Redde Northgate Plc (REDD) 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

International Personal Finance Plc

Mortgage Advice Bureau (Holdings) plc

S&U Plc

Redde Northgate Plc

H&T Group Plc

Ashtead Technology Holdings Plc

Vp Plc

Vanquis Banking Group Plc

Speedy Hire Plc

Burford Capital Ltd.

Ashtead Group Plc

Why is Redde Northgate Plc ?

High Debt Company with a Debt to Equity ratio (avg) at times

High Debt Company with a Debt to Equity ratio (avg) at times
The company has been able to generate a Return on Equity (avg) of 10.61% signifying low profitability per unit of shareholders funds

Healthy long term growth as Net Sales has grown by an annual rate of 13.47% and Operating profit at 16.96%

Flat results in Apr 25

INTEREST COVERAGE RATIO(Q) Lowest at 1,236.52
ROCE(HY) Lowest at 7.58%
RAW MATERIAL COST(Y) Grown by 18.88% (YoY)

With ROE of 20.33%, it has a very attractive valuation with a 0.70 Price to Book Value

Over the past year, while the stock has generated a return of 2.35%, its profits have fallen by -27.2%

Underperformed the market in the last 1 year

The stock has generated a return of 2.35% 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 hold?

Overall Portfolio exposure to Redde Northgate Plc should be less than 10%
Overall Portfolio exposure to Finance should be less than 30%

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

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

Is Redde Northgate Plc for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

Redde Northgate Plc

2.35%

-0.24

27.20%

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)

13.47%

EBIT Growth (5y)

16.96%

EBIT to Interest (avg)

6.52

Debt to EBITDA (avg)

Negative Net Debt

Net Debt to Equity (avg)

Sales to Capital Employed (avg)

Tax Ratio

22.44%

Dividend Payout Ratio

74.24%

Pledged Shares

Institutional Holding

0.06%

ROCE (avg)

9.64%

ROE (avg)

10.61%

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

0.70

EV to EBIT

9.83

EV to EBITDA

3.23

EV to Capital Employed

0.82

EV to Sales

0.82

PEG Ratio

Dividend Yield

815.93%

ROCE (Latest)

8.35%

ROE (Latest)

20.33%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Mildly Bullish

Dow Theory

Mildly Bullish

OBV

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 837 MM

OPERATING PROFIT(Q)

Highest at GBP 229.31 MM

DIVIDEND PAYOUT RATIO(Y)

Highest at 108.51%

DEBTORS TURNOVER RATIO(HY)

Highest at 4.7%

-10What is not working for the Company

INTEREST COVERAGE RATIO(Q)

Lowest at 1,236.52

ROCE(HY)

Lowest at 7.58%

RAW MATERIAL COST(Y)

Grown by 18.88% (YoY

DEBT-EQUITY RATIO (HY)

Highest at 78.7 %

PRE-TAX PROFIT(Q)

Lowest at GBP 56.56 MM

NET PROFIT(Q)

Lowest at GBP 45.48 MM

EPS(Q)

Lowest at GBP 0.16

Here's what is working for Redde Northgate Plc

Operating Cash Flow

Highest at GBP 837 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 229.31 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)

Debtors Turnover Ratio

Highest at 4.7%

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Dividend Payout Ratio

Highest at 108.51%

in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)

Depreciation

Highest at GBP 154.76 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 Redde Northgate Plc

Interest Coverage Ratio

Lowest at 1,236.52 and Fallen

In each period in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Pre-Tax Profit

Lowest at GBP 56.56 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 45.48 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (GBP MM)

EPS

Lowest at GBP 0.16

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (GBP)

Debt-Equity Ratio

Highest at 78.7 %

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

Raw Material Cost

Grown by 18.88% (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