James Latham Plc (LTHM) 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

Currys Plc

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Bunzl Plc

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James Latham Plc

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SIG Plc

Headlam Group Plc

Yellow Cake Plc

Why is James Latham Plc ?

Flat results in Mar 26

INTEREST(HY) At GBP 0.2 MM has Grown at 43.07%
DEBT-EQUITY RATIO (HY) Highest at -18.69 %
CASH AND EQV(HY) Lowest at GBP 51.2 MM

With ROE of 7.84%, it has a attractive valuation with a 0.93 Price to Book Value

Over the past year, while the stock has generated a return of -8.89%, its profits have fallen by -13.7%

Below par performance in long term as well as near term

Along with generating -8.89% returns in the last 1 year, the stock has also underperformed 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 James Latham Plc should be less than 10%
Overall Portfolio exposure to Trading & Distributors should be less than 30%

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

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

Is James Latham Plc for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

James Latham Plc

-100.0%

-0.54

29.47%

FTSE 100

19.78%

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)

10.52%

EBIT Growth (5y)

7.25%

EBIT to Interest (avg)

34.04

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.29

Sales to Capital Employed (avg)

1.91

Tax Ratio

25.87%

Dividend Payout Ratio

39.67%

Pledged Shares

Institutional Holding

ROCE (avg)

24.21%

ROE (avg)

15.51%

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

0.93

EV to EBIT

7.55

EV to EBITDA

5.81

EV to Capital Employed

0.90

EV to Sales

0.40

PEG Ratio

Dividend Yield

264.55%

ROCE (Latest)

11.93%

ROE (Latest)

7.84%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bullish

Bearish

Dow Theory

Mildly Bearish

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

1What is working for the Company

DEBTORS TURNOVER RATIO(HY)

Highest at 6.08 times

-5What is not working for the Company

INTEREST(HY)

At GBP 0.2 MM has Grown at 43.07%

DEBT-EQUITY RATIO (HY)

Highest at -18.69 %

CASH AND EQV(HY)

Lowest at GBP 51.2 MM

Here's what is working for James Latham Plc

Debtors Turnover Ratio

Highest at 6.08 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 James Latham Plc

Interest

At GBP 0.2 MM has Grown at 43.07%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (GBP MM)

Debt-Equity Ratio

Highest at -18.69 % and Grown

In each half year 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

Cash and Eqv

Lowest at GBP 51.2 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents