Glencore Plc (GLEN) 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

Currys Plc

Diploma Plc

Brickability Group Plc

RS Group Plc

Bunzl Plc

James Latham Plc

Midwich Group Plc

Glencore Plc

SIG Plc

Headlam Group Plc

Yellow Cake Plc

Why is Glencore Plc ?

Poor Management Efficiency with a low ROCE of 9.95%

The company has been able to generate a Return on Capital Employed (avg) of 9.95% signifying low profitability per unit of total capital (equity and debt)

High Debt Company with a Debt to Equity ratio (avg) at times

High Debt Company with a Debt to Equity ratio (avg) at times
The company has been able to generate a Return on Capital Employed (avg) of 9.95% signifying low profitability per unit of total capital (equity and debt)

The company has declared Negative results for the last 4 consecutive quarters

PRE-TAX PROFIT(Q) At GBP -313.1 MM has Fallen at -202.33%
NET PROFIT(Q) At GBP 459.63 MM has Fallen at -51.68%
ROCE(HY) Lowest at -5.26%

Risky -

The stock is trading risky as compared to its average historical valuations
Over the past year, while the stock has generated a return of 1.60%, its profits have risen by 147.3%

Underperformed the market in the last 1 year

The stock has generated a return of 1.60% in the last 1 year, much lower than market (FTSE 100) returns of 16.71%

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

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

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is Glencore Plc for you?

High Risk, Medium Return

Absolute

Risk Adjusted

Volatility

Glencore Plc

0.24%

0.63

33.70%

FTSE 100

15.94%

1.29

12.98%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

31.45%

EBIT Growth (5y)

17.66%

EBIT to Interest (avg)

2.87

Debt to EBITDA (avg)

4.81

Net Debt to Equity (avg)

0.85

Sales to Capital Employed (avg)

2.02

Tax Ratio

4.97%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

0.05%

ROCE (avg)

9.95%

ROE (avg)

21.23%

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

1.49

EV to EBIT

32.82

EV to EBITDA

24.89

EV to Capital Employed

1.25

EV to Sales

0.59

PEG Ratio

Dividend Yield

2.94%

ROCE (Latest)

3.80%

ROE (Latest)

10.07%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

Mildly Bullish

RSI

Bearish

No Signal

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Mildly Bullish

Dow Theory

Mildly Bullish

OBV

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

3What is working for the Company

NET PROFIT(HY)

Higher at GBP 459.63 MM

INVENTORY TURNOVER RATIO(HY)

Highest at 7.7%

-15What is not working for the Company

PRE-TAX PROFIT(Q)

At GBP -313.1 MM has Fallen at -202.33%

NET PROFIT(Q)

At GBP 459.63 MM has Fallen at -51.68%

ROCE(HY)

Lowest at -5.26%

INTEREST COVERAGE RATIO(Q)

Lowest at 350.85

RAW MATERIAL COST(Y)

Grown by 81.59% (YoY

DEBT-EQUITY RATIO (HY)

Highest at 103.33 %

DIVIDEND PER SHARE(HY)

Lowest at GBP 11.54

OPERATING PROFIT(Q)

Lowest at GBP 3,346.97 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 3.7 %

Here's what is working for Glencore Plc

Inventory Turnover Ratio

Highest at 7.7%

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 Glencore Plc

Pre-Tax Profit

At GBP -313.1 MM has Fallen at -202.33%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (GBP MM)

Net Profit

At GBP 459.63 MM has Fallen at -51.68%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (GBP MM)

Interest Coverage Ratio

Lowest at 350.85

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Operating Profit

Lowest at GBP 3,346.97 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (GBP MM)

Operating Profit Margin

Lowest at 3.7 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Debt-Equity Ratio

Highest at 103.33 %

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

Dividend per share

Lowest at GBP 11.54

in the last five years

MOJO Watch

Company is distributing lower dividend than previous years

DPS (GBP)

Raw Material Cost

Grown by 81.59% (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