Focusrite Plc (TUNE) 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

Focusrite Plc

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Why is Focusrite Plc ?

High Management Efficiency with a high ROCE of 29.86%

Company's ability to service its debt is strong with a healthy EBIT to Interest (avg) ratio of 18.02

The company has declared Negative results for the last 6 consecutive quarters

OPERATING CASH FLOW(Y) Lowest at GBP 33.49 MM
RAW MATERIAL COST(Y) Grown by 6.7% (YoY)
DIVIDEND PER SHARE(HY) Lowest at GBP 4.36

With ROE of 4.86%, it has a attractive valuation with a 1.05 Price to Book Value

Over the past year, while the stock has generated a return of 12.86%, its profits have fallen by -28.6%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Focusrite Plc should be less than 10%
Overall Portfolio exposure to Telecom - Equipment & Accessories should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Telecom - Equipment & Accessories)

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

Is Focusrite Plc for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Focusrite Plc

-100.0%

-0.86

56.83%

FTSE 100

13.98%

1.15

13.60%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

5.35%

EBIT Growth (5y)

-13.10%

EBIT to Interest (avg)

18.02

Debt to EBITDA (avg)

0.42

Net Debt to Equity (avg)

0.17

Sales to Capital Employed (avg)

1.46

Tax Ratio

Tax Ratio is Negative%

Dividend Payout Ratio

45.90%

Pledged Shares

Institutional Holding

ROCE (avg)

29.86%

ROE (avg)

19.38%

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

1.05

EV to EBIT

13.63

EV to EBITDA

5.48

EV to Capital Employed

1.05

EV to Sales

0.80

PEG Ratio

Dividend Yield

1.48%

ROCE (Latest)

7.70%

ROE (Latest)

4.86%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Mildly Bullish

RSI

Bullish

No Signal

Bollinger Bands

Bearish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Mildly Bullish

Dow Theory

Mildly Bearish

Mildly Bullish

OBV

Mildly Bearish

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

2What is working for the Company

DEBT-EQUITY RATIO (HY)

Lowest at 9.2 %

INVENTORY TURNOVER RATIO(HY)

Highest at 2.28 times

-6What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at GBP 33.49 MM

RAW MATERIAL COST(Y)

Grown by 6.7% (YoY

DIVIDEND PER SHARE(HY)

Lowest at GBP 4.36

NET PROFIT(Q)

Fallen at -28.92%

Here's what is working for Focusrite Plc

Debt-Equity Ratio

Lowest at 9.2 %

in the last five Semi-Annual periods

MOJO Watch

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

Debt-Equity Ratio

Inventory Turnover Ratio

Highest at 2.28 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Depreciation

Highest at GBP 7.42 MM

in the last five periods

MOJO Watch

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

Depreciation (GBP MM)

Here's what is not working for Focusrite Plc

Operating Cash Flow

Lowest at GBP 33.49 MM and Fallen

In each year in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (GBP MM)

Net Profit

Fallen at -28.92%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is negative

Net Profit (GBP MM)

Dividend per share

Lowest at GBP 4.36

in the last five years

MOJO Watch

Company is distributing lower dividend than previous years

DPS (GBP)

Raw Material Cost

Grown by 6.7% (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