Ricardo Plc (RCDO) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

MarketsMojo — Loved in India, Now Global

The power of Mojo is now in 29 countries. Explore global equities with the same cutting-edge features you love.Unlock 29 Markets

Comparison

Company

Score

Quality

Valuation

Financial

Technical

W.A.G. Payment Solutions Plc

Mattioli Woods Plc

Franchise Brands plc

Johnson Service Group Plc

FRP Advisory Group Plc

Marlowe Plc

Alpha Financial Markets Consulting Plc

IP Group Plc

Capita Plc

Avacta Group Plc

Ricardo Plc

Why is Ricardo Plc ?

Low ability to service debt as the company has a high Debt to EBITDA ratio of 1.22 times

Low ability to service debt as the company has a high Debt to EBITDA ratio of 1.22 times
The company has been able to generate a Return on Equity (avg) of 4.83% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of 1.52% and Operating profit at -1.83% over the last 5 years

Negative results in Dec 24

OPERATING CASH FLOW(Y) Lowest at GBP 25.5 MM
INTEREST(Q) Highest at GBP 5.5 MM
EPS(Q) Lowest at GBP -0.15

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 1.42%, its profits have risen by 15.3% ; the PEG ratio of the company is 1.2

Underperformed the market in the last 1 year

The stock has generated a return of 1.42% in the last 1 year, much lower than market (FTSE 100) returns of 18.70%

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 Miscellaneous)

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

Is Ricardo Plc for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Ricardo Plc

1.42%

-0.23

53.57%

FTSE 100

15.94%

1.45

12.88%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

1.52%

EBIT Growth (5y)

-1.83%

EBIT to Interest (avg)

2.45

Debt to EBITDA (avg)

1.22

Net Debt to Equity (avg)

0.11

Sales to Capital Employed (avg)

1.38

Tax Ratio

52.46%

Dividend Payout Ratio

1,133.93%

Pledged Shares

Institutional Holding

ROCE (avg)

7.83%

ROE (avg)

4.83%

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

1.46

EV to EBIT

9.60

EV to EBITDA

4.67

EV to Capital Employed

1.41

EV to Sales

0.69

PEG Ratio

1.16

Dividend Yield

246.51%

ROCE (Latest)

14.73%

ROE (Latest)

8.24%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Mildly Bullish

RSI

Bearish

No Signal

Bollinger Bands

Bullish

Mildly Bullish

Moving Averages

Bullish (Daily)

KST

Mildly Bearish

Mildly Bullish

Dow Theory

Mildly Bearish

No Trend

OBV

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 Ricardo Plc

Pre-Tax Profit

At GBP 3 MM has Grown at 154.55%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (GBP MM)

Net Profit

At GBP 2.1 MM has Grown at 151.22%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (GBP MM)

Operating Profit Margin

Highest at 17.03 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Cash and Eqv

Highest at GBP 115.3 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debt-Equity Ratio

Lowest at 21.11 %

in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Raw Material Cost

Fallen by -8.09% (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

At GBP 22.1 MM has Grown at 130.21%

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 Ricardo Plc

Operating Cash Flow

Lowest at GBP 25.5 MM

in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (GBP MM)

Interest

Highest at GBP 5.5 MM

in the last five periods and Increased by 14.58% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (GBP MM)

EPS

Lowest at GBP -0.15

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (GBP)