RWS Holdings Plc (RWS) 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

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RWS Holdings Plc

Why is RWS Holdings Plc ?

Poor Management Efficiency with a low ROE of 5.53%

The company has been able to generate a Return on Equity (avg) of 5.53% signifying low profitability per unit of shareholders funds

Negative results in Mar 25

INTEREST COVERAGE RATIO(Q) Lowest at 1,351.85
DIVIDEND PAYOUT RATIO(Y) Lowest at 0%
RAW MATERIAL COST(Y) Grown by 5.3% (YoY)

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 -52.28%, its profits have risen by 7.9% ; the PEG ratio of the company is 0.8

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -52.28% 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 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 RWS Holdings Plc for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

RWS Holdings Plc

-52.28%

-0.80

61.46%

FTSE 100

16.09%

1.25

12.83%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

15.07%

EBIT Growth (5y)

2.73%

EBIT to Interest (avg)

22.87

Debt to EBITDA (avg)

0.12

Net Debt to Equity (avg)

0.04

Sales to Capital Employed (avg)

0.68

Tax Ratio

16.33%

Dividend Payout Ratio

97.34%

Pledged Shares

Institutional Holding

0.04%

ROCE (avg)

7.48%

ROE (avg)

5.53%

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

0.40

EV to EBIT

5.35

EV to EBITDA

2.68

EV to Capital Employed

0.42

EV to Sales

0.53

PEG Ratio

0.83

Dividend Yield

1108.97%

ROCE (Latest)

7.87%

ROE (Latest)

6.33%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

RSI

No Signal

Bullish

Bollinger Bands

Bullish

Mildly Bearish

Moving Averages

Mildly Bearish (Daily)

KST

Bearish

Dow Theory

Mildly Bullish

Mildly Bearish

OBV

No Trend

Mildly Bearish

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

-16What is not working for the Company

INTEREST COVERAGE RATIO(Q)

Lowest at 1,351.85

DIVIDEND PAYOUT RATIO(Y)

Lowest at 0%

RAW MATERIAL COST(Y)

Grown by 5.3% (YoY

DEBTORS TURNOVER RATIO(HY)

Lowest at 3.23%

NET SALES(Q)

Lowest at GBP 344.3 MM

OPERATING PROFIT(Q)

Lowest at GBP 36.5 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 10.6 %

PRE-TAX PROFIT(Q)

Lowest at GBP -5.2 MM

NET PROFIT(Q)

Lowest at GBP -3.8 MM

Here's what is working for RWS Holdings Plc

Depreciation

Highest at GBP 39 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (GBP MM)

Here's what is not working for RWS Holdings Plc

Pre-Tax Profit

At GBP -5.2 MM has Fallen at -123.21%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (GBP MM)

Net Profit

At GBP -3.8 MM has Fallen at -126.44%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (GBP MM)

Interest Coverage Ratio

Lowest at 1,351.85

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Net Sales

Lowest at GBP 344.3 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (GBP MM)

Operating Profit

Lowest at GBP 36.5 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (GBP MM)

Operating Profit Margin

Lowest at 10.6 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at GBP -5.2 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (GBP MM)

Net Profit

Lowest at GBP -3.8 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (GBP MM)

Debtors Turnover Ratio

Lowest at 3.23%

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

Dividend Payout Ratio

Lowest at 0%

in the last five years

MOJO Watch

Company is distributing lower proportion of profits generated as dividend

DPR (%)

Raw Material Cost

Grown by 5.3% (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