Rank Group plc (RNK) AI Stock Analysis

• Market Cap: £385.99M
• Dividend Yield: 1.82%
• Average Volume (3M): 558.85K
• Price to Earnings (P/E): 12.0
• Beta (1Y): 0.77
• Revenue Growth: 9.68%
• EPS Growth: 126.73%
• Country: UK
• Employees: 7,600
• Sector: Consumer Cyclical
• Sector Strength: 55
• Industry: Gambling, Resorts & Casinos
• EPS (TTM): 0.07
• Shares Outstanding: 468,429,530
• 10 Day Avg. Volume: 262,263
• 30 Day Avg. Volume: 558,845
• PEG Ratio: 0.09
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.54
• Price to Cash Flow (P/CF): 2.90
• P/FCF Ratio: 2.70
• 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: 127.00p
• Price Target Upside: 57.96% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

Rank Group plc exhibits a strong financial recovery, with improved profitability and a solid balance sheet. Technical indicators show stability, but limited momentum. The stock is attractively valued, offering potential upside. The executive share purchase and strong interim results further boost confidence, despite regulatory challenges.

Rank Group plc Business Overview & Revenue Model

Company Description

Rank Group plc is a leading European gaming company, operating primarily in the entertainment and leisure sectors. The company offers a variety of gaming and betting services through its well-known brands such as Grosvenor Casinos and Mecca Bingo, which encompass a range of casinos, bingo venues, and digital gaming platforms. Rank Group is committed to providing engaging and responsible gaming experiences across its land-based and online channels.

How the Company Makes Money

Rank Group plc generates revenue through multiple streams primarily focused on gaming and betting activities. The company's key revenue sources include earnings from its physical casino operations under the Grosvenor Casinos brand, where customers participate in table games, electronic gaming, and other casino amenities. Additionally, its Mecca Bingo brand contributes to revenue through bingo club entry fees, food and beverage sales, and gaming machine play. Rank Group also capitalizes on digital growth by offering online gaming services, including casino games, bingo, and sports betting, which attract a broad customer base. Partnerships with technology providers enhance its digital offerings, ensuring a competitive and engaging product suite that supports its overall revenue generation strategy.

Rank Group plc Financial Statement Overview

Summary

Rank Group plc demonstrates a strong recovery trajectory with improved profitability and revenue growth. The balance sheet reflects manageable leverage levels, and cash flows are robust, supporting operations and investments. Continued focus on operational efficiency and strategic growth initiatives could further enhance financial stability and performance.

Income Statement

The company exhibits a strong recovery in revenue and profitability from previous losses, with Total Revenue increasing by 7.7% from 2023 to 2024. Gross Profit Margin improved to 42.0%, and Net Profit Margin turned positive at 1.7%, indicating enhanced cost management and operational efficiency. However, the EBITDA margin remains low at 11.6%, suggesting room for further operational improvements.

Balance Sheet

The balance sheet indicates moderate financial leverage with a Debt-to-Equity Ratio of 0.58. The Equity Ratio remains stable at 46.3%, reflecting a solid equity base. Return on Equity improved significantly to 3.7% from negative figures, indicating better profitability. However, the overall asset base and equity have slightly decreased over recent years, which could limit long-term growth potential.

Cash Flow

The company shows a robust Operating Cash Flow to Net Income Ratio of 9.06, highlighting strong cash flow generation relative to net income. Free Cash Flow has grown by 184.2% from 2023 to 2024, showcasing effective capital expenditure management. However, the Free Cash Flow to Net Income Ratio of 5.32 suggests reliance on cash flow for sustaining operations and growth.

Breakdown
Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement		Total Revenue
734.70M	681.90M	644.00M	329.60M	629.70M
	Gross Profit
308.90M	264.30M	242.20M	8.60M	256.50M
	EBIT
29.40M	8.60M	110.70M	-149.40M	300.00K
	EBITDA
84.90M	-41.70M	153.50M	-11.60M	112.30M
	Net Income Common Stockholders
12.50M	-96.00M	64.90M	-72.10M	9.40M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
56.40M	60.00M	95.70M	69.60M	73.60M
	Total Assets
732.50M	738.40M	856.70M	858.10M	927.10M
	Total Debt
197.30M	232.70M	259.70M	324.00M	369.60M
	Net Debt
140.90M	172.70M	164.00M	254.40M	296.00M
	Total Liabilities
393.50M	408.40M	431.60M	496.90M	561.20M
	Stockholders Equity
339.00M	329.70M	425.20M	361.30M	366.10M
Cash Flow		Free Cash Flow
66.50M	23.40M	113.20M	-53.80M	91.60M
	Operating Cash Flow
113.20M	67.50M	153.80M	-31.60M	142.30M
	Investing Cash Flow
-47.50M	-44.50M	-32.40M	3.00M	-132.90M
	Financing Cash Flow
-59.90M	-60.10M	-94.30M	27.60M	3.20M

Rank Group plc Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 80.40
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:RNK, the sentiment is Neutral. The current price of 80.4 is below the 20-day moving average (MA) of 82.68, below the 50-day MA of 84.57, and below the 200-day MA of 80.53, indicating a neutral trend. The MACD of -0.37 indicates Negative momentum. The RSI at 48.19 is Neutral, neither overbought nor oversold. The STOCH value of 42.02 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for GB:RNK.

Rank Group plc Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
RNK	66 Neutral	£385.99M	11.99	9.21%	1.82%	9.68%	126.73%
FLUT	60 Neutral	£39.48B	1,042.01	-1.40%	―	―	―
Sector *	59 Neutral	$12.18B	11.09	-1.08%	3.77%	1.26%	-19.82%
ENT	57 Neutral	£3.67B	―	-23.74%	2.80%	6.70%	53.23%

Rank Group plc Corporate Events

Rank Group Executive Purchases 20,000 Shares

Rank Group Plc announced that Mark Harper, Managing Director of Grosvenor Venues, purchased 20,000 ordinary shares of the company at a price of £0.788 per share on 28 February 2025. This transaction, conducted on the London Stock Exchange, highlights a significant investment by a key executive, potentially indicating confidence in the company’s future performance and stability.

Rank Group Reports Robust Interim Financial Results

Rank Group plc reported strong financial performance for the six months ending 31 December 2024, with significant revenue and profit growth across all segments. The interim results highlight a 13% increase in like-for-like net gaming revenue, a 55% rise in underlying operating profit, and a 234% surge in profit before tax. The company attributes its success to targeted investments, strategic initiatives, and improved customer experiences. Despite anticipated cost pressures from upcoming regulatory changes, Rank remains optimistic about its future performance, expecting to benefit from legislative reforms and continued digital transformation.

Rank Group Plc Announces Internal Restructuring

Rank Group Plc, a UK-based company, has announced a change in the immediate holding company of GuoLine (Singapore) Pte Ltd due to an internal restructuring. The immediate holding company is now GSL Holdings Limited, a wholly-owned subsidiary of GuoLine Capital Assets Limited. Despite this change, the controlling shareholder group’s total issued share capital in Rank Group Plc remains at 60.25%, indicating stability in the company’s ownership structure.