Royal Mail plc (RMG) is a leading integrated freight & logistics business based in the UK. It opened the day at £183.25 after a previous close of £182.25. During the day the price has varied from a low of £171.3 to a high of £186.9. The latest price was £172.35 (25 minute delay). Royal Mail is listed on the London Stock Exchange (LSE) and employs 0 staff. All prices are listed in British Pound.

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.

How has Coronavirus impacted Royal Mail's share price?

Since the stock market crash in March caused by coronavirus, Royal Mail's share price has had significant negative movement.

Its last market close was £172.35, which is 3.39% down on its pre-crash value of £178.4 and 45.01% up on the lowest point reached during the March crash when the shares fell as low as £118.856.

If you had bought £1,000 worth of Royal Mail shares at the start of February 2020, those shares would have been worth £745.72 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 £887.60.

Royal Mail share price

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

Royal Mail shares at a glance

Information last updated 2020-07-01.
Open£183.25
High£186.9
Low£171.3
Close£172.35
Previous close£182.25
Change £-9.9
Change % -5.432%
Volume 6,687,921
Information last updated 2020-06-27.
52-week range£121.92 - £258.6
50-day moving average £175.3943
200-day moving average £179.8465
Wall St. target price£321.59
PE ratio 5.5186
Dividend yield £0.24 (19.71%)
Earnings per share (TTM) £32.3
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Share dealing platform comparison

Table: sorted by promoted deals first
Data indicated here is updated regularly
Name Product Price per trade Frequent trader rate Platform fees Brand description
Fineco
£2.95
£2.95
Zero platform fee
Fineco Bank is good for share traders and investors looking for a complete platform and wide offer. Your first 50 trades are free with Fineco, until 30/09/2020. T&Cs apply. Capital at risk.
IG
0% commission on US shares, and £3 on UK shares
From £5
£0 - £24 per quarter
IG is good for experienced traders, and offers learning resources for beginners, all with wide access to shares, ETFs and funds. Capital at risk.
Hargreaves Lansdown Fund & Share Account
£11.95
£5.95
Transfer out fee
Hargreaves Lansdown is the UK's biggest wealth manager, with the depth of features you'd expect from an established platform. Capital at risk.
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0% commission, no markup, no ticket fee, no management fee
N/A
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Interactive Investor
From £7.99 on the Investor Service Plan
From £7.99 on the Investor Service Plan
No transfer fees or exit fees. £9.99 a month on the Investor Service Plan
Capital at risk.
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Data indicated here is updated regularly
Name Product Minimum deposit Maximum annual fee Price per trade Brand description
Hargreaves Lansdown stocks and shares ISA
£100
0.45%
£11.95
Hargreaves Lansdown is the UK's biggest wealth manager. It's got everything you'll need, from beginners to experienced investors. Capital at risk.
Interactive Investor stocks and shares ISA
£100 or £25 a month
£119.88
£7.99
Interactive Investor offers everything most investors need. Its flat fees makes it pricey for small portfolios, but cheap for big ones. Capital at risk.
Saxo Markets stocks and shares ISA
No minimum deposit requirement
0.12%
£8.00
Saxo Markets offers a wide access to a range of stocks, ETFs and funds. Capital at risk.
AJ Bell stocks and shares ISA
£500
0.25%
£9.95
AJ Bell is a good all-rounder for people who to choose between shares, funds, ISAs and pensions. Capital at risk.
Fidelity stocks and shares ISA
£1000 or a regular savings plan from £50
0.35%
£10.00
Fidelity is another good all-rounder, offering a good package at a decent price. Not suited for trading shares. Capital at risk.
Nutmeg stocks and shares ISA
£100
0.75%
£0
Nutmeg offers three types of portfolios. Choose the one that goes with your investment style. Capital at risk.
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Data indicated here is updated regularly
Name Product Minimum investment Choose from Annual fee Brand description
PensionBee Pension
No minimum
7 funds
0.5% - 0.95%
Pension Bee is a newbie in the pension market. It helps consolidate your pension plans into one place. Capital at risk.
Hargreaves Lansdown Pension
£100
2,500 funds
0-0.45%
Hargreaves Lansdown is the UK's biggest wealth manager. It's got three different retirement options. Capital at risk.
Interactive Investor Pension
£25/month
Over 2,500 funds
£10/month
interactive investor is a flat-fee platform, which makes it cost effective for larger portfolios. Capital at risk.
Saxo Markets Pension
Saxo Markets Pension
£10
Over 11,000 funds
No annual fee
Saxo Markets gives flexibility and control over your investment strategy. Capital at risk.
AJ Bell Pension
£1,000
Over 2,000 funds
0.05-0.25%
AJ Bell has two different pension options, a self managed pension and one that is managed for you. Capital at risk.
Moneybox Pension
£1
3 funds
0.15% - 0.45% charged monthly
Manage your money with an easy-to-use Moneybox app. Capital at risk.
Moneyfarm Pension
Moneyfarm Pension
0.35%-0.75%
7 funds
£1,500 (initial investment)
Moneyfarm has pensions that are matched against your risk appetite, goals and planned retirement date. Capital at risk.
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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. Capital is 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 £172.35

1 week (2020-06-25) 9.43%
1 month (2020-06-02) 0.61%
3 months (2020-04-02) 35.92%
6 months (2020-01-02) -25.68%
1 year (2019-07-02) -17.89%
2 years (2018-07-02) -65.40%
3 years (2017-06-30) -59.08%
5 years (2015-07-02) -65.97%

Is Royal Mail under- or over-valued?

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 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 6x. In other words, Royal Mail shares trade at around 6x 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

Royal Mail's EBITDA (earnings before interest, taxes, depreciation and amortisation) is £858 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.

Royal Mail financials

Revenue TTM £10.8 billion
Operating margin TTM 4.73%
Gross profit TTM £3.9 billion
Return on assets TTM 4.05%
Return on equity TTM 7.04%
Profit margin 2.98%
Book value £4.942
Market capitalisation £1.8 billion

TTM: trailing 12 months

Royal Mail share dividends

77%

Dividend payout ratio: 77.4% of net profits

Recently Royal Mail has paid out, on average, around 77.4% 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 £0.24 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.

Royal Mail share price volatility

Over the last 12 months, Royal Mail's shares have ranged in value from as little as £121.92 up to £258.6. A popular way to gauge a stock's volatility is its "beta".

RMG.LSE volatility(beta: 1.21)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 1.2061. 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.

Royal Mail overview

Royal Mail plc, together with its subsidiaries, operates as a universal postal service provider in Europe, North America, Western United States, and Canada. 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; and catering and marketing mail services. In addition, it operates ground-based parcel delivery networks in Europe comprising the GLS network that covers 41 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 B2B and B2C sectors. Royal Mail plc was incorporated in 2013 and is headquartered in London, the United Kingdom.

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