Derwent London Plc (DLN) 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

Hammerson Plc

Shaftesbury Capital Plc

LondonMetric Property Plc

The British Land Co. Plc

Assura Plc

Land Securities Group Plc

SEGRO PLC

Derwent London Plc

LXI REIT Plc

Safestore Holdings Plc

Big Yellow Group Plc

Why is Derwent London Plc ?

Weak Long Term Fundamental Strength with an average Return on Equity (ROE) of 3.08%

Poor long term growth as Net Sales has grown by an annual rate of 7.81% and Operating profit at 1.60%
The company has been able to generate a Return on Equity (avg) of 3.08% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of 7.81% and Operating profit at 1.60%

Flat results in Dec 25

INTEREST COVERAGE RATIO(Q) Lowest at 295.31
RAW MATERIAL COST(Y) Grown by 45.24% (YoY)
DIVIDEND PER SHARE(HY) Lowest at GBP 35.5

With ROE of 3.02%, it has a attractive valuation with a 0.59 Price to Book Value

Over the past year, while the stock has generated a return of 6.04%, its profits have fallen by -8%

Underperformed the market in the last 1 year

The stock has generated a return of 6.04% in the last 1 year, much lower than market (FTSE 100) returns of 18.59%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Derwent London Plc should be less than 10%
Overall Portfolio exposure to Realty should be less than 30%

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

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

Is Derwent London Plc for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

Derwent London Plc

-100.0%

-1.95

26.19%

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)

7.81%

EBIT Growth (5y)

1.60%

EBIT to Interest (avg)

4.30

Debt to EBITDA (avg)

Negative Net Debt

Net Debt to Equity (avg)

Sales to Capital Employed (avg)

0.07

Tax Ratio

0.25%

Dividend Payout Ratio

56.78%

Pledged Shares

Institutional Holding

1.36%

ROCE (avg)

4.41%

ROE (avg)

3.08%

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

0.59

EV to EBIT

12.45

EV to EBITDA

12.39

EV to Capital Employed

0.57

EV to Sales

5.12

PEG Ratio

Dividend Yield

ROCE (Latest)

4.59%

ROE (Latest)

3.02%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Mildly Bullish (Daily)

KST

Bullish

Bearish

Dow Theory

Mildly Bearish

Mildly Bullish

OBV

No Trend

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

9What is working for the Company

OPERATING CASH FLOW(Y)

Highest at GBP 292.6 MM

CASH AND EQV(HY)

Highest at GBP 131.7 MM

INVENTORY TURNOVER RATIO(HY)

Highest at 2.26 times

DEBTORS TURNOVER RATIO(HY)

Highest at 35.5 times

NET SALES(Q)

Highest at GBP 254.4 MM

-8What is not working for the Company

INTEREST COVERAGE RATIO(Q)

Lowest at 295.31

RAW MATERIAL COST(Y)

Grown by 45.24% (YoY

DIVIDEND PER SHARE(HY)

Lowest at GBP 35.5

INTEREST(Q)

Highest at GBP 27.7 MM

PRE-TAX PROFIT(Q)

Lowest at GBP 53.5 MM

Here's what is working for Derwent London Plc

Operating Cash Flow

Highest at GBP 292.6 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

At GBP 254.4 MM has Grown at 79.79%

Year on Year (YoY)

MOJO Watch

Near term sales trend is very positive

Net Sales (GBP MM)

Net Sales

Highest at GBP 254.4 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (GBP MM)

Cash and Eqv

Highest at GBP 131.7 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Inventory Turnover Ratio

Highest at 2.26 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Debtors Turnover Ratio

Highest at 35.5 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Here's what is not working for Derwent London Plc

Interest Coverage Ratio

Lowest at 295.31

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 27.7 MM

in the last five periods and Increased by 21.49% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (GBP MM)

Pre-Tax Profit

Lowest at GBP 53.5 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (GBP MM)

Dividend per share

Lowest at GBP 35.5

in the last five years

MOJO Watch

Company is distributing lower dividend than previous years

DPS (GBP)

Raw Material Cost

Grown by 45.24% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin

Raw Material Cost as a percentage of Sales