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Rank Group plc (GB:RNK)
LSE:RNK

Rank Group plc (RNK) AI Stock Analysis

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Rank Group plc

(LSE:RNK)

Rating:73Outperform
Price Target:
153.00p
▲(12.50%Upside)
Rank Group plc shows a strong recovery with solid financial performance, highlighted by increased profitability and robust cash flow generation. The stock's technical indicators suggest sustained bullish momentum. Corporate events, including regulatory reform, are expected to enhance future growth. Valuation remains reasonable, albeit with a modest dividend yield.

Rank Group plc (RNK) vs. iShares MSCI United Kingdom ETF (EWC)

Rank Group plc Business Overview & Revenue Model

Company DescriptionRank Group plc (RNK) is a prominent gaming company based in the United Kingdom, specializing in the operation of casinos, bingo clubs, and online gaming platforms. With a rich heritage in the gaming and entertainment industry, Rank Group offers a diverse range of products and services under its well-known brands such as Grosvenor Casinos and Mecca Bingo. The company is dedicated to providing exceptional gaming experiences in both physical venues and digital platforms.
How the Company Makes MoneyRank Group plc generates revenue through multiple streams primarily from its land-based casino operations, bingo clubs, and digital gaming platforms. The company's casinos, operating under the Grosvenor Casinos brand, offer table games, electronic gaming, and hospitality services, thereby contributing a significant portion of its income. Mecca Bingo, another of Rank's prominent brands, offers bingo games and ancillary activities across its numerous clubs in the UK. Additionally, Rank Group has a growing online presence through its digital offerings, which include online casino games, bingo, and sports betting, accessible via websites and mobile applications. These digital platforms extend the company's reach and appeal to a broader audience beyond physical locations. Strategic partnerships and collaborations with technology providers also enhance Rank's digital capabilities, allowing the company to innovate and expand its product offerings, thereby augmenting its revenue potential.

Rank Group plc Financial Statement Overview

Summary
Rank Group plc demonstrates a strong recovery trajectory with improved profitability and revenue growth. The balance sheet reflects manageable leverage levels, and cash flows are robust, supporting operations and investments. Continued focus on operational efficiency and strategic growth initiatives could further enhance financial stability and performance.
Income Statement
72
Positive
The company exhibits a strong recovery in revenue and profitability from previous losses, with Total Revenue increasing by 7.7% from 2023 to 2024. Gross Profit Margin improved to 42.0%, and Net Profit Margin turned positive at 1.7%, indicating enhanced cost management and operational efficiency. However, the EBITDA margin remains low at 11.6%, suggesting room for further operational improvements.
Balance Sheet
65
Positive
The balance sheet indicates moderate financial leverage with a Debt-to-Equity Ratio of 0.58. The Equity Ratio remains stable at 46.3%, reflecting a solid equity base. Return on Equity improved significantly to 3.7% from negative figures, indicating better profitability. However, the overall asset base and equity have slightly decreased over recent years, which could limit long-term growth potential.
Cash Flow
68
Positive
The company shows a robust Operating Cash Flow to Net Income Ratio of 9.06, highlighting strong cash flow generation relative to net income. Free Cash Flow has grown by 184.2% from 2023 to 2024, showcasing effective capital expenditure management. However, the Free Cash Flow to Net Income Ratio of 5.32 suggests reliance on cash flow for sustaining operations and growth.
BreakdownTTMJun 2024Jun 2023Jun 2022Jun 2021Jun 2020
Income Statement
Total Revenue773.90M734.70M681.90M644.00M329.60M629.70M
Gross Profit329.60M308.90M264.30M242.20M8.60M256.50M
EBITDA101.90M80.80M-41.70M153.50M-11.60M112.30M
Net Income32.20M12.50M-96.00M64.90M-72.10M9.40M
Balance Sheet
Total Assets737.10M732.50M738.40M856.70M858.10M927.10M
Cash, Cash Equivalents and Short-Term Investments72.60M56.40M60.00M95.70M69.60M73.60M
Total Debt183.30M197.30M232.70M259.70M324.00M369.60M
Total Liabilities372.80M393.50M408.40M431.60M496.90M561.20M
Stockholders Equity364.30M339.00M329.70M425.20M361.30M366.10M
Cash Flow
Free Cash Flow47.90M66.50M23.40M113.20M-53.80M91.60M
Operating Cash Flow97.80M113.20M67.50M153.80M-31.60M142.30M
Investing Cash Flow-52.50M-47.50M-44.50M-32.40M3.00M-132.90M
Financing Cash Flow-49.00M-59.90M-60.10M-94.30M27.60M3.20M

