Pennon Group Plc (PNN) 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

Pennon Group Plc

United Utilities Group Plc

Tristel Plc

Severn Trent Plc

EARNZ Plc

Amiad Water Systems Ltd.

MyCelx Technologies Corp.

Why is Pennon Group Plc ?

With a growth in Operating Profit of 47.69%, the company declared Outstanding results in Mar 26

The company has declared positive results for the last 2 consecutive quarters
NET PROFIT(Q) At GBP 49.88 MM has Grown at 588.98%
OPERATING CASH FLOW(Y) Highest at GBP 480.7 MM
ROCE(HY) Highest at 6.41%

With ROE of 7.68%, it has a fair valuation with a 1.55 Price to Book Value

Over the past year, while the stock has generated a return of -5.82%, its profits have risen by 663.4% ; the PEG ratio of the company is 0

Real-Time Research Report

Verdict Report

How much should you buy?

Overall Portfolio exposure to Pennon Group Plc should be less than 10%
Overall Portfolio exposure to Other Utilities should be less than 30%

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

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

Is Pennon Group Plc for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

Pennon Group Plc

-5.82%

-2.04

27.92%

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)

15.65%

EBIT Growth (5y)

10.86%

EBIT to Interest (avg)

1.65

Debt to EBITDA (avg)

5.70

Net Debt to Equity (avg)

2.11

Sales to Capital Employed (avg)

0.23

Tax Ratio

21.87%

Dividend Payout Ratio

151.06%

Pledged Shares

Institutional Holding

0.07%

ROCE (avg)

6.50%

ROE (avg)

1.47%

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

1.55

EV to EBIT

17.26

EV to EBITDA

10.86

EV to Capital Employed

1.16

EV to Sales

4.36

PEG Ratio

0.03

Dividend Yield

3.75%

ROCE (Latest)

6.73%

ROE (Latest)

7.68%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Mildly Bearish

Mildly Bullish

OBV

No Trend

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

18What is working for the Company

NET PROFIT(Q)

At GBP 49.88 MM has Grown at 588.98%

OPERATING CASH FLOW(Y)

Highest at GBP 480.7 MM

ROCE(HY)

Highest at 6.41%

DIVIDEND PAYOUT RATIO(Y)

Highest at 275.52%

RAW MATERIAL COST(Y)

Fallen by -21.6% (YoY

DEBTORS TURNOVER RATIO(HY)

Highest at 3.2 times

OPERATING PROFIT(Q)

Highest at GBP 264 MM

OPERATING PROFIT MARGIN(Q)

Highest at 41.69 %

PRE-TAX PROFIT(Q)

Highest at GBP 69.9 MM

-1What is not working for the Company

INVENTORY TURNOVER RATIO(HY)

Lowest at 25.87 times

Here's what is working for Pennon Group Plc

Pre-Tax Profit

At GBP 69.9 MM has Grown at 523.64%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (GBP MM)

Net Profit

At GBP 49.88 MM has Grown at 588.98%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (GBP MM)

Operating Cash Flow

Highest at GBP 480.7 MM

in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (GBP MM)

Operating Profit

Highest at GBP 264 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (GBP MM)

Operating Profit Margin

Highest at 41.69 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Pre-Tax Profit

Highest at GBP 69.9 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (GBP MM)

Debtors Turnover Ratio

Highest at 3.2 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Dividend Payout Ratio

Highest at 275.52%

in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)

Raw Material Cost

Fallen by -21.6% (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 96.4 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 Pennon Group Plc

Inventory Turnover Ratio

Lowest at 25.87 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Non Operating Income

Highest at GBP 0.25 MM

in the last five periods

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating income