Elementis Plc (ELM) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Iofina Plc

Zotefoams Plc

Croda International Plc

Synthomer Plc

Treatt Plc

Elementis Plc

Europa Oil & Gas (Holdings) Plc

Haydale Graphene Industries Plc

Atome Plc

Why is Elementis Plc ?

Poor Management Efficiency with a low ROCE of 7.38%

The company has been able to generate a Return on Capital Employed (avg) of 7.38% signifying low profitability per unit of total capital (equity and debt)

Low ability to service debt as the company has a high Debt to EBITDA ratio of 2.14 times

Poor long term growth as Net Sales has grown by an annual rate of -4.44% and Operating profit at 9.11% over the last 5 years
Low ability to service debt as the company has a high Debt to EBITDA ratio of 2.14 times
The company has been able to generate a Return on Equity (avg) of 6.58% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of -4.44% and Operating profit at 9.11% over the last 5 years

Negative results in Jun 25

PRE-TAX PROFIT(Q) At GBP 40.33 MM has Fallen at -52.32%
NET PROFIT(Q) At GBP 29.8 MM has Fallen at -49.62%
CASH AND EQV(HY) Lowest at GBP 42.91 MM

With ROE of 15.07%, it has a expensive valuation with a 1.92 Price to Book Value

Over the past year, while the stock has generated a return of 19.73%, its profits have risen by 105% ; the PEG ratio of the company is 0.1

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 Specialty Chemicals)

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

Is Elementis Plc for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

Elementis Plc

23.37%

-0.65

29.57%

FTSE 100

16.5%

1.23

12.99%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-4.44%

EBIT Growth (5y)

9.11%

EBIT to Interest (avg)

3.73

Debt to EBITDA (avg)

2.14

Net Debt to Equity (avg)

0.22

Sales to Capital Employed (avg)

0.62

Tax Ratio

3.12%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

0.02%

ROCE (avg)

7.38%

ROE (avg)

6.58%

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

1.92

EV to EBIT

12.26

EV to EBITDA

8.85

EV to Capital Employed

1.77

EV to Sales

2.04

PEG Ratio

0.12

Dividend Yield

ROCE (Latest)

14.46%

ROE (Latest)

15.07%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Mildly Bearish

Dow Theory

Mildly Bullish

No Trend

OBV

Mildly Bullish

No Trend

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

2What is working for the Company

RAW MATERIAL COST(Y)

Fallen by -18.13% (YoY

DEBT-EQUITY RATIO (HY)

Lowest at 21.31 %

-9What is not working for the Company

PRE-TAX PROFIT(Q)

At GBP 40.33 MM has Fallen at -52.32%

NET PROFIT(Q)

At GBP 29.8 MM has Fallen at -49.62%

CASH AND EQV(HY)

Lowest at GBP 42.91 MM

NET SALES(Q)

Lowest at GBP 237.45 MM

EPS(Q)

Lowest at GBP -0.09

Here's what is working for Elementis Plc

Debt-Equity Ratio

Lowest at 21.31 %

in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Raw Material Cost

Fallen by -18.13% (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 Elementis Plc

Pre-Tax Profit

At GBP 40.33 MM has Fallen at -52.32%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (GBP MM)

Net Profit

At GBP 29.8 MM has Fallen at -49.62%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (GBP MM)

Net Sales

Lowest at GBP 237.45 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (GBP MM)

EPS

Lowest at GBP -0.09

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (GBP)

Cash and Eqv

Lowest at GBP 42.91 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents