How to buy Royal Mail (RMG) shares

Everything you need to know about buying Royal Mail shares, including the live RMG share price.

Royal Mail plc
LSE: RMG - GBX
INTEGRATED FREIGHT & LOGISTICS
p504.20
-p3.80 (-0.75%)

Royal Mail plc (RMG) is a leading integrated freight and logistics business based in the UK. It opened the day at 575p after a previous close of 568.6p. During the day the price has varied from a low of 568.52p to a high of 580.4p. The latest price was 578.8p (25 minute delay). Royal Mail is listed on the London Stock Exchange (LSE) and employs 177,047 staff. All prices are listed in pence sterling.

How to buy shares in Royal Mail

  1. Choose a platform. If you're a beginner, our share-dealing table below can help you choose.
  2. Open your account. You'll need your ID, bank details and national insurance number.
  3. Confirm your payment details. You'll need to fund your account with a bank transfer, debit card or credit card.
  4. Search the platform for stock code: RMG in this case.
  5. Research Royal Mail shares. The platform should provide the latest information available.
  6. Buy your Royal Mail shares. It's that simple.
The whole process can take as little as 15 minutes.

How has coronavirus impacted Royal Mail's share price?

Since the stock market crash that started in February 2020, Royal Mail's share price has had significant positive movement.

Its last market close was 593.8p, which is 69.96% up on its pre-crash value of 178.4p and 399.60% up on the lowest point reached during the March 2020 crash when the shares fell as low as 118.856p.

If you had bought £1,000 worth of Royal Mail shares at the start of February 2020, those shares would have been worth £745.05 at the bottom of the March crash, and if you held on to them, then as of the last market close they'd be worth £3,055.34.

Royal Mail share price (LSE:RMG)

Use our graph to track the performance of RMG stocks over time.

Royal Mail shares at a glance

Information last updated 2021-07-09.
Open575p
High580.4p
Low568.52p
Close578.8p
Previous close568.6p
Change10.2p
Change %1.7939%
Volume1,606,619
Information last updated 2021-07-29.
52-week range160.7693p - 611.6834p
50-day moving average566.1486p
200-day moving average506.6182p
Wall St. target price321.59p
PE ratio8.2201
Dividend yield10p (1.94%)
Earnings per share (TTM)61.8p
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Invest in Royal Mail shares with 0% commission

Other fees apply. Your capital is at risk.

  • Unlimited trades, with no dealing charges or management fees
  • Pay no stamp duty on UK shares (saving 0.5%)
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Fees for buying 100x Royal Mail shares with popular platforms

Share prices fluctuate in real time, so the costs presented here should be considered as a guide only. They do not incorporate stamp duty. Always refer to the platform itself for availability and pricing – which may differ from our information.

Platform Platform fee Min. initial deposit Trading fee estimate
eToro Free Stocks logo £0 $200 £0.00
£578.80 total
Capital at risk
Freetrade logo £0 No minimum £0.00
£578.80 total
Capital at risk
Degiro Share Dealing logo £0 £0.01 £1.83
£580.63 total
Capital at risk
Hargreaves Lansdown Fund and Share Account logo £0 £1 £11.95
£590.75 total
Capital at risk
interactive investor Trading Account logo £9.99 per month No minimum £7.99
£586.79 total
Capital at risk
Fineco logo £0 No minimum £0.00
£578.80 total
Capital at risk
Halifax Share Dealing Account logo £36 per year £20 £9.50
£588.30 total
Capital at risk

Full comparison of share dealing platforms

All investing should be regarded as longer term. The value of your investments can go up and down, and you may get back less than you invest. Past performance is no guarantee of future results. If you’re not sure which investments are right for you, please seek out a financial adviser. Capital at risk.

Is it a good time to buy Royal Mail stock?

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.

Royal Mail price performance over time

Historical closes compared with the last close of 578.8p

1 month (2021-07-01) 0.10%
3 months (2021-04-30) 16.69%

Is Royal Mail under- or over-valued?

Valuing a stock is incredibly difficult, and any metric has to be viewed as part of a bigger picture of overall performance. However, analysts commonly use some key metrics to help gauge value.

P/E ratio

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 8x. In other words, Royal Mail shares trade at around 8x 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.

EBITDA

Royal Mail's EBITDA (earnings before interest, taxes, depreciation and amortisation) is a whopping £1.2 billion.

The EBITDA is a measure of a Royal Mail's overall financial performance and is widely used to measure a its profitability.

To put that into context you can compare it against similar companies.

Financials

Revenue TTM £12.6 billion
Operating margin TTM 7.52%
Gross profit TTM £5.3 billion
Return on assets TTM 5.65%
Return on equity TTM 11.89%
Profit margin 4.91%
Book value 4.808p
Market capitalisation £5.1 billion

TTM: trailing 12 months

Royal Mail share dividends

1.9%

Dividend yield: 1.94% of stock value

3.8%

Forward annual dividend yield: 3.81% of stock value

16.4%

Dividend payout ratio: 16.39% of net profits

Royal Mail has recently paid out dividends equivalent to 1.94% of its share value annually.

Royal Mail has paid out, on average, around 16.39% of recent net profits as dividends. That has enabled analysts to estimate a "forward annual dividend yield" of 3.81% of the current stock value. This means that over a year, based on recent payouts (which are sadly no guarantee of future payouts), shareholders could enjoy a 3.81% return on their shares, in the form of dividend payments. In Royal Mail's case, that would currently equate to about 10p per share.

While Royal Mail's payout ratio might seem low, this can signify that the company is investing more in its future growth.

The latest dividend was paid out to all shareholders who bought their shares by 28 July 2021 (the "ex-dividend date").

Royal Mail's dividend yield is perhaps best considered in relation to those of similar companies.

Royal Mail dividend history

Dividend Type Ex-dividend date Payment date
£0.1 Final 29/07/2021 06/09/2021
£0.075 Interim 05/12/2019 15/01/2020
£0.17 Final 25/07/2019 04/09/2019
£0.08 Interim 06/12/2018 16/01/2019
£0.163 Final 26/07/2018 31/08/2018
£0.077 Interim 07/12/2017 10/01/2018
£0.156 Final 29/06/2017 28/07/2017
£0.074 Interim 08/12/2016 11/01/2017
£0.151 Final 30/06/2016 29/07/2016
£0.07 Interim 03/12/2015 13/01/2016
£0.143 Final 02/07/2015 31/07/2015
£0.067 Interim 27/11/2014 14/01/2015

Share price volatility

Over the last 12 months, Royal Mail's shares have ranged in value from as little as 160.7693p up to 611.6834p. A popular way to gauge a stock's volatility is its "beta".

RMG.LSE volatility(beta: 1.65)Avg. volatility(beta: 1.00)LowHigh

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 1.6454. This would suggest that Royal Mail's shares are more volatile than the average for this exchange and represent, relatively-speaking, a 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.

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