Polar Capital Holdings (POLR) AI Stock Analysis

• Market Cap: £418.71M
• Dividend Yield: 10.49%
• Average Volume (3M): 144.50K
• Price to Earnings (P/E): 10.0
• Beta (1Y): 1.45
• Revenue Growth: 18.08%
• EPS Growth: 22.78%
• Country: UK
• Employees: 191
• Sector: Financial
• Sector Strength: 93
• Industry: Asset Management Services
• EPS (TTM): 0.44
• Shares Outstanding: 101,560,400
• 10 Day Avg. Volume: 197,171
• 30 Day Avg. Volume: 144,497
• PEG Ratio: 0.44
• Price to Book (P/B): N/A
• Price to Sales (P/S): 2.28
• Price to Cash Flow (P/CF): N/A
• P/FCF Ratio: 0.00
• 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: 560.00p
• Price Target Upside: 27.71% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

Polar Capital Holdings has a robust financial performance with strong profitability and a solid balance sheet. However, recent revenue and cash flow fluctuations are concerning. Technical analysis presents mixed signals, lacking clear upward momentum. The stock's valuation is attractive due to a low P/E ratio and high dividend yield, supporting a moderately positive overall score.

Polar Capital Holdings Business Overview & Revenue Model

Company Description

Polar Capital Holdings (POLR) is a UK-based investment management company that specializes in providing a range of investment solutions across various asset classes, including equities, fixed income, and alternative investments. The firm serves a diverse client base, including institutional investors, wealth managers, and advisors, by offering actively managed funds designed to meet different investment objectives and risk appetites.

How the Company Makes Money

Polar Capital Holdings primarily generates revenue through management fees and performance fees associated with its investment products. Management fees are charged as a percentage of the assets under management (AUM) and represent a stable income stream as long as the funds retain their asset base. Performance fees are earned when certain funds outperform predefined benchmarks, providing an incentive for the company to deliver superior investment results. Additionally, Polar Capital's earnings are influenced by the overall growth in AUM, which can be driven by both market appreciation and net inflows from new and existing clients. The company may also engage in strategic partnerships to expand its distribution network or enhance its investment capabilities, contributing further to its revenue growth.

Polar Capital Holdings Financial Statement Overview

Summary

Polar Capital Holdings displays a strong financial foundation with excellent profitability and solid balance sheet metrics. While revenue and profitability metrics are generally positive, recent fluctuations in revenue and cash flow growth raise some concerns. The company’s low leverage and strong equity position provide a buffer against potential risks, supporting its financial stability in the asset management industry.

Income Statement

Polar Capital Holdings has shown consistent revenue growth with total revenue increasing from 2019 to 2024. The gross profit margin remains strong at around 88.5% in the latest period, indicating efficient cost management. The net profit margin improved to 20.7%, suggesting enhanced profitability. However, there is a notable decline in revenue from 2022 to 2023, which poses a concern for future growth.

Balance Sheet

The company maintains a solid balance sheet with a low debt-to-equity ratio of 0.06, indicating low leverage and financial stability. The equity ratio stands at 62.4%, demonstrating a strong equity position. The return on equity is healthy at 30.0%, reflecting efficient use of equity to generate profits. The company’s liquidity position is robust, supported by substantial cash reserves.

Cash Flow

Operating cash flow remains positive, although there has been a decline from 2021 to 2024. The free cash flow to net income ratio is favorable, demonstrating effective cash generation relative to profits. However, the free cash flow growth rate has been negative in the latest period, which is a point of concern for sustaining cash flow stability.

