# Arbuthnot Banking Group PLC (ARBB.L) fundamentals

Data as of 2026-09-08. LSE, United Kingdom. Sector: Financial Services / Banks. Price 815p, market value 133 millionp.

## Valuation
- **P/E (trailing): 7.0×** (5-yr avg 892.2×, 3-yr avg 612.9×). Arbuthnot Banking Group PLC trades at 7.0× trailing earnings, well below its own five-year average of 892.2×: cheap by its own standards. The Financial Services median in the September 2026 study was 13.1×. Forward P/E is 6.6×, lower than trailing, so analysts expect earnings to grow.
- **Price / sales: 0.3×**. Each dollar of revenue is priced at 0.3×, a low multiple typical of thin-margin businesses or out-of-favour stocks.
- **Price / book: 0.5×**. The shares trade below book value, which can signal a bargain or a balance sheet the market doubts.
- **Free-cash-flow yield: 62.1%** (5-yr avg 0.1%). Free cash flow equals 62.1% of the market value, above its five-year average of 0.1%, so the shares are cheaper on cash than they have usually been. Above 5% is generally attractive.
- **Earnings yield: 14.2%**. The inverse of the P/E: 14.2% of the price is earned each year.

## Profitability
- **Gross margin: 71.6%**. Arbuthnot Banking Group PLC keeps 71.6% of revenue after the direct cost of what it sells, the kind of margin that comes with software, brands or pricing power.
- **Operating margin: 31.4%**. 31.4% of revenue is left after running the business, an exceptional level.
- **Net margin: 5.9%**. 5.9% of each dollar of sales reaches the bottom line.
- **Return on equity: 6.4%**. 6.4% on shareholders' equity is weak; the business earns little on the capital its owners have in it.
- **Return on invested capital: -175.1%**. Return on all capital, debt included, is -175.1%: close to or below the cost of capital, so growth may not create value.
- **Return on assets: 0.9%**. Each dollar of assets produces 0.9% of profit; low single digits are normal for banks and insurers.

## Growth
- **Revenue growth (1 yr): 32.5%** (3-yr 23.8%/yr, 5-yr 27.5%/yr). Revenue grew 32.5% over the last year, against 27.5% a year compounded over five years.
- **EPS growth (1 yr): -28.3%** (3-yr -0.3%/yr). Earnings per share fell 28.3%, slower than revenue, so margins compressed.
- **Free-cash-flow growth (3 yr): 34.4%/yr**. Free cash flow has compounded at 34.4% a year over three years, keeping pace with earnings: the growth is real cash.

## Financial health
- **Piotroski F-score: 7/9**. 7 of 9 fundamental checks pass: strong and improving financials.
- **Cash and short-term investments: 438 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: 6.88%** (1p per share, trailing). Arbuthnot Banking Group PLC yields 6.88%, high enough to check carefully: yields this high often precede a cut.
- **Payout ratio: 47%** (23% of free cash flow). 47% of earnings goes out as dividends, leaving room to keep raising it.
- **Shareholder yield: 6.9%**. Dividends plus net buybacks return 6.9% of the market value a year.

## Analyst view
- **Analyst consensus: strong_buy** (1 analyst). 1 analysts cover Arbuthnot Banking Group PLC; the consensus is strong_buy, with an average price target of 1215p (+49% from the current price). Analyst opinion is shown for context; it is not part of the Fundamental Score.

## Price and momentum
- **Total return (1 yr): -25.5%** (YTD -9.4%, 3-mo -5.1%). The shares are down 25.5% over twelve months including dividends.
- **From 52-week high: -24.5%** (6.5% above the low). Trading 25% below its 52-week high.
- **200-day average: below**. The price sits below its 200-day moving average, the usual definition of a downtrend.
- **RSI (14-day): 43**. An RSI of 43 is neutral.
- **Beta (1 yr): 0.16** (volatility 20%). Beta of 0.16 against the FTSE All-Share: the shares move much less than the market.

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

Not investment advice.