Arcontech Group Plc (ARC) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

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Why is Arcontech Group Plc ?

Company's ability to service its debt is weak with a poor EBIT to Interest (avg) ratio of 0.87

Company's ability to service its debt is weak with a poor EBIT to Interest (avg) ratio of 0.87

Poor long term growth as Net Sales has grown by an annual rate of 0.13% and Operating profit at -7.70% over the last 5 years

Negative results in Dec 25

ROCE(HY) Lowest at 9.71%
NET SALES(Q) Lowest at GBP 1.44 MM
OPERATING PROFIT(Q) Lowest at GBP 0.36 MM

With ROE of 9.53%, it has a fair valuation with a 1.21 Price to Book Value

Over the past year, while the stock has generated a return of -27.11%, its profits have fallen by -21.9%

Underperformed the market in the last 1 year

Even though the market (FTSE 100) has generated returns of 16.06% in the last 1 year, the stock has hugely underperformed and has generate negative returns of -27.11% returns

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Arcontech Group Plc should be less than 10%
Overall Portfolio exposure to Software Products should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Software Products)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Arcontech Group Plc for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Arcontech Group Plc

-100.0%

-0.77

21.11%

FTSE 100

16.06%

1.36

11.82%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

0.13%

EBIT Growth (5y)

-7.70%

EBIT to Interest (avg)

0.81

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.85

Sales to Capital Employed (avg)

0.37

Tax Ratio

4.40%

Dividend Payout Ratio

56.66%

Pledged Shares

Institutional Holding

ROCE (avg)

62.89%

ROE (avg)

13.58%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

1.21

EV to EBIT

2.71

EV to EBITDA

2.71

EV to Capital Employed

2.71

EV to Sales

0.89

PEG Ratio

Dividend Yield

516.13%

ROCE (Latest)

67.50%

ROE (Latest)

9.53%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Bearish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Bearish

Moving Averages

Mildly Bearish (Daily)

KST

Mildly Bullish

Bearish

Dow Theory

No Trend

OBV

No Trend

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

5What is working for the Company

OPERATING CASH FLOW(Y)

Highest at GBP 3.28 MM

RAW MATERIAL COST(Y)

Fallen by -1.26% (YoY

CASH AND EQV(HY)

Highest at GBP 7.77 MM

DEBT-EQUITY RATIO (HY)

Lowest at -86.11 %

-10What is not working for the Company

ROCE(HY)

Lowest at 9.71%

NET SALES(Q)

Lowest at GBP 1.44 MM

OPERATING PROFIT(Q)

Lowest at GBP 0.36 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 24.81 %

PRE-TAX PROFIT(Q)

Lowest at GBP 0.39 MM

NET PROFIT(Q)

Lowest at GBP 0.39 MM

EPS(Q)

Lowest at GBP 0.03

Here's what is working for Arcontech Group Plc

Operating Cash Flow

Highest at GBP 3.28 MM

in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (GBP MM)

Cash and Eqv

Highest at GBP 7.77 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debt-Equity Ratio

Lowest at -86.11 %

in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Raw Material Cost

Fallen by -1.26% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Here's what is not working for Arcontech Group Plc

Net Sales

Lowest at GBP 1.44 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (GBP MM)

Operating Profit

Lowest at GBP 0.36 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (GBP MM)

Operating Profit Margin

Lowest at 24.81 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at GBP 0.39 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (GBP MM)

Pre-Tax Profit

Fallen at -23.84%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (GBP MM)

Net Profit

Lowest at GBP 0.39 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (GBP MM)

Net Profit

Fallen at -23.84%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is negative

Net Profit (GBP MM)

EPS

Lowest at GBP 0.03

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (GBP)

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