Bakkavor Group Plc (BAKK) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Premier Foods Plc

Volvere Plc

Greencore Group Plc

Bakkavor Group Plc

Cake Box Holdings Plc

Greggs Plc

Carr's Group Plc

Dekel Agri-Vision Plc

Tate & Lyle Plc

Hotel Chocolat Group Plc

Finsbury Food Group Plc

Why is Bakkavor Group Plc ?

Low ability to service debt as the company has a high Debt to EBITDA ratio of 1.73 times

Low ability to service debt as the company has a high Debt to EBITDA ratio of 1.73 times
The company has been able to generate a Return on Equity (avg) of 9.50% signifying low profitability per unit of shareholders funds

Poor long term growth as Operating profit has grown by an annual rate 9.55% of over the last 5 years

Positive results in Dec 24

OPERATING CASH FLOW(Y) Highest at GBP 300.7 MM
DEBT-EQUITY RATIO (HY) Lowest at 44.72 %
INTEREST COVERAGE RATIO(Q) Highest at 763.64

With ROE of 12.10%, it has a very expensive valuation with a 2.04 Price to Book Value

Over the past year, while the stock has generated a return of 65.48%, its profits have risen by 11.3% ; the PEG ratio of the company is 1.5

Market Beating Performance

The stock has generated a return of 65.48% in the last 1 year, much higher than market (FTSE 100) returns of 15.94%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Bakkavor Group Plc should be less than 10%
Overall Portfolio exposure to FMCG should be less than 30%

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

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

Is Bakkavor Group Plc for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Bakkavor Group Plc

-100.0%

1.76

36.78%

FTSE 100

16.5%

1.23

12.99%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

4.05%

EBIT Growth (5y)

9.55%

EBIT to Interest (avg)

4.41

Debt to EBITDA (avg)

1.73

Net Debt to Equity (avg)

0.33

Sales to Capital Employed (avg)

2.28

Tax Ratio

18.80%

Dividend Payout Ratio

83.16%

Pledged Shares

Institutional Holding

ROCE (avg)

10.71%

ROE (avg)

9.50%

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

2.04

EV to EBIT

11.95

EV to EBITDA

7.63

EV to Capital Employed

1.77

EV to Sales

0.64

PEG Ratio

1.49

Dividend Yield

2.27%

ROCE (Latest)

14.82%

ROE (Latest)

12.10%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Mildly Bullish

No Trend

OBV

Bullish

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

Not enough Data to analyse Financial Trend

Here's what is working for Bakkavor Group Plc

Operating Cash Flow

Highest at GBP 300.7 MM and Grown

In each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (GBP MM)

Interest Coverage Ratio

Highest at 763.64

in the last five periods

MOJO Watch

The company's ability to manage interest payments is improving

Operating Profit to Interest

Debt-Equity Ratio

Lowest at 44.72 % and Grown

In each half year in the last five Semi-Annual periods

MOJO Watch

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

Debt-Equity Ratio

Net Sales

Highest at GBP 1,171.5 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (GBP MM)

Pre-Tax Profit

Highest at GBP 48.1 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (GBP MM)

Net Profit

Highest at GBP 42.14 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (GBP MM)

Net Profit

At GBP 42.14 MM has Grown at 45.93%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is positive

Net Profit (GBP MM)

Inventory Turnover Ratio

Highest at 22.45%

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Dividend per share

Highest at GBP 13.56

in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (GBP)

Dividend Payout Ratio

Highest at 134.83%

in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)

Raw Material Cost

Fallen by -9.24% (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 Bakkavor Group Plc

Debtors Turnover Ratio

Lowest at 13.56%

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio