ScoreWhy is Redcentric Plc ?
1
Poor Management Efficiency with a low ROCE of 5.31%
- The company has been able to generate a Return on Capital Employed (avg) of 5.31% signifying low profitability per unit of total capital (equity and debt)
2
Company's ability to service its debt is weak with a poor EBIT to Interest (avg) ratio of 1.37
- Poor long term growth as Operating profit has grown by an annual rate 24.26% of over the last 5 years
- Company's ability to service its debt is weak with a poor EBIT to Interest (avg) ratio of 1.37
- The company has been able to generate a Return on Equity (avg) of 5.93% signifying low profitability per unit of shareholders funds
3
Healthy long term growth as Net Sales has grown by an annual rate of 4.91%
4
Flat results in Sep 25
- NET SALES(Q) At GBP 66.76 MM has Fallen at -23.08%
- RAW MATERIAL COST(Y) Grown by 21.93% (YoY)
- DEBTORS TURNOVER RATIO(HY) Lowest at 3.47 times
5
With ROE of 3.89%, it has a fair valuation with a 3.42 Price to Book Value
- Over the past year, while the stock has generated a return of -5.74%, its profits have fallen by -47%
Real-Time Research ReportHow much should you hold?
- Overall Portfolio exposure to Redcentric Plc should be less than 10%
- Overall Portfolio exposure to Computers - Software & Consulting should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Computers - Software & Consulting)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is Redcentric Plc for you?
Medium Risk, Low Return
Absolute
Risk Adjusted
Volatility
Redcentric Plc
-3.89%
-0.58
30.10%
FTSE 100
13.98%
1.15
13.60%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
4.91%
EBIT Growth (5y)
24.26%
EBIT to Interest (avg)
1.37
Debt to EBITDA (avg)
1.28
Net Debt to Equity (avg)
0.83
Sales to Capital Employed (avg)
1.26
Tax Ratio
94.30%
Dividend Payout Ratio
0
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
5.31%
ROE (avg)
5.93%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
88
Industry P/E
Price to Book Value
3.42
EV to EBIT
32.10
EV to EBITDA
13.52
EV to Capital Employed
2.40
EV to Sales
1.96
PEG Ratio
NA
Dividend Yield
NA
ROCE (Latest)
7.46%
ROE (Latest)
3.89%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Bearish
Bearish
RSI
No Signal
No Signal
Bollinger Bands
Mildly Bearish
Bearish
Moving Averages
Bearish (Daily)
KST
Mildly Bullish
Bearish
Dow Theory
No Trend
Mildly Bearish
OBV
Mildly Bearish
Mildly Bearish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend8What is working for the Company
OPERATING CASH FLOW(Y)
Highest at GBP 46.24 MM
INTEREST COVERAGE RATIO(Q)
Highest at 855.34
CASH AND EQV(HY)
Highest at GBP 4.06 MM
DEBT-EQUITY RATIO
(HY)
Lowest at 77.7 %
INVENTORY TURNOVER RATIO(HY)
Highest at 17.08 times
OPERATING PROFIT MARGIN(Q)
Highest at 21.83 %
-7What is not working for the Company
NET SALES(Q)
At GBP 66.76 MM has Fallen at -23.08%
RAW MATERIAL COST(Y)
Grown by 21.93% (YoY
DEBTORS TURNOVER RATIO(HY)
Lowest at 3.47 times
DIVIDEND PER SHARE(HY)
Lowest at GBP 3.47
PRE-TAX PROFIT(Q)
Fallen at -26.96%
NET PROFIT(Q)
Fallen at -32.28%
Here's what is working for Redcentric Plc
Interest Coverage Ratio
Highest at 855.34
in the last five periodsMOJO Watch
The company's ability to manage interest payments is improving
Operating Profit to Interest
Operating Cash Flow
Highest at GBP 46.24 MM
in the last three yearsMOJO Watch
The company has generated higher cash revenues from business operations
Operating Cash Flows (GBP MM)
Operating Profit Margin
Highest at 21.83 %
in the last five periodsMOJO Watch
Company's profit margin has improved
Operating Profit to Sales
Cash and Eqv
Highest at GBP 4.06 MM
in the last six Semi-Annual periodsMOJO Watch
Short Term liquidity is improving
Cash and Cash Equivalents
Debt-Equity Ratio
Lowest at 77.7 %
in the last five Semi-Annual periodsMOJO Watch
The company has been reducing its borrowing as compared to equity capital
Debt-Equity Ratio
Inventory Turnover Ratio
Highest at 17.08 times
in the last five Semi-Annual periodsMOJO Watch
Company has been able to sell its inventory faster
Inventory Turnover Ratio
Depreciation
At GBP 9.65 MM has Grown at inf%
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 Redcentric Plc
Net Sales
At GBP 66.76 MM has Fallen at -23.08%
Year on Year (YoY)MOJO Watch
Near term sales trend is very negative
Net Sales (GBP MM)
Pre-Tax Profit
Fallen at -26.96%
Year on Year (YoY)MOJO Watch
Near term Pre-Tax Profit trend is negative
Pre-Tax Profit (GBP MM)
Net Profit
Fallen at -32.28%
Year on Year (YoY)MOJO Watch
Near term Net Profit trend is negative
Net Profit (GBP MM)
Debtors Turnover Ratio
Lowest at 3.47 times
in the last five Semi-Annual periodsMOJO Watch
Company's pace of selling Debtors has slowed
Debtors Turnover Ratio
Dividend per share
Lowest at GBP 3.47
in the last five yearsMOJO Watch
Company is distributing lower dividend than previous years
DPS (GBP)
Raw Material Cost
Grown by 21.93% (YoY)
MOJO Watch
The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin
Raw Material Cost as a percentage of Sales
InfinHub Market Technologies FZ-LLC, Building-2, Unit 112, Dubai Internet City, Dubai, United Arab Emirates
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