J. Smart & Co. (Contractors) Plc (SMJ) 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

Galliford Try Holdings Plc

Mears Group Plc

Vistry Group Plc

J. Smart & Co. (Contractors) Plc

Crest Nicholson Holdings Plc

Bellway Plc

Henry Boot Plc

Persimmon Plc

Redrow Plc

MJ Gleeson Plc

Watkin Jones Plc

Why is J. Smart & Co. (Contractors) Plc ?

Poor Management Efficiency with a low ROE of 2.12%

The company has been able to generate a Return on Equity (avg) of 2.12% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of 16.85% and Operating profit at -188.69% over the last 5 years

Flat results in Jan 26

RAW MATERIAL COST(Y) Grown by 48.32% (YoY)
PRE-TAX PROFIT(Q) Lowest at GBP -0.2 MM
NET PROFIT(Q) Lowest at GBP -0.08 MM

With ROE of 0.41%, it has a attractive valuation with a 0.34 Price to Book Value

Over the past year, while the stock has generated a return of -6.25%, its profits have fallen by -26%

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -6.25% 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 hold?

Overall Portfolio exposure to J. Smart & Co. (Contractors) Plc should be less than 10%
Overall Portfolio exposure to Furniture, Home Furnishing should be less than 30%

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

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

Is J. Smart & Co. (Contractors) Plc for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

J. Smart & Co. (Contractors) Plc

-6.25%

-0.63

15.81%

FTSE 100

17.87%

1.52

11.77%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

16.85%

EBIT Growth (5y)

-188.69%

EBIT to Interest (avg)

1.05

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.13

Sales to Capital Employed (avg)

0.13

Tax Ratio

34.09%

Dividend Payout Ratio

24.87%

Pledged Shares

Institutional Holding

ROCE (avg)

1.15%

ROE (avg)

2.12%

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

0.34

EV to EBIT

-31.90

EV to EBITDA

-31.90

EV to Capital Employed

0.27

EV to Sales

1.10

PEG Ratio

Dividend Yield

0.88%

ROCE (Latest)

-0.76%

ROE (Latest)

0.41%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

No Signal

Bearish

Bollinger Bands

Mildly Bearish

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Mildly Bullish

Dow Theory

No Trend

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

11What is working for the Company

OPERATING CASH FLOW(Y)

Highest at GBP 7.14 MM

DIVIDEND PAYOUT RATIO(Y)

Highest at 600%

ROCE(HY)

Highest at 4.01%

INVENTORY TURNOVER RATIO(HY)

Highest at 1.63 times

DEBTORS TURNOVER RATIO(HY)

Highest at 8.13 times

NET SALES(Q)

Highest at GBP 14.76 MM

-10What is not working for the Company

RAW MATERIAL COST(Y)

Grown by 48.32% (YoY

PRE-TAX PROFIT(Q)

Lowest at GBP -0.2 MM

NET PROFIT(Q)

Lowest at GBP -0.08 MM

EPS(Q)

Lowest at GBP 0

Here's what is working for J. Smart & Co. (Contractors) Plc

Net Sales

At GBP 14.76 MM has Grown at 63.9%

Year on Year (YoY)

MOJO Watch

Near term sales trend is very positive

Net Sales (GBP MM)

Operating Cash Flow

Highest at GBP 7.14 MM

in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (GBP MM)

Dividend Payout Ratio

Highest at 600% and Grown

In each year in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)

Net Sales

Highest at GBP 14.76 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (GBP MM)

Inventory Turnover Ratio

Highest at 1.63 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Debtors Turnover Ratio

Highest at 8.13 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Here's what is not working for J. Smart & Co. (Contractors) Plc

Pre-Tax Profit

At GBP -0.2 MM has Fallen at -388.73%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (GBP MM)

Net Profit

At GBP -0.08 MM has Fallen at -431.74%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (GBP MM)

Pre-Tax Profit

Lowest at GBP -0.2 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 -0.08 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 48.32% (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