Coats Group Plc (COA) 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

Coats Group Plc

Leeds Group Plc

Why is Coats Group Plc ?

The company is Net-Debt Free

Poor long term growth as Operating profit has grown by an annual rate 17.14% of over the last 5 years
The company is Net-Debt Free

Poor long term growth as Operating profit has grown by an annual rate 17.14% of over the last 5 years

Flat results in Jun 26

INTEREST COVERAGE RATIO(Q) Lowest at 609.24
DIVIDEND PAYOUT RATIO(Y) Lowest at 0%
DIVIDEND PER SHARE(HY) Lowest at GBP 4.77

With ROE of 19.35%, it has a expensive valuation with a 2.77 Price to Book Value

Over the past year, while the stock has generated a return of 17.05%, its profits have risen by 4.8%

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 Garments & Apparels)

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

Is Coats Group Plc for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

Coats Group Plc

19.24%

-0.06

28.81%

FTSE 100

19.78%

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)

4.17%

EBIT Growth (5y)

17.14%

EBIT to Interest (avg)

7.40

Debt to EBITDA (avg)

1.52

Net Debt to Equity (avg)

1.35

Sales to Capital Employed (avg)

1.33

Tax Ratio

32.54%

Dividend Payout Ratio

54.29%

Pledged Shares

Institutional Holding

0.00%

ROCE (avg)

23.08%

ROE (avg)

23.21%

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

2.77

EV to EBIT

11.49

EV to EBITDA

8.91

EV to Capital Employed

1.82

EV to Sales

1.90

PEG Ratio

Dividend Yield

ROCE (Latest)

15.83%

ROE (Latest)

19.35%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Bearish

Mildly Bearish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Bearish

Dow Theory

Mildly Bullish

No Trend

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

6What is working for the Company

OPERATING CASH FLOW(Y)

Highest at GBP 239.48 MM

RAW MATERIAL COST(Y)

Fallen by 1.68% (YoY

NET SALES(Q)

Highest at GBP 622.16 MM

OPERATING PROFIT(Q)

Highest at GBP 137.23 MM

-8What is not working for the Company

INTEREST COVERAGE RATIO(Q)

Lowest at 609.24

DIVIDEND PAYOUT RATIO(Y)

Lowest at 0%

DIVIDEND PER SHARE(HY)

Lowest at GBP 4.77

INTEREST(Q)

Highest at GBP 22.53 MM

Here's what is working for Coats Group Plc

Operating Cash Flow

Highest at GBP 239.48 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)

Net Sales

Highest at GBP 622.16 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (GBP MM)

Operating Profit

Highest at GBP 137.23 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (GBP MM)

Raw Material Cost

Fallen by 1.68% (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 39.47 MM

in the last five periods

MOJO Watch

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

Depreciation (GBP MM)

Depreciation

At GBP 39.47 MM has Grown at 36.24%

period on period (QoQ)

MOJO Watch

The expenditure on assets done by the company has gone into productive use which should positively reflect in the future sales

Depreciation (GBP MM)

Here's what is not working for Coats Group Plc

Interest Coverage Ratio

Lowest at 609.24

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Interest

Highest at GBP 22.53 MM

in the last five periods and Increased by 29.46% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (GBP MM)

Dividend per share

Lowest at GBP 4.77

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 (%)