Rank Group Plc (RNK) 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

Hollywood Bowl Group Plc

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Insig AI Plc

Ten Entertainment Group Plc

Why is Rank Group Plc ?

Poor Management Efficiency with a low ROCE of 5.95%

The company has been able to generate a Return on Capital Employed (avg) of 5.95% signifying low profitability per unit of total capital (equity and debt)

Company's ability to service its debt is weak with a poor EBIT to Interest (avg) ratio of -0.23

Poor long term growth as Net Sales has grown by an annual rate of 14.23% and Operating profit at 19.86% over the last 5 years
Company's ability to service its debt is weak with a poor EBIT to Interest (avg) ratio of -0.23
The company has been able to generate a Return on Equity (avg) of 5.37% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of 14.23% and Operating profit at 19.86% over the last 5 years

The company has declared Positive results for the last 6 consecutive quarters

OPERATING CASH FLOW(Y) Highest at GBP 220 MM
OPERATING PROFIT(Q) Highest at GBP 64.5 MM
OPERATING PROFIT MARGIN(Q) Highest at 15.36 %

With ROE of 9.64%, it has a expensive valuation with a 1.21 Price to Book Value

Over the past year, while the stock has generated a return of -36.05%, its profits have fallen by -17.9%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Rank Group Plc should be less than 10%
Overall Portfolio exposure to Media & Entertainment should be less than 30%

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

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

Is Rank Group Plc for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Rank Group Plc

-36.05%

-1.75

38.23%

FTSE 100

18.59%

1.58

11.75%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

14.23%

EBIT Growth (5y)

19.86%

EBIT to Interest (avg)

0.80

Debt to EBITDA (avg)

0.21

Net Debt to Equity (avg)

0.02

Sales to Capital Employed (avg)

1.44

Tax Ratio

20.65%

Dividend Payout Ratio

27.31%

Pledged Shares

Institutional Holding

0.01%

ROCE (avg)

7.27%

ROE (avg)

5.37%

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

1.21

EV to EBIT

7.51

EV to EBITDA

3.95

EV to Capital Employed

1.20

EV to Sales

0.57

PEG Ratio

Dividend Yield

280.95%

ROCE (Latest)

16.03%

ROE (Latest)

9.64%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Moving Averages

Bearish (Daily)

KST

Mildly Bullish

Mildly Bearish

Dow Theory

Mildly Bullish

No Trend

OBV

Mildly Bearish

No Trend

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

10What is working for the Company

OPERATING CASH FLOW(Y)

Highest at GBP 220 MM

OPERATING PROFIT(Q)

Highest at GBP 64.5 MM

OPERATING PROFIT MARGIN(Q)

Highest at 15.36 %

DIVIDEND PAYOUT RATIO(Y)

Highest at 25.25%

RAW MATERIAL COST(Y)

Fallen by -4.67% (YoY

NET SALES(Q)

Highest at GBP 420 MM

-2What is not working for the Company

INTEREST(HY)

At GBP 7.6 MM has Grown at 33.33%

Here's what is working for Rank Group Plc

Operating Cash Flow

Highest at GBP 220 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 64.5 MM and Grown

In each period in the last five periods

MOJO Watch

Near term Operating Profit trend is quite positive

Operating Profit (GBP MM)

Operating Profit Margin

Highest at 15.36 % and Grown

In each period in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Net Sales

Highest at GBP 420 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (GBP MM)

Dividend Payout Ratio

Highest at 25.25%

in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)

Raw Material Cost

Fallen by -4.67% (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 28 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 Rank Group Plc

Interest

At GBP 7.6 MM has Grown at 33.33%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (GBP MM)