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
With ROE of 13.53%, it has a expensive valuation with a 3.08 Price to Book Value
- Over the past year, while the stock has generated a return of -9.35%, its profits have fallen by -60.7%
3
Underperformed the market in the last 1 year
- Even though the market (FTSE 100) has generated returns of 17.87% in the last 1 year, the stock has hugely underperformed and has generate negative returns of -9.35% returns
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 Commercial Services & Supplies)
When to re-enter? - We will constantly monitor the company and review our call based on new data
Is RM Plc for you?
High Risk, Low Return
Absolute
Risk Adjusted
Volatility
RM Plc
-9.35%
0.36
35.72%
FTSE 100
17.87%
1.52
11.77%
Quality key factors
Factor
Value
Sales Growth (5y)
-3.03%
EBIT Growth (5y)
-3.79%
EBIT to Interest (avg)
1.76
Debt to EBITDA (avg)
3.28
Net Debt to Equity (avg)
3.14
Sales to Capital Employed (avg)
2.04
Tax Ratio
68.09%
Dividend Payout Ratio
0
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
7.14%
ROE (avg)
18.14%
Valuation Key Factors 
Factor
Value
P/E Ratio
23
Industry P/E
Price to Book Value
3.08
EV to EBIT
14.64
EV to EBITDA
10.34
EV to Capital Employed
1.79
EV to Sales
0.90
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
7What is working for the Company
ROCE(HY)
Highest at 9.14%
DEBT-EQUITY RATIO
(HY)
Lowest at 206.85 %
INVENTORY TURNOVER RATIO(HY)
Highest at 7.13 times
DEBTORS TURNOVER RATIO(HY)
Highest at 7.32 times
NET SALES(Q)
Highest at GBP 88.87 MM
EPS(Q)
Highest at GBP 0.07
-4What is not working for the Company
NET PROFIT(Q)
At GBP 5.72 MM has Fallen at -59.78%
RAW MATERIAL COST(Y)
Grown by 7.87% (YoY
Here's what is working for RM Plc
Net Sales
Highest at GBP 88.87 MM
in the last five periodsMOJO Watch
Near term sales trend is positive
Net Sales (GBP MM)
EPS
Highest at GBP 0.07
in the last five periodsMOJO Watch
Increasing profitability; company has created higher earnings for shareholders
EPS (GBP)
Debt-Equity Ratio
Lowest at 206.85 %
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 7.13 times
in the last five Semi-Annual periodsMOJO Watch
Company has been able to sell its inventory faster
Inventory Turnover Ratio
Debtors Turnover Ratio
Highest at 7.32 times
in the last five Semi-Annual periodsMOJO Watch
Company has been able to sell its Debtors faster
Debtors Turnover Ratio
Here's what is not working for RM Plc
Net Profit
At GBP 5.72 MM has Fallen at -59.78%
Year on Year (YoY)MOJO Watch
Near term Net Profit trend is very negative
Net Profit (GBP MM)
Raw Material Cost
Grown by 7.87% (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






