Rank Group plc (RNK) AI Stock Analysis

• Market Cap: £730.75M
• Dividend Yield: 94.94%
• Average Volume (3M): 663.74K
• Price to Earnings (P/E): 22.7
• Beta (1Y): 0.93
• Revenue Growth: 9.68%
• EPS Growth: 126.73%
• Country: UK
• Employees: 7,600
• Sector: Consumer Cyclical
• Sector Strength: 71
• Industry: Gambling, Resorts & Casinos
• EPS (TTM): 0.05
• Shares Outstanding: 468,429,530
• 10 Day Avg. Volume: 1,361,613
• 30 Day Avg. Volume: 663,741
• PEG Ratio: 0.13
• Price to Book (P/B): 1.83
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 13.93
• 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: £157.00
• Price Target Upside: 0.64% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 72 Outperform
• Price Target: 174.00p ▲(11.54%Upside)

Rank Group shows strong bullish momentum and strategic growth potential, highlighted by recent corporate events and solid financial recovery. While technical indicators signal overbought conditions, the stock's reasonable valuation and positive outlook suggest potential for further gains.

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	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement
Total Revenue	734.70M	681.90M	644.00M	329.60M	629.70M
Gross Profit	308.90M	264.30M	242.20M	8.60M	256.50M
EBITDA	80.80M	-41.70M	153.50M	-11.60M	112.30M
Net Income	12.50M	-96.00M	64.90M	-72.10M	9.40M
Balance Sheet
Total Assets	732.50M	738.40M	856.70M	858.10M	927.10M
Cash, Cash Equivalents and Short-Term Investments	56.40M	60.00M	95.70M	69.60M	73.60M
Total Debt	197.30M	232.70M	259.70M	324.00M	369.60M
Total Liabilities	393.50M	408.40M	431.60M	496.90M	561.20M
Stockholders Equity	339.00M	329.70M	425.20M	361.30M	366.10M
Cash Flow
Free Cash Flow	66.50M	23.40M	113.20M	-53.80M	91.60M
Operating Cash Flow	113.20M	67.50M	153.80M	-31.60M	142.30M
Investing Cash Flow	-47.50M	-44.50M	-32.40M	3.00M	-132.90M
Financing Cash Flow	-59.90M	-60.10M	-94.30M	27.60M	3.20M

Rank Group plc Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 156.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

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 156 is above the 20-day moving average (MA) of 141.87, above the 50-day MA of 131.80, and above the 200-day MA of 96.61, indicating a bullish trend. The MACD of 7.21 indicates Negative momentum. The RSI at 84.20 is Negative, neither overbought nor oversold. The STOCH value of 91.16 is Negative, 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
PTEC	81 Outperform	£1.19B	12.35	6.42%	―	―	―
MARS	74 Outperform	£273.62M	6.19	10.69%	―	0.50%	―
BOWL	72 Outperform	£417.56M	14.91	18.88%	491.13%	7.46%	-18.88%
RNK	72 Outperform	£730.75M	22.71	9.21%	94.94%	9.68%	126.73%
ENT	66 Neutral	£6.34B	―	-23.74%	138.37%	6.70%	53.23%
Sector *	64 Neutral	£1.74B	10.38	6.12%	253.66%	0.55%	-33.66%
EVOK	59 Neutral	£311.43M	―	-379.34%	―	2.55%	-239.10%

Rank Group plc Corporate Events

Rank Group Reports Strong Financial Performance and Strategic Expansion Plans

Rank Group plc has reported a strong financial performance for the year ending 30 June 2025, with an 11% increase in like-for-like Net Gaming Revenue, reaching approximately £795 million. The company expects its full-year underlying operating profit to be at least £63 million, surpassing expectations. Despite facing cost and regulatory challenges, Rank has maintained earnings growth, particularly in the fourth quarter. With new land-based casino reforms becoming law on 22 July, Rank plans to secure license variations to expand its gaming machine offerings across its Grosvenor estate, indicating a strategic move to enhance customer satisfaction and market positioning.

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 PLC Announces Change in Major Holdings

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.

Rank Group Announces Change in Major Shareholder Structure

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.

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.