Why is PZ Cussons Plc ?
1
Poor Management Efficiency with a low ROE of 7.02%
- The company has been able to generate a Return on Equity (avg) of 7.02% signifying low profitability per unit of shareholders funds
2
Weak Long Term Fundamental Strength with a 10.67% CAGR growth in Operating Profits over the last 5 years
- The company has been able to generate a Return on Equity (avg) of 7.02% signifying low profitability per unit of shareholders funds
3
Poor long term growth as Net Sales has grown by an annual rate of -2.53% and Operating profit at 10.67% over the last 5 years
4
Positive results in May 26
- ROCE(HY) Highest at 8.72%
- PRE-TAX PROFIT(Q) Highest at GBP 33.2 MM
- RAW MATERIAL COST(Y) Fallen by -3.62% (YoY)
5
With ROE of 10.24%, it has a risky valuation with a 1.85 Price to Book Value
- Over the past year, while the stock has generated a return of 27.69%, its profits have risen by 242.9% ; the PEG ratio of the company is 0.1
6
Market Beating Performance
- The stock has generated a return of 27.69% in the last 1 year, much higher than market (FTSE 100) returns of 16.06%
How much should you hold?
- Overall Portfolio exposure to PZ Cussons Plc should be less than 10%
- Overall Portfolio exposure to FMCG should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in FMCG)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is PZ Cussons Plc for you?
High Risk, Low Return
Absolute
Risk Adjusted
Volatility
PZ Cussons Plc
-100.0%
-0.15
40.83%
FTSE 100
16.06%
1.36
11.82%
Quality key factors
Factor
Value
Sales Growth (5y)
-2.53%
EBIT Growth (5y)
10.67%
EBIT to Interest (avg)
4.44
Debt to EBITDA (avg)
0.61
Net Debt to Equity (avg)
0.43
Sales to Capital Employed (avg)
1.24
Tax Ratio
63.31%
Dividend Payout Ratio
78.72%
Pledged Shares
0
Institutional Holding
0.00%
ROCE (avg)
13.04%
ROE (avg)
7.02%
Valuation Key Factors 
Factor
Value
P/E Ratio
18
Industry P/E
Price to Book Value
1.85
EV to EBIT
8.02
EV to EBITDA
6.77
EV to Capital Employed
1.62
EV to Sales
0.97
PEG Ratio
0.07
Dividend Yield
355.73%
ROCE (Latest)
20.19%
ROE (Latest)
10.24%
Technical key factors
Indicator
Weekly
Monthly
MACD
Bullish
Mildly Bullish
RSI
Bearish
No Signal
Bollinger Bands
Bullish
Mildly Bullish
Moving Averages
Bullish (Daily)
KST
Bullish
Mildly Bullish
Dow Theory
Mildly Bearish
Mildly Bullish
OBV
Mildly Bearish
No Trend
Technical Movement
12What is working for the Company
ROCE(HY)
Highest at 8.72%
PRE-TAX PROFIT(Q)
Highest at GBP 33.2 MM
RAW MATERIAL COST(Y)
Fallen by -3.62% (YoY
DEBT-EQUITY RATIO
(HY)
Lowest at 16.18 %
NET SALES(Q)
Highest at GBP 272.1 MM
NET PROFIT(Q)
Highest at GBP 13.66 MM
EPS(Q)
Highest at GBP 0.03
-3What is not working for the Company
OPERATING CASH FLOW(Y)
Lowest at GBP 57.1 MM
Here's what is working for PZ Cussons Plc
Pre-Tax Profit
Highest at GBP 33.2 MM and Grown
In each period in the last five periodsMOJO Watch
Near term Pre-Tax Profit trend is very positive
Pre-Tax Profit (GBP MM)
Pre-Tax Profit
At GBP 42.49 MM has Grown at 117.9%
Year on Year (YoY)MOJO Watch
Near term Pre-Tax Profit trend is very positive
Pre-Tax Profit (GBP MM)
Net Sales
Highest at GBP 272.1 MM
in the last five periodsMOJO Watch
Near term sales trend is positive
Net Sales (GBP MM)
Pre-Tax Profit
At GBP 33.2 MM has Grown at 70.26%
Year on Year (YoY)MOJO Watch
Near term Pre-Tax Profit trend is positive
Pre-Tax Profit (GBP MM)
Net Profit
Highest at GBP 13.66 MM
in the last five periodsMOJO Watch
Near term Net Profit trend is positive
Net Profit (GBP MM)
EPS
Highest at GBP 0.03
in the last five periodsMOJO Watch
Increasing profitability; company has created higher earnings for shareholders
EPS (GBP)
Debt-Equity Ratio
Lowest at 16.18 %
in the last five Semi-Annual periodsMOJO Watch
The company has been reducing its borrowing as compared to equity capital
Debt-Equity Ratio
Raw Material Cost
Fallen by -3.62% (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
Here's what is not working for PZ Cussons Plc
Operating Cash Flow
Lowest at GBP 57.1 MM and Fallen
In each year in the last three yearsMOJO Watch
The company's cash revenues from business operations are falling
Operating Cash Flows (GBP MM)
Footer loading






