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St. James's Place PLC (GB:STJ)
LSE:STJ

St. James's Place (STJ) AI Stock Analysis

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St. James's Place

(LSE:STJ)

64Neutral
St. James's Place exhibits a robust balance sheet and revenue growth, but struggles with profitability and cash flow efficiency. Technical indicators show some positive momentum, and the valuation is reasonable. The earnings call provided a positive outlook with strong business performance and strategic initiatives, outweighing the anticipated short-term profitability dip.

St. James's Place (STJ) vs. S&P 500 (SPY)

St. James's Place Business Overview & Revenue Model

Company DescriptionSt. James's Place (STJ) is a leading UK-based wealth management company. It specializes in providing personalized financial solutions to individuals, trustees, and businesses, focusing on investment planning, retirement planning, and tax and estate planning. With a strong emphasis on long-term relationships, STJ offers a range of financial products and services through its extensive network of advisers.
How the Company Makes MoneySt. James's Place makes money primarily through the management of client funds and the provision of financial advice. The company charges fees based on the value of the assets under management (AUM), which include initial charges, annual management fees, and other advisory fees. Revenue is also generated from the performance of investment funds managed by the company. STJ benefits from its extensive network of independent advisers and partnerships, which help in acquiring new clients and expanding its AUM. Additionally, the company earns from offering various insurance and banking services. The long-term relationships and trust built with clients contribute significantly to its earnings by ensuring consistent inflow and retention of client assets.

St. James's Place Financial Statement Overview

Summary
St. James's Place shows a mixed financial picture with revenue growth and low debt levels, indicating stability. However, there are challenges with profitability and cash flow conversion, which need improvement for sustained success.
Income Statement
60
Neutral
St. James's Place shows a volatile revenue trajectory with significant fluctuations. Revenue grew significantly in 2024, but the net profit margin remains low due to a substantial drop in EBIT and EBITDA margins. The company has moved to a positive net income in 2024, indicating some recovery. Overall, the income statement reflects moderate performance with some room for improvement in profitability and cost management.
Balance Sheet
75
Positive
The balance sheet is relatively strong, with low debt levels leading to a low debt-to-equity ratio, which suggests good financial stability. The equity ratio is modest, but there has been noticeable growth in stockholders' equity over time. This indicates financial resilience, although the overall leverage remains a consideration.
Cash Flow
50
Neutral
The cash flow statements reveal challenges, with negative operating and free cash flow in 2024, impacting liquidity. The operating cash flow to net income ratio is unfavorable, indicating inefficiencies in converting income into cash. Despite these challenges, previous years showed better cash flow dynamics, suggesting potential recovery capabilities.
Breakdown
TTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
26.83B25.86B18.89B-7.48B17.76B8.08B
Gross Profit
3.16B25.86B2.72B-21.25B2.50B2.13B
EBIT
590.40M0.00408.10M700.00K854.20M426.40M
EBITDA
601.60M0.00496.30M49.40M890.10M457.90M
Net Income Common Stockholders
-6.60M398.40M-10.10M406.80M286.70M262.00M
Balance SheetCash, Cash Equivalents and Short-Term Investments
6.95B5.66B285.40M6.43B7.83B6.72B
Total Assets
94.83B194.88B172.29B151.64B155.65B129.79B
Total Debt
348.60M624.00M371.90M280.40M557.10M474.60M
Net Debt
-6.53B-5.04B86.50M27.10M311.40M219.70M
Total Liabilities
93.81B193.60B171.31B150.38B154.53B128.68B
Stockholders Equity
1.02B1.27B983.40M1.26B1.12B1.11B
Cash FlowFree Cash Flow
-319.50M-664.40M-3.50M-1.07B1.41B-150.90M
Operating Cash Flow
-305.10M-655.70M18.60M-1.05B1.43B-124.10M
Investing Cash Flow
-27.20M-17.00M-35.20M232.50M-25.10M-49.20M
Financing Cash Flow
155.60M132.30M-209.50M-580.50M-231.60M-179.80M

