Gulf Marine Services PLC (GMS) 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

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Gulf Marine Services PLC

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WeCap Plc

Why is Gulf Marine Services PLC ?

Poor Management Efficiency with a low ROCE of 7.08%

The company has been able to generate a Return on Capital Employed (avg) of 7.08% signifying low profitability per unit of total capital (equity and debt)

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

Poor long term growth as Operating profit has grown by an annual rate 20.67% of over the last 5 years
High Debt Company with a Debt to Equity ratio (avg) at times
The company has been able to generate a Return on Equity (avg) of 5.65% signifying low profitability per unit of shareholders funds

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

OPERATING CASH FLOW(Y) Highest at GBP 121.76 MM
INTEREST COVERAGE RATIO(Q) Highest at 628.64
DEBT-EQUITY RATIO (HY) Lowest at 45.56 %

With ROE of 8.90%, it has a attractive valuation with a 0.79 Price to Book Value

Over the past year, while the stock has generated a return of -7.87%, its profits have risen by 35.5% ; the PEG ratio of the company is 0.3

Underperformed the market in the last 1 year

Even though the market (FTSE 100) has generated returns of 15.58% in the last 1 year, the stock has hugely underperformed and has generate negative returns of -7.87% returns

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Gulf Marine Services PLC should be less than 10%
Overall Portfolio exposure to Oil should be less than 30%

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

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

Is Gulf Marine Services PLC for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Gulf Marine Services PLC

-7.87%

-0.23

43.87%

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)

10.32%

EBIT Growth (5y)

20.67%

EBIT to Interest (avg)

1.74

Debt to EBITDA (avg)

4.82

Net Debt to Equity (avg)

0.53

Sales to Capital Employed (avg)

0.23

Tax Ratio

11.46%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

7.08%

ROE (avg)

5.65%

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

0.79

EV to EBIT

6.67

EV to EBITDA

4.24

EV to Capital Employed

0.86

EV to Sales

2.73

PEG Ratio

0.31

Dividend Yield

ROCE (Latest)

12.86%

ROE (Latest)

8.90%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Bearish

Moving Averages

Mildly Bullish (Daily)

KST

Bullish

Mildly Bearish

Dow Theory

Mildly Bearish

Mildly Bullish

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

8What is working for the Company

OPERATING CASH FLOW(Y)

Highest at GBP 121.76 MM

INTEREST COVERAGE RATIO(Q)

Highest at 628.64

DEBT-EQUITY RATIO (HY)

Lowest at 45.56 %

-6What is not working for the Company

RAW MATERIAL COST(Y)

Grown by 13.24% (YoY

NET PROFIT(Q)

Lowest at GBP 3.72 MM

EPS(Q)

Lowest at GBP 0

Here's what is working for Gulf Marine Services PLC

Interest Coverage Ratio

Highest at 628.64 and Grown

In each period in the last five periods

MOJO Watch

The company's ability to manage interest payments is improving

Operating Profit to Interest

Operating Cash Flow

Highest at GBP 121.76 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)

Debt-Equity Ratio

Lowest at 45.56 % and Grown

In each half year in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Depreciation

Highest at GBP 17.26 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (GBP MM)

Here's what is not working for Gulf Marine Services PLC

Net Profit

At GBP 3.72 MM has Fallen at -62.64%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (GBP MM)

Net Profit

Lowest at GBP 3.72 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (GBP MM)

EPS

Lowest at GBP 0

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (GBP)

Raw Material Cost

Grown by 13.24% (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