Why is Eurocell Plc ?
1
High Management Efficiency with a high ROE of 14.20%
2
Company's ability to service its debt is strong with a healthy EBIT to Interest (avg) ratio of 8.67
3
Poor long term growth as Operating profit has grown by an annual rate 18.53% of over the last 5 years
4
With a growth in Net Profit of 131.03%, the company declared Very Positive results in Dec 25
- OPERATING CASH FLOW(Y) Highest at GBP 90 MM
- RAW MATERIAL COST(Y) Fallen by -3.19% (YoY)
- INVENTORY TURNOVER RATIO(HY) Highest at 3.96 times
5
With ROE of 14.20%, it has a fair valuation with a 1.03 Price to Book Value
- Over the past year, while the stock has generated a return of -27.33%, its profits have fallen by -0.1% ; the PEG ratio of the company is 3.6
6
Below par performance in long term as well as near term
- Along with generating -27.33% returns in the last 1 year, the stock has also underperformed FTSE 100 in the last 3 years, 1 year and 3 months
How much should you hold?
- Overall Portfolio exposure to Eurocell Plc should be less than 10%
- Overall Portfolio exposure to Miscellaneous should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Miscellaneous)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is Eurocell Plc for you?
High Risk, Low Return
Absolute
Risk Adjusted
Volatility
Eurocell Plc
-100.0%
-0.50
37.58%
FTSE 100
17.87%
1.52
11.77%
Quality key factors
Factor
Value
Sales Growth (5y)
9.37%
EBIT Growth (5y)
18.53%
EBIT to Interest (avg)
8.67
Debt to EBITDA (avg)
0.44
Net Debt to Equity (avg)
0.15
Sales to Capital Employed (avg)
2.70
Tax Ratio
23.91%
Dividend Payout Ratio
67.16%
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
16.72%
ROE (avg)
14.20%
Valuation Key Factors 
Factor
Value
P/E Ratio
7
Industry P/E
Price to Book Value
1.03
EV to EBIT
5.98
EV to EBITDA
2.80
EV to Capital Employed
1.02
EV to Sales
0.36
PEG Ratio
3.56
Dividend Yield
6.14%
ROCE (Latest)
17.14%
ROE (Latest)
14.20%
Technical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bullish
Bearish
RSI
No Signal
No Signal
Bollinger Bands
Mildly Bearish
Mildly Bearish
Moving Averages
Mildly Bearish (Daily)
KST
Bearish
Bearish
Dow Theory
Mildly Bearish
No Trend
OBV
Mildly Bullish
No Trend
Technical Movement
9What is working for the Company
OPERATING CASH FLOW(Y)
Highest at GBP 90 MM
RAW MATERIAL COST(Y)
Fallen by -3.19% (YoY
INVENTORY TURNOVER RATIO(HY)
Highest at 3.96 times
DEBTORS TURNOVER RATIO(HY)
Highest at 9.53 times
NET SALES(Q)
Highest at GBP 210.3 MM
OPERATING PROFIT(Q)
Highest at GBP 28.3 MM
EPS(Q)
Highest at GBP 0.07
-4What is not working for the Company
INTEREST(Q)
Highest at GBP 2.8 MM
Here's what is working for Eurocell Plc
Operating Cash Flow
Highest at GBP 90 MM and Grown
In each year in the last three yearsMOJO Watch
The company has generated higher cash revenues from business operations
Operating Cash Flows (GBP MM)
Net Sales
Highest at GBP 210.3 MM
in the last five periodsMOJO Watch
Near term sales trend is positive
Net Sales (GBP MM)
Operating Profit
Highest at GBP 28.3 MM
in the last five periodsMOJO Watch
Near term Operating Profit trend is positive
Operating Profit (GBP MM)
EPS
Highest at GBP 0.07
in the last five periodsMOJO Watch
Increasing profitability; company has created higher earnings for shareholders
EPS (GBP)
Inventory Turnover Ratio
Highest at 3.96 times
in the last five Semi-Annual periodsMOJO Watch
Company has been able to sell its inventory faster
Inventory Turnover Ratio
Debtors Turnover Ratio
Highest at 9.53 times
in the last five Semi-Annual periodsMOJO Watch
Company has been able to sell its Debtors faster
Debtors Turnover Ratio
Raw Material Cost
Fallen by -3.19% (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 14.3 MM
in the last five periodsMOJO Watch
The expenditure on assets done by the company may have gone into operation
Depreciation (GBP MM)
Here's what is not working for Eurocell Plc
Interest
Highest at GBP 2.8 MM
in the last five periods and Increased by 21.74% (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (GBP MM)






