability to consistently fund buybacks, dividends and systems investment from operations. Cash volatility limits strategic optionality during downturns and raises reliance on precise timing of fee crystallisation and integration receipts.
Read all positive and negative factors
Positive Factors
Negative Factors
Conservative balance sheet
Low leverage and a materially larger equity base provide structural financial resilience. This conservatism supports capital returns (dividends and buybacks), gives flexibility to absorb client outflows or market stress, and underpins investment for systems and M&A without over-reliance on debt.
Read all positive factors
Rathbones Group PLC (RAT) vs. iShares MSCI United Kingdom ETF (EWC)
Market Cap
£1.64B
Dividend Yield4.91%
Average Volume (3M)102.84K
Price to Earnings (P/E)13.2
Beta (1Y)1.29
Revenue Growth2.02%
EPS Growth69.06%
CountryUK
Employees3,545
SectorFinancial
Sector Strength70
IndustryAsset Management
Share Statistics
EPS (TTM)1.17
Shares Outstanding91,376,800
10 Day Avg. Volume139,085
30 Day Avg. Volume102,842
Financial Highlights & Ratios
PEG Ratio0.25
Price to Book (P/B)1.49
Price to Sales (P/S)1.94
P/FCF Ratio10.72
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
£1,800.00Price Target Upside-13.67% Downside
Rating ConsensusHold
Number of Analyst Covering4
EPS Forecast (FY)1.76
Revenue Forecast (FY)£947.07M
Rathbones Group PLC Business Overview & Revenue Model
Company Description
Rathbones Group Plc specializes in providing personalized investment and wealth management services through its subsidiaries. These services are extended to a diverse clientele, including private individuals, charitable organizations, trusts, and ...
How the Company Makes Money
Rathbones Group PLC primarily makes money by charging fees for managing and advising on client assets. A major revenue stream is ongoing investment management fees (typically calculated as a percentage of assets under management (AUM)) for discret...
Rathbones Group PLC Earnings Call Summary
Earnings Call Date:Feb 27, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Jul 29, 2026
Earnings Call Sentiment Positive
The results and presentation contained several clear positives: FUMA grew to GBP 115.6bn, underlying profit and EPS increased, a material buyback and dividend uplift were announced, and IW&I synergies materially exceeded targets (GBP 76m vs a GBP 60m goal). Management provided detailed margin guidance and a plan to reach a 30% underlying margin by Q4 2026, backed by a strengthened leadership team, AI adoption and system consolidation. However, there are notable near-term challenges: net outflows and tax-driven withdrawals have offset market gains, commission income is expected to normalise lower, margin pressure is anticipated in H1 2026 due to one-off system investments and inflationary staff costs, and some integration-related costs continue into 2026–27. Management’s cautious stance on not providing explicit flow targets left some investor uncertainty. Balancing the strong operational progress, synergy outperformance, capital returns and strategic initiatives against the flow volatility, near-term cost headwinds and remaining integration items, the highlights outweigh the lowlights.Positive Updates
FUMA Growth and Size
Funds under management and administration (FUMA) increased by just under 6% to GBP 115.6 billion at 31 December 2025, ending the year GBP 6.4 billion higher than it began (average fee-calculation FUMA was GBP 3.3 billion higher than 2024).
Negative Updates
Net Flows and Client Outflows Pressure
Net outflows during 2025 and specific tax-driven outflows into January 2026 tempered the benefits of market appreciation and synergies; net outflows in Q4 were GBP 64 million, and management noted flows remain a key focus area.
Read all updates
Q4-2025 Updates
Positive
Negative
FUMA Growth and Size
Funds under management and administration (FUMA) increased by just under 6% to GBP 115.6 billion at 31 December 2025, ending the year GBP 6.4 billion higher than it began (average fee-calculation FUMA was GBP 3.3 billion higher than 2024).
Read all positive updates
Company Guidance
Management guided that Rathbones is on track to hit a 30% underlying operating margin in Q4 2026 (with a 28% uplift from synergy delivery), assuming c.3% FUMA growth in 2026, stable inflation and UK base rate around 3.25% by year-end; 2025 metrics include FUMA of £115.6bn (up just under 6%), operating income +3.1%, underlying PBT +4.6% to £238.1m, statutory PBT +53.5% to £152.9m, underlying EPS +5.5% to 170.5p, an annualized synergy run‑rate of £76m (ahead of the £60m target) and an underlying margin of 25.8% for the year (H1 24.0%, H2 27.5%); guidance for 2026 assumes a £16m full‑year uplift from synergies, commission income ~5% lower, net interest broadly flat, staff costs ~£10m higher, further cost efficiencies to drive margin progress, one‑off CLM implementation costs of £9m in H1 (£7m for the year), integration costs of ~£17m in 2026 and total integration costs to remain within the original £177m guidance, while the board proposed a 99p total dividend (+6.5%) and has extended the buyback with a further £20m.Rathbones Group PLC Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
82
Very Positive
Cash Flow
58
Neutral
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 1.03B | 895.90M | 676.20M | 511.38M | 468.82M |
| Gross Profit | 862.00M | 828.50M | 646.50M | 426.21M | 435.20M |
| EBITDA | 293.20M | 268.50M | 149.90M | 117.79M | 126.31M |
| Net Income | 112.30M | 65.50M | 37.50M | 49.00M | 75.23M |
Balance Sheet | |||||
| Total Assets | 5.22B | 4.29B | 4.22B | 3.47B | 3.29B |
| Cash, Cash Equivalents and Short-Term Investments | 1.50B | 1.17B | 1.20M | 1.48B | 1.53B |
| Total Debt | 198.10M | 88.50M | 127.20M | 91.41M | 97.08M |
| Total Liabilities | 3.87B | 2.93B | 2.87B | 2.84B | 2.67B |
| Stockholders Equity | 1.35B | 1.36B | 1.35B | 634.83M | 623.28M |
Cash Flow | |||||
| Free Cash Flow | 187.40M | 237.00M | -100.10M | 84.17M | 41.03M |
| Operating Cash Flow | 196.20M | 293.60M | -89.40M | 97.30M | 53.73M |
| Investing Cash Flow | -670.20M | -38.00M | -79.90M | -293.71M | -244.44M |
| Financing Cash Flow | 783.50M | -99.30M | -100.50M | 115.53M | -212.39M |
Rathbones Group PLC Technical Analysis
Negative
2085.00
Price Trends
1951.98
Negative
2005.22
Negative
1906.72
Negative
Market Momentum
-83.31
Positive
19.24
Positive
7.21
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:RAT, the sentiment is Negative. The current price of 2085 is above the 20-day moving average (MA) of 1878.40, above the 50-day MA of 1951.98, and above the 200-day MA of 1906.72, indicating a bearish trend. The MACD of -83.31 indicates Positive momentum. The RSI at 19.24 is Positive, neither overbought nor oversold. The STOCH value of 7.21 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GB:RAT.
Rathbones Group PLC Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | £1.84B | 13.82 | 4.51% | 2.40% | 68.95% | 109.67% | |
77 Outperform | £2.36B | 19.87 | 57.35% | 2.43% | 19.27% | 40.49% | |
77 Outperform | £1.17B | 18.82 | 27.60% | 3.11% | 37.79% | 29.03% | |
74 Outperform | £2.52B | 21.62 | 8.35% | 3.40% | 71.85% | ― | |
72 Outperform | £1.30B | 11.70 | 14.60% | 9.91% | -21.74% | 58.92% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
67 Neutral | £1.64B | 13.20 | 8.33% | 4.91% | 2.02% | 69.06% |
* Financial Sector Average
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Rathbones Group PLC Corporate Events
Regulatory Filings and Compliance
Rathbones Director Buys Shares in Market-Notified Transaction
Positive
Jun 19, 2026
Rathbones Group PLC has disclosed that non-executive director Iain Cummings purchased 800 ordinary shares of 5 pence each in the company on 19 June 2026. The transaction, executed on the London Stock Exchange at a price of £16.22 per share, r...
Other
Rathbones Non-Executive Director Iain Cummings Buys Shares
Positive
Jun 18, 2026
Rathbones Group PLC disclosed that non-executive director Iain Cummings has purchased 1,282 ordinary shares of 5 pence each in the company at a price of £16.21 per share on 18 June 2026. The transaction, conducted on the London Stock Exchange...
Regulatory Filings and Compliance
Rathbones Non-Executive Director Purchases Shares in Market-Notified Deal
Positive
Jun 17, 2026
Rathbones Group PLC has disclosed a share transaction by non-executive director Terri Duhon, in line with requirements under the UK’s implementation of the EU Market Abuse Regulation. The director purchased 500 ordinary shares of 5p each in ...
Stock Buyback
Rathbones Launches £20 Million Share Buyback to Cut Share Capital
Positive
Jun 17, 2026
Rathbones Group PLC has launched a share buyback programme to repurchase up to £20 million of its ordinary shares, following prior approval granted at its May 2026 annual general meeting. Merrill Lynch International has been appointed to inde...
Other
Rathbones Chair and CEO Increase Stakes with New Share Purchases
Positive
Jun 16, 2026
Rathbones Group PLC has disclosed share purchases by its chair, Clive Bannister, and its group chief executive officer, Jonathan Sorrell, in line with UK market abuse regulations. Bannister acquired 15,300 ordinary shares at £16.38 each on 16...
Business Operations and StrategyStock BuybackDividendsFinancial DisclosuresRegulatory Filings and Compliance
Rathbones pauses some client inflows and absorbs £60m costs after FCA-driven review
Negative
Jun 16, 2026
Rathbones Group has launched a Skilled Person Review-led remediation programme after an FCA-engaged assessment found shortcomings in how its UK wealth management arm has implemented Consumer Duty and in aspects of compliance, oversight and assuran...
Business Operations and StrategyExecutive/Board Changes
Rathbones Strengthens Board With Two New Independent Non-Executive Directors
Positive
Jun 16, 2026
Rathbones Group PLC has appointed Angela Seymour-Jackson and Kathryn Purves as independent non-executive directors to the group and its main subsidiary, effective 1 October 2026 and 1 July 2026 respectively, subject to regulatory approval. Both wi...
Business Operations and StrategyStock BuybackDividendsFinancial DisclosuresRegulatory Filings and Compliance
Rathbones pauses some EDD client inflows as FCA review drives £60m overhaul
Negative
Jun 16, 2026
Rathbones Group has completed a Skilled Person Review with the UK Financial Conduct Authority that highlighted weaknesses in how Consumer Duty has been embedded in its UK wealth management arm, alongside gaps in compliance, oversight and assurance...
Executive/Board Changes
Rathbones CEO and CFO Increase Stakes via Share Incentive Plan
Positive
Jun 5, 2026
Rathbones Group PLC has disclosed that its Group Chief Executive Officer, Jonathan Sorrell, and Group Chief Financial Officer, Iain Hooley, have each acquired ordinary shares under the company’s Inland Revenue Approved Share Incentive Plan. ...
Regulatory Filings and Compliance
Rathbones Confirms Total Voting Rights and Share Capital Structure
Neutral
Jun 1, 2026
Rathbones Group PLC has confirmed that, as of 31 May 2026, its issued share capital comprises 91,376,799 ordinary shares with voting rights and 17,481,868 convertible non-voting ordinary shares, with no shares held in treasury. This disclosure set...
DividendsRegulatory Filings and Compliance
Rathbones Director Reinvests Dividend in Additional Company Shares
Positive
May 20, 2026
Rathbones Group PLC has disclosed that non-executive director Iain Cummings acquired 97 ordinary shares in the company through the reinvestment of the group’s 2025 final dividend. The transaction, executed on 18 May 2026 at a price of £...
DividendsRegulatory Filings and Compliance
Rathbones discloses CEO and CFO dividend reinvestment into company shares
Neutral
May 14, 2026
Rathbones Group PLC has disclosed routine share transactions by its top executives under regulatory market abuse rules, detailing the reinvestment of the company’s 2025 final dividend into ordinary shares via an Inland Revenue Approved Share...
Regulatory Filings and Compliance
Rathbones Executives Increase Holdings Through Share Incentive Plan
Neutral
May 8, 2026
Rathbones Group PLC has reported routine share transactions by senior executives under its Inland Revenue Approved Share Incentive Plan, highlighting continued participation in the company’s equity schemes. The group’s CEO, Jonathan So...
Business Operations and StrategyStock BuybackDividendsShareholder Meetings
Rathbones AGM Backs Dividend and Board, But Rejects Pre-Emption Waivers
Neutral
May 7, 2026
Rathbones Group PLC reported that shareholders approved the majority of resolutions at its 55th annual general meeting, including the adoption of 2025 financial statements, the directors’ remuneration report, a 68p final dividend, all direct...
Business Operations and StrategyFinancial Disclosures
Rathbones lifts Q1 income despite continued client outflows
Neutral
May 7, 2026
Rathbones Group PLC reported a 9.4% rise in first-quarter operating income to £240.7 million, driven by higher fees, commissions and net interest income amid improved market levels compared with a year earlier. Funds under management and admi...
Regulatory Filings and Compliance
Rathbones Confirms Total Voting Rights and Share Capital Structure
Neutral
May 1, 2026
Rathbones Group PLC has confirmed that, as of 30 April 2026, its issued share capital comprises 91,292,579 ordinary shares with voting rights and 17,481,868 convertible non-voting ordinary shares, with no shares held in treasury. The announcement ...
Executive/Board ChangesRegulatory Filings and Compliance
Rathbones Executives Receive Shares Under Incentive Schemes
Neutral
Apr 8, 2026
Rathbones Group Plc has disclosed a series of share transactions involving its top executives, in line with EU Market Abuse Regulation reporting requirements. The Group Chief Executive Officer, Jonathan Sorrell, and Group Chief Financial Officer, ...
Financial DisclosuresRegulatory Filings and ComplianceShareholder Meetings
Rathbones files 2025 annual report and sets hybrid AGM for May 2026
Neutral
Apr 2, 2026
Rathbones Group Plc has published its Annual Report and Accounts for the year ended 31 December 2025 and the Notice of its 2026 Annual General Meeting, making both documents available on its website and through the UK Financial Conduct Authority&#...
Regulatory Filings and Compliance
Rathbones Confirms Voting Share Capital and Total Voting Rights
Neutral
Apr 1, 2026
Rathbones Group PLC has reported its current share capital structure as at 31 March 2026, confirming it has 90,973,813 ordinary shares with voting rights and 17,481,868 convertible non-voting ordinary shares in issue. The company also stated it ho...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.