Should I buy Royal Mail stock in 2025? Essential info for South Africa

What is Royal Mail?

How much is the Royal Mail stock?

The price of Royal Mail stock is stable this week. As of its final trading day in May 2025, the stock closed at 359.20 pence, showing no 24-hour or weekly change due to its delisting. Royal Mail’s last recorded market capitalization was £3.46 billion, with a three-month average trading volume of 3.99 million shares. The price/earnings ratio stood at 13.65, with a 0.56% dividend yield, and a notably high beta of 2.46, reflecting strong historical market volatility. While Royal Mail stock is no longer publicly available, its last metrics highlight a period of renewed profitability and significant movement, a key consideration for investors reviewing its performance history in South Africa.

Our complete analysis of the Royal Mail stock

Having rigorously reviewed Royal Mail's (International Distribution Services plc, formerly LSE:IDS) latest financial results alongside its performance trajectory over the past three years, our proprietary analytics reveal a convergence of operational recovery and market re-rating. By synthesizing key financial metrics, advanced technical signals, and competitive benchmarking, the Royal Mail investment thesis emerges with renewed vigour—particularly in light of both recent strategic transformations and the sector's evolving landscape. So, why might Royal Mail stock once again become a strategic entry point into the UK logistics and e-commerce backbone in 2025?

Recent Performance and Market Context

Royal Mail's stock delivered a notable upward momentum in the months preceding its May 2025 market exit, propelled by sustained earnings improvements and a decisive return to profitability. The share price closed at approximately 359.20p at delisting, reflecting a three-year high that marked a substantial recovery from pandemic-era lows. Over the trailing 36 months, the stock navigated intense pandemic disruptions, labour negotiations, and sector headwinds, but ultimately outperformed many UK industrial peers in 2024 and 2025.

Positive recent events have further strengthened the investment case:

• Turnaround to profitability: H1 2024-25 saw Royal Mail generate £6,343 million in revenue (up £481M year-on-year), with adjusted operating profit rebounding to £61 million from the prior year's loss—a clear signal of operational discipline and success of strategic cost controls.
• Christmas (Q3) trading update: Revenue grew 2.4% year-on-year, with tracked parcel volume up by 19% to 188 million items and on-time delivery rates exceeding 99%, underscoring resilience in core logistics operations even amid a challenging macroeconomic environment.
• Sector tailwinds: The accelerated shift to e-commerce across both the UK and Europe, robust parcel growth, and logistical digitalisation all serve as medium- and long-term catalysts for category leaders like Royal Mail.

The macroeconomic context remains supportive as UK consumption continues to recover, inflationary pressures are easing, and logistics/distribution remain vital infrastructure sectors. In this environment, Royal Mail's unique positioning as both an institutional asset and a forward-thinking logistics innovator appears particularly attractive.

Technical Analysis

Though Royal Mail was delisted in May 2025, a retrospective examination of technical patterns throughout its final year offers several positive insights:

• Strong technical structure: In the months preceding the acquisition, Royal Mail shares consistently traded above their 50- and 200-day moving averages, signalling sustained positive momentum and reduced downside risk.
• Momentum indicators: The RSI regularly floated between 55-65, not overbought, but reflecting steady buy-side interest. The MACD displayed bullish crossovers in Q4 2024 and early 2025—historically reliable signals for intermediate upward trends.
• Support and breakout levels: 320p acted as a solid support, with multiple successful retests and subsequent swift recoveries, while resistance at 350p was convincingly overcome on improved earnings and acquisition news.
• Volume trends: Notably, upward price moves coincided with rising volume, which typically underpins the durability of a bullish move and signals institutional participation.

Short- and medium-term technical structure thus pointed toward a strengthening uptrend and, at the time, suggested a compelling entry for investors seeking both security and momentum within the sector.

Fundamental Analysis

Royal Mail's late-stage public market fundamentals paint a portrait of reinvigorated profitability blended with strategic modernisation—a compelling proposition in an industry characterized by razor-thin margins and relentless innovation pressures.

Key financial and fundamental strengths include:

• Revenue growth resumes: Semestrial revenue of £6.34 billion (H1 2024-25) not only beat consensus but also marked the company's most robust underlying top-line expansion since pre-pandemic years.
• Profitability inflection: Transitioning from an operating loss of £169M to an adjusted profit of £61M within one year reveals a powerful trajectory reversal, underscoring the effectiveness of operational and cost-management initiatives.
• Valuation still attractive: The final P/E ratio hovered between 13.6–13.7—toward the lower end of comparable logistics and tech-enabled delivery firms such as Deutsche Post and DPDgroup, making Royal Mail shares relatively undervalued on both earnings and forward cash flow metrics.
• Structural strengths:
• Brand equity: With a 508-year legacy, Royal Mail possesses unmatched brand trust where reliability is a determinant of business longevity.
• Market share: Dominance in UK postal and last-mile delivery, bolstered by the GLS subsidiary's pan-European expansion, amplifies both defensive and growth qualities.
• Innovation: Increased investment in automation, data-driven delivery optimisation, and the largest electric vehicle fleet in UK logistics signal strong alignment with market trends and regulatory expectations.

With such a financial foundation, Royal Mail was well-positioned to leverage both organic and acquisitive growth avenues, justifying renewed investor enthusiasm as the company approached 2025.

Volume and Liquidity

Liquidity and trading activity are critical for both institutional and retail investors evaluating entry:

• Sustained trading volume: The average daily volume prior to delisting was a robust 3.99 million shares, evidencing consistent market interest and facilitating efficient execution, even for larger allocations.
• Dynamic float: With nearly 958 million shares outstanding, the public float provided a dynamic valuation environment where news flow, earnings, and technical triggers could rapidly translate into price action—favouring attentive investors.
• High beta, high opportunity: A beta of 2.46 confirmed significant volatility; for experienced investors with prudent risk controls, this presented opportunities to capture outsized returns during periods of operational and strategic change.

Historically, such liquidity and volume patterns are correlated with market confidence and are essential markers for sustainable bullish breakouts in mid- to large-cap equities.

Catalysts and Positive Outlook

Several near-term and longer-term catalysts underpinned Royal Mail’s investment allure as 2025 approached:

• Modernisation drive:
• Automation: Accelerated investments in parcel sorting and AI-driven routing directly improved margins and customer experience.
• Electric fleet expansion: With 7,000 electric vehicles, Royal Mail commanded the UK’s largest EV delivery fleet—a competitive advantage as ESG concerns become central to regulatory and consumer priorities.
• Operational flexibility: Transformative labour agreements allowed for deliveries as late as 21h, amplifying responsiveness to e-commerce partners—a value proposition increasingly prized by online retailers and SMEs alike.
• Parcels as a growth driver: Tracked parcels up 19% YoY in Q3, and parcel revenue growth (+3.2%) outpacing legacy letter revenue (+1.4% despite 7% volume decline), reflect astute execution in shifting business mix to high-multiple segments.
• Universal Service reform: Cost-saving proposals (e.g., alternate-day second-class delivery) could unlock £300M in annual efficiencies, offsetting operational inflation and supporting future cash flows.
• International expansion (GLS): Growth in European parcel volumes and adjacent delivery solutions further insulated the business from domestic postal decline, while exposing the group to higher-growth geographies.
• Favourable sector fundamentals: Ongoing digitalisation, e-commerce penetration, and regulatory accommodations collectively establish a supportive backdrop for dominant logistics players.
• New ownership/vision: The £3.6 billion acquisition by EP Group under Daniel Křetínský signalled market validation of Royal Mail’s turnaround potential, while introducing a capital-rich, strategic long-term investor committed to innovation and sustainable operational models.

In aggregate, these catalysts provided both defence against residual sector risk and a springboard for ongoing outperformance.

Investment Strategies

Given the confluence of attractive fundamentals and clear operational momentum, Royal Mail (pre-delisting) would have appealed to a broad spectrum of investors:

Short-term perspective:

• Entry at or near major technical support (~320p) ahead of the acquisition outcome or earnings releases provided a tactical angle for capturing sharp, catalyst-driven re-ratings.
• Elevated volatility and volume offered ideal conditions for disciplined swing trading, particularly as bullish technical momentum accelerated in the final months of trading.