Breakdown
TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement		Total Revenue
212.74M	197.25M	185.10M	219.42M	218.45M	151.01M
	Gross Profit
187.56M	174.59M	160.39M	187.52M	201.24M	138.34M
	EBIT
64.27M	58.20M	50.38M	58.44M	76.02M	51.03M
	EBITDA
64.87M	58.53M	53.71M	67.70M	77.84M	52.39M
	Net Income Common Stockholders
41.81M	40.79M	35.61M	48.92M	62.72M	40.19M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
146.33M	146.33M	190.02M	198.91M	193.87M	146.41M
	Total Assets
217.62M	217.62M	241.68M	249.85M	255.73M	172.98M
	Total Debt
7.51M	7.51M	9.26M	3.14M	4.36M	5.62M
	Net Debt
-91.37M	-91.37M	-97.72M	-117.99M	-132.36M	-102.14M
	Total Liabilities
81.72M	81.72M	98.83M	93.61M	104.29M	56.90M
	Stockholders Equity
135.90M	135.90M	142.85M	156.25M	151.44M	116.08M
Cash Flow		Free Cash Flow
53.77M	41.66M	49.21M	66.64M	91.50M	41.94M
	Operating Cash Flow
54.26M	41.91M	49.70M	67.19M	91.66M	42.05M
	Investing Cash Flow
-11.00M	13.11M	-19.91M	-39.02M	-20.05M	-6.11M
	Financing Cash Flow
-47.42M	-62.92M	-39.94M	-51.78M	-28.32M	-40.63M

Polar Capital Holdings Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 438.50
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:POLR, the sentiment is Negative. The current price of 438.5 is below the 20-day moving average (MA) of 471.43, below the 50-day MA of 487.79, and below the 200-day MA of 510.04, indicating a bearish trend. The MACD of -17.22 indicates Positive momentum. The RSI at 33.35 is Neutral, neither overbought nor oversold. The STOCH value of 18.00 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GB:POLR.

Polar Capital Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
POLR	73 Outperform	£418.71M	10.03	33.77%	10.49%	18.08%	22.78%
AJB	68 Neutral	£1.73B	20.67	45.56%	2.96%	23.46%	23.33%
Sector *	64 Neutral	$14.34B	10.61	9.28%	4.07%	18.04%	-9.54%

Polar Capital Holdings Corporate Events

Polar Capital Holdings Announces Change in Major Holdings

Polar Capital Holdings PLC has announced a change in its major holdings, specifically involving BlackRock, Inc. The notification indicates that BlackRock’s voting rights in Polar Capital have slightly decreased from 5.43% to 5.39%. This change in voting rights could have implications for Polar Capital’s shareholder dynamics and influence within the company, although the impact appears minimal given the small percentage change.

Polar Capital Announces Internal Share Transfer

Polar Capital Holdings plc announced a transaction involving the transfer of 55,000 ordinary shares from Gail Evans, the wife of the Head of Global Distribution, Iain Evans, to him as a gift. This transfer, conducted off-market and for nil consideration, highlights internal shareholding adjustments and could reflect strategic personal or financial planning by key personnel within the company.

BlackRock Increases Stake in Polar Capital Holdings

Polar Capital Holdings PLC has announced a change in its voting rights structure as BlackRock, Inc. increased its stake in the company. BlackRock now holds 5.43% of the voting rights, up from a previous 5.02%, due to an acquisition of additional shares and financial instruments. This change may influence the company’s governance and strategic decisions, impacting stakeholders and potentially affecting market perception of Polar Capital’s stability and growth prospects.

Polar Capital’s CIO Sells Shares: Implications for Stakeholders

Alexander Black, the Chief Investment Officer of Polar Capital Holdings, has sold 11,000 shares of the company on 21 January 2025. This transaction might reflect a personal financial decision by a key managerial figure, but it can also signal potential strategic shifts or personal outlooks on the company’s market position, potentially impacting investor sentiment.

Polar Capital COO Transfers Shares to Spouse

Polar Capital Holdings PLC recently reported a transaction involving its Chief Operating Officer, Nicholas Farren. On January 15, 2025, Mr. Farren transferred 5,232 ordinary shares of the company to his wife, Lucy Farren, as a gift without any financial consideration. This action is categorized as a transaction conducted by a person discharging managerial responsibilities and might be relevant for stakeholders tracking insider transactions within the company.

Polar Capital Holdings Reports 9% Increase in AuM Despite Market Challenges

Polar Capital Holdings announced a 9% increase in its Assets under Management (AuM) to £23.8bn as of December 2024, attributed to market movements, fund performance, and net inflows, despite net outflows in certain funds and the closure of the Forager fund. Net performance fee profits were reported at £8.3m, with strong long-term performance, as 89% of UCITs AuM outperformed benchmarks since inception, positioning the company for continued success for clients and shareholders.