St. James's Place Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price1010.00
Price Trends
50DMA
996.61
Negative
100DMA
924.63
Positive
200DMA
783.52
Positive
Market Momentum
MACD
-0.57
Positive
RSI
38.37
Neutral
STOCH
10.46
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:STJ, the sentiment is Neutral. The current price of 1010 is below the 20-day moving average (MA) of 1084.95, above the 50-day MA of 996.61, and above the 200-day MA of 783.52, indicating a neutral trend. The MACD of -0.57 indicates Positive momentum. The RSI at 38.37 is Neutral, neither overbought nor oversold. The STOCH value of 10.46 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for GB:STJ.

St. James's Place Peers Comparison

Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
GBAV
81
Outperform
£14.21B11.0812.91%6.39%202.78%
GBSTJ
64
Neutral
£5.61B14.2435.30%1.35%36.14%
64
Neutral
$13.80B10.649.23%4.22%17.66%-7.66%
* Financial Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
GB:STJ
St. James's Place
988.00
552.22
126.72%
GB:AV
Aviva plc
527.20
87.34
19.86%

St. James's Place Earnings Call Summary

Earnings Call Date: Feb 27, 2025 | % Change Since: -10.70% | Next Earnings Date: Jul 31, 2025
Earnings Call Sentiment Positive
The call highlighted SJP's strong financial performance, growth in client base and funds under management, and effective cost management. However, challenges such as deferred costs, a potential dip in profitability, and adviser headcount adjustments were noted. Overall, the positive achievements outweigh the noted challenges.
Highlights
Strong New Business Performance
In 2024, SJP grew its client base and secured GBP 18.4 billion of new investments, which is 20% higher than in 2023, despite a challenging environment.
Record Funds Under Management
SJP achieved a 13% increase in funds under management, reaching a record GBP 190 billion by the end of 2024.
Positive Financial Outcomes
The company delivered an underlying post-tax cash result of GBP 447 million, marking a 14% increase from 2023.
Polaris Fund Performance
The Polaris fund range outperformed respective IA peer groups, with Polaris 3 being the largest fund in the UK.
Efficient Cost Management
Controllable expenses increased by only 3% year-on-year, showcasing effective cost management.
Robust Balance Sheet
SJP's solvency ratio for life companies was 154%, reflecting financial strength and resilience.
Lowlights
Deferred Costs for New Charging Structure
Implementation costs for the new charging structure were deferred into 2025, with the overall cost expected to be at the upper end of the GBP 140-160 million range.
Anticipated Profitability Dip
A temporary dip in profitability is expected in 2025 and 2026 due to the transition to the new charging structure.
Adviser Headcount Challenges
There might be a marginal decline in adviser headcount in 2025 as productivity improvements are addressed.
Company Guidance
During the call, St. James's Place (SJP) reported strong financial and business performance for 2024, marking a 14% increase in their underlying post-tax cash result to GBP 447 million, despite incurring almost GBP 60 million in short-term implementation costs for a new charging structure. The company saw a 20% increase in new investments, reaching GBP 18.4 billion, and achieved annual net inflows of GBP 4.3 billion. Investment gains amounted to GBP 17.7 billion, contributing to a 13% rise in funds under management, totaling a record GBP 190 billion. The solvency ratio for SJP's life companies stood at 154%. Additionally, the company is on track to implement a new charging model by the second half of 2025, aiming to provide greater transparency for clients. SJP also focused on enhancing client service infrastructure, boosting operational efficiency, and maintaining high client retention. The Polaris fund range, with over GBP 60 billion in investments, outperformed its peer groups. The company remains the largest recruiter in the financial advice industry with a 34% female representation in its Academy, and it plans to continue investing in strategic initiatives to drive future growth.

St. James's Place Corporate Events

Stock Buyback
St. James’s Place PLC Executes Share Buyback to Optimize Capital Structure
Neutral
Mar 12, 2025

St. James’s Place PLC announced the repurchase of 188,000 of its ordinary shares on the London Stock Exchange, with plans to cancel these shares. This move, conducted under shareholder authority, reduces the total number of shares in circulation to 542,639,012, impacting shareholder calculations under the Disclosure and Transparency Rules.

Stock BuybackBusiness Operations and Strategy
St. James’s Place Announces Share Repurchase and Cancellation
Positive
Mar 11, 2025

St. James’s Place plc announced the repurchase of 184,000 of its ordinary shares at an average price of 1,020.9391 pence per share on the London Stock Exchange. The company plans to cancel these shares, reducing the total number of shares in issue to 542,827,012. This move is part of the company’s strategy to manage its capital structure and potentially enhance shareholder value.

Stock BuybackBusiness Operations and Strategy
St. James’s Place Announces Share Repurchase and Cancellation
Neutral
Mar 10, 2025

St. James’s Place PLC has repurchased 177,423 of its ordinary shares on the London Stock Exchange, with the intention to cancel them. This move, executed through J.P. Morgan Securities plc, is part of a strategy to manage its share capital, potentially enhancing shareholder value by reducing the number of shares in circulation. Following this transaction, the total number of shares in issue will be 543,011,012, which stakeholders can use for calculating their interests under the Disclosure and Transparency Rules.

Stock Buyback
St. James’s Place Executes Share Repurchase and Cancellation
Neutral
Mar 6, 2025

St. James’s Place announced the repurchase of 179,000 of its own ordinary shares on the London Stock Exchange, with plans to cancel these shares. This move, executed under the authority granted by shareholders, will reduce the total number of shares in circulation to 543,364,212, potentially impacting shareholder calculations and the company’s market positioning.

Stock Buyback
St. James’s Place PLC Announces Share Buyback and Cancellation
Neutral
Mar 5, 2025

St. James’s Place PLC announced the repurchase of 168,984 of its ordinary shares on the London Stock Exchange, with plans to cancel these shares. This move, authorized by shareholders, reduces the total number of shares in circulation to 543,543,212, potentially impacting shareholder calculations under the Disclosure and Transparency Rules.

Stock Buyback
St. James’s Place Announces Share Repurchase and Cancellation
Neutral
Mar 4, 2025

St. James’s Place plc announced the repurchase of 158,000 of its ordinary shares on the London Stock Exchange, with plans to cancel these shares. This move, conducted under shareholder authority from the 2024 Annual General Meeting, will reduce the total number of shares in issue to 543,712,196, potentially impacting shareholder calculations under the Disclosure and Transparency Rules.

Regulatory Filings and Compliance
St. James’s Place Announces Total Voting Rights and Capital Structure
Neutral
Mar 3, 2025

St. James’s Place plc announced its total voting rights and capital structure, revealing an issued share capital of 544,024,461 ordinary shares with voting rights as of February 28, 2025. This information is crucial for shareholders to determine their notification obligations under the FCA’s Disclosure Guidance and Transparency Rules, impacting how they manage their interests in the company.

Stock BuybackBusiness Operations and Strategy
St. James’s Place Announces Share Repurchase and Cancellation
Neutral
Mar 3, 2025

St. James’s Place plc has announced the repurchase of 154,265 of its own ordinary shares on the London Stock Exchange, with prices ranging from 1,055 to 1,089 pence per share. This move, made under the authority granted by shareholders at the 2024 Annual General Meeting, will result in the cancellation of the repurchased shares, leaving 543,870,196 shares in issue. The cancellation of shares is part of the company’s strategy to manage its share capital and potentially enhance shareholder value.

Business Operations and StrategyRegulatory Filings and Compliance
BlackRock Adjusts Stake in St. James’s Place PLC
Neutral
Feb 28, 2025

St. James’s Place PLC, a UK-based company, has reported a change in the voting rights held by BlackRock, Inc., a major shareholder. As of February 27, 2025, BlackRock’s total voting rights have decreased slightly from 6.78% to 6.67%, indicating a minor adjustment in their stake in the company. This change in voting rights could have implications for the company’s governance and decision-making processes, potentially affecting its strategic direction and stakeholder interests.

