Entain Plc (GVC) 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

Nexteq Plc

Rank Group Plc

Newbury Racecourse Plc

Entain Plc

Webis Holdings Plc

Flutter Entertainment Plc

Sportech Plc

Why is Entain Plc ?

Poor Management Efficiency with a low ROCE of 7.20%

The company has been able to generate a Return on Capital Employed (avg) of 7.20% signifying low profitability per unit of total capital (equity and debt)

The company is Net-Debt Free

The company is Net-Debt Free
The company has been able to generate a Return on Equity (avg) of 2.60% signifying low profitability per unit of shareholders funds
PRE-TAX PROFIT(Q) At GBP 90.5 MM has Fallen at -44.58%
INTEREST(HY) At GBP 132.4 MM has Grown at 44.07%
ROCE(HY) Lowest at -54.75%

Risky -

The stock is trading risky as compared to its average historical valuations
Over the past year, while the stock has generated a return of -34.81%, its profits have risen by 2628.7%

Below par performance in long term as well as near term

Along with generating -34.81% returns in the last 1 year, the stock has also underperformed FTSE 100 in the last 3 years, 1 year and 3 months

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 Leisure Services)

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

Is Entain Plc for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Entain Plc

-34.81%

-1.43

37.32%

FTSE 100

17.87%

1.52

11.77%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

8.15%

EBIT Growth (5y)

13.27%

EBIT to Interest (avg)

3.53

Debt to EBITDA (avg)

3.49

Net Debt to Equity (avg)

2.02

Sales to Capital Employed (avg)

0.84

Tax Ratio

42.60%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

0.00%

ROCE (avg)

7.20%

ROE (avg)

2.60%

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

3.92

EV to EBIT

12.44

EV to EBITDA

5.82

EV to Capital Employed

1.64

EV to Sales

1.27

PEG Ratio

Dividend Yield

0.34%

ROCE (Latest)

13.17%

ROE (Latest)

38.08%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Bearish

RSI

No Signal

Bollinger Bands

Bearish

Mildly Bearish

Moving Averages

Bearish (Daily)

KST

Mildly Bullish

Bearish

Dow Theory

Mildly Bullish

Mildly Bearish

OBV

Mildly Bullish

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

NET SALES(Q)

Highest at GBP 2,663.7 MM

RAW MATERIAL COST(Y)

Fallen by -2.98% (YoY

DIVIDEND PER SHARE(HY)

Highest at GBP 7.81

OPERATING PROFIT(Q)

Highest at GBP 590.1 MM

OPERATING PROFIT MARGIN(Q)

Highest at 22.15 %

-14What is not working for the Company

PRE-TAX PROFIT(Q)

At GBP 90.5 MM has Fallen at -44.58%

INTEREST(HY)

At GBP 132.4 MM has Grown at 44.07%

ROCE(HY)

Lowest at -54.75%

DEBT-EQUITY RATIO (HY)

Highest at 386.35 %

DEBTORS TURNOVER RATIO(HY)

Lowest at 7.81 times

NET PROFIT(Q)

At GBP 15 MM has Fallen at -43.82%

EPS(Q)

Lowest at GBP -0.89

Here's what is working for Entain Plc

Net Sales

Highest at GBP 2,663.7 MM and Grown

In each period in the last five periods

MOJO Watch

Near term sales trend is very positive

Net Sales (GBP MM)

Operating Profit

Highest at GBP 590.1 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (GBP MM)

Operating Profit Margin

Highest at 22.15 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Dividend per share

Highest at GBP 7.81

in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (GBP)

Raw Material Cost

Fallen by -2.98% (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 Entain Plc

Pre-Tax Profit

At GBP 90.5 MM has Fallen at -44.58%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (GBP MM)

Net Profit

At GBP 15 MM has Fallen at -43.82%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (GBP MM)

Interest

At GBP 132.4 MM has Grown at 44.07%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (GBP MM)

Debt-Equity Ratio

Highest at 386.35 % and Grown

In each half year 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 7.81 times and Fallen

In each half year in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

EPS

Lowest at GBP -0.89

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (GBP)