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Rank Group plc
(LSE:RNK)
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Rating:68Neutral
Price Target:
115.00 p
▲(22.08% Upside)
Action:Reiterated
Date:08/17/26
The score is driven primarily by improving financial performance with strong cash generation but still-thin margins and some recent earnings/FCF softness. Technicals are supportive with the stock above major moving averages and positive momentum. Valuation looks reasonable with a moderate P/E and a solid dividend, while earnings-call guidance is net positive but tempered by a significant FY27 tax headwind (Remote Gaming Duty) and ongoing cost/regulatory risks.
Positive Factors
Revenue and Operating Profit Growth
Broad-based revenue growth and stronger operating leverage indicate improving execution across the estate. Sustained margin expansion could support higher returns and progress toward management’s medium-term £100m operating-profit ambition.
Negative Factors
Remote Gaming Duty Headwind
The higher tax rate structurally reduces digital economics rather than creating a temporary cost spike. Even after mitigation, the expected profit impact could constrain digital reinvestment, margins and the pace of earnings growth.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue and Operating Profit Growth
Broad-based revenue growth and stronger operating leverage indicate improving execution across the estate. Sustained margin expansion could support higher returns and progress toward management’s medium-term £100m operating-profit ambition.
Read all positive factors
Rank Group plc (RNK) vs. iShares MSCI United Kingdom ETF (EWC)
Market Cap
£504.97M
Dividend Yield2.69%
Average Volume (3M)598.70K
Price to Earnings (P/E)17.2
Beta (1Y)0.62
Revenue Growth4.98%
EPS Growth-32.67%
CountryUK
Employees7,700
SectorConsumer Cyclical
Sector Strength84
IndustryGambling, Resorts & Casinos
Share Statistics
EPS (TTM)0.06
Shares Outstanding468,429,530
10 Day Avg. Volume453,058
30 Day Avg. Volume598,695
Financial Highlights & Ratios
PEG Ratio-0.46
Price to Book (P/B)1.17
Price to Sales (P/S)0.54
P/FCF Ratio6.33
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
£147.00Price Target Upside56.05% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)0.09
Revenue Forecast (FY)£879.37M
Rank Group plc Business Overview & Revenue Model
Company Description
Established in 1937 and headquartered in Maidenhead, United Kingdom, The Rank Group Plc, a subsidiary of Guoco Group Limited, delivers a broad spectrum of gaming services. Its operations span Great Britain, Spain, Belgium, and India, organized int...
How the Company Makes Money
Rank Group primarily makes money from gambling and related leisure spend across two main channels: (1) Venues: Revenue is generated from customer wagering and gaming yield on casino table games and gaming machines in its casino estate (e.g., Grosv...
Rank Group plc Earnings Call Summary
Earnings Call Date:Aug 13, 2026
(Q4-2026)
| % Change Since: |
Next Earnings Date:Jan 28, 2027
Earnings Call Sentiment Positive
Overall the call presented a predominantly positive operational and financial picture: revenue and operating profit grew (NGR +6%, operating profit +21%), margins expanded, digital and machine-led venue growth showed strong momentum, and management outlined clear strategic initiatives (estate segmentation, smaller-format casinos, international expansion). However, material headwinds remain — chiefly the 40% Remote Gaming Duty which resets digital profitability, one-off restructuring/exceptional costs (venue closures and regulatory items), wage inflation and regulatory uncertainty around Machine Gaming Duty. Management communicated credible mitigation actions, a disciplined capital plan (FY27 CapEx ~GBP 40m), refinancing success and a path toward the GBP 100m operating profit ambition, which leads to a net positive outlook despite the near-term taxation and restructuring challenges.Positive Updates
Revenue Growth
Like-for-like net gaming revenue up 6% to GBP 834m for the year, with growth across all businesses.
Negative Updates
Remote Gaming Duty (RGD) Headwind
RGD increase to 40% resulted in an initial quarter impact of GBP 10.1m. Management estimates an additional RGD hit of c. GBP 35m for next year, of which they expect to mitigate around GBP 20m, leaving roughly a GBP 15m reduction in profitability if assumptions hold.
Read all updates
Q4-2026 Updates
Positive
Negative
Revenue Growth
Like-for-like net gaming revenue up 6% to GBP 834m for the year, with growth across all businesses.