Rank Group plc Technical Analysis

Technical Analysis Sentiment
Positive
Last Price136.00
Price Trends
50DMA
116.13
Positive
100DMA
99.75
Positive
200DMA
92.35
Positive
Market Momentum
MACD
5.07
Positive
RSI
74.61
Negative
STOCH
64.34
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 136 is above the 20-day moving average (MA) of 129.64, above the 50-day MA of 116.13, and above the 200-day MA of 92.35, indicating a bullish trend. The MACD of 5.07 indicates Positive momentum. The RSI at 74.61 is Negative, neither overbought nor oversold. The STOCH value of 64.34 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

Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
81
Outperform
£1.13B11.816.42%
74
Outperform
£399.34M14.2218.88%0.03%7.46%-18.88%
GBRNK
73
Outperform
£629.57M19.569.21%0.97%9.68%126.73%
73
Outperform
£267.29M5.9510.69%0.50%
GBENT
68
Neutral
£5.87B-23.74%1.49%6.70%53.23%
62
Neutral
$16.76B11.38-7.38%2.96%1.59%-23.30%
60
Neutral
£286.79M-379.34%2.55%-239.10%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
GB:RNK
Rank Group plc
137.40
69.64
102.77%
GB:EVOK
888 Holdings
64.80
-17.85
-21.60%
GB:PTEC
Playtech
372.50
180.67
94.18%
GB:MARS
Marston's
41.95
11.05
35.76%
GB:BOWL
Hollywood Bowl
235.50
-58.03
-19.77%
GB:ENT
Entain plc
916.40
300.85
48.87%

Rank Group plc Corporate Events

Business Operations and Strategy
Rank Group PLC Announces Change in Major Holdings
Neutral
Jul 3, 2025

Rank Group PLC announced a change in its major holdings due to an internal restructuring. GuoLine Capital Assets Limited, previously the ultimate holding company of GuoLine (Singapore) Pte Ltd, which held 4.09% voting rights in Rank Group, has reported a reduction in its voting rights. This adjustment reflects a shift in the company’s ownership structure, potentially impacting its governance and strategic decisions.

The most recent analyst rating on (GB:RNK) stock is a Buy with a £1.20 price target. To see the full list of analyst forecasts on Rank Group plc stock, see the GB:RNK Stock Forecast page.

Regulatory Filings and Compliance
Rank Group Announces Change in Major Shareholder Structure
Neutral
Jul 3, 2025

Rank Group plc has announced a change in the ultimate parent company of GuoLine (Singapore) Pte Ltd from GuoLine Capital Assets Limited to GSL Holdings Limited as of June 30, 2025. This internal restructuring requires GSL Holdings Limited to comply with the notification of major holding obligation, indicating a 4.09% voting rights position in Rank Group plc.

The most recent analyst rating on (GB:RNK) stock is a Buy with a £1.20 price target. To see the full list of analyst forecasts on Rank Group plc stock, see the GB:RNK Stock Forecast page.

Business Operations and Strategy
Rank Group Appoints Shore Capital as Joint Corporate Broker
Neutral
May 23, 2025

Rank Group Plc, a prominent entity in the gaming and entertainment industry, has announced the appointment of Shore Capital Stockbrokers Limited as its joint corporate broker. This strategic move, with Shore Capital joining existing broker Peel Hunt LLP, aims to enhance Rank’s financial advisory capabilities, potentially strengthening its market position and providing increased value to stakeholders.

The most recent analyst rating on (GB:RNK) stock is a Buy with a £1.20 price target. To see the full list of analyst forecasts on Rank Group plc stock, see the GB:RNK Stock Forecast page.

Product-Related AnnouncementsBusiness Operations and Strategy
Rank Group to Expand Gaming Machines Following Casino Reforms
Positive
May 14, 2025

The UK Government has published Statutory Instruments to reform land-based casinos, allowing an increase in gaming machines and sports betting in England and Wales. Rank Group plans to add 882 gaming machines to its Grosvenor estate, with a total potential of 3,112 machines, requiring investment over the next two to three years. The reforms are expected to improve customer experience, create jobs, and stimulate local community investments.

The most recent analyst rating on (GB:RNK) stock is a Buy with a £1.20 price target. To see the full list of analyst forecasts on Rank Group plc stock, see the GB:RNK Stock Forecast page.

Business Operations and StrategyFinancial DisclosuresRegulatory Filings and Compliance
Rank Group Reports Strong Q3 Growth Amidst Regulatory Changes
Positive
Apr 10, 2025

Rank Group plc reported a 10.9% increase in like-for-like Net Gaming Revenue (NGR) for the third quarter of 2024/25, with strong performances in both digital and venue channels. The Grosvenor brand showed significant growth, particularly in table gaming and electronic roulette, while digital NGR in the UK rose by 18.3%. Despite challenges such as economic uncertainty and regulatory changes, the company remains optimistic about future growth, with anticipated reforms in land-based casinos expected to enhance operations.

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.Date of analysis: Jul 04, 2025