Headlam Group Plc (HEAD) 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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Headlam Group Plc

Yellow Cake Plc

Why is Headlam Group Plc ?

Poor Management Efficiency with a low ROE of 6.07%

The company has been able to generate a Return on Equity (avg) of 6.07% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of -2.30% and Operating profit at -236.75% over the last 5 years

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

OPERATING CASH FLOW(Y) Lowest at GBP -19 MM
ROCE(HY) Lowest at -19.28%
NET PROFIT(Q) Lowest at GBP -16.4 MM

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 -55.23%, its profits have fallen by -173.3%

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -55.23% returns in the last 1 year, the stock has also underperformed FTSE 100 in each of the last 3 annual periods

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 Headlam Group Plc for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Headlam Group Plc

-55.23%

-1.69

42.00%

FTSE 100

15.58%

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)

-2.30%

EBIT Growth (5y)

-236.75%

EBIT to Interest (avg)

4.85

Debt to EBITDA (avg)

0.33

Net Debt to Equity (avg)

0.02

Sales to Capital Employed (avg)

2.58

Tax Ratio

39.76%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

7.42%

ROE (avg)

6.07%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

NA (Loss Making)

Industry P/E

Price to Book Value

0.22

EV to EBIT

-1.20

EV to EBITDA

-1.98

EV to Capital Employed

0.37

EV to Sales

0.13

PEG Ratio

Dividend Yield

ROCE (Latest)

-30.85%

ROE (Latest)

-5.30%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

RSI

No Signal

Bullish

Bollinger Bands

Mildly Bearish

Moving Averages

Mildly Bearish (Daily)

KST

Mildly Bullish

Bearish

Dow Theory

Mildly Bullish

Mildly Bearish

OBV

Mildly Bullish

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

2What is working for the Company

RAW MATERIAL COST(Y)

Fallen by 1.76% (YoY

CASH AND EQV(HY)

Highest at GBP 23.2 MM

-19What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at GBP -19 MM

ROCE(HY)

Lowest at -19.28%

NET PROFIT(Q)

Lowest at GBP -16.4 MM

DEBT-EQUITY RATIO (HY)

Highest at 51.36 %

DEBTORS TURNOVER RATIO(HY)

Lowest at 4.92 times

NET SALES(Q)

Lowest at GBP 244.7 MM

PRE-TAX PROFIT(Q)

Lowest at GBP -22.8 MM

EPS(Q)

Lowest at GBP -0.46

Here's what is working for Headlam Group Plc

Cash and Eqv

Highest at GBP 23.2 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Raw Material Cost

Fallen by 1.76% (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 Headlam Group Plc

Pre-Tax Profit

At GBP -22.8 MM has Fallen at -54.05%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (GBP MM)

Net Profit

At GBP -16.4 MM has Fallen at -57.69%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (GBP MM)

Operating Cash Flow

Lowest at GBP -19 MM and Fallen

In each year in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (GBP MM)

Net Profit

Lowest at GBP -16.4 MM and Fallen

In each period in the last five periods

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (GBP MM)

Net Sales

Lowest at GBP 244.7 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (GBP MM)

Net Sales

Fallen at -16.34%

Year on Year (YoY)

MOJO Watch

Near term sales trend is negative

Net Sales (GBP MM)

Pre-Tax Profit

Lowest at GBP -22.8 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (GBP MM)

EPS

Lowest at GBP -0.46

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (GBP)

Debt-Equity Ratio

Highest at 51.36 %

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 4.92 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio