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

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Rolls-Royce Holdings Plc

MS International Plc

Cohort Plc

BAE Systems Plc

Chemring Group Plc

Senior Plc

Melrose Industries Plc

Velocity Composites Plc

Bodycote Plc

QinetiQ Group plc

Thruvision Group Plc

Why is QinetiQ Group plc ?

INTEREST(HY) At GBP 11.8 MM has Grown at 195%
ROCE(HY) Lowest at -23.92%
DIVIDEND PAYOUT RATIO(Y) Lowest at 0%

Risky -

The stock is trading risky as compared to its average historical valuations
Over the past year, while the stock has generated a return of -1.28%, its profits have fallen by -65.1%

Below par performance in long term as well as near term

Along with generating -1.28% 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 sell?

All quantity irrespective of whether you are making profits or losses

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

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is QinetiQ Group plc for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

QinetiQ Group plc

-1.28%

0.07

42.85%

FTSE 100

15.94%

1.23

12.99%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

9.65%

EBIT Growth (5y)

0.77%

EBIT to Interest (avg)

29.87

Debt to EBITDA (avg)

0.33

Net Debt to Equity (avg)

0.09

Sales to Capital Employed (avg)

189.82

Tax Ratio

74.48%

Dividend Payout Ratio

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

4.70

EV to EBIT

19.77

EV to EBITDA

11.45

EV to Capital Employed

4.39

EV to Sales

1.56

PEG Ratio

Dividend Yield

173.81%

ROCE (Latest)

22.22%

ROE (Latest)

8.92%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Moving Averages

Mildly Bullish (Daily)

KST

Bearish

Mildly Bearish

Dow Theory

Mildly Bearish

OBV

Mildly Bearish

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

6What is working for the Company

OPERATING CASH FLOW(Y)

Highest at GBP 464.2 MM

RAW MATERIAL COST(Y)

Fallen by -30.75% (YoY

CASH AND EQV(HY)

Highest at GBP 290.6 MM

DEBTORS TURNOVER RATIO(HY)

Highest at 5.03%

-16What is not working for the Company

INTEREST(HY)

At GBP 11.8 MM has Grown at 195%

ROCE(HY)

Lowest at -23.92%

DIVIDEND PAYOUT RATIO(Y)

Lowest at 0%

PRE-TAX PROFIT(Q)

Lowest at GBP 39.5 MM

NET PROFIT(Q)

Lowest at GBP -16.4 MM

EPS(Q)

Lowest at GBP -0.45

Here's what is working for QinetiQ Group plc

Operating Cash Flow

Highest at GBP 464.2 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)

Cash and Eqv

Highest at GBP 290.6 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debtors Turnover Ratio

Highest at 5.03%

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Raw Material Cost

Fallen by -30.75% (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 61.5 MM

in the last five periods

MOJO Watch

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

Depreciation (GBP MM)

Depreciation

At GBP 61.5 MM has Grown at 25.51%

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)

Here's what is not working for QinetiQ Group plc

Interest

At GBP 11.8 MM has Grown at 195%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (GBP MM)

Pre-Tax Profit

At GBP 39.5 MM has Fallen at -65.04%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (GBP MM)

Net Profit

At GBP -16.4 MM has Fallen at -118.44%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (GBP MM)

Pre-Tax Profit

Lowest at GBP 39.5 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (GBP MM)

Net Profit

Lowest at GBP -16.4 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (GBP MM)

EPS

Lowest at GBP -0.45

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (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 (%)