Churchill China Plc (CHH) 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

DFS Furniture Plc

Procook Group Plc

Colefax Group Plc

Airea Plc

Sanderson Design Group Plc

Churchill China Plc

Portmeirion Group Plc

Victoria Plc

Why is Churchill China Plc ?

Poor Management Efficiency with a low ROE of 9.85%

The company has been able to generate a Return on Equity (avg) of 9.85% signifying low profitability per unit of shareholders funds

Weak Long Term Fundamental Strength with a 41.74% CAGR growth in Operating Profits over the last 5 years

The company has been able to generate a Return on Equity (avg) of 9.85% signifying low profitability per unit of shareholders funds

Poor long term growth as Operating profit has grown by an annual rate 41.74% of over the last 5 years

The company has declared Negative results for the last 5 consecutive quarters

INTEREST(HY) At GBP 0.1 MM has Grown at 131.82%
ROCE(HY) Lowest at 6.09%
PRE-TAX PROFIT(Q) Lowest at GBP 2.5 MM

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -12.05% returns in the last 1 year, the stock has also underperformed FTSE 100 in each of the last 3 annual periods

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 Furniture, Home Furnishing)

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

Is Churchill China Plc for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Churchill China Plc

-12.05%

-1.79

37.38%

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)

15.97%

EBIT Growth (5y)

41.74%

EBIT to Interest (avg)

8.09

Debt to EBITDA (avg)

Negative Net Debt

Net Debt to Equity (avg)

-0.16

Sales to Capital Employed (avg)

1.38

Tax Ratio

28.43%

Dividend Payout Ratio

52.96%

Pledged Shares

Institutional Holding

ROCE (avg)

18.48%

ROE (avg)

9.85%

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

0.61

EV to EBIT

4.71

EV to EBITDA

2.81

EV to Capital Employed

0.52

EV to Sales

0.35

PEG Ratio

Dividend Yield

ROCE (Latest)

11.12%

ROE (Latest)

7.09%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bullish

Bearish

Dow Theory

Mildly Bearish

OBV

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 13.86 MM

DIVIDEND PAYOUT RATIO(Y)

Highest at 45.84%

RAW MATERIAL COST(Y)

Fallen by 0% (YoY

-15What is not working for the Company

INTEREST(HY)

At GBP 0.1 MM has Grown at 131.82%

ROCE(HY)

Lowest at 6.09%

PRE-TAX PROFIT(Q)

Lowest at GBP 2.5 MM

NET PROFIT(Q)

Lowest at GBP 1.84 MM

DIVIDEND PAYOUT RATIO(Y)

Lowest at 0%

DEBTORS TURNOVER RATIO(HY)

Lowest at 5.51 times

DIVIDEND PER SHARE(HY)

Lowest at GBP 5.51

NET SALES(Q)

Lowest at GBP 37.43 MM

EPS(Q)

Lowest at GBP 0.15

Here's what is working for Churchill China Plc

Operating Cash Flow

Highest at GBP 13.86 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 45.84%

in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)

Raw Material Cost

Fallen by 0% (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 Churchill China Plc

Interest

At GBP 0.1 MM has Grown at 131.82%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (GBP MM)

Pre-Tax Profit

Lowest at GBP 2.5 MM and Fallen

In each period in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (GBP MM)

Net Profit

Lowest at GBP 1.84 MM and Fallen

In each period in the last five periods

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (GBP MM)

Net Sales

Lowest at GBP 37.43 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (GBP MM)

EPS

Lowest at GBP 0.15

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (GBP)

Debtors Turnover Ratio

Lowest at 5.51 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 5.51

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 (%)

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