QinetiQ Group plc (QQ.) 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

Rolls-Royce Holdings Plc

QinetiQ Group plc

BAE Systems Plc

MS International Plc

Cohort Plc

Bodycote Plc

Melrose Industries Plc

Chemring Group Plc

Senior Plc

Thruvision Group Plc

Velocity Composites Plc

Why is QinetiQ Group plc ?

Company's ability to service its debt is strong with a healthy EBIT to Interest (avg) ratio of 29.87

OPERATING CASH FLOW(Y) Highest at GBP 453.4 MM
NET PROFIT(Q) At GBP 82.96 MM has Grown at 605.86%
ROCE(HY) Highest at 18.23%

With ROE of 26.16%, it has a fair valuation with a 4.13 Price to Book Value

Over the past year, while the stock has generated a return of -12.15%, its profits have risen by 158.8% ; the PEG ratio of the company is 0.1

Real-Time Research Report

Verdict Report

How much should you buy?

Overall Portfolio exposure to QinetiQ Group plc should be less than 10%
Overall Portfolio exposure to Aerospace & Defense should be less than 30%

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

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

Is QinetiQ Group plc for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

QinetiQ Group plc

-12.15%

0.26

31.56%

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)

8.51%

EBIT Growth (5y)

8.17%

EBIT to Interest (avg)

29.87

Debt to EBITDA (avg)

0.33

Net Debt to Equity (avg)

0.09

Sales to Capital Employed (avg)

1.58

Tax Ratio

74.48%

Dividend Payout Ratio

54.78%

Pledged Shares

Institutional Holding

0.02%

ROCE (avg)

16.34%

ROE (avg)

13.71%

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

4.13

EV to EBIT

12.21

EV to EBITDA

7.55

EV to Capital Employed

3.70

EV to Sales

1.23

PEG Ratio

0.09

Dividend Yield

153.49%

ROCE (Latest)

30.32%

ROE (Latest)

26.16%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Mildly Bullish (Daily)

KST

Bullish

Mildly Bearish

Dow Theory

Mildly Bearish

Mildly Bullish

OBV

Mildly Bearish

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

20What is working for the Company

OPERATING CASH FLOW(Y)

Highest at GBP 453.4 MM

NET PROFIT(Q)

At GBP 82.96 MM has Grown at 605.86%

ROCE(HY)

Highest at 18.23%

RAW MATERIAL COST(Y)

Fallen by -17.41% (YoY

INVENTORY TURNOVER RATIO(HY)

Highest at 23.94 times

DEBTORS TURNOVER RATIO(HY)

Highest at 5.35 times

DIVIDEND PER SHARE(HY)

Highest at GBP 5.35

OPERATING PROFIT(Q)

Highest at GBP 179 MM

OPERATING PROFIT MARGIN(Q)

Highest at 17.51 %

PRE-TAX PROFIT(Q)

Highest at GBP 117.8 MM

0What is not working for the Company

NO KEY NEGATIVE TRIGGERS

Here's what is working for QinetiQ Group plc

Pre-Tax Profit

At GBP 117.8 MM has Grown at 198.23%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (GBP MM)

Net Profit

At GBP 82.96 MM has Grown at 605.86%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (GBP MM)

Operating Cash Flow

Highest at GBP 453.4 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)

Operating Profit

Highest at GBP 179 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (GBP MM)

Operating Profit Margin

Highest at 17.51 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Pre-Tax Profit

Highest at GBP 117.8 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (GBP MM)

Inventory Turnover Ratio

Highest at 23.94 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Debtors Turnover Ratio

Highest at 5.35 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Dividend per share

Highest at GBP 5.35

in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (GBP)

Raw Material Cost

Fallen by -17.41% (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 68.8 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (GBP MM)

Depreciation

At GBP 68.8 MM has Grown at 35.43%

period on period (QoQ)

MOJO Watch

The expenditure on assets done by the company has gone into productive use which should positively reflect in the future sales

Depreciation (GBP MM)