RS Group Plc (ECM) 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

Currys Plc

Diploma Plc

Brickability Group Plc

RS Group Plc

Bunzl Plc

James Latham Plc

Midwich Group Plc

Glencore Plc

SIG Plc

Headlam Group Plc

Yellow Cake Plc

Why is RS Group Plc ?

High Management Efficiency with a high ROE of 16.23%

Company's ability to service its debt is strong with a healthy EBIT to Interest (avg) ratio of 20.28

The company has declared Negative results for the last 3 consecutive quarters

ROCE(HY) Lowest at 10.95%
OPERATING PROFIT(Q) Lowest at GBP 155.8 MM
OPERATING PROFIT MARGIN(Q) Lowest at 10.65 %

With ROE of 11.27%, it has a fair valuation with a 1.98 Price to Book Value

Over the past year, while the stock has generated a return of -13.31%, its profits have fallen by -16.9%

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -13.31% returns in the last 1 year, the stock has also underperformed FTSE 100 in each of the last 3 annual periods

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to RS Group Plc should be less than 10%
Overall Portfolio exposure to Trading & Distributors should be less than 30%

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

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

Is RS Group Plc for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

RS Group Plc

-13.31%

-0.99

28.61%

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)

8.75%

EBIT Growth (5y)

4.27%

EBIT to Interest (avg)

20.28

Debt to EBITDA (avg)

0.51

Net Debt to Equity (avg)

0.24

Sales to Capital Employed (avg)

1.63

Tax Ratio

26.03%

Dividend Payout Ratio

68.99%

Pledged Shares

Institutional Holding

ROCE (avg)

20.52%

ROE (avg)

16.23%

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

1.98

EV to EBIT

12.91

EV to EBITDA

9.45

EV to Capital Employed

1.79

EV to Sales

1.04

PEG Ratio

Dividend Yield

150.97%

ROCE (Latest)

13.88%

ROE (Latest)

11.27%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

RSI

No Signal

Bollinger Bands

Bullish

Mildly Bearish

Moving Averages

Mildly Bearish (Daily)

KST

Bullish

Bearish

Dow Theory

Mildly Bullish

OBV

Mildly 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

0What is working for the Company

NO KEY POSITIVE TRIGGERS

-13What is not working for the Company

ROCE(HY)

Lowest at 10.95%

OPERATING PROFIT(Q)

Lowest at GBP 155.8 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 10.65 %

PRE-TAX PROFIT(Q)

Lowest at GBP 99.9 MM

NET PROFIT(Q)

Lowest at GBP 74.4 MM

RAW MATERIAL COST(Y)

Grown by 5.21% (YoY

CASH AND EQV(HY)

Lowest at GBP 147.7 MM

EPS(Q)

Lowest at GBP 0.16

Here's what is not working for RS Group Plc

Operating Profit

Lowest at GBP 155.8 MM and Fallen

In each period in the last five periods

MOJO Watch

Near term Operating Profit trend is quite negative

Operating Profit (GBP MM)

Operating Profit Margin

Lowest at 10.65 % and Fallen

In each period in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at GBP 99.9 MM and Fallen

In each period in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (GBP MM)

Net Profit

Lowest at GBP 74.4 MM and Fallen

In each period in the last five periods

MOJO Watch

Near term Net Profit trend is very 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)

Cash and Eqv

Lowest at GBP 147.7 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Raw Material Cost

Grown by 5.21% (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