The Financial Grimes: 8 July 2019
This top City analyst reviews the financial sector stocks making headlines today.
8th July 2019 09:38
by Jeremy Grime from ii contributor
This top City analyst reviews the financial sector stocks making headlines today.
Chart of the Week
- Sometimes it's good to do financials. UK Construction Purchasing Managers index to June below:
Source: Bloomberg
Impax Asset Management – AUM Update
Share Price 280p
Mkt Cap £365 million
Conflict Disclosure: No holding
- News The time honoured tradition of the strong quarterly update coming out early kicks off with Impax Asset Management (LSE:IPX) starting the June quarterly fund manager updates today. Net inflows were 1.9% over the quarter, and a very strong market performance meant AUM was up 10% over the quarter to £14.5 billion. This is put down to the transition to a more sustainable economy.
- Estimates Pre-tax profit is expected to grow 20% to £17.6 million in the year to September 19. With AUM 23% ahead of 12 months ago, this should be achieved without breaking sweat.
- Valuation PER 21.2X yield 1.8%%
- Conclusion Operating margins are 25% which is lower than any other comp at this scale of AUM. The top line looks set to grow well but, on 21X and with less operational gearing than comparators, investors will make more money elsewhere. This is one to send the CV to instead. Â
| Glossary | |
|---|---|
| PBT | profit before tax |
| EPS | earnings per share |
| ROE | return on equity |
| EBITDA | earnings before interest, tax, depreciation and amortisation |
| PER | price earnings, or PE ratio |
| Yield | dividend yield |
| FCF | free cash flow |
| NAV | net asset value |
| Price/Book (PB) | a company's share price versus what it owns |
| Book Value | a company's worth after subtracting debts and liabilities from assets |
| AUM | assets under management |
| FUM | funds under management |
| OTC | over-the-counter |
| FCA | Financial Conduct Authority |
| ESMA | European Securities and Markets Authority |
For information about Jeremy's 'deep dive' company analysis, you can email him at jeremy@charltonillingworth.co.uk
Jeremy Grime is an independent equity markets analyst and freelance contributor, not a direct employee of interactive investor.
These articles are provided for information purposes only. Â Occasionally, an opinion about whether to buy or sell a specific investment may be provided by third parties. Â The content is not intended to be a personal recommendation to buy or sell any financial instrument or product, or to adopt any investment strategy as it is not provided based on an assessment of your investing knowledge and experience, your financial situation or your investment objectives. The value of your investments, and the income derived from them, may go down as well as up. You may not get back all the money that you invest. The investments referred to in this article may not be suitable for all investors, and if in doubt, an investor should seek advice from a qualified investment adviser.
Full performance can be found on the company or index summary page on the interactive investor website. Simply click on the company's or index name highlighted in the article.