Rathbone’s total funds under management increased by 8.5% to £33.2bn in the quarter. This compares to a rise in the FTSE 100 index of 6.1% and means that Rathbone’s net operating income was 18.5% higher than in the same quarter of 2015.

This is an excellent performance during a challenging period for the investment industry, with investor fears being higher thanks to the uncertainty surrounding Brexit. Of course, Rathbone has been boosted by favourable investment performance, but it has also delivered continued business growth. Its unit trust business posted a particularly strong result, with net inflows of £170m.

However, the collapse in long-term bond yields re-emphasised the need for a review of the company’s defined benefit pension schemes. Rathbone has begun to engage the trustees and affected employees of these schemes with a view to their closure. It will also conduct a placing in order to increase its regulatory capital and provide additional financial flexibility.

Looking ahead, Rathbone is forecast to increase its bottom line by 13% in the next financial year. This has the potential to boost investor sentiment in the stock and push its share price higher. Rathbone trades on a price-to-earnings growth (PEG) ratio of only 1.1, which indicates that it offers excellent value for money.

With a yield of 3.2% that’s covered 1.9 times by profit, its income appeal is also high. Rathbone could afford to raise dividends at a faster rate than profit growth over the medium term and still maintain a healthy level of dividend coverage.

A better buy?

In fact, the company has better near-term income prospects than financial peer Barclays (LSE: BARC). That’s because banking giant Barclays currently yields only 1.7% as a result of a reduced dividend. It decided to cut shareholder payouts in order to improve its financial standing.

While this is obviously disappointing for income investors in the short run, the decision should help to create a financially stronger and ultimately more profitable business in the coming years. This should allow dividends to rise – especially since they’re covered 3.5 times by profit.

Barclays is forecast to increase its bottom line by 66% in the next financial year. This puts it on a PEG ratio of just 0.1, which indicates that it offers growth at a very reasonable price. Certainly, it faces an uncertain outlook, but with a wide margin of safety Barclays represents excellent value for money at the present time. In fact, while Rathbone is a sound buy, Barclays has the superior risk/reward ratio of the two financial companies right now.

The post Is this growth stock a buy after reporting an 18% sales increase? appeared first on The Twelfth Magpie.

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Peter Stephens owns shares of Barclays. The Motley Fool UK has recommended Barclays. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors.

One potential catalyst to push Lloyds’ share price higher is the sale of the government’s stake in the bank. Although this was due to take place in the first half of the current year, it has been delayed as a result of the above average levels of market volatility that have been present. This has arguably caused uncertainty surrounding Lloyds to increase and with a discount to market price, as well as bonus shares potentially being offered as part of the government’s share sale, demand for Lloyds’ stock may have suffered as investors wait for the opportunity to access those benefits via the share sale.

With part-nationalisation being a reminder of Lloyds’ troubled past, the government’s eventual share sale could show that the bank is back on track and investor sentiment may improve as a result.

Growth ahead

Also trading on a discount valuation is 3i (LSE: III). It has a P/E ratio of just 8.2 and as with Lloyds, its shares could benefit from an upward rerating over the medium-to-long term. Of course, 3i is expected to report a rather disappointing result for the 2016 financial year that ended on 31 March. Its bottom line is due to have fallen by 36% versus the prior year and this could be a reason for the 3% fall in 3i’s share price since the turn of the year.

Looking ahead, 3i is forecast to reverse 2016’s fall in profitability with growth of 18% in the current year. This puts its shares on a price-to-earnings-growth (PEG) ratio of only 0.4 and indicates that they offer a mix of growth and value for new investors. Plus, with 3i having a yield of 3.7% it remains a strong income play too.

Value for money

Meanwhile, fellow financial services company Rathbone (LSE: RAT) also appears to offer good value for money. Unlike Lloyds and 3i, Rathbone has a rather rich P/E ratio of 17.2, but this doesn’t mean that it’s a stock to avoid. That’s because it’s forecast to increase its bottom line by 12% next year and this puts it on a PEG ratio of only 1.4.

With Rathbone having an excellent track record of growth, its PEG ratio seems to be highly appealing. For example, it has grown its earnings in four of the last five financial years, with net profit rising at an annualised rate of almost 13% during the period. This shows that it could prove to be a relatively reliable growth play and that it offers good value for money.

The post Are Lloyds Banking Group plc, Rathbone Brothers plc and 3i Group plc the best value stocks of all time? appeared first on The Twelfth Magpie.

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Peter Stephens owns shares of 3i Group and Lloyds Banking Group. The Motley Fool UK has no position in any of the shares mentioned. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors.

In the first six months of the fiscal year, Mcbride increased sales by 0.4% on a constant currency basis, with adjusted profit before tax rising by 56.3% to £13.6m. This was greatly aided by a UK restructuring project on target to deliver annualised savings of £12m by the end of the current financial year. And while dividends have been cut by 29.4% to 1.2p per share, the payout is in line with the company’s new dividend policy.

With McBride’s turnaround plan seemingly on track and its shares trading on a price-to-earnings growth (PEG) ratio of just 0.7, now seems to be a good time to buy a slice of it for the long run. Although the European economy could endure a challenging period over the medium term, with the potential for a Brexit, McBride’s risk/reward ratio seems to be highly appealing at the present time.

Too rich for your blood?

Also reporting today was wealth management company Rathbone (LSE: RAT). It has been able to grow assets under management by 7.4% in the 2015 financial year despite disappointing performance by the FTSE 100. Of course, acquisitions helped to bolster this figure and aided the company in reporting a rise in pre-tax profit of 28.2%, with it standing at £58.6m for 2015.

With Rathbone forecast to increase its bottom line by a further 7% in the current year, it offers a growth rate that’s generally in line with that of the wider index. And while it faces an uncertain future due to the high degree of volatility present in markets, it appears to be making encouraging progress with its strategic initiatives. However, with the company’s shares trading on a price-to-earnings (P/E) ratio of 18.1, they appear to be rather richly priced at the moment.

Risky but rewarding?

Meanwhile, International Personal Finance (LSE: IPF) has today reported robust numbers given a highly challenging set of trading conditions. The figures, however, haven’t been well-received by the market and IPF’s shares are currently down by 10%. That’s despite it being able to record flat pre-tax profit while making investments in its digital business, as well as negative currency movements.

In addition, IPF is also having to cope with major regulatory change in Poland and Slovakia, which it believes will materially impact on its profitability in 2016 and beyond. As such, the company is forecast to grow its bottom line by just 1% in the current financial year. But with it trading on a P/E ratio of just 6.1, IPF may be of interest to less risk-averse investors.

The post Do Today’s Results Make McBride plc, Rathbone Brothers plc & International Personal Finance Plc Screaming Buys? appeared first on The Twelfth Magpie.

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Peter Stephens has no position in any shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors.

Take, for example, wealth management firm, Rathbone (LSE: RAT). It has performed exceptionally well in recent years, with its bottom line growing at an annualised rate of 14.4% during the last five years. That’s around twice the growth rate of the wider index and, as a result, Rathbone’s shares have increased by 160% in the last five years.

Despite this, they still trade on a hugely appealing valuation. For example, they have a price to earnings growth (PEG) ratio of just 1.3 and this indicates that there is plenty more room for capital growth over the medium to long term. Of course, Rathbone’s business model is highly correlated to the performance of the wider index and a higher FTSE 100 means increased fees (and demand) from investors. But, with the long term outlook for the stock market being upbeat, Rathbone still looks like a great place to invest.

Similarly, HSBC (LSE: HSBA) (NYSE: HSBC.US) continues to come under fire from investors despite having an excellent balance sheet and superb consistency with regard to its bottom line. Unlike many of its peers, HSBC remained profitable throughout the credit crunch and, while its cost base is overly high, it appears to have the right strategy to tackle this problem in the coming years. As such, earnings growth of 21% is expected this year and, despite such a bright outlook, HSBC trades on a price to earnings (P/E) ratio of just 10.6.

Certainly, the Asian economy (to which HSBC has vast exposure) is not performing as well as the bank’s investors would hope. And, with the Chinese stock market enduring a volatile period, it is likely that doubts surrounding Chinese growth prospects will begin to surface. However, no period of rapid development in any country’s history was ever smooth and, while the Chinese growth rate may fall in future years, it remains the most appealing place to conduct banking activities for the long term.

Meanwhile, interdealer broker, Tullett Prebon (LSE: TLPR), continues to endure a rough patch. Its bottom line has fallen by 35% in the last four years as the banking crisis spilled over into its operations. Despite this, its outlook is relatively positive, with earnings growth of 6% being pencilled in for each of the next two years. And, with Tullett Prebon trading on a P/E ratio of just 10.8, it seems to offer good value for money at the present time.

Furthermore, Tullett Prebon remains a top notch income play. It currently yields an impressive 4.7% and yet only pays out around half of its profit as a dividend. So, looking ahead, its dividends should be relatively sustainable and also offer scope to rise in 2016 and beyond.

The post 3 Finance Stocks Worth Snapping Up Right Now! HSBC Holdings plc, Tullett Prebon Plc And Rathbone Brothers plc appeared first on The Twelfth Magpie.

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Peter Stephens owns shares of HSBC Holdings. The Motley Fool UK has recommended HSBC Holdings. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors.