Rank Group plc (RNK) AI Stock Analysis

• Market Cap: £588.35M
• Dividend Yield: 1.03%
• Average Volume (3M): 777.18K
• Price to Earnings (P/E): 18.3
• Beta (1Y): 0.86
• Revenue Growth: 9.68%
• EPS Growth: 126.73%
• Country: UK
• Employees: 7,600
• Sector: Consumer Cyclical
• Sector Strength: 59
• Industry: Gambling, Resorts & Casinos
• EPS (TTM): 0.07
• Shares Outstanding: 468,429,530
• 10 Day Avg. Volume: 450,865
• 30 Day Avg. Volume: 777,179
• PEG Ratio: 0.02
• Price to Book (P/B): 1.26
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 17.70
• 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: £127.00
• Price Target Upside: 1.11% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 72 Outperform
• Price Target: 138.00p ▲(9.87%Upside)

Rank Group plc shows a positive financial recovery with strong cash flow and manageable leverage. The technical indicators reflect upward momentum, though caution is warranted due to nearing overbought conditions. Corporate events highlight strategic growth opportunities and regulatory adaptability, enhancing the company's future prospects. Valuation appears fair, though dividend income is limited.

Rank Group plc Business Overview & Revenue Model

Company Description

Rank 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 Money

Rank 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

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

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

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.

Breakdown
TTM	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement		Total Revenue
773.90M	734.70M	681.90M	644.00M	329.60M	629.70M
	Gross Profit
329.60M	308.90M	264.30M	242.20M	8.60M	256.50M
	EBIT
48.50M	29.40M	8.60M	110.70M	-149.40M	300.00K
	EBITDA
101.90M	80.80M	-41.70M	153.50M	-11.60M	112.30M
	Net Income Common Stockholders
32.20M	12.50M	-96.00M	64.90M	-72.10M	9.40M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
72.60M	56.40M	60.00M	95.70M	69.60M	73.60M
	Total Assets
737.10M	732.50M	738.40M	856.70M	858.10M	927.10M
	Total Debt
183.30M	197.30M	232.70M	259.70M	324.00M	369.60M
	Net Debt
115.10M	140.90M	172.70M	164.00M	254.40M	296.00M
	Total Liabilities
372.80M	393.50M	408.40M	431.60M	496.90M	561.20M
	Stockholders Equity
364.30M	339.00M	329.70M	425.20M	361.30M	366.10M
Cash Flow		Free Cash Flow
47.90M	66.50M	23.40M	113.20M	-53.80M	91.60M
	Operating Cash Flow
97.80M	113.20M	67.50M	153.80M	-31.60M	142.30M
	Investing Cash Flow
-52.50M	-47.50M	-44.50M	-32.40M	3.00M	-132.90M
	Financing Cash Flow
-49.00M	-59.90M	-60.10M	-94.30M	27.60M	3.20M

Rank Group plc Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 125.60
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: 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 125.6 is above the 20-day moving average (MA) of 123.41, above the 50-day MA of 100.59, and above the 200-day MA of 87.94, indicating a bullish trend. The MACD of 7.08 indicates Positive momentum. The RSI at 68.55 is Neutral, neither overbought nor oversold. The STOCH value of 30.15 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BOWL	74 Outperform	£439.86M	15.66	18.88%	4.63%	7.46%	-18.88%
RNK	72 Outperform	£588.35M	18.28	9.21%	1.03%	9.68%	126.73%
PTEC	71 Outperform	£967.40M	10.02	6.42%	―	3.75%	―
MARS	67 Neutral	£265.71M	5.97	10.69%	―	0.50%	―
Sector *	63 Neutral	$6.98B	11.41	2.80%	4.24%	2.68%	-24.94%
ENT	57 Neutral	£4.82B	―	-23.74%	2.47%	6.70%	53.23%
EVOK	49 Neutral	£225.84M	―	-379.34%	―	2.55%	-239.10%

Rank Group plc Corporate Events

Rank Group Appoints Shore Capital as Joint Corporate Broker

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.

Rank Group to Expand Gaming Machines Following Casino Reforms

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.

Rank Group Reports Strong Q3 Growth Amidst Regulatory Changes

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.