REACT Group Plc (REAT) 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

Zinc Media Group Plc

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Everyman Media Group Plc

REACT Group Plc

888 Holdings Plc

XP Factory Plc

Insig AI Plc

Ten Entertainment Group Plc

Why is REACT Group Plc ?

Poor Management Efficiency with a low ROE of 7.78%

The company has been able to generate a Return on Equity (avg) of 7.78% signifying low profitability per unit of shareholders funds

The company has declared negative results in Sep'2024 after 2 consecutive positive quarters

INTEREST(HY) At GBP 0.36 MM has Grown at 586.79%
PRE-TAX PROFIT(Q) At GBP 0 MM has Fallen at -97.56%
NET PROFIT(Q) At GBP -0.01 MM has Fallen at -110.16%

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 -30.53%, its profits have fallen by -31%

Underperformed the market in the last 1 year

Even though the market (FTSE 100) has generated returns of 15.58% in the last 1 year, the stock has hugely underperformed and has generate negative returns of -30.53% returns

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 Media & Entertainment)

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

Is REACT Group Plc for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

REACT Group Plc

-30.53%

-1.03

37.39%

FTSE 100

13.98%

1.15

13.60%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

41.73%

EBIT Growth (5y)

5.87%

EBIT to Interest (avg)

0.33

Debt to EBITDA (avg)

0.20

Net Debt to Equity (avg)

0.18

Sales to Capital Employed (avg)

2.21

Tax Ratio

16.72%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

8.05%

ROE (avg)

7.78%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

NA (Loss Making)

Industry P/E

Price to Book Value

1.22

EV to EBIT

14.69

EV to EBITDA

5.02

EV to Capital Employed

1.18

EV to Sales

0.59

PEG Ratio

Dividend Yield

ROCE (Latest)

3.77%

ROE (Latest)

-0.73%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

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

7What is working for the Company

OPERATING CASH FLOW(Y)

Highest at GBP 3.03 MM

RAW MATERIAL COST(Y)

Fallen by -28.19% (YoY

DEBTORS TURNOVER RATIO(HY)

Highest at 5.51 times

NET SALES(Q)

Highest at GBP 12.85 MM

OPERATING PROFIT(Q)

Highest at GBP 1.57 MM

-13What is not working for the Company

INTEREST(HY)

At GBP 0.36 MM has Grown at 586.79%

PRE-TAX PROFIT(Q)

At GBP 0 MM has Fallen at -97.56%

NET PROFIT(Q)

At GBP -0.01 MM has Fallen at -110.16%

INTEREST COVERAGE RATIO(Q)

Lowest at 431.04

DEBT-EQUITY RATIO (HY)

Highest at 29.09 %

Here's what is working for REACT Group Plc

Operating Cash Flow

Highest at GBP 3.03 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)

Net Sales

Highest at GBP 12.85 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (GBP MM)

Operating Profit

Highest at GBP 1.57 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (GBP MM)

Debtors Turnover Ratio

Highest at 5.51 times

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 -28.19% (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 REACT Group Plc

Interest

At GBP 0.36 MM has Grown at 586.79%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (GBP MM)

Pre-Tax Profit

At GBP 0 MM has Fallen at -97.56%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (GBP MM)

Net Profit

At GBP -0.01 MM has Fallen at -110.16%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (GBP MM)

Interest Coverage Ratio

Lowest at 431.04

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Debt-Equity Ratio

Highest at 29.09 %

in the last five Semi-Annual periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio