Royal Mail plc (RMG) is a leading integrated freight & logistics business based in the UK. Royal Mail is listed on the London Stock Exchange (LSE) and employs 109,325 staff. All prices are listed in pence sterling.
|52-week range||121.92p - 258.6p|
|50-day moving average||205.3583p|
|200-day moving average||174.0253p|
|Wall St. target price||321.59p|
|Dividend yield||0.24p (19.71%)|
|Earnings per share (TTM)||16.1p|
The technical analysis gauge below displays real-time ratings for the timeframes you select. This is not a recommendation, however. It represents a technical analysis based on the most popular technical indicators: Moving Averages, Oscillators and Pivots. Finder might not concur and takes no responsibility.
Valuing Royal Mail stock is incredibly difficult, and any metric has to be viewed as part of a bigger picture of Royal Mail's overall performance. However, analysts commonly use some key metrics to help gauge the value of a stock.
Royal Mail's current share price divided by its per-share earnings (EPS) over a 12-month period gives a "trailing price/earnings ratio" of roughly 15x. In other words, Royal Mail shares trade at around 15x recent earnings.
That's relatively low compared to, say, the trailing 12-month P/E ratio for the FTSE 250 at the end of September 2019 (19.71). The low P/E ratio could mean that investors are pessimistic about the outlook for the shares or simply that they're under-valued.
However, Royal Mail's P/E ratio is best considered in relation to those of others within the integrated freight & logistics industry or those of similar companies.
Royal Mail's EBITDA (earnings before interest, taxes, depreciation and amortisation) is £528.4 million.
The EBITDA is a measure of a Royal Mail's overall financial performance and is widely used to measure a its profitability.
To put Royal Mail's EBITDA into context you can compare it against that of similar companies.
|Revenue TTM||£10.8 billion|
|Operating margin TTM||2.88%|
|Gross profit TTM||£3.9 billion|
|Return on assets TTM||2.12%|
|Return on equity TTM||3.14%|
|Market capitalisation||£2.4 billion|
TTM: trailing 12 months
Dividend payout ratio: 152.17% of net profits
Recently Royal Mail has paid out, on average, around 152.17% of net profits as dividends. That has enabled analysts to estimate a "forward annual dividend yield" of 19.71% of the current stock value. This means that over a year, based on recent payouts (which are sadly no guarantee of future payouts), Royal Mail shareholders could enjoy a 19.71% return on their shares, in the form of dividend payments. In Royal Mail's case, that would currently equate to about 0.24p per share.
Royal Mail's payout ratio would broadly be considered high, and as such this stock could appeal to those looking to generate an income. Bear in mind however that companies should normally also look to re-invest a decent amount of net profits to ensure future growth.
The latest dividend was paid out to all shareholders who bought their shares by 5 December 2019 (the "ex-dividend date").
Royal Mail's dividend payout ratio is perhaps best considered in relation to those of similar companies.
Over the last 12 months, Royal Mail's shares have ranged in value from as little as 121.92p up to 258.6p. A popular way to gauge a stock's volatility is its "beta".
Beta is a measure of a share's volatility in relation to the market. The market (LSE average) beta is 1, while Royal Mail's is 1.2422. This would suggest that Royal Mail's shares are a little bit more volatile than the average for this exchange and represent, relatively-speaking, a slightly higher risk (but potentially also market-beating returns).
To put Royal Mail's beta into context you can compare it against those of similar companies.
Royal Mail plc, together with its subsidiaries, operates as a universal postal service provider in Italy, France, Spain, Germany, North America, the Western United States, Canada, Croatia, the Czech Republic, Hungary, Romania, Slovakia, and Slovenia. It offers parcels and letter delivery services under the Royal Mail and Parcelforce Worldwide brands. The company also provides services for the collection, sorting, and delivery of parcels and letters. In addition, it operates ground-based parcel delivery networks in Europe comprising the GLS network that covers 36 European countries and nation states through wholly-owned and partner companies. Further, the company provides express parcel delivery and logistics services. Additionally, it engages in property holdings activities; and provision of facilities management services. The company serves consumers, sole-traders, small and medium-sized enterprises, large businesses, retailers, and other postal operators, as well as business to business, and business to consumer sectors. Royal Mail plc was incorporated in 2013 and is based in London, the United Kingdom.
finder.com is an independent comparison platform and information service that aims to provide you with the tools you need to make better decisions. While we are independent, the offers that appear on this site are from companies from which finder.com receives compensation. We may receive compensation from our partners for placement of their products or services. We may also receive compensation if you click on certain links posted on our site. While compensation arrangements may affect the order, position or placement of product information, it doesn't influence our assessment of those products. Please don't interpret the order in which products appear on our Site as any endorsement or recommendation from us. finder.com compares a wide range of products, providers and services but we don't provide information on all available products, providers or services. Please appreciate that there may be other options available to you than the products, providers or services covered by our service.