Read all positive updates
Company Guidance
Management guided that FY26 delivered like‑for‑like net gaming revenue +6% to £834m, operating profit £78.6m (+21% from £64.8m) and an operating margin rising to 9.4% (from 8.1%), with ROCE up from 4% three years ago to >18%; FY26 CapEx was £50.2m (FY25 £58.5m) with FY27 CapEx guided at c.£40m, net free cash flow £25.5m, lease payments £48.3m, interest & tax £8.6m, working capital inflow £4.6m, year‑end net cash £56.8m (accounting net debt £147.2m including IFRS16 £204m) and a new 4‑year £120m RCF; digital revenue grew 8% for the year and 12% in Q4 (current trading digital +10%), but Remote Gaming Duty to 40% cost c.£10.1m in FY26 and is expected to add ~£35m in FY27 (management expects to mitigate ~£20m, leaving ~£15m of profit headwind); venue actions included adding ~850 machines (+65%) with capacity for ~650 more (additional 650 ≈ £25–27m CapEx), slots ≈44% of group revenue, electronic terminals ≈16% of Grosvenor revenue and tablet play ≈80% of Mecca bingo revenue; the board proposed a final dividend 2.5p (total 3.5p, ~35% YoY increase, ~33% payout ratio) and reiterated a medium‑term ambition to deliver at least £100m operating profit.Rank Group plc Financial Statement Overview
Summary
Income Statement
62
Positive
Balance Sheet
60
Neutral
Cash Flow
67
Positive
| Breakdown | Jun 2026 | Jun 2025 | Jun 2024 | Jun 2022 | Jun 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 835.00M | 795.40M | 734.70M | 681.90M | 644.00M |
| Gross Profit | 359.20M | 343.30M | 308.90M | 264.30M | 242.20M |
| EBITDA | 138.30M | 122.40M | 80.80M | -41.70M | 153.50M |
| Net Income | 29.90M | 44.60M | 12.50M | -96.00M | 64.90M |
Balance Sheet | |||||
| Total Assets | 833.80M | 789.50M | 732.50M | 738.40M | 856.70M |
| Cash, Cash Equivalents and Short-Term Investments | 86.80M | 64.00M | 56.40M | 60.00M | 95.70M |
| Total Debt | 234.00M | 205.70M | 197.30M | 232.70M | 259.70M |
| Total Liabilities | 449.10M | 410.80M | 393.50M | 408.40M | 431.60M |
| Stockholders Equity | 384.70M | 378.70M | 339.00M | 329.70M | 425.20M |
Cash Flow | |||||
| Free Cash Flow | 71.10M | 67.40M | 66.50M | 23.40M | 113.20M |
| Operating Cash Flow | 111.80M | 125.90M | 113.20M | 67.50M | 153.80M |
| Investing Cash Flow | -48.40M | -54.70M | -47.50M | -44.50M | -32.40M |
| Financing Cash Flow | -52.00M | -58.20M | -59.90M | -60.10M | -94.30M |
Rank Group plc Technical Analysis
Positive
94.20
Price Trends
98.78
Positive
98.24
Positive
98.13
Positive
Market Momentum
2.75
Negative
67.50
Neutral
71.54
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:RNK, the sentiment is Positive. The current price of 94.2 is below the 20-day moving average (MA) of 101.65, below the 50-day MA of 98.78, and below the 200-day MA of 98.13, indicating a bullish trend. The MACD of 2.75 indicates Negative momentum. The RSI at 67.50 is Neutral, neither overbought nor oversold. The STOCH value of 71.54 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:RNK.
Rank Group plc Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | £82.47M | 14.98 | 15.38% | ― | 10.22% | -32.00% | |
68 Neutral | £504.97M | 17.16 | 9.03% | 3.13% | 4.98% | -32.67% | |
63 Neutral | £13.22M | 38.91 | 5.70% | ― | ― | ― | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
56 Neutral | £3.48B | -5.93 | -57.07% | 3.54% | 0.26% | -13.90% | |
54 Neutral | £1.11B | -8.02 | 99.57% | ― | ― | ― | |
51 Neutral | £197.84M | -0.37 | 76.91% | ― | 0.07% | -388.74% |
* Consumer Cyclical Sector Average
GB:RNK
Rank Group plc
109.80
-22.77
-17.18%
GB:GMR
Gaming Realms
30.10
-19.20
-38.95%
GB:B90
B90 Holdings
3.00
0.00
0.00%
GB:ENT
Entain plc
536.80
-309.33
-36.56%
GB:PTEC
Playtech
391.60
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-6.87%
GB:EVOK
888 Holdings
44.90
-13.90
-23.64%
Rank Group plc Corporate Events
Business Operations and StrategyDividendsFinancial DisclosuresPrivate Placements and Financing
Rank Group lifts underlying profits and dividend amid tax and regulatory pressures
Positive
Aug 13, 2026
Rank Group reported like-for-like net gaming revenue of £834.1m for the year to 30 June 2026, up 6% with all businesses growing for a fifth consecutive year and strong gaming machine performance driving returns on recent capital investment. U...
Business Operations and StrategyExecutive/Board ChangesShareholder Meetings
Rank Group reshapes board roles as Lucinda Charles-Jones plans October exit
Neutral
Aug 13, 2026
The Rank Group Plc has announced that Non-Executive Director and Remuneration Committee Chair Lucinda Charles-Jones will not seek re-election at the October AGM and will leave the board on 8 October 2026. Her tenure since 2022 coincided with impro...
Executive/Board Changes
Rank Group announces board changes as Senior Independent Director to step down
Neutral
Jul 24, 2026
Rank Group plc has announced a forthcoming change to its board, with Senior Independent Director Karen Whitworth set to step down after the year-end results, effective 31 August 2026. Whitworth, who joined the board in 2019 and played a key role i...
Business Operations and StrategyFinancial DisclosuresRegulatory Filings and Compliance
Rank Group lifts profit outlook as digital and gaming machines drive growth
Positive
Jul 14, 2026
Rank Group posted a 6% rise in like-for-like net gaming revenue to about £834.1m for the year to 30 June 2026 and now expects underlying operating profit of at least £76m, ahead of consensus. Growth was driven by a strong Q4 performance ...
Business Operations and StrategyExecutive/Board Changes
Rank Group Confirms Richard Harris as Permanent CEO to Drive Next Growth Phase
Positive
Jul 13, 2026
The Rank Group plc has confirmed the permanent appointment of Richard Harris as chief executive officer, following his six-month tenure as interim CEO and prior service as chief financial officer since May 2022. His selection, made after an extens...
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.