The average ROCE over 10 years is 22.4%.
Gross profit margin over the last 5 years has been between 78% and 90%.
The current dividend yield is 6.49%, interest cover is 80.
The balance sheet is strong with net cash of £179 million, no pension deficit and a negative gearing ratio.
Jupiter Fund Management (JUP)
Earnings started to falling from 2018 and were further hampered by the departure of star fund manager Alexander Darwall who had a dedicated following.
Darwell left to start his own small investment firm and outflows still continue from the fund he managed but at a less pronounced rate.
Finally Jupiter appointed a new CEO in 2019 contributing to a short period of turmoil for the asset management firm.
Like other firms, Jupiter cited rising regulatory burdens and associated costs for earnings declines but the staff turnover and clients outflows as a result cannot be ignored.
Jupiter: the future
Since then Jupiter have strengthened their client offering as well as taking advantage of rising markets since the start of the coronavirus pandemic.
CEO Andrew Formica:
Following the completion of the acquisition of Merian Global Investors Limited on 1 July 2020, and our strategic partnership with NZS Capital LLC, we believe that the expanded product line-up and additional strength in UK and overseas distribution will see us well placed to take advantage of market opportunities in the future, helping to secure Jupiter’s long-term future and profitability.
If Jupiter can keep its staff and capitalise on it’s new global distribution network and product offering then there’s every chance earnings will return to growth over time.
Whilst that’s happening, it’s comforting to know that the CEO likes paying dividends to shareholders:
Our approach to dividends is unchanged: the ordinary dividend policy is a progressive one with the intention to pay out 50% of underlying EPS across the cycleAndrew Formica, CEO Jupiter Fund Management
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