GB Group Plc (GBG) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

BOKU, Inc.

Learning Technologies Group Plc

Craneware Plc

Alfa Financial Software Holdings Plc

The Sage Group plc

GB Group Plc

Deliveroo Plc

Playtech Plc

Alphawave IP Group Plc

FD Technologies Plc

EMIS Group Plc

Why is GB Group Plc ?

Poor Management Efficiency with a low ROCE of 4.25%

The company has been able to generate a Return on Capital Employed (avg) of 4.25% signifying low profitability per unit of total capital (equity and debt)

Company's ability to service its debt is strong with a healthy EBIT to Interest (avg) ratio of 9.66

Positive results in Mar 25

ROCE(HY) Highest at 1.4%
INTEREST COVERAGE RATIO(Q) Highest at 1,058.04
CASH AND EQV(HY) Highest at GBP 25.16 MM

With ROE of 1.92%, it has a fair valuation with a 0.98 Price to Book Value

Over the past year, while the stock has generated a return of -30.36%, its profits have risen by 8% ; the PEG ratio of the company is 6.4

Underperformed the market in the last 1 year

Even though the market (FTSE 100) has generated returns of 16.09% in the last 1 year, the stock has hugely underperformed and has generate negative returns of -30.36% returns

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to GB Group Plc should be less than 10%
Overall Portfolio exposure to Software Products should be less than 30%

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

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

No Data Found

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

6.20%

EBIT Growth (5y)

-1.98%

EBIT to Interest (avg)

9.66

Debt to EBITDA (avg)

1.18

Net Debt to Equity (avg)

0.08

Sales to Capital Employed (avg)

0.40

Tax Ratio

45.12%

Dividend Payout Ratio

129.03%

Pledged Shares

Institutional Holding

ROCE (avg)

4.25%

ROE (avg)

2.91%

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

0.98

EV to EBIT

24.56

EV to EBITDA

10.26

EV to Capital Employed

0.98

EV to Sales

2.29

PEG Ratio

6.40

Dividend Yield

ROCE (Latest)

4.00%

ROE (Latest)

1.92%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Bearish

RSI

No Signal

Bollinger Bands

Bullish

Bearish

Moving Averages

Mildly Bearish (Daily)

KST

Bullish

Bearish

Dow Theory

Mildly Bearish

No Trend

OBV

No Trend

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

12What is working for the Company

ROCE(HY)

Highest at 1.4%

INTEREST COVERAGE RATIO(Q)

Highest at 1,058.04

CASH AND EQV(HY)

Highest at GBP 25.16 MM

DEBT-EQUITY RATIO (HY)

Lowest at 8.03 %

INVENTORY TURNOVER RATIO(HY)

Highest at 84.09%

NET SALES(Q)

Highest at GBP 145.82 MM

PRE-TAX PROFIT(Q)

Highest at GBP 14.56 MM

NET PROFIT(Q)

Highest at GBP 10.18 MM

EPS(Q)

Highest at GBP 0.03

-2What is not working for the Company

RAW MATERIAL COST(Y)

Grown by 18.83% (YoY

DEBTORS TURNOVER RATIO(HY)

Lowest at 4.36%

Here's what is working for GB Group Plc

Interest Coverage Ratio

Highest at 1,058.04

in the last five periods

MOJO Watch

The company's ability to manage interest payments is improving

Operating Profit to Interest

Net Sales

Highest at GBP 145.82 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (GBP MM)

Pre-Tax Profit

Highest at GBP 14.56 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (GBP MM)

Pre-Tax Profit

At GBP 14.56 MM has Grown at 46.36%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (GBP MM)

Net Profit

Highest at GBP 10.18 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (GBP MM)

EPS

Highest at GBP 0.03

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (GBP)

Cash and Eqv

Highest at GBP 25.16 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debt-Equity Ratio

Lowest at 8.03 %

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 84.09%

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Here's what is not working for GB Group Plc

Debtors Turnover Ratio

Lowest at 4.36%

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

Raw Material Cost

Grown by 18.83% (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