Gooch & Housego Plc (GHH) 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

LPA Group Plc

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Polarean Imaging Plc

RUA Life Sciences Plc

Gooch & Housego Plc

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Strip Tinning Holdings Plc

Feedback Plc

IQ-AI Ltd.

Why is Gooch & Housego Plc ?

Poor Management Efficiency with a low ROCE of 6.69%

The company has been able to generate a Return on Capital Employed (avg) of 6.69% signifying low profitability per unit of total capital (equity and debt)

Weak Long Term Fundamental Strength with a 5.61% CAGR growth in Operating Profits over the last 5 years

The company has been able to generate a Return on Equity (avg) of 5.46% signifying low profitability per unit of shareholders funds

Poor long term growth as Operating profit has grown by an annual rate 5.61% of over the last 5 years

Flat results in Mar 26

INTEREST(HY) At GBP 1.44 MM has Grown at 30.8%
DEBT-EQUITY RATIO (HY) Highest at 41.22 %
DEBTORS TURNOVER RATIO(HY) Lowest at 3.73 times

With ROE of 5.22%, it has a very expensive valuation with a 2.14 Price to Book Value

Over the past year, while the stock has generated a return of 111.21%, its profits have fallen by -4.9%

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 Electronics & Appliances)

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

Is Gooch & Housego Plc for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Gooch & Housego Plc

111.21%

1.96

61.50%

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)

5.58%

EBIT Growth (5y)

5.61%

EBIT to Interest (avg)

5.47

Debt to EBITDA (avg)

1.05

Net Debt to Equity (avg)

0.23

Sales to Capital Employed (avg)

0.99

Tax Ratio

31.83%

Dividend Payout Ratio

96.70%

Pledged Shares

Institutional Holding

ROCE (avg)

6.62%

ROE (avg)

5.46%

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

2.14

EV to EBIT

28.68

EV to EBITDA

12.95

EV to Capital Employed

1.87

EV to Sales

1.82

PEG Ratio

Dividend Yield

1.33%

ROCE (Latest)

6.51%

ROE (Latest)

5.22%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bollinger Bands

Bullish

Mildly Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Dow Theory

No Trend

Mildly Bullish

OBV

No Trend

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

RAW MATERIAL COST(Y)

Fallen by -1.09% (YoY

NET SALES(Q)

Highest at GBP 81.88 MM

-6What is not working for the Company

INTEREST(HY)

At GBP 1.44 MM has Grown at 30.8%

DEBT-EQUITY RATIO (HY)

Highest at 41.22 %

DEBTORS TURNOVER RATIO(HY)

Lowest at 3.73 times

DIVIDEND PER SHARE(HY)

Lowest at GBP 3.73

OPERATING PROFIT MARGIN(Q)

Lowest at 13.1 %

Here's what is working for Gooch & Housego Plc

Net Sales

Highest at GBP 81.88 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (GBP MM)

Raw Material Cost

Fallen by -1.09% (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 Gooch & Housego Plc

Interest

At GBP 1.44 MM has Grown at 30.8%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (GBP MM)

Operating Profit Margin

Lowest at 13.1 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Debt-Equity Ratio

Highest at 41.22 %

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

Debtors Turnover Ratio

Lowest at 3.73 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

Dividend per share

Lowest at GBP 3.73

in the last five years

MOJO Watch

Company is distributing lower dividend than previous years

DPS (GBP)