Chemring Group Plc (CHG) 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 Chemring Group Plc ?

Poor Management Efficiency with a low ROE of 11.12%

The company has been able to generate a Return on Equity (avg) of 11.12% signifying low profitability per unit of shareholders funds

Low ability to service debt as the company has a high Debt to EBITDA ratio of 1.89 times

Low ability to service debt as the company has a high Debt to EBITDA ratio of 1.89 times
The company has been able to generate a Return on Equity (avg) of 11.12% signifying low profitability per unit of shareholders funds

Weak Long Term Fundamental Strength with an average Return on Equity (ROE) of 11.12%

Flat results in Apr 26

DIVIDEND PAYOUT RATIO(Y) Lowest at 0%
DEBT-EQUITY RATIO (HY) Highest at 39.19 %
DEBTORS TURNOVER RATIO(HY) Lowest at 4.18 times

With ROE of 12.67%, it has a very expensive valuation with a 3.58 Price to Book Value

Over the past year, while the stock has generated a return of 13.34%, its profits have fallen by -7.9%

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

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

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is Chemring Group Plc for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Chemring Group Plc

13.34%

5.01

34.73%

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)

4.07%

EBIT Growth (5y)

5.12%

EBIT to Interest (avg)

22.32

Debt to EBITDA (avg)

0.78

Net Debt to Equity (avg)

0.12

Sales to Capital Employed (avg)

1.05

Tax Ratio

22.17%

Dividend Payout Ratio

44.94%

Pledged Shares

Institutional Holding

0.01%

ROCE (avg)

12.64%

ROE (avg)

11.12%

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

3.58

EV to EBIT

22.16

EV to EBITDA

15.43

EV to Capital Employed

2.90

EV to Sales

2.90

PEG Ratio

Dividend Yield

171.63%

ROCE (Latest)

13.08%

ROE (Latest)

12.67%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bearish

Mildly Bullish

Moving Averages

Bearish (Daily)

KST

Mildly Bullish

Bullish

Dow Theory

Mildly Bearish

Mildly Bullish

OBV

Mildly Bullish

Mildly Bearish

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

4What is working for the Company

OPERATING CASH FLOW(Y)

Highest at GBP 153.1 MM

DIVIDEND PAYOUT RATIO(Y)

Highest at 125%

RAW MATERIAL COST(Y)

Fallen by -9,359% (YoY

-7What is not working for the Company

DIVIDEND PAYOUT RATIO(Y)

Lowest at 0%

DEBT-EQUITY RATIO (HY)

Highest at 39.19 %

DEBTORS TURNOVER RATIO(HY)

Lowest at 4.18 times

DIVIDEND PER SHARE(HY)

Lowest at GBP 4.18

PRE-TAX PROFIT(Q)

Fallen at -27.41%

NET PROFIT(Q)

Fallen at -29.7%

EPS(Q)

Lowest at GBP 0.02

Here's what is working for Chemring Group Plc

Operating Cash Flow

Highest at GBP 153.1 MM

in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (GBP MM)

Dividend Payout Ratio

Highest at 125%

in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)

Raw Material Cost

Fallen by -9,359% (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

Depreciation

Highest at GBP 15.2 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (GBP MM)

Here's what is not working for Chemring Group Plc

Pre-Tax Profit

Fallen at -27.41%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (GBP MM)

Net Profit

Fallen at -29.7%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is negative

Net Profit (GBP MM)

EPS

Lowest at GBP 0.02

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (GBP)

Debt-Equity Ratio

Highest at 39.19 %

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

Debtors Turnover Ratio

Lowest at 4.18 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 4.18

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 (%)