Tatton Asset Management Plc (TAM) AI Stock Analysis

• Market Cap: £402.05M
• Dividend Yield: 2.83%
• Average Volume (3M): 92.50K
• Price to Earnings (P/E): 25.3
• Beta (1Y): 0.28
• Revenue Growth: 20.83%
• EPS Growth: 14.82%
• Country: UK
• Employees: 103
• Sector: Financial
• Sector Strength: 78
• Industry: Asset Management
• EPS (TTM): 0.14
• Shares Outstanding: 60,548,880
• 10 Day Avg. Volume: 171,183
• 30 Day Avg. Volume: 92,498
• PEG Ratio: 0.63
• Price to Book (P/B): 6.38
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 20.63
• 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: 26.87% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 75 Outperform
• Price Target: ―

Tatton Asset Management Plc scores well due to strong financial performance, characterized by high profitability and a stable balance sheet, which are the most significant factors. Neutral technical analysis and a relatively high valuation slightly dampen the overall score. However, positive corporate events, including strategic board appointments and incentive schemes, support future growth potential, contributing to a stable investment with opportunities for long-term appreciation.

Tatton Asset Management Plc Business Overview & Revenue Model

Company Description

Tatton Asset Management Plc (TAM) is a UK-based company operating in the financial services sector, primarily focusing on providing discretionary fund management, platform, and support services to independent financial advisers (IFAs) and their clients. The company is known for its cost-effective and innovative investment solutions, helping advisers manage their clients' investments efficiently. TAM operates through its core divisions, including investment management, platform services, and mortgage services, catering to a diverse clientele across the United Kingdom.

How the Company Makes Money

Tatton Asset Management Plc generates revenue primarily through its discretionary fund management services, where it charges fees based on a percentage of the assets under management (AUM). This fee structure provides a steady income stream as the company's AUM grows. Additionally, TAM earns money through its platform services, which offer a suite of tools and resources for IFAs, generating revenue through subscription fees or service charges. The company's mortgage services division also contributes to its earnings by providing mortgage solutions and earning commissions from successful placements. Strategic partnerships with financial advisers and firms are significant contributors to TAM's growth, enabling it to expand its client base and enhance service offerings.

Tatton Asset Management Plc Financial Statement Overview

Summary

Tatton Asset Management Plc demonstrates strong financial health across all verticals. The company benefits from high profitability and robust growth in revenue and net income. Its balance sheet is stable with minimal leverage and high equity, while its cash flow generation remains efficient and growing.

Income Statement

The company exhibits strong revenue growth of 13.86% from the previous year, maintaining a high gross profit margin of 100% due to its asset management nature. Net profit margin also improved to 35.28%, indicating excellent profitability. EBIT and EBITDA margins are robust at 44.73% and 50.19%, respectively, reflecting efficient operations.

Balance Sheet

The balance sheet is strong with a low debt-to-equity ratio of 0.02, indicating minimal leverage. The return on equity is impressive at 30.01%, showcasing the company's ability to generate returns for shareholders. The equity ratio stands at 82.46%, highlighting a stable financial structure with significant equity backing.

Cash Flow

The cash flow statement reveals a stable operating cash flow to net income ratio of 1.08, with free cash flow showing a growth of 5.76% from the previous year. The free cash flow to net income ratio is healthy at 1.05, indicating efficient cash generation relative to earnings.

Breakdown	TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement
Total Revenue	40.96M	36.81M	32.33M	29.36M	23.35M	21.37M
Gross Profit	9.22M	36.81M	32.33M	29.36M	23.35M	21.37M
EBITDA	20.65M	18.47M	17.78M	12.54M	8.23M	10.97M
Net Income	15.85M	12.99M	9.24M	6.11M	8.36M	8.36M
Balance Sheet
Total Assets	55.99M	52.46M	51.95M	41.35M	31.55M	24.97M
Cash, Cash Equivalents and Short-Term Investments	28.05M	24.94M	26.62M	21.86M	17.10M	12.76M
Total Debt	569.00K	659.00K	268.00K	539.00K	743.00K	651.00K
Total Liabilities	8.61M	9.13M	10.16M	10.30M	7.10M	7.19M
Stockholders Equity	47.41M	43.28M	41.78M	31.04M	24.45M	17.78M
Cash Flow
Free Cash Flow	15.46M	13.66M	12.91M	13.35M	8.47M	8.38M
Operating Cash Flow	15.68M	14.02M	13.23M	13.64M	8.82M	8.95M
Investing Cash Flow	-2.53M	-1.55M	-470.00K	-3.11M	-509.00K	-2.57M
Financing Cash Flow	-10.45M	-14.12M	-7.98M	-5.75M	-4.13M	-5.82M

Tatton Asset Management Plc Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 670.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• 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 Positive. The current price of 670 is above the 20-day moving average (MA) of 638.63, above the 50-day MA of 615.68, and above the 200-day MA of 646.41, indicating a bullish trend. The MACD of 16.57 indicates Negative momentum. The RSI at 64.56 is Neutral, neither overbought nor oversold. The STOCH value of 70.30 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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
TAM	75 Outperform	£402.05M	25.35	34.39%	2.83%	20.83%	14.82%
Sector *	67 Neutral	$16.67B	11.44	9.71%	3.91%	11.61%	-9.60%
INV	63 Neutral	£5.74M	39.44	10.60%	―	109.71%	400.62%

Tatton Asset Management Plc Corporate Events

Tatton Asset Management Reports Record Growth and Leadership Transition

Tatton Asset Management Plc announced a record net inflow of £3.7 billion for the fiscal year ending March 2025, contributing to a 24% increase in assets under management (AUM) to £21.8 billion. The company has made significant strides in its ‘Roadmap for Growth’ strategy, aiming for £30 billion in AUM by 2029, and has expanded its IFA firm relationships by 13.8% to 1,110. The announcement also included the retirement of Non-Executive Chairman Roger Cornick, who has been pivotal in the company’s growth since its IPO in 2017. Chris Poil is set to succeed him, ensuring a seamless transition and continued momentum.

Spark’s Take on GB:TAM Stock

According to Spark, TipRanks’ AI Analyst, GB:TAM is a Outperform.

Tatton Asset Management Plc scores well due to its strong financial performance, characterized by high profitability and a stable balance sheet. Neutral technical indicators and a relatively high valuation slightly dampen the score. Positive corporate events, including strategic board appointments and incentive schemes, support future growth potential. Overall, the stock is a stable investment with opportunities for long-term appreciation.

To see Spark’s full report on GB:TAM stock, click here.

Tatton Asset Management Appoints New Independent Non-Executive Director

Tatton Asset Management Plc has appointed Philippa (Pippa) Hamnett as an Independent Non-Executive Director. Pippa brings a wealth of experience from her previous roles in investment banking and corporate finance, which is expected to enhance the board’s expertise and contribute to the company’s strategic development.

Tatton Asset Management’s CIO Exercises Share Options

Tatton Asset Management Plc announced that its Chief Investment Officer, Lothar Mentel, has exercised options over 60,000 ordinary shares through the 2017 EMI scheme. This transaction, which does not affect the company’s total voting rights, increases Mentel’s interest to 1.93% of the company’s issued share capital.

Tatton Asset Management Issues New EMI Scheme Awards

Tatton Asset Management PLC announced the issuance of new annual awards under its EMI scheme, granting nil cost options to its Directors/PDMRs. These options, which allow them to acquire Ordinary Shares, are subject to performance criteria over a three-year vesting period ending March 2027. This move aims to incentivize and reward management to drive the company towards long-term profitable growth.