Tatton Asset Management Plc (TAM) AI Stock Analysis

• Market Cap: £452.57M
• Dividend Yield: 3.2%
• Average Volume (3M): 102.05K
• Price to Earnings (P/E): 28.1
• Beta (1Y): 0.33
• Revenue Growth: 20.46%
• EPS Growth: 9.72%
• Country: UK
• Employees: 103
• Sector: Financial
• Sector Strength: 70
• Industry: Asset Management
• EPS (TTM): 0.16
• Shares Outstanding: 61,301,834
• 10 Day Avg. Volume: 150,222
• 30 Day Avg. Volume: 102,053
• PEG Ratio: 0.97
• Price to Book (P/B): 7.39
• Price to Sales (P/S): 8.25
• P/FCF Ratio: 20.48
• 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: £797.50
• Price Target Upside: 18.68% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 74 Outperform
• Price Target: 780.00p ▲(16.07% Upside)

Tatton Asset Management Plc's strong financial performance and positive corporate events are the primary drivers of its overall score. While the technical analysis suggests some bearish trends, the company's robust financial health and positive insider activity provide a solid foundation for future growth. The valuation is reasonable, offering a balance between growth potential and income through dividends.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong market demand and effective business strategies, enhancing long-term financial stability and shareholder value.

Balance Sheet Health

A strong balance sheet with low leverage reduces financial risk, providing the company with flexibility to invest in growth opportunities and weather economic downturns.

Profitability Margins

Improving profitability margins reflect efficient cost management and operational effectiveness, supporting sustainable earnings growth and competitive positioning.

Negative Factors

Cash Flow Variability

Variability in cash flow can impact financial planning and stability, potentially limiting the company's ability to fund new investments or return capital to shareholders.

Financing Cash Flow Concerns

Inconsistent financing cash flow can signal challenges in managing capital expenditures or debt obligations, affecting long-term financial health and strategic flexibility.

Cash Utilization Strategy

Unpredictable cash flow outflows could indicate inefficiencies in capital allocation, potentially hindering the company's ability to maximize shareholder returns and invest in growth.

Tatton Asset Management Plc Business Overview & Revenue Model

Company Description

Tatton Asset Management plc provides fund management, compliance consultancy, and technical support services to independent financial advisors in the United Kingdom. The company operates through two segments, Tatton and Paradigm. It also offers mortgage adviser support, and mortgage and insurance product distribution services. The company was incorporated in 2017 and is based in Wilmslow, the United Kingdom.

How the Company Makes Money

Tatton Asset Management generates revenue primarily through management fees charged on the assets under management (AUM) in its various investment portfolios. These fees are typically based on a percentage of AUM and can vary depending on the specific investment strategy employed. In addition to management fees, TAM may also earn performance fees if certain investment performance benchmarks are achieved. The firm has established partnerships with financial advisers and wealth managers, which enhances its distribution capabilities and expands its client base, thereby contributing to its revenue growth. Additionally, TAM may benefit from ancillary services such as consulting or advisory fees, further diversifying its revenue streams.

Tatton Asset Management Plc Financial Statement Overview

Summary

Tatton Asset Management Plc exhibits strong financial health with impressive revenue and profit growth, efficient operations, and a robust balance sheet. The company maintains high profitability margins and low leverage. Despite some variability in cash flow from financing activities, the overall cash flow profile is healthy, supporting future growth.

Income Statement

Tatton Asset Management Plc has demonstrated robust revenue growth, with a CAGR of approximately 16% over the past five years. Gross profit margins consistently stand at 100%, reflecting efficient cost management. Net profit margin has improved to 35.6% in the latest year, up from 28.6% in the previous year, indicating enhanced profitability. EBIT and EBITDA margins are strong, showcasing operational efficiency.

Balance Sheet

The company maintains a healthy balance sheet with a debt-to-equity ratio of 0.02, signifying low leverage and reduced financial risk. The equity ratio is high at 81%, indicating a strong capital base. Return on equity has improved to 31.9%, reflecting the company's ability to generate substantial returns for shareholders. The firm’s liquidity and solvency positions are solid.

Cash Flow

Operating cash flow has shown consistent growth, supporting strong free cash flow generation. The free cash flow to net income ratio is high, indicating effective cash conversion. However, volatility in financing cash flow due to significant outflows might raise concerns over cash utilization strategies. Overall, cash flow management remains robust with strong operational cash generation.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	49.34M	45.31M	36.81M	32.33M	29.36M	23.35M
Gross Profit	0.00	45.31M	36.81M	32.33M	29.36M	23.35M
EBITDA	23.64M	22.85M	18.47M	17.78M	12.54M	8.23M
Net Income	17.00M	16.14M	12.99M	9.24M	6.11M	8.36M
Balance Sheet
Total Assets	66.89M	62.44M	52.46M	51.95M	41.35M	31.55M
Cash, Cash Equivalents and Short-Term Investments	35.30M	33.25M	24.94M	26.62M	21.86M	17.10M
Total Debt	722.00K	848.00K	659.00K	268.00K	539.00K	743.00K
Total Liabilities	10.97M	11.89M	9.13M	10.16M	10.30M	7.10M
Stockholders Equity	55.96M	50.59M	43.28M	41.78M	31.04M	24.45M
Cash Flow
Free Cash Flow	18.88M	18.25M	13.66M	12.91M	13.35M	8.47M
Operating Cash Flow	19.05M	18.75M	14.02M	13.23M	13.64M	8.82M
Investing Cash Flow	-1.22M	-1.00M	-1.55M	-470.00K	-3.11M	-509.00K
Financing Cash Flow	-10.69M	-10.47M	-14.12M	-7.98M	-5.75M	-4.13M

Tatton Asset Management Plc Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 672.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:TAM, the sentiment is Negative. The current price of 672 is below the 20-day moving average (MA) of 690.86, below the 50-day MA of 707.01, and above the 200-day MA of 661.29, indicating a neutral trend. The MACD of -8.18 indicates Positive momentum. The RSI at 33.23 is Neutral, neither overbought nor oversold. The STOCH value of 1.45 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GB:TAM.

Tatton Asset Management Plc Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BRK	80 Outperform	£254.76M	25.02	7.58%	5.00%	-13.29%	63.87%
POLR	76 Outperform	£561.98M	15.94	31.19%	8.97%	7.71%	-7.39%
TAM	74 Outperform	£452.57M	28.15	32.90%	3.20%	20.46%	9.72%
JUP	73 Outperform	£766.63M	13.44	7.11%	2.87%	-4.38%	―
FSG	73 Outperform	£540.35M	16.41	―	5.86%	―	―
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
LIO	64 Neutral	£187.27M	11.39	9.72%	22.49%	-15.65%	-12.27%

Tatton Asset Management Plc Corporate Events

Tatton Asset Management Director Increases Stake with Share Purchase

Tatton Asset Management Plc announced that Pippa Hamnett, a Non-Executive Director, along with closely associated persons, purchased 1,435 ordinary shares at an average price of 695 pence per share. This transaction, representing a 0.002% stake in the company, reflects insider confidence and could signal positive sentiment regarding the company’s future performance.

Tatton Asset Management Reports Strong Growth in Interim Results

Tatton Asset Management plc reported strong financial performance for the six-month period ending 30 September 2025, with significant growth in assets under management/influence (AUM/I) and robust net inflows. The company’s revenue increased by 18.6% to £25.691 million, and adjusted operating profit rose by 20.4% to £13.111 million, driven by organic growth and consistent investment performance. Despite the conclusion of a significant contract with Perspective Financial Group in January 2026, Tatton remains confident in achieving its target of £30 billion in AUM/I by the end of FY29. The company continues to demonstrate resilience and scalability, supported by a strong balance sheet and increasing demand for its model portfolio services.

Tatton Asset Management Announces Interim Results Presentations

Tatton Asset Management Plc has announced upcoming presentations for investors and analysts regarding its interim results for the six months ending 30 September 2025. These presentations, scheduled for 18 and 24 November 2025, aim to provide insights into the company’s performance and future outlook, potentially impacting stakeholder perceptions and market positioning.

Tatton Asset Management CEO Sells Shares to Employee Trust

Tatton Asset Management Plc announced that its CEO, Paul Hogarth, has sold 400,000 ordinary shares to the company’s Employee Benefit Trust. Following this transaction, Hogarth retains a significant stake in the company, holding 14.82% of its issued share capital. This move is part of a broader strategy under the EU Market Abuse Regulation, ensuring transparency in managerial transactions.

Tatton Asset Management CEO Exercises Share Options, Increasing Stake

Tatton Asset Management Plc announced that its CEO, Paul Hogarth, has exercised options over 348,036 ordinary shares, leading to the issuance of new shares. This transaction increases Hogarth’s stake to 15.47% of the company’s share capital, with the new shares expected to be admitted to trading on AIM by 17 October 2025, impacting the company’s total voting rights and share capital structure.

Tatton Asset Management Reports Strong Growth in H1 2025

Tatton Asset Management Plc reported strong performance for the six months ending 30 September 2025, with net inflows of £1.7 billion contributing to a 36.9% increase in assets under management (AUM) to £25.8 billion. The company has seen consistent growth in both revenue and profits, driven by organic net inflows and investment performance. Despite the upcoming conclusion of a partnership with Perspective Financial Group, Tatton continues to attract new IFA firms and deepen existing relationships, underscoring the resilience and scalability of its business model. Paradigm, its IFA support services division, also demonstrated resilience with increased mortgage completions and membership growth.