MITIE Group Plc (MTO) 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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Why is MITIE Group Plc ?

Strong Long Term Fundamental Strength with an average Return on Equity (ROE) of 23.73%

Healthy long term growth as Net Sales has grown by an annual rate of 21.21%
Strong ability to service debt as the company has a low Debt to EBITDA ratio of 0.04 times
ROCE(HY) Lowest at 20.62%
INTEREST COVERAGE RATIO(Q) Lowest at 1,060.77
DEBT-EQUITY RATIO (HY) Highest at 88.24 %

With ROE of 24.74%, it has a fair valuation with a 4.32 Price to Book Value

Over the past year, while the stock has generated a return of 51.87%, its profits have fallen by -12.9%

Market Beating Performance

The stock has generated a return of 51.87% in the last 1 year, much higher than market (FTSE 100) returns of 15.58%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to MITIE Group Plc should be less than 10%
Overall Portfolio exposure to Miscellaneous should be less than 30%

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

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

Is MITIE Group Plc for you?

Medium Risk, High Return

Absolute

Risk Adjusted

Volatility

MITIE Group Plc

-100.0%

1.48

29.60%

FTSE 100

13.98%

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)

21.21%

EBIT Growth (5y)

23.35%

EBIT to Interest (avg)

7.81

Debt to EBITDA (avg)

Net Debt is too low

Net Debt to Equity (avg)

0.12

Sales to Capital Employed (avg)

6.14

Tax Ratio

25.43%

Dividend Payout Ratio

52.50%

Pledged Shares

Institutional Holding

ROCE (avg)

34.43%

ROE (avg)

23.73%

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

4.32

EV to EBIT

13.32

EV to EBITDA

8.31

EV to Capital Employed

3.09

EV to Sales

0.49

PEG Ratio

Dividend Yield

0.83%

ROCE (Latest)

23.23%

ROE (Latest)

24.74%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bearish

Bollinger Bands

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Bullish

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

8What is working for the Company

OPERATING CASH FLOW(Y)

Highest at GBP 459.5 MM

DIVIDEND PAYOUT RATIO(Y)

Highest at 54.47%

NET SALES(Q)

Highest at GBP 2,677.2 MM

RAW MATERIAL COST(Y)

Fallen by -2.47% (YoY

-14What is not working for the Company

ROCE(HY)

Lowest at 20.62%

INTEREST COVERAGE RATIO(Q)

Lowest at 1,060.77

DEBT-EQUITY RATIO (HY)

Highest at 88.24 %

INVENTORY TURNOVER RATIO(HY)

Lowest at 228.67 times

DEBTORS TURNOVER RATIO(HY)

Lowest at 5.3 times

INTEREST(Q)

Highest at GBP 13 MM

NET PROFIT(Q)

Lowest at GBP 43.59 MM

EPS(Q)

Lowest at GBP 0.02

Here's what is working for MITIE Group Plc

Operating Cash Flow

Highest at GBP 459.5 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)

Net Sales

Highest at GBP 2,677.2 MM and Grown

In each period in the last five periods

MOJO Watch

Near term sales trend is very positive

Net Sales (GBP MM)

Dividend Payout Ratio

Highest at 54.47% and Grown

In each year in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)

Raw Material Cost

Fallen by -2.47% (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 60.5 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 MITIE Group Plc

Interest Coverage Ratio

Lowest at 1,060.77

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Interest

Highest at GBP 13 MM

in the last five periods and Increased by 18.18% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (GBP MM)

Net Profit

Lowest at GBP 43.59 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (GBP MM)

EPS

Lowest at GBP 0.02

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (GBP)

Debt-Equity Ratio

Highest at 88.24 %

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 228.67 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Debtors Turnover Ratio

Lowest at 5.3 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio