Bodycote Plc (BOY) 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

QinetiQ Group plc

Rolls-Royce Holdings Plc

BAE Systems Plc

MS International Plc

Cohort Plc

Bodycote Plc

Melrose Industries Plc

Chemring Group Plc

Thruvision Group Plc

Senior Plc

Velocity Composites Plc

Why is Bodycote Plc ?

Poor Management Efficiency with a low ROE of 10.43%

The company has been able to generate a Return on Equity (avg) of 10.43% signifying low profitability per unit of shareholders funds

Weak Long Term Fundamental Strength with a 5.14% CAGR growth in Operating Profits over the last 5 years

The company has been able to generate a Return on Equity (avg) of 10.43% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of 3.99% and Operating profit at 5.14% over the last 5 years

Flat results in Jun 26

DIVIDEND PAYOUT RATIO(Y) Lowest at 0%
DEBT-EQUITY RATIO (HY) Highest at 31.23 %
INVENTORY TURNOVER RATIO(HY) Lowest at 21.04 times

With ROE of 11.14%, it has a expensive valuation with a 1.88 Price to Book Value

Over the past year, while the stock has generated a return of 43.15%, its profits have risen by 7.4% ; the PEG ratio of the company is 1.3

Company is among the highest 1% of companies rated by MarketsMojo across all 4,000 stocks

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Bodycote Plc should be less than 10%
Overall Portfolio exposure to Aerospace & Defense should be less than 30%

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

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

Is Bodycote Plc for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Bodycote Plc

43.15%

-0.30

44.90%

FTSE 100

18.59%

1.58

11.75%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

3.99%

EBIT Growth (5y)

5.14%

EBIT to Interest (avg)

12.53

Debt to EBITDA (avg)

0.49

Net Debt to Equity (avg)

0.12

Sales to Capital Employed (avg)

0.91

Tax Ratio

25.92%

Dividend Payout Ratio

74.07%

Pledged Shares

Institutional Holding

0.01%

ROCE (avg)

13.64%

ROE (avg)

10.43%

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

1.88

EV to EBIT

12.52

EV to EBITDA

7.11

EV to Capital Employed

1.74

EV to Sales

1.82

PEG Ratio

1.27

Dividend Yield

3.44%

ROCE (Latest)

13.92%

ROE (Latest)

11.14%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Mildly Bearish

Mildly Bullish

OBV

No Trend

Mildly 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

3What is working for the Company

ROCE(HY)

Highest at 9.31%

EPS(Q)

Highest at GBP 0.18

-5What is not working for the Company

DIVIDEND PAYOUT RATIO(Y)

Lowest at 0%

DEBT-EQUITY RATIO (HY)

Highest at 31.23 %

INVENTORY TURNOVER RATIO(HY)

Lowest at 21.04 times

DEBTORS TURNOVER RATIO(HY)

Lowest at 4.36 times

DIVIDEND PER SHARE(HY)

Lowest at GBP 4.36

Here's what is working for Bodycote Plc

EPS

Highest at GBP 0.18

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (GBP)

Here's what is not working for Bodycote Plc

Debt-Equity Ratio

Highest at 31.23 %

in the last five Semi-Annual periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio

Inventory Turnover Ratio

Lowest at 21.04 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Debtors Turnover Ratio

Lowest at 4.36 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

Dividend per share

Lowest at GBP 4.36

in the last five years

MOJO Watch

Company is distributing lower dividend than previous years

DPS (GBP)

Dividend Payout Ratio

Lowest at 0%

in the last five years

MOJO Watch

Company is distributing lower proportion of profits generated as dividend

DPR (%)