Heavitree Brewery Plc () 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

DP Poland Plc

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Heavitree Brewery Plc

Revolution Bars Group Plc

The City Pub Group Plc

Various Eateries Plc

Comptoir Group Plc

Nightcap Plc

Tortilla Mexican Grill Plc

DP Eurasia NV

Hostmore Plc

Why is Heavitree Brewery Plc ?

Poor Management Efficiency with a low ROE of 8.75%

The company has been able to generate a Return on Equity (avg) of 8.75% signifying low profitability per unit of shareholders funds

Low ability to service debt as the company has a high Debt to EBITDA ratio of 1.08 times

Low ability to service debt as the company has a high Debt to EBITDA ratio of 1.08 times
The company has been able to generate a Return on Capital Employed (avg) of 5.49% signifying low profitability per unit of total capital (equity and debt)

Poor long term growth as Net Sales has grown by an annual rate of 8.73% and Operating profit at 12.97% over the last 5 years

Flat results in Apr 26

OPERATING PROFIT(Q) Lowest at GBP 0.59 MM
PRE-TAX PROFIT(Q) Lowest at GBP 0.48 MM
NET PROFIT(Q) Lowest at GBP 0.36 MM

With ROE of 9.89%, it has a attractive valuation with a 0.33 Price to Book Value

Over the past year, while the stock has generated a return of 45.16%, its profits have risen by 47.7% ; the PEG ratio of the company is 0.1

Market Beating performance in long term as well as near term

Along with generating 45.16% returns in the last 1 year, the stock has outperformed FTSE 100 in the last 3 years, 1 year and 3 months

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Heavitree Brewery Plc should be less than 10%
Overall Portfolio exposure to Leisure Services should be less than 30%

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

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

Is Heavitree Brewery Plc for you?

Medium Risk, High Return

Absolute

Risk Adjusted

Volatility

Heavitree Brewery Plc

45.16%

1.54

26.31%

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)

8.73%

EBIT Growth (5y)

12.97%

EBIT to Interest (avg)

1.27

Debt to EBITDA (avg)

1.10

Net Debt to Equity (avg)

0.03

Sales to Capital Employed (avg)

0.37

Tax Ratio

7.09%

Dividend Payout Ratio

12.18%

Pledged Shares

Institutional Holding

ROCE (avg)

6.86%

ROE (avg)

8.75%

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

0.33

EV to EBIT

4.21

EV to EBITDA

3.74

EV to Capital Employed

0.30

EV to Sales

0.76

PEG Ratio

0.07

Dividend Yield

ROCE (Latest)

7.24%

ROE (Latest)

9.89%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Mildly Bullish

RSI

Bearish

Bollinger Bands

Sideways

Mildly Bearish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Bearish

Dow Theory

No Trend

Bearish

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

5What is working for the Company

OPERATING CASH FLOW(Y)

Highest at GBP 2.62 MM

DIVIDEND PAYOUT RATIO(Y)

Highest at 36.47%

INVENTORY TURNOVER RATIO(HY)

Highest at 486 times

-10What is not working for the Company

OPERATING PROFIT(Q)

Lowest at GBP 0.59 MM

PRE-TAX PROFIT(Q)

Lowest at GBP 0.48 MM

NET PROFIT(Q)

Lowest at GBP 0.36 MM

EPS(Q)

Lowest at GBP 0.08

Here's what is working for Heavitree Brewery Plc

Operating Cash Flow

Highest at GBP 2.62 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)

Inventory Turnover Ratio

Highest at 486 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Dividend Payout Ratio

Highest at 36.47%

in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)

Here's what is not working for Heavitree Brewery Plc

Pre-Tax Profit

At GBP 0.48 MM has Fallen at -68.21%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (GBP MM)

Net Profit

At GBP 0.36 MM has Fallen at -68.35%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (GBP MM)

Operating Profit

Lowest at GBP 0.59 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (GBP MM)

Pre-Tax Profit

Lowest at GBP 0.48 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (GBP MM)

Net Profit

Lowest at GBP 0.36 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (GBP MM)

EPS

Lowest at GBP 0.08

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (GBP)