Tatton Asset Management Plc (TAM) AI Stock Analysis

• Market Cap: £411.27M
• Dividend Yield: 2.73%
• Average Volume (3M): 76.60K
• Price to Earnings (P/E): 26.3
• Beta (1Y): 0.37
• Revenue Growth: 23.10%
• EPS Growth: 24.19%
• Country: UK
• Employees: 103
• Sector: Financial
• Sector Strength: 70
• Industry: Asset Management
• EPS (TTM): 0.14
• Shares Outstanding: 60,953,796
• 10 Day Avg. Volume: 71,934
• 30 Day Avg. Volume: 76,596
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: £850.00
• Price Target Upside: 25.00% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 68 Neutral
• Price Target: 759.00p ▲(11.62% Upside)

Tatton Asset Management Plc's strong financial performance is the primary driver of its stock score, supported by robust revenue and profit growth and a solid balance sheet. Technical analysis presents mixed signals, with some bearish indicators. Valuation metrics suggest the stock is moderately priced, with a reasonable dividend yield enhancing its appeal.

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 Plc makes money through several key revenue streams. The primary source of income is its discretionary fund management service, where it earns fees based on a percentage of the assets under management (AUM). The company's platform services also contribute to revenue by facilitating efficient investment processes for financial advisers, often generating fees tied to platform usage or transactions. Additionally, TAM provides consultancy and support services to financial advisers, offering strategic partnerships and advisory solutions that further enhance its revenue. The company's financial performance is supported by strategic partnerships with financial advisers and institutions, enabling TAM to expand its reach and client base, thereby increasing its AUM and associated revenues.

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, although cash flow from financing activities shows variability.

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	45.31M	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	21.96M	22.85M	18.47M	17.78M	12.54M	8.23M
Net Income	16.14M	16.14M	12.99M	9.24M	6.11M	8.36M
Balance Sheet
Total Assets	62.44M	62.44M	52.46M	51.95M	41.35M	31.55M
Cash, Cash Equivalents and Short-Term Investments	33.25M	33.25M	24.94M	26.62M	21.86M	17.10M
Total Debt	848.00K	848.00K	659.00K	268.00K	539.00K	743.00K
Total Liabilities	11.89M	11.89M	9.13M	10.16M	10.30M	7.10M
Stockholders Equity	50.59M	50.59M	43.28M	41.78M	31.04M	24.45M
Cash Flow
Free Cash Flow	19.72M	18.25M	13.66M	12.91M	13.35M	8.47M
Operating Cash Flow	19.79M	18.75M	14.02M	13.23M	13.64M	8.82M
Investing Cash Flow	-2.04M	-1.00M	-1.55M	-470.00K	-3.11M	-509.00K
Financing Cash Flow	-10.47M	-10.47M	-14.12M	-7.98M	-5.75M	-4.13M

Tatton Asset Management Plc Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 680.00
• 50DMA: Negative
• 100DMA: Negative
• 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:TAM, the sentiment is Negative. The current price of 680 is below the 20-day moving average (MA) of 703.70, below the 50-day MA of 717.48, and above the 200-day MA of 658.54, indicating a neutral trend. The MACD of -8.69 indicates Positive momentum. The RSI at 33.17 is Neutral, neither overbought nor oversold. The STOCH value of 39.84 is Neutral, 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	£275.17M	27.45	―	4.56%	-13.29%	63.87%
FSG	77 Outperform	£554.88M	16.88	38.99%	4.98%	―	―
JUP	73 Outperform	£754.40M	12.87	7.82%	2.91%	-4.38%	―
POLR	70 Outperform	£460.77M	13.11	26.26%	9.62%	14.88%	-14.09%
TAM	68 Neutral	£411.27M	26.33	34.39%	2.73%	23.10%	24.19%
LIO	66 Neutral	£215.81M	13.11	12.08%	20.93%	-14.24%	―
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%

Tatton Asset Management Plc Corporate Events

Tatton Asset Management CFO Sells Shares

Tatton Asset Management Plc announced that its Chief Financial Officer, Paul Edwards, has sold 27,180 ordinary shares following the exercise of options. This transaction leaves him with an interest in 511,628 shares, representing 0.84% of the company’s issued share capital. The sale is part of routine financial management and does not indicate any significant change in the company’s strategic direction or financial health.

The most recent analyst rating on (GB:TAM) stock is a Buy with a £850.00 price target. To see the full list of analyst forecasts on Tatton Asset Management Plc stock, see the GB:TAM Stock Forecast page.

Tatton Asset Management Announces New Share Issuance and Block Listing

Tatton Asset Management Plc has announced the exercise of options by its Chief Financial Officer, Paul Edwards, and other employees, resulting in the issuance of 189,937 new ordinary shares. These shares are set to be admitted for trading on AIM, with an expected admission date of 1 September 2025. Additionally, the company has applied for a block listing of 45,046 ordinary shares to meet the requirements of its 2022 Save As You Earn employee share scheme. This development will adjust the company’s total voting rights, impacting shareholder calculations under the FCA’s Disclosure Guidance and Transparency Rules.

The most recent analyst rating on (GB:TAM) stock is a Buy with a £850.00 price target. To see the full list of analyst forecasts on Tatton Asset Management Plc stock, see the GB:TAM Stock Forecast page.

Tatton Asset Management Issues New Shares for Employee Options

Tatton Asset Management Plc has announced the issuance of 73,936 new ordinary shares to satisfy employee options under its EMI Schemes. These shares will be admitted to trading on AIM, increasing the company’s total issued share capital to 60,738,744 ordinary shares, impacting shareholder calculations under FCA rules.

The most recent analyst rating on (GB:TAM) stock is a Buy with a £800.00 price target. To see the full list of analyst forecasts on Tatton Asset Management Plc stock, see the GB:TAM Stock Forecast page.

Tatton Asset Management Appoints RBC Capital Markets as Joint Broker

Tatton Asset Management plc has announced the appointment of RBC Capital Markets as a Joint Corporate Broker, which will work alongside its existing corporate brokers. This strategic move is expected to enhance Tatton’s market positioning and strengthen its corporate advisory capabilities, potentially benefiting its stakeholders and improving its operational dynamics.

The most recent analyst rating on (GB:TAM) stock is a Buy with a £800.00 price target. To see the full list of analyst forecasts on Tatton Asset Management Plc stock, see the GB:TAM Stock Forecast page.

Tatton Asset Management Invests in IFA Consolidation Vehicle

Tatton Asset Management Plc announced a cash commitment of up to £10 million to Carlos Topco Limited, a new entity aimed at consolidating UK Independent Financial Advisers. This investment, alongside contributions from Inflexion Private Equity Partners LLP and Tatton’s management, aims to ensure continuity and quality of service for IFAs joining larger groups, with Tatton maintaining its role as their investment manager of choice.

The most recent analyst rating on (GB:TAM) stock is a Buy with a £800.00 price target. To see the full list of analyst forecasts on Tatton Asset Management Plc stock, see the GB:TAM Stock Forecast page.

Tatton Asset Management Announces AGM Results and Board Changes

Tatton Asset Management plc announced that all resolutions at their Annual General Meeting were passed, including the reappointment of directors and auditors, and the approval of a final dividend. Additionally, the company announced a change in its board structure, with Chris Poil appointed as Chairman following Roger Cornick’s retirement, and other committee roles being reassigned.

The most recent analyst rating on (GB:TAM) stock is a Buy with a £800.00 price target. To see the full list of analyst forecasts on Tatton Asset Management Plc stock, see the GB:TAM Stock Forecast page.

Tatton Asset Management Announces Share Option Exercise

Tatton Asset Management PLC announced that Chief Investment Officer Lothar Mentel and other employees have exercised options over 90,900 ordinary shares. Following this exercise, the company’s issued share capital will consist of 60,664,808 ordinary shares, impacting shareholder calculations under the FCA’s Disclosure Guidance and Transparency Rules.

The most recent analyst rating on (GB:TAM) stock is a Buy with a £800.00 price target. To see the full list of analyst forecasts on Tatton Asset Management Plc stock, see the GB:TAM Stock Forecast page.

Rathbones Acquires Significant Stake in Tatton Asset Management

Tatton Asset Management Plc has announced a change in its voting rights structure following an acquisition by Rathbones Investment Management Ltd. Rathbones now holds 5.0794% of voting rights in Tatton, marking a significant position in the company’s shareholder structure. This acquisition could impact Tatton’s operational strategies and influence its market positioning, reflecting a potential shift in stakeholder dynamics.

The most recent analyst rating on (GB:TAM) stock is a Buy with a £800.00 price target. To see the full list of analyst forecasts on Tatton Asset Management Plc stock, see the GB:TAM Stock Forecast page.