Frontier Developments Plc (FDEV) 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

Tandem Group Plc

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Frontier Developments Plc

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Renalytix Plc

Celtic Plc

Hornby Plc

Why is Frontier Developments Plc ?

Weak Long Term Fundamental Strength with a -9.32% CAGR growth in Operating Profits over the last 5 years

Poor long term growth as Operating profit has grown by an annual rate -9.32% of over the last 5 years

Flat results in Nov 25

INTEREST(HY) At GBP 0.48 MM has Grown at 230.34%

With ROE of 20.83%, it has a very attractive valuation with a 1.52 Price to Book Value

Over the past year, while the stock has generated a return of 12.85%, its profits have fallen by -38.4%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Frontier Developments Plc should be less than 10%
Overall Portfolio exposure to Media & Entertainment should be less than 30%

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

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

Is Frontier Developments Plc for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Frontier Developments Plc

12.85%

1.17

46.60%

FTSE 100

18.59%

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)

4.90%

EBIT Growth (5y)

-9.32%

EBIT to Interest (avg)

1.18

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.31

Sales to Capital Employed (avg)

1.03

Tax Ratio

Tax Ratio is Negative%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

0.09%

ROCE (avg)

16.15%

ROE (avg)

16.83%

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

1.52

EV to EBIT

8.99

EV to EBITDA

2.92

EV to Capital Employed

1.88

EV to Sales

1.02

PEG Ratio

Dividend Yield

ROCE (Latest)

20.88%

ROE (Latest)

20.83%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Moving Averages

Bearish (Daily)

KST

Bullish

Mildly Bearish

Dow Theory

Mildly Bullish

No Trend

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

9What is working for the Company

OPERATING CASH FLOW(Y)

Highest at GBP 91.58 MM

ROCE(HY)

Highest at 22.66%

RAW MATERIAL COST(Y)

Fallen by -102.11% (YoY

NET SALES(Q)

Highest at GBP 59.63 MM

PRE-TAX PROFIT(Q)

At GBP 7.99 MM has Grown at 81.56%

NET PROFIT(Q)

At GBP 8.01 MM has Grown at 82.17%

-4What is not working for the Company

INTEREST(HY)

At GBP 0.48 MM has Grown at 230.34%

Here's what is working for Frontier Developments Plc

Operating Cash Flow

Highest at GBP 91.58 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

Highest at GBP 59.63 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (GBP MM)

Pre-Tax Profit

At GBP 7.99 MM has Grown at 81.56%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (GBP MM)

Net Profit

At GBP 8.01 MM has Grown at 82.17%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is positive

Net Profit (GBP MM)

Raw Material Cost

Fallen by -102.11% (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

At GBP 13.65 MM has Grown at 29.27%

period on period (QoQ)

MOJO Watch

The expenditure on assets done by the company has gone into productive use which should positively reflect in the future sales

Depreciation (GBP MM)

Here's what is not working for Frontier Developments Plc

Interest

At GBP 0.48 MM has Grown at 230.34%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (GBP MM)