Stock Buyback
St. James’s Place Initiates £92.6 Million Share Buy-Back Programme
Neutral
Feb 28, 2025

St. James’s Place plc has announced a share buy-back programme with a maximum consideration of £92.6 million, commencing on 28 February 2025 and concluding by 30 June 2025. The programme aims to reduce the company’s capital and will be executed through an agreement with J.P. Morgan Securities plc, adhering to UK Financial Conduct Authority’s rules and the company’s shareholder-approved buy-back authority.

Stock Buyback
St. James’s Place Launches £92.6 Million Share Buy-Back Programme
Neutral
Feb 28, 2025

St. James’s Place plc has announced the initiation of a share buy-back programme, with a maximum consideration of £92.6 million, starting on 28 February 2025 and concluding by 30 June 2025. The programme aims to reduce the company’s capital and will be conducted through an agreement with J.P. Morgan Securities plc, adhering to UK Financial Conduct Authority’s regulations.

Stock BuybackDividendsBusiness Operations and StrategyFinancial Disclosures
St. James’s Place Reports Strong 2024 Financial Performance and Strategic Progress
Positive
Feb 27, 2025

St. James’s Place plc reported a robust financial performance for 2024, highlighted by a 14% increase in the underlying cash result to £447.2 million, despite costs associated with implementing a new charging structure. The company achieved record funds under management of £190.2 billion, driven by strong net inflows and investment returns. SJP’s strategic initiatives, including a national brand campaign and the growth of its Polaris funds, have positioned it well for future success in the UK wealth management sector. The company also announced a final dividend of 12.00 pence per share and a share buy-back of £92.6 million, reflecting its commitment to shareholder returns.

Business Operations and Strategy
St. James’s Place Experiences Shift in Major Shareholder Voting Rights
Neutral
Feb 7, 2025

St. James’s Place PLC has announced a change in its major holdings as BLS Capital Fondsmæglerselskab A/S has adjusted its voting rights in the company. The recent acquisition or disposal of shares resulted in BLS Capital holding 8.79% of the voting rights in St. James’s Place, down from a previous position of 9.95%. This change could impact the company’s strategic decisions and influence its market position, given the reduced voting power of one of its major stakeholders.

Business Operations and StrategyFinancial Disclosures
St. James’s Place Achieves Record Funds Under Management in 2024
Positive
Jan 30, 2025

St. James’s Place PLC reported a strong performance for the year ending December 2024, with record-high funds under management reaching £190.2 billion. The firm saw significant new business inflows, totaling £18.4 billion, a 20% increase from the previous year, driven by robust client retention and strong investment returns. The company is progressing with its key initiatives, including a simplified charging structure and efficiency programs, to maintain its market position and cater to the growing demand for financial advice.

Business Operations and StrategyRegulatory Filings and Compliance
St. James’s Place PLC Announces Change in Voting Rights
Neutral
Jan 23, 2025

St. James’s Place PLC, a UK-based company, announced a change in the voting rights held by BLS Capital Fondsmæglerselskab A/S, a registered entity in Denmark. The notification indicates that the voting rights have decreased to 9.955467% from a previous position of 10.250948%. This adjustment in the voting rights reflects a slight repositioning in the shareholder structure, which could have implications for corporate governance and stakeholder influence within the company.

St. James’s Place Receives Major Shareholder Update from BlackRock
Dec 23, 2024

St. James’s Place PLC has been notified by BlackRock, Inc., a major shareholder, about a change in their voting rights. As of December 20, 2024, BlackRock holds 6.78% of the total voting rights in St. James’s Place, which remains unchanged from their previous position. This notification underscores BlackRock’s significant influence within the company, potentially impacting strategic decisions and shareholder dynamics.

Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

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.