# Rathbone Brothers (RAT.LSE)

Canonical: https://gigainvestors.com/s/RAT.LSE

Analysis as of: 2026-10-16T07:40:37.921Z. Financial observations: FY1999–FY2025.

Listing currency: GBX. Reporting currency: GBP.

## Verdict

Not a wonderful business

Quality tests for Buy: not passed (profit record: pass; earnings resilience is evidence only). Published buy qualification: no.

Share price: GBX 1,604.00 per share; close as of 2026-10-15.

Estimated value: low GBX 3,395.68 per share, central GBX 4,118.77 per share, high GBX 4,585.11 per share. Buy at or below the central value GBX 4,118.77 per share. Valuation as of 2026-10-16T07:40:37.921Z; scenarios are not confidence intervals.

Expected annual return: 90.0% at the stated quote. About 90.0% a year at today's price (required return 10.0%). required return 10.0% a year (10% floor; GB 10-year bond 5.4% + 4 points).

## Checklist

### understandable: pass

- 1 revenue decline in the last 10 years (informational)

- Financial history: 10 years

- Years with declining revenue: 1

- Years with a net loss: 0

- Operating margin variation: 0.12×

Chart: Operating margin; fiscal year observations.

- FY2016: 0.24×

- FY2017: 0.25×

- FY2018: 0.25×

- FY2019: 0.21×

- FY2020: 0.21×

- FY2021: 0.23×

- FY2022: 0.17×

- FY2023: 0.26×

- FY2024: 0.26×

- FY2025: 0.26×

### moat: fail

- Years with nonpositive invested capital use equity plus debt and leases; positive earnings with no positive capital are shown above 100%.

- ROIC median below threshold

- ROIC worst years below threshold (more than 1 bad year allowed)

- ROIC, median of available years: 12.1%

- ROIC, second-lowest year: 9.1%

- Typical minus recent gross margin: -2.5 pp

- Typical gross margin (annual median): 80.6%

- Recent gross margin (lower of latest and 3-year median): 83.1%

- Years with nonpositive capital: 7

- Capital spending / revenue: 4.0%

- ROIC including acquisitions, ten-year median: 14.8%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2016: 14.5%

- FY2017: 23.3%

- FY2018: 18.2%

- FY2019: 9.8%

- FY2020: 9.1%

- FY2021: 12.0%

- FY2022: 8.2%

- FY2023: 12.0%

- FY2024: 12.1%

- FY2025: 12.6%

### economics: fail

- working capital as a share of revenue rose more than 10pp and ends positive

- Owner earnings / net income, 5-yr: 1.43×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: GBP 486M

- Net income, five-year total: GBP 340M

- Return on incremental invested capital: 12.9%

- Working capital / revenue, annual change: 36.3 pp

- Working capital / revenue, change between three-year averages: 230.3 pp

- Working capital / revenue, final three-year average: 30.8%

Chart: Annual owner cash / profit; fiscal year observations.

- FY2021: 1.25×

- FY2022: 1.45×

- FY2023: 1.85×

- FY2024: 1.24×

- FY2025: 1.52×

### management: fail

- Historical market-dollar context (not the management verdict): 2016 to 2025 (9 years)

- potential debt-funded buybacks (informational)

- buybacks leaned toward cheaper years (informational)

- ROIC first 3 years vs last 3 years: 18.2% vs 12.1%

- Per-share earnings: 0.92 to 0.61 (three-year endpoint medians)

- per-share value declined or ends nonpositive

- five-year and ten-year diluted share growth both above threshold

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: 8.4%

- Ordinary dilution, 5-year annual growth: 13.9%

- Market cap gain: GBP 1.1B

- Cumulative retained earnings: GBP 1.2B

- Diluted shares, 10-year annual growth: 8.4%

- Diluted shares, 5-year annual growth: 13.9%

- $1 test, starting fiscal year: FY2016

- $1 test, ending fiscal year: FY2025

- Per-share value growth: -5.0%

- Per-share value change: GBP -0.31

- Per-share value, starting three-year median: GBP 0.92

- Per-share value, ending three-year median: GBP 0.61

- Buybacks concentrated in cheaper years (correlation): 0.50

- Average buyback yield: 1.2%

- Buyback history: 9 years

- Debt-funded buybacks: Yes

- Acquisition spending: GBP 257M

- Cumulative net income, 10 years: GBP 524M

- ROIC, first three-year median: 18.2%

- ROIC, last three-year median: 12.1%

Chart: Earnings per share; fiscal year observations.

- FY2016: GBP 0.77

- FY2017: GBP 0.92

- FY2018: GBP 0.83

- FY2019: GBP 0.48

- FY2020: GBP 0.48

- FY2021: GBP 1.26

- FY2022: GBP 0.82

- FY2023: GBP 0.51

- FY2024: GBP 0.61

- FY2025: GBP 1.05

### accounting: pass

- Sloan accruals: -1.6%

- Receivables to sales index (DSRI): 0.07×

- Restructuring years, last five: 0

- Stock compensation / operating cash flow: 14.0%

- Earnings backed by cash: Yes

- Operating cash / earnings: 1.75×

- Accounting red flags: 0

- Goodwill and intangibles / equity: 0.70×

Chart: Sloan accruals; fiscal year observations.

- FY2016: -22.0%

- FY2017: -11.1%

- FY2018: -2.3%

- FY2019: -13.9%

- FY2020: -0.2%

- FY2021: 8.8%

- FY2022: -7.0%

- FY2023: 3.0%

- FY2024: -5.3%

- FY2025: -1.6%

## Holders

## Price story

Down 29% since Feb 2026 · "Rathbones Shares Plunge on Voluntary Freeze of High-Risk Clients" (finance.yahoo.com, Jun 2026) · sales +2%

Story as of 2026-10-16T10:00:11.568Z; price observation 2026-10-15.

Price needs cash profits to shrink 30.6% a year for ten years

- 2026-02-27: Rathbones shares rise 5% as wealth manager reports surge in statutory profit ([finance.yahoo.com](https://finance.yahoo.com/news/rathbones-shares-rise-5-wealth-091505311.html))

- 2026-06-16: Rathbones Shares Plunge on Voluntary Freeze of High-Risk Clients ([finance.yahoo.com](https://finance.yahoo.com/markets/stocks/articles/rathbones-shares-plunge-voluntary-freeze-140904478.html))

### Sales · FY2024–2025

sales +2%; source https://filings.xbrl.org/213800MBTHM6UE8ZQP29/2024-12-31/ESEF/GB/0/213800MBTHM6UE8ZQP29-2024-12-31/reports/213800MBTHM6UE8ZQP29-2024-12-31-T01.xhtml; observed 2025-08-21.

- FY2016: GBP 272M 

- FY2017: GBP 311M 

- FY2018: GBP 341M 

- FY2019: GBP 384M 

- FY2020: GBP 397M 

- FY2021: GBP 469M 

- FY2022: GBP 456M 

- FY2023: GBP 678M 

- FY2024: GBP 1.0B 

- FY2025: GBP 1.0B 

### Gross margin · FY2025

gross margin 83.3%; source https://filings.xbrl.org/213800MBTHM6UE8ZQP29/2024-12-31/ESEF/GB/0/213800MBTHM6UE8ZQP29-2024-12-31/reports/213800MBTHM6UE8ZQP29-2024-12-31-T01.xhtml; observed 2025-08-21.

- FY2016: 33.3% 

- FY2017: 80.4% 

- FY2018: 80.7% 

- FY2019: 76.3% 

- FY2020: 77.7% 

- FY2021: 80.5% 

- FY2023: 83.1% 

- FY2024: 82.3% 

- FY2025: 83.3% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in asset management; annual sales are GBP 1 billion.

- Source: https://eodhd.com/api/fundamentals/RAT.LSE.json#2025-12-31 (filed 2025-08-21); FY2025: revenue 1034599999; grossProfit 861599999; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); RAT.LSE: Rathbones Group Plc, together with its subsidiaries, provides wealth management, asset management, and related services in the United Kingdom and Channel Islands. The company operates in two segments: Wealth Management and Asset Management. Its services include discretionary investment management; financial planning and advisory services comprising trust, tax, and legal services; international investment services; ethical and sustainable investments; and personal injury and court of protection services. The company also offers banking services, including currency and payment services, fixed interest term deposits, and loans. It serves individuals, families, financial advisers, professional intermediaries, entrepreneurs, private clients, charities, trustees, and professional partners. The company was formerly known as Rathbone Brothers Plc and changed its name to Rathbones Group Plc in December 2021. Rathbones Group Plc was founded in 1742 and is based in London, the United Kingdom.

