Ninety One (N91) AI Stock Analysis

• Market Cap: £2.57B
• Dividend Yield: 8.3%
• Average Volume (3M): 442.64K
• Price to Earnings (P/E): 8.3
• Beta (1Y): 1.26
• Revenue Growth: -2.89%
• EPS Growth: -1.53%
• Country: UK
• Employees: 1,187
• Sector: Financial
• Sector Strength: 77
• Industry: Asset Management Services
• EPS (TTM): 0.17
• Shares Outstanding: 622,491,460
• 10 Day Avg. Volume: 620,767
• 30 Day Avg. Volume: 442,642
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 1.89
• Price to Cash Flow (P/CF): 37.90
• P/FCF Ratio: 37.70
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: 148.83p
• Price Target Upside: 3.50% Upside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 1

Ninety One's strong cash flow and operational efficiency are key strengths, but declining revenues and high leverage pose risks. The stock appears undervalued with a high dividend yield, though technical indicators suggest caution. Strategic initiatives like the Sanlam partnership and share buybacks are positive, but challenges such as net outflows and declining earnings impact the score.

Ninety One Business Overview & Revenue Model

Company Description

Ninety One (N91) is an independent, active global asset management company focused on delivering long-term investment returns for its clients. Established in South Africa and headquartered in London, the company offers a diverse range of investment strategies and products across various asset classes including equities, fixed income, multi-asset, and alternatives. Ninety One serves a broad client base, including individuals, institutions, and advisors, providing tailored investment solutions that align with their financial goals.

How the Company Makes Money

Ninety One makes money primarily through the management fees it charges on the assets under its management (AUM). These fees are typically calculated as a percentage of the AUM and vary depending on the investment strategy and client agreement. Additionally, the company may earn performance fees, which are contingent on achieving certain investment benchmarks or returns above a predefined threshold. Ninety One also benefits from its strategic partnerships with financial institutions and distribution networks, enhancing its reach and ability to attract more investments. Furthermore, the firm’s diversified portfolio and global presence contribute to its revenue stability and growth prospects.

Ninety One Financial Statement Overview

Summary

Ninety One shows a stable financial profile with strong cash flow generation and operational efficiency. However, challenges such as declining revenues and high leverage could impact growth prospects. The company’s liquidity position is a significant strength, providing a cushion against potential market volatility.

Income Statement

The income statement shows a mixed performance. Gross profit margin and net profit margin are satisfactory, but there has been a decline in revenue over the years. The EBIT and EBITDA margins are stable, indicating consistent operational efficiency. However, the revenue growth rate has been negative, impacting the overall income statement score.

Balance Sheet

The balance sheet reflects high leverage with a low equity base, as indicated by the debt-to-equity ratio. However, the company maintains strong liquidity with significant cash reserves. The return on equity is reasonable but limited by the low equity ratio, which could pose risks in adverse market conditions.

Cash Flow

The cash flow statement is strong, with positive free cash flow and a high operating cash flow to net income ratio. The company has maintained a consistent level of free cash flow, indicating good cash generation capabilities. Free cash flow growth is positive, further supporting a strong cash flow profile.

Breakdown
TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement		Total Revenue
731.60M	588.50M	745.50M	795.10M	755.90M	761.00M
	Gross Profit
360.25M	295.50M	627.10M	663.90M	625.10M	336.70M
	EBIT
243.70M	202.60M	206.80M	252.30M	211.60M	194.60M
	EBITDA
252.55M	234.20M	220.40M	269.00M	249.20M	205.70M
	Net Income Common Stockholders
195.70M	163.90M	163.80M	205.30M	154.40M	155.40M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
378.50M	378.50M	10.34B	11.18B	9.40B	7.22B
	Total Assets
11.12B	11.12B	10.81B	11.68B	9.90B	7.65B
	Total Debt
94.70M	94.70M	102.70M	109.40M	110.40M	101.60M
	Net Debt
-280.60M	-280.60M	-276.90M	-297.20M	-227.10M	-92.90M
	Total Liabilities
10.75B	10.75B	10.46B	11.34B	9.65B	7.50B
	Stockholders Equity
367.40M	367.40M	349.80M	341.50M	253.20M	150.70M
Cash Flow		Free Cash Flow
193.10M	169.30M	73.40M	653.20M	440.00M	800.20M
	Operating Cash Flow
195.60M	171.80M	74.60M	654.60M	459.40M	813.60M
	Investing Cash Flow
-11.65M	-4.40M	2.40M	-393.10M	-408.70M	-672.00M
	Financing Cash Flow
-199.55M	-163.80M	-164.30M	-145.70M	-68.90M	-199.50M

Ninety One Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 143.80
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:N91, the sentiment is Negative. The current price of 143.8 is below the 20-day moving average (MA) of 144.30, below the 50-day MA of 146.21, and below the 200-day MA of 156.18, indicating a bearish trend. The MACD of -1.07 indicates Negative momentum. The RSI at 47.19 is Neutral, neither overbought nor oversold. The STOCH value of 57.32 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GB:N91.

Ninety One Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
N91	69 Neutral	£2.57B	8.29	44.22%	8.30%	-2.89%	-1.53%
Sector *	64 Neutral	$13.80B	10.64	9.23%	4.22%	17.66%	-7.66%

Ninety One Corporate Events

Ninety One Announces Share Repurchase

Ninety One plc announced the repurchase of 86,352 of its ordinary shares on 11 March 2025 as part of its share repurchase program. This strategic move, executed through Citigroup Global Markets Limited, reflects the company’s ongoing efforts to manage its capital structure and potentially enhance shareholder value.

Ninety One Enhances Employee Benefit Trust with Share Acquisition

Ninety One has announced a significant transaction involving the on-market acquisition of 119,921 ordinary shares by The Ninety One South Africa Employee Benefit Trust. The transaction, valued at approximately R4,078,801, was conducted on the Johannesburg Stock Exchange, reflecting the company’s ongoing efforts to manage its employee benefit structures and potentially enhance stakeholder value.

Ninety One’s Strategic Share Acquisition through Employee Benefit Trust

Ninety One has announced an on-market acquisition of 289,280 ordinary shares through its Guernsey Employee Benefit Trust, amounting to a total transaction value of £412,016. This transaction, conducted on 7 March 2025, reflects the company’s ongoing efforts to manage its employee benefit trusts and may impact its market positioning by potentially enhancing employee incentives.

Ninety One and Sanlam Forge Strategic Asset Management Partnership

Ninety One and Sanlam have executed key agreements to establish a long-term strategic asset management relationship. This involves Ninety One acquiring Sanlam’s asset management businesses in South Africa and the UK, with Sanlam receiving a significant equity stake in Ninety One. The transaction is expected to be earnings accretive for Ninety One and, after initial costs, beneficial for Sanlam in the long term.

Ninety One Initiates £30 Million Share Repurchase Program

Ninety One plc has announced the initiation of a share repurchase program, starting with a first tranche of up to £5 million, as part of a larger £30 million program. This move is aimed at reducing the company’s ordinary share capital and will be executed in compliance with relevant regulations, with Citigroup Global Markets Limited managing the purchases on the London Stock Exchange.

Fairtree Increases Stake in Ninety One Limited to 5.06%

Ninety One Limited has announced that Fairtree Asset Management (Pty) Ltd has increased its beneficial interest in the company’s securities to 5.06%, up from the previous 4.95%. This acquisition indicates Fairtree’s growing confidence in Ninety One’s market position and could enhance the company’s stakeholder relations and market presence.

Ninety One’s Strategic Share Acquisition by Employee Trust

Ninety One has announced a transaction involving the on-market acquisition of 98,725 ordinary shares by its Guernsey Employee Benefit Trust. This transaction, valued at £148,517, reflects the company’s ongoing efforts to manage its securities and optimize its employee benefit trusts, potentially impacting its market positioning and stakeholder interests.

Ninety One Announces Strategic Share Buyback

Ninety One has repurchased 3.049% of its issued ordinary share capital, amounting to 8,682,337 shares, for approximately R332.5 million. This repurchase was funded through excess cash resources, with the shares being cancelled to decrease the outstanding share count to 276,072,464. The board affirms that, post-repurchase, the company’s financial position remains strong, with sufficient capital and liquidity for operations, ensuring no material impact on its financials.

Ninety One’s Strategic Share Acquisition through Employee Benefit Trust

Ninety One announced an on-market acquisition of 79,810 ordinary shares through its Guernsey Employee Benefit Trust, with a total purchase value of £119,102. This transaction highlights the company’s active management of its employee benefit trusts and could impact its financial strategy and shareholder value.

Ninety One Reports Increased Assets Under Management

Ninety One has reported an increase in its assets under management (AUM) to £130.2 billion as of 31 December 2024, up from £127.4 billion at the end of September 2024 and £124.2 billion a year earlier. This growth in AUM underscores the company’s ongoing success and solidifies its position within the investment management industry, potentially enhancing its appeal to stakeholders and investors.

Ninety One PLC Experiences Change in Major Holdings

Ninety One PLC announced a change in major holdings with Allan Gray Proprietary Limited acquiring voting rights, crossing the 5% threshold on January 13, 2025. This adjustment in voting rights reflects Allan Gray’s enhanced stake in Ninety One, potentially impacting the company’s governance and stakeholder dynamics.

Ninety One Announces Insider Share Acquisitions

Ninety One has announced a series of transactions involving the acquisition of ordinary shares by directors and key managerial personnel. These transactions were conducted by utilizing cash dividends under the company’s Share Incentive Plan (SIP), highlighting significant insider investment activity. The transactions were executed on January 13, 2025, at a price of £1.395 per share, reflecting the company’s efforts to align management interests with shareholder value.