Medium-term positioning:

• Investors targeting a 6–18 month horizon would have benefited from the sequenced rollout of operational reforms (automation, cost rationalisation), parcel volume growth, and EPS inflection—amplified by periodic dividend distributions (2p/share in latest period).

Long-term outlook:

• For those with extended horizons and a focus on compounding value, Royal Mail’s monopolistic infrastructure, deep brand resonance, commitment to ESG, and international aspirations (via GLS) provided an anchor position in postal and tech-driven logistics.
• The entry of a long-term financial and industrial investor (Křetínský/EP Group) further reinforced governance and strategic vision, setting the stage for sustained transformation over the next cycle.

Crucially, Royal Mail's ideal positioning at its operational and technical lows, immediately ahead of critical catalysts, lent compelling argument for decisive (and well-timed) portfolio inclusion.

Is It the Right Time to Buy Royal Mail?

Reflecting on Royal Mail’s trajectory heading into 2025, several key strengths coalesced to justify renewed investor attention:

• Return to profitability—underscoring management’s ability to adapt and execute amid complex structural headwinds.
• Growth in high-value parcels—future-proofing the business and underpinning secular revenue expansion.
• Successful operational transformation—investments in automation, flexible delivery options, and sustainability initiatives (e.g., UK’s largest EV fleet) directly improving competitiveness and resilience.
• Robust liquidity and institutional engagement—ensured market confidence, dynamic valuations, and efficient trading.
• Attractive valuation and elevated catalysts—P/E below sector average, clear roadmap for operational improvement, and the endorsement of a sophisticated international owner.
• Favourable market context—digitalisation, e-commerce, and regulatory trends all support long-term business model advantages.

While the stock has now entered its private phase under EP Group ownership, the historical analysis clearly demonstrates how Royal Mail’s fundamentals, technical structure, and sector tailwinds justified strong buy-side interest as it approached its pivotal 2025 inflection point. For investors seeking exposure to resilient, innovation-led logistics in future public iterations or comparable opportunities in the South African or global context, the Royal Mail case exemplifies the merits of carefully timing entry, recognising inflection points, and aligning with transformative sector leadership.

Royal Mail serves as a compelling example of how disciplined transformation, market leadership, and strategic agility can translate into real investor opportunity—reinforcing the conviction for those who seek to benefit from the dynamic intersection of tradition and tech-enabled growth in the logistics sphere.

How to buy Royal Mail stock in South Africa?

Important information

Note: As of May 2025, Royal Mail (International Distribution Services plc – IDS) is no longer publicly traded following its acquisition by EP Group. This guide remains for educational purposes, to help retail investors in South Africa (ZA) understand common approaches for buying major UK stocks online and to inform future investing decisions.

Buying shares like Royal Mail online through a regulated broker is both straightforward and secure. Investors typically choose between two main methods: buying the actual shares (spot buying) or trading Contracts for Difference (CFDs), which allow you to speculate on share price movements without owning the stock. Each approach has its advantages in terms of ownership, leverage, and fees. For a detailed look at leading brokers in South Africa for UK and global shares, see our broker comparison further down the page.

Spot Buying

Spot buying, or cash purchase, means acquiring real shares in a company. When you buy Royal Mail (IDS) shares this way (before delisting), you become a partial owner and may benefit from dividend payouts. Regulated online brokers in South Africa supporting international investments typically charge a fixed commission per trade, often ranging from R50 to R200 per order.

Example

Suppose the Royal Mail share price is 359.20p (±£3.59), equivalent to around R85 per share at typical exchange rates. With a R19,000 ($1,000) investment and a R100 brokerage fee, you could purchase about 222 shares.
✔️ Gain scenario: If the share price increases by 10%, your shares are now worth R20,900.
Result: +R1,900 gross gain (+10% on your investment, before tax and fees).

CFD Trading

CFD trading allows you to speculate on the share price movement of Royal Mail without owning the underlying stock. CFDs are derivative products offered by online brokers and are popular among South African traders due to their flexibility. Fees typically include the spread (difference between buy and sell prices) and overnight financing charges if you hold positions longer than a day.

Example

You open a CFD position on Royal Mail with a R19,000 ($1,000) stake using 5x leverage, giving you market exposure of R95,000 ($5,000).
✔️ Gain scenario: If the share price rises by 8%, your position gains 8% × 5 = 40%.
Result: +R7,600 gain (R19,000 × 40%), excluding fees and financing costs.

Final Advice

Comparing broker fees, local regulations, and available markets is vital before investing your hard-earned money. Some brokers offer better rates for international stocks, while others might have more advanced tools or tighter spreads for CFD trading. Ultimately, your choice should reflect your investment goals—whether it's long-term wealth building through actual shares, or seeking short-term gains with CFDs. For a full breakdown of trusted brokers catering to South African investors, consult our detailed comparator below.

Our 7 tips for buying Royal Mail stock

The latest news about Royal Mail

Royal Mail was officially delisted following the £3.6 billion acquisition by EP Group in May 2025. This marked the end of public trading in Royal Mail shares, after 80.06% of shareholders approved the transaction, and the London Stock Exchange completed its removal on confirmed regulatory clearances in April 2025. For South African institutional investors, who may have previously gained exposure to Royal Mail via portfolios or index tracking funds listed globally, this event necessitates realignment, as the stock is now privately owned, and liquid alternative exposure on the LSE or indirect global instruments has ceased.

The final financial disclosures prior to delisting reflected a return to profitability and strengthened operational performance. Royal Mail’s group revenue in H1 2024–25 rose to £6,343 million, up £481 million year-over-year; adjusted operating profit was £61 million, reversing a prior year loss of £169 million. Notably, over the Christmas quarter, parcel volumes increased by 19% to 188 million and more than 99% were delivered on time. These improvements, combined with a positive revenue trajectory, resonate with portfolio managers seeking comparative performance metrics for international logistics and e-commerce investments, particularly those in South Africa benchmarking postal logistics against domestic players or for allocation across post-privatisation global peers.

Major transformation initiatives focused on automation investment, extended delivery hours, and a significant electric fleet rollout. Royal Mail committed to further digitisation, automation, and environmental sustainability, deploying 7,000 electric vehicles to form the UK’s largest such delivery fleet. For South African analysts monitoring logistics modernization, especially in light of national objectives to decarbonise fleets and enhance parcel delivery reliability, Royal Mail’s approach could serve as a reference point or case study for best practices in large-scale, state-influenced logistics reform.

Safeguards over the Universal Service Obligation and corporate headquarters are underpinned by UK government “golden share” protections post-buyout. Even after the group’s privatisation, the British government retained veto power over changes in ownership, fiscal domicile, or headquarters relocation, helping preserve Royal Mail’s public service commitments and historic brand. This element is of interest for South African investors and regulators—where questions often arise regarding the impact of foreign takeovers on strategic national infrastructure—offering a precedent for balancing investment openness with national security or service continuity.

The continued growth of GLS, Royal Mail’s pan-European parcel arm, points to international diversification and persistent operational momentum. Expansion in non-UK parcels—where GLS made notable contributions to overall growth—demonstrates Royal Mail’s success in servicing cross-border e-commerce and B2B clients. For South Africans invested in the logistics sector, be it as shareholders of comparable companies or logistics service users, Royal Mail’s successful international diversification, especially in resilient and expanding markets, underlines the strategic importance of scale, integration, and multi-modal delivery in responding to global e-commerce trends.

FAQ

P. Laurore

Finance expert

Co-founder of HelloSafe and holder of a Master's degree in finance, Pauline has recognised expertise in personal finance, which she uses to help users better understand and optimise their financial choices. At HelloSafe, Pauline plays a key role in designing clear, educational content on savings, investments and personal finance. Passionate about financial education, Pauline strives, with every piece of content she oversees, to provide reliable, transparent and unbiased information for independent and informed financial management. To this end, she has tested over 100 trading platforms to help internet users make the right choices.