### Why customers stay

Margins ranged from 82.3% to 83.3% during 2023–25; it earns 12.1% on its capital.

- Source: https://eodhd.com/api/fundamentals/RAT.LSE.json#2023-12-31 (filed 2025-08-21); FY2023: grossProfit / revenue = 83.1%.

- Source: https://eodhd.com/api/fundamentals/RAT.LSE.json#2024-12-31 (filed 2025-08-21); FY2024: grossProfit / revenue = 82.3%.

- Source: https://eodhd.com/api/fundamentals/RAT.LSE.json#2025-12-31 (filed 2025-08-21); FY2025: grossProfit / revenue = 83.3%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-08-21); 10-year return on capital observations [[2016,0.14487205382457666],[2017,0.23281037975292163],[2018,0.18189043413620612],[2019,0.09766590462222624],[2020,0.0914515790400466],[2021,0.11973260985264654],[2022,0.08162379588572681],[2023,0.12033917630455736],[2024,0.1212249365893715],[2025,0.1259884956374679]]; median 0.12078205644696444. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Where the cash goes

Paid dividends in 10 of 10 years; bought back GBP 55 million of shares.

- Source: https://eodhd.com/api/fundamentals/RAT.LSE.json#2016-12-31 (filed 2025-08-21); FY2016: growth capex 1855469.0529657714; upkeep 24281530.94703423; owner earnings 34450469.052965775. Growth capex / owner earnings = 0.05385903600073154.

- Source: https://eodhd.com/api/fundamentals/RAT.LSE.json#2017-12-31 (filed 2025-08-21); FY2017: growth capex 0; upkeep 16123000; owner earnings 49838000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/api/fundamentals/RAT.LSE.json#2018-12-31 (filed 2025-08-21); FY2018: growth capex 0; upkeep 18338000; owner earnings 49236000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/api/fundamentals/RAT.LSE.json#2019-12-31 (filed 2025-08-21); FY2019: growth capex 0; upkeep 17944000; owner earnings 39041000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/api/fundamentals/RAT.LSE.json#2020-12-31 (filed 2025-08-21); FY2020: growth capex 0; upkeep 13532000; owner earnings 44349000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/api/fundamentals/RAT.LSE.json#2021-12-31 (filed 2025-08-21); FY2021: growth capex 0; upkeep 12702000; cash acquisitions 79736000; owner earnings 93806000. Growth capex plus acquisitions / owner earnings = 0.8500095942690233.

- Source: https://eodhd.com/api/fundamentals/RAT.LSE.json#2022-12-31 (filed 2025-08-21); FY2022: growth capex 0; upkeep 13133000; cash acquisitions 10900000; owner earnings 70793000. Growth capex plus acquisitions / owner earnings = 0.1539700252849858.

- Source: https://eodhd.com/api/fundamentals/RAT.LSE.json#2023-12-31 (filed 2025-08-21); FY2023: growth capex 0; upkeep 10700000; cash acquisitions 0; owner earnings 69300000. Growth capex plus acquisitions / owner earnings = 0.

- Source: https://eodhd.com/api/fundamentals/RAT.LSE.json#2024-12-31 (filed 2025-08-21); FY2024: growth capex 0; upkeep 56600000; cash acquisitions 0; owner earnings 81400000. Growth capex plus acquisitions / owner earnings = 0.

- Source: https://eodhd.com/api/fundamentals/RAT.LSE.json#2025-12-31 (filed 2025-08-21); FY2025: growth capex 0; upkeep 8800000; owner earnings 170900000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-08-21); Dividend observations: [[2016,26479000],[2017,29420000],[2018,32691000],[2019,35959000],[2020,37831000],[2021,43960000],[2022,48607000],[2023,71400000],[2024,56900000],[2025,98400000]]. Zero only counted when supported by a complete cash-flow statement.

- Source: https://eodhd.com/api/fundamentals/RAT.LSE.json#2025-12-31 (filed 2025-08-21); FY2025: cash repurchases 55000000 GBP.

### Are managers owners

Insiders own 36.6% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); RAT.LSE SharesStats.PercentInsiders = 36.645 percentage points; cache date 2026-10-16.

### What the price says

The price assumes cash profits shrink 30.6% yearly over ten years; actual growth was 6.6%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-08-21); Ten-year compound average after fade. Initial solved rate -0.4255774255348418. Price 1604; FX 100; discount 0.1; same standard ten-year fade to terminal 0.03. FY2015 owner earnings/share 0.8421279682966109 → FY2025 1.592410873536785. Closing-price date 2026-10-15.

## Monthly share-price history (GBX per share)

- 2016-10: GBX 1,784.00 per share

- 2016-11: GBX 1,838.00 per share

- 2016-12: GBX 1,983.00 per share

- 2017-01: GBX 2,079.00 per share

- 2017-02: GBX 2,262.00 per share

- 2017-03: GBX 2,395.00 per share

- 2017-04: GBX 2,351.00 per share

- 2017-05: GBX 2,625.00 per share

- 2017-06: GBX 2,534.00 per share

- 2017-07: GBX 2,674.00 per share

- 2017-08: GBX 2,780.00 per share

- 2017-09: GBX 2,594.00 per share

- 2017-10: GBX 2,561.00 per share

- 2017-11: GBX 2,573.00 per share

- 2017-12: GBX 2,554.00 per share

- 2018-01: GBX 2,726.00 per share

- 2018-02: GBX 2,604.00 per share

- 2018-03: GBX 2,440.00 per share

- 2018-04: GBX 2,354.00 per share

- 2018-05: GBX 2,434.00 per share

- 2018-06: GBX 2,594.00 per share

- 2018-07: GBX 2,456.00 per share

- 2018-08: GBX 2,634.00 per share

- 2018-09: GBX 2,400.00 per share

- 2018-10: GBX 2,302.00 per share

- 2018-11: GBX 2,424.00 per share

- 2018-12: GBX 2,342.00 per share

- 2019-01: GBX 2,314.00 per share

- 2019-02: GBX 2,304.00 per share

- 2019-03: GBX 2,226.00 per share

- 2019-04: GBX 2,520.00 per share

- 2019-05: GBX 2,145.00 per share

- 2019-06: GBX 2,220.00 per share

- 2019-07: GBX 2,205.00 per share

- 2019-08: GBX 2,230.00 per share

- 2019-09: GBX 2,220.00 per share

- 2019-10: GBX 2,075.00 per share

- 2019-11: GBX 2,130.00 per share

- 2019-12: GBX 2,130.00 per share

- 2020-01: GBX 1,972.00 per share

- 2020-02: GBX 1,660.00 per share

- 2020-03: GBX 1,498.00 per share

- 2020-04: GBX 1,512.00 per share

- 2020-05: GBX 1,442.00 per share

- 2020-06: GBX 1,420.00 per share

- 2020-07: GBX 1,620.00 per share

- 2020-08: GBX 1,688.00 per share

- 2020-09: GBX 1,542.00 per share

- 2020-10: GBX 1,450.00 per share

- 2020-11: GBX 1,480.00 per share

- 2020-12: GBX 1,540.00 per share

- 2021-01: GBX 1,610.00 per share

- 2021-02: GBX 1,542.00 per share

- 2021-03: GBX 1,760.00 per share

- 2021-04: GBX 1,692.00 per share

- 2021-05: GBX 1,794.00 per share

- 2021-06: GBX 1,812.00 per share

- 2021-07: GBX 1,880.00 per share

- 2021-08: GBX 2,050.00 per share

- 2021-09: GBX 2,015.00 per share

- 2021-10: GBX 1,972.00 per share

- 2021-11: GBX 1,850.00 per share

- 2021-12: GBX 1,984.00 per share

- 2022-01: GBX 1,866.00 per share

- 2022-02: GBX 1,656.00 per share

- 2022-03: GBX 1,980.00 per share

- 2022-04: GBX 2,100.00 per share

- 2022-05: GBX 2,065.00 per share

- 2022-06: GBX 1,942.00 per share

- 2022-07: GBX 1,810.00 per share

- 2022-08: GBX 1,802.00 per share

- 2022-09: GBX 1,640.00 per share

- 2022-10: GBX 1,874.00 per share

- 2022-11: GBX 2,110.00 per share

- 2022-12: GBX 2,035.00 per share

- 2023-01: GBX 2,090.00 per share

- 2023-02: GBX 2,080.00 per share

- 2023-03: GBX 1,914.00 per share

- 2023-04: GBX 1,954.00 per share

- 2023-05: GBX 1,994.00 per share

- 2023-06: GBX 1,860.00 per share

- 2023-07: GBX 1,800.00 per share

- 2023-08: GBX 1,762.00 per share

- 2023-09: GBX 1,738.00 per share

- 2023-10: GBX 1,498.00 per share

- 2023-11: GBX 1,590.00 per share

- 2023-12: GBX 1,742.00 per share

- 2024-01: GBX 1,658.00 per share

- 2024-02: GBX 1,556.00 per share

- 2024-03: GBX 1,548.00 per share

- 2024-04: GBX 1,638.00 per share

- 2024-05: GBX 1,728.00 per share

- 2024-06: GBX 1,680.00 per share

- 2024-07: GBX 1,924.00 per share

- 2024-08: GBX 1,886.00 per share

- 2024-09: GBX 1,790.00 per share

- 2024-10: GBX 1,664.00 per share

- 2024-11: GBX 1,668.00 per share

- 2024-12: GBX 1,660.00 per share

- 2025-01: GBX 1,734.00 per share

- 2025-02: GBX 1,608.00 per share

- 2025-03: GBX 1,554.00 per share

- 2025-04: GBX 1,570.00 per share

- 2025-05: GBX 1,648.00 per share

- 2025-06: GBX 1,738.00 per share

- 2025-07: GBX 1,916.00 per share

- 2025-08: GBX 1,840.00 per share

- 2025-09: GBX 1,826.00 per share

- 2025-10: GBX 1,784.00 per share

- 2025-11: GBX 1,850.00 per share

- 2025-12: GBX 1,930.00 per share

- 2026-01: GBX 2,205.00 per share

- 2026-02: GBX 2,265.00 per share

- 2026-03: GBX 1,990.00 per share

- 2026-04: GBX 1,972.00 per share

- 2026-05: GBX 1,980.00 per share

- 2026-06: GBX 1,602.00 per share

- 2026-07: GBX 1,668.00 per share

- 2026-08: GBX 1,712.00 per share

- 2026-09: GBX 1,554.00 per share

- 2026-10: GBX 1,604.00 per share

## Annual estimated value (GBX per share)

- FY2016: low GBX 4,541.28 per share, central GBX 4,673.04 per share, high GBX 4,848.43 per share

- FY2017: low GBX 1,200.67 per share, central GBX 1,416.02 per share, high GBX 1,633.18 per share

- FY2018: low GBX 1,239.83 per share, central GBX 1,549.36 per share, high GBX 1,798.01 per share

- FY2019: low GBX 4,670.17 per share, central GBX 4,983.11 per share, high GBX 5,237.26 per share

- FY2020: low GBX 4,183.88 per share, central GBX 4,319.33 per share, high GBX 4,499.64 per share

- FY2021: low GBX 3,787.68 per share, central GBX 3,958.55 per share, high GBX 4,186.01 per share

- FY2022: low GBX 3,836.02 per share, central GBX 4,289.19 per share, high GBX 4,603.40 per share

- FY2023: low GBX 1,276.35 per share, central GBX 1,665.44 per share, high GBX 1,947.98 per share

- FY2024: low GBX 2,214.04 per share, central GBX 2,387.11 per share, high GBX 2,602.27 per share

- FY2025: low GBX 3,328.33 per share, central GBX 4,037.08 per share, high GBX 4,494.18 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

Prior published observations retained from 2026-10-15T06:46:27.362Z where newer inputs omit a numeric field or fiscal period.

## Sources

[Original ESEF filing](https://filings.xbrl.org/213800MBTHM6UE8ZQP29/2024-12-31/ESEF/GB/0/213800MBTHM6UE8ZQP29-2024-12-31/reports/213800MBTHM6UE8ZQP29-2024-12-31-T01.xhtml); period 2024-12-31, filed 2025-08-21.

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.

## Reported holder observations