Redcentric Plc (RCN) 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

Bytes Technology Group Plc

Darktrace Plc

Softcat Plc

Kainos Group Plc

Computacenter Plc

Redcentric Plc

FDM Group (Holdings) Plc

KR1 Plc

Corero Network Security Plc

NCC Group Plc

Instem Plc

Why is Redcentric Plc ?

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)

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 25.20% 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

Flat results in Sep 24

RAW MATERIAL COST(Y) Grown by 11.1% (YoY)
INTEREST(Q) Highest at GBP 2.81 MM

Underperformed the market in the last 1 year

The stock has generated a return of 2.29% in the last 1 year, much lower than market (FTSE 100) returns of 15.94%

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 Computers - Software & Consulting)

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

Is Redcentric Plc for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

Redcentric Plc

-0.21%

-0.38

30.80%

FTSE 100

16.5%

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)

9.09%

EBIT Growth (5y)

25.20%

EBIT to Interest (avg)

1.37

Debt to EBITDA (avg)

1.28

Net Debt to Equity (avg)

0.83

Sales to Capital Employed (avg)

1.31

Tax Ratio

94.30%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

5.31%

ROE (avg)

5.93%

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

3.94

EV to EBIT

26.81

EV to EBITDA

12.64

EV to Capital Employed

2.69

EV to Sales

1.85

PEG Ratio

0.13

Dividend Yield

ROCE (Latest)

10.05%

ROE (Latest)

6.77%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Moving Averages

Mildly Bullish (Daily)

KST

Bearish

Dow Theory

No Trend

OBV

Mildly Bullish

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

Not enough Data to analyse Financial Trend

Here's what is working for Redcentric Plc

Pre-Tax Profit

At GBP 4.42 MM has Grown at 638.12%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (GBP MM)

Net Profit

At GBP 4.66 MM has Grown at 1,583.76%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (GBP MM)

Operating Cash Flow

Highest at GBP 49.11 MM

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 86.78 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (GBP MM)

Operating Profit

Highest at GBP 17.67 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (GBP MM)

Operating Profit Margin

Highest at 20.36 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Pre-Tax Profit

Highest at GBP 4.42 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (GBP MM)

Net Profit

Highest at GBP 4.66 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (GBP MM)

EPS

Highest at GBP 0.02

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (GBP)

Cash and Eqv

Highest at GBP 4 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Here's what is not working for Redcentric Plc

Interest

Highest at GBP 2.81 MM

in the last five periods and Increased by 14.34% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (GBP MM)

Raw Material Cost

Grown by 11.1% (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