Why is RM Plc ?
1
Weak Long Term Fundamental Strength with a -3.79% CAGR growth in Operating Profits over the last 5 years
2
Flat results in May 26
- NET SALES(Q) Lowest at GBP 70.13 MM
3
With ROE of 13.53%, it has a expensive valuation with a 3.01 Price to Book Value
- Over the past year, while the stock has generated a return of -3.00%, its profits have fallen by -60.7%
4
Below par performance in long term as well as near term
- Along with generating -3.00% returns in the last 1 year, the stock has also underperformed FTSE 100 in the last 3 years, 1 year and 3 months
How much should you hold?
- Overall Portfolio exposure to RM Plc should be less than 10%
- Overall Portfolio exposure to Commercial Services & Supplies should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Commercial Services & Supplies)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is RM Plc for you?
Medium Risk, Low Return
Absolute
Risk Adjusted
Volatility
RM Plc
-3.0%
0.41
31.07%
FTSE 100
18.59%
1.58
11.75%
Quality key factors
Factor
Value
Sales Growth (5y)
-3.03%
EBIT Growth (5y)
-3.79%
EBIT to Interest (avg)
-0.99
Debt to EBITDA (avg)
14.39
Net Debt to Equity (avg)
3.14
Sales to Capital Employed (avg)
2.04
Tax Ratio
24.24%
Dividend Payout Ratio
0
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
6.32%
ROE (avg)
18.14%
Valuation Key Factors 
Factor
Value
P/E Ratio
22
Industry P/E
Price to Book Value
3.01
EV to EBIT
14.44
EV to EBITDA
10.20
EV to Capital Employed
1.76
EV to Sales
0.89
PEG Ratio
NA
Dividend Yield
NA
ROCE (Latest)
12.21%
ROE (Latest)
13.53%
Technical key factors
Indicator
Weekly
Monthly
MACD
Bearish
Mildly Bearish
RSI
No Signal
No Signal
Bollinger Bands
Mildly Bearish
Mildly Bearish
Moving Averages
Mildly Bearish (Daily)
KST
Bearish
Mildly Bearish
Dow Theory
Mildly Bullish
No Trend
OBV
Mildly Bullish
No Trend
Technical Movement
8What is working for the Company
OPERATING CASH FLOW(Y)
Highest at GBP 6.64 MM
ROCE(HY)
Highest at 16.06%
PRE-TAX PROFIT(Q)
At GBP -0.08 MM has Grown at 96.77%
NET PROFIT(Q)
At GBP 0.79 MM has Grown at 151.56%
-1What is not working for the Company
NET SALES(Q)
Lowest at GBP 70.13 MM
Here's what is working for RM Plc
Pre-Tax Profit
At GBP -0.08 MM has Grown at 96.77%
Year on Year (YoY)MOJO Watch
Near term Pre-Tax Profit trend is very positive
Pre-Tax Profit (GBP MM)
Net Profit
At GBP 0.79 MM has Grown at 151.56%
Year on Year (YoY)MOJO Watch
Near term Net Profit trend is very positive
Net Profit (GBP MM)
Operating Cash Flow
Highest at GBP 6.64 MM
in the last three yearsMOJO Watch
The company has generated higher cash revenues from business operations
Operating Cash Flows (GBP MM)
Here's what is not working for RM Plc
Net Sales
Lowest at GBP 70.13 MM
in the last five periodsMOJO Watch
Near term sales trend is negative
Net Sales (GBP MM)






