Gateley (Holdings) Plc (GTLY) 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

Science Group Plc

FRP Advisory Group Plc

Elixirr International Plc

Mattioli Woods Plc

Franchise Brands plc

Gateley (Holdings) Plc

Bioventix Plc

Restore Plc

Capita Plc

Fintel Plc

Ricardo Plc

Why is Gateley (Holdings) Plc ?

High Management Efficiency with a high ROE of 25.00%

Company's ability to service its debt is strong with a healthy EBIT to Interest (avg) ratio of 13.54

The company has declared Negative results for the last 3 consecutive quarters

INTEREST COVERAGE RATIO(Q) Lowest at 552.06
CASH AND EQV(HY) Lowest at GBP 10.63 MM
DEBT-EQUITY RATIO (HY) Highest at 65.72 %

With ROE of 21.66%, it has a very attractive valuation with a 1.45 Price to Book Value

Over the past year, while the stock has generated a return of -46.57%, its profits have risen by 31.3% ; the PEG ratio of the company is 0.2

Below par performance in long term as well as near term

Along with generating -46.57% 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 hold?

Overall Portfolio exposure to Gateley (Holdings) 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 Gateley (Holdings) Plc for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

Gateley (Holdings) Plc

-46.57%

-1.76

27.33%

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)

11.57%

EBIT Growth (5y)

-0.50%

EBIT to Interest (avg)

13.54

Debt to EBITDA (avg)

Net Debt is too low

Net Debt to Equity (avg)

0.05

Sales to Capital Employed (avg)

1.84

Tax Ratio

40.94%

Dividend Payout Ratio

931.37%

Pledged Shares

Institutional Holding

ROCE (avg)

28.23%

ROE (avg)

25.00%

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

1.45

EV to EBIT

7.78

EV to EBITDA

5.21

EV to Capital Employed

1.34

EV to Sales

0.68

PEG Ratio

0.21

Dividend Yield

1179.82%

ROCE (Latest)

17.16%

ROE (Latest)

21.66%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

No Signal

Bullish

Bollinger Bands

Mildly Bearish

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Dow Theory

Mildly Bearish

OBV

Mildly Bearish

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

RAW MATERIAL COST(Y)

Fallen by -0.84% (YoY

DEBTORS TURNOVER RATIO(HY)

Highest at 2.04 times

NET SALES(Q)

Highest at GBP 94.32 MM

NET PROFIT(Q)

At GBP 7.94 MM has Grown at 68.5%

-9What is not working for the Company

INTEREST COVERAGE RATIO(Q)

Lowest at 552.06

CASH AND EQV(HY)

Lowest at GBP 10.63 MM

DEBT-EQUITY RATIO (HY)

Highest at 65.72 %

INTEREST(Q)

Highest at GBP 1.82 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 10.67 %

Here's what is working for Gateley (Holdings) Plc

Net Sales

Highest at GBP 94.32 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (GBP MM)

Net Profit

At GBP 7.94 MM has Grown at 68.5%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is positive

Net Profit (GBP MM)

Debtors Turnover Ratio

Highest at 2.04 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Raw Material Cost

Fallen by -0.84% (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 Gateley (Holdings) Plc

Interest Coverage Ratio

Lowest at 552.06

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Interest

Highest at GBP 1.82 MM

in the last five periods and Increased by 46.43% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (GBP MM)

Operating Profit Margin

Lowest at 10.67 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Cash and Eqv

Lowest at GBP 10.63 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Debt-Equity Ratio

Highest at 65.72 %

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

Non Operating Income

Highest at GBP 0.91 MM

in the last five periods

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating income