Rotork Plc (ROR) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Goodwin Plc

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Avingtrans Plc

Xaar Plc

Rotork Plc

Renishaw Plc

IQE Plc

Why is Rotork Plc ?

Weak Long Term Fundamental Strength with a 5.16% CAGR growth in Net Sales over the last 5 years

Poor long term growth as Net Sales has grown by an annual rate of 5.16% over the last 5 years

Flat results in Jun 26

INTEREST(HY) At GBP 1.4 MM has Grown at 133.33%
DIVIDEND PAYOUT RATIO(Y) Lowest at 0%
DEBT-EQUITY RATIO (HY) Highest at -4.53 %

With ROE of 23.71%, it has a fair valuation with a 4.29 Price to Book Value

Over the past year, while the stock has generated a return of 45.96%, its profits have risen by 13.2% ; the PEG ratio of the company is 1.2

Market Beating performance in long term as well as near term

Along with generating 45.96% returns in the last 1 year, the stock has outperformed FTSE 100 in the last 3 years, 1 year and 3 months

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Rotork Plc should be less than 10%
Overall Portfolio exposure to Industrial Manufacturing should be less than 30%

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

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

Is Rotork Plc for you?

High Risk, Medium Return

Absolute

Risk Adjusted

Volatility

Rotork Plc

-100.0%

0.34

71.40%

FTSE 100

18.59%

1.58

11.75%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

5.16%

EBIT Growth (5y)

7.33%

EBIT to Interest (avg)

97.68

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.24

Sales to Capital Employed (avg)

1.16

Tax Ratio

25.97%

Dividend Payout Ratio

60.10%

Pledged Shares

Institutional Holding

0.26%

ROCE (avg)

32.02%

ROE (avg)

17.87%

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

4.29

EV to EBIT

13.27

EV to EBITDA

11.87

EV to Capital Employed

4.84

EV to Sales

3.10

PEG Ratio

1.17

Dividend Yield

1432.67%

ROCE (Latest)

36.47%

ROE (Latest)

23.71%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Bearish

Moving Averages

Mildly Bullish (Daily)

KST

Bullish

Dow Theory

Mildly Bearish

OBV

Mildly Bearish

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

6What is working for the Company

OPERATING CASH FLOW(Y)

Highest at GBP 253.52 MM

ROCE(HY)

Highest at 21.76%

RAW MATERIAL COST(Y)

Fallen by -5.28% (YoY

-9What is not working for the Company

INTEREST(HY)

At GBP 1.4 MM has Grown at 133.33%

DIVIDEND PAYOUT RATIO(Y)

Lowest at 0%

DEBT-EQUITY RATIO (HY)

Highest at -4.53 %

INVENTORY TURNOVER RATIO(HY)

Lowest at 4.04 times

DEBTORS TURNOVER RATIO(HY)

Lowest at 3.96 times

DIVIDEND PER SHARE(HY)

Lowest at GBP 3.96

Here's what is working for Rotork Plc

Operating Cash Flow

Highest at GBP 253.52 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)

Raw Material Cost

Fallen by -5.28% (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

Here's what is not working for Rotork Plc

Interest

At GBP 1.4 MM has Grown at 133.33%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (GBP MM)

Debt-Equity Ratio

Highest at -4.53 %

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

Inventory Turnover Ratio

Lowest at 4.04 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Debtors Turnover Ratio

Lowest at 3.96 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

Dividend per share

Lowest at GBP 3.96

in the last five years

MOJO Watch

Company is distributing lower dividend than previous years

DPS (GBP)

Dividend Payout Ratio

Lowest at 0%

in the last five years

MOJO Watch

Company is distributing lower proportion of profits generated as dividend

DPR (%)

Non Operating Income

Highest at GBP 0.1 MM

in the last five periods

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating income