# AJ Bell plc (AJB.L) fundamentals

Data as of 2026-09-08. LSE, United Kingdom. Sector: Financial Services / Capital Markets. Price 600p, market value 2.4 billionp.

## Valuation
- **P/E (trailing): 20.0×** (5-yr avg 2401.4×, 3-yr avg 1980.3×). AJ Bell plc trades at 20.0× trailing earnings, well below its own five-year average of 2401.4×: cheap by its own standards. The Financial Services median in the September 2026 study was 13.1×. Forward P/E is 17.9×, lower than trailing, so analysts expect earnings to grow.
- **PEG: 0.60**. A PEG of 0.60 means the P/E is low relative to expected earnings growth: the market is not paying much for that growth.
- **Price / sales: 3.7×**. Each dollar of revenue is priced at 3.7×.
- **Price / book: 11.2×**. The shares trade at 11.2× book value; most of the value is in earnings power and intangibles rather than the balance sheet.
- **EV / EBITDA: 7.7×**. Enterprise value is 7.7× operating earnings before depreciation, the multiple that ignores how the company is financed; below 8× is inexpensive for most sectors.
- **Free-cash-flow yield: 7.2%** (5-yr avg 0.0%). Free cash flow equals 7.2% of the market value, above its five-year average of 0.0%, so the shares are cheaper on cash than they have usually been. Above 5% is generally attractive.
- **Earnings yield: 5.0%**. The inverse of the P/E: 5.0% of the price is earned each year.

## Profitability
- **Gross margin: 92.1%**. AJ Bell plc keeps 92.1% of revenue after the direct cost of what it sells, the kind of margin that comes with software, brands or pricing power.
- **Operating margin: 40.2%**. 40.2% of revenue is left after running the business, an exceptional level.
- **Net margin: 33.1%**. 33.1% of each dollar of sales reaches the bottom line.
- **Return on equity: 48.3%**. 48.3% on shareholders' equity is excellent if it is not driven by leverage; sustained above 20% usually signals a competitive advantage.
- **Return on invested capital: 468.4%**. Return on all capital, debt included, is 468.4%: comfortably above what that capital costs.
- **Return on assets: 70.2%**. Each dollar of assets produces 70.2% of profit; low single digits are normal for banks and insurers.

## Growth
- **Revenue growth (1 yr): 18.0%** (3-yr 24.7%/yr, 5-yr 20.2%/yr). Revenue grew 18.0% over the last year, against 20.2% a year compounded over five years.
- **EPS growth (1 yr): 30.0%** (3-yr 33.2%/yr, 5-yr 22.4%/yr). Earnings per share rose 30.0%, faster than revenue, so margins expanded or the share count shrank.
- **Free-cash-flow growth (3 yr): 25.4%/yr**. Free cash flow has compounded at 25.4% a year over three years, lagging earnings: check whether profits are turning into cash.

## Financial health
- **Piotroski F-score: 7/9**. 7 of 9 fundamental checks pass: strong and improving financials.
- **Cash and short-term investments: 188 millionp**. Leverage ratios are shown differently for banks and insurers, whose balance sheets are built on deposits and reserves; use return on equity and the regulatory capital in the filings instead.

## Dividends
- **Dividend yield: 2.40%** (0p per share, trailing). AJ Bell plc yields 2.40%, a modest yield more typical of a growth-oriented payer.
- **Payout ratio: 50%** (55% of free cash flow). 50% of earnings goes out as dividends, leaving room to keep raising it.
- **Consecutive years of increases: 2**. 2 straight years of increases.
- **Dividend growth (5 yr): 21.4%/yr** (1-yr 10.9%). The dividend has compounded at 21.4% a year over five years, doubling roughly every 3 years at that pace.
- **Shareholder yield: 5.4%**. Dividends plus net buybacks return 5.4% of the market value a year.

## Price and momentum
- **Total return (1 yr): 21.6%** (YTD 39.1%, 3-mo 1.8%). The shares are up 21.6% over twelve months including dividends.
- **From 52-week high: -9.5%** (44.7% above the low). Trading 10% below its 52-week high.
- **200-day average: above**. The price sits above its 200-day moving average, the usual definition of an uptrend.
- **RSI (14-day): 54**. An RSI of 54 is neutral.
- **Beta (1 yr): 0.74** (volatility 31%). Beta of 0.74 against the FTSE All-Share: the shares move roughly with the market.

Live score and charts: https://foliofundamentals.com/analyzer?s=AJB.L · Page: https://foliofundamentals.com/stocks/ajb.l

Not investment advice.