ME Group International Plc (PHTM) 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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ME Group International Plc

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Inchcape Plc

Vertu Motors Plc

Pets At Home Group Plc

Why is ME Group International Plc ?

Weak Long Term Fundamental Strength with a 96.97% CAGR growth in Operating Profits over the last 5 years

Poor long term growth as Operating profit has grown by an annual rate 96.97% of over the last 5 years

Flat results in Apr 26

ROCE(HY) Lowest at 28.17%
DIVIDEND PAYOUT RATIO(Y) Lowest at 0%
CASH AND EQV(HY) Lowest at GBP 52.85 MM

With ROE of 26.45%, it has a attractive valuation with a 1.82 Price to Book Value

Over the past year, while the stock has generated a return of -44.74%, its profits have risen by 3.7% ; the PEG ratio of the company is 1.9

Below par performance in long term as well as near term

Along with generating -44.74% 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 ME Group International Plc should be less than 10%
Overall Portfolio exposure to Retailing should be less than 30%

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

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

Is ME Group International Plc for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

ME Group International Plc

-44.74%

-0.52

49.43%

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)

8.80%

EBIT Growth (5y)

96.97%

EBIT to Interest (avg)

25.79

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.19

Sales to Capital Employed (avg)

1.22

Tax Ratio

27.82%

Dividend Payout Ratio

57.60%

Pledged Shares

Institutional Holding

ROCE (avg)

41.13%

ROE (avg)

21.69%

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

1.82

EV to EBIT

4.71

EV to EBITDA

3.06

EV to Capital Employed

1.91

EV to Sales

1.17

PEG Ratio

1.90

Dividend Yield

8.38%

ROCE (Latest)

40.58%

ROE (Latest)

26.45%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Mildly Bullish

Bearish

Dow Theory

Mildly Bearish

No Trend

OBV

Mildly Bullish

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

4What is working for the Company

OPERATING CASH FLOW(Y)

Highest at GBP 179.57 MM

RAW MATERIAL COST(Y)

Fallen by -4.58% (YoY

-7What is not working for the Company

ROCE(HY)

Lowest at 28.17%

DIVIDEND PAYOUT RATIO(Y)

Lowest at 0%

CASH AND EQV(HY)

Lowest at GBP 52.85 MM

DEBT-EQUITY RATIO (HY)

Highest at 1.25 %

INVENTORY TURNOVER RATIO(HY)

Lowest at 4.35 times

DIVIDEND PER SHARE(HY)

Lowest at GBP 11.85

Here's what is working for ME Group International Plc

Operating Cash Flow

Highest at GBP 179.57 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)

Raw Material Cost

Fallen by -4.58% (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

Depreciation

Highest at GBP 23.57 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 ME Group International Plc

Cash and Eqv

Lowest at GBP 52.85 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Debt-Equity Ratio

Highest at 1.25 %

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

Inventory Turnover Ratio

Lowest at 4.35 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Dividend per share

Lowest at GBP 11.85

in the last five years

MOJO Watch

Company is distributing lower dividend than previous years

DPS (GBP)

Dividend Payout Ratio

Lowest at 0%

in the last five years

MOJO Watch

Company is distributing lower proportion of profits generated as dividend

DPR (%)