ScoreWhy is Severn Trent Plc ?
1
The company is Net-Debt Free
- Poor long term growth as Operating profit has grown by an annual rate 12.86% of over the last 5 years
- The company is Net-Debt Free
- The company has been able to generate a Return on Equity (avg) of 10.86% signifying low profitability per unit of shareholders funds
2
Poor long term growth as Operating profit has grown by an annual rate 12.86% of over the last 5 years
3
With a growth in Net Profit of 158.41%, the company declared Very Positive results in Mar 26
- The company has declared positive results for the last 2 consecutive quarters
- OPERATING CASH FLOW(Y) Highest at GBP 1,585.9 MM
- ROCE(HY) Highest at 20.54%
- DIVIDEND PER SHARE(HY) Highest at GBP 3.27
4
With ROE of 18.61%, it has a fair valuation with a 4.65 Price to Book Value
- The stock is trading at a premium compared to its peers' average historical valuations
- Over the past year, while the stock has generated a return of 4.99%, its profits have risen by 37.6% ; the PEG ratio of the company is 0.7
5
Underperformed the market in the last 1 year
- The stock has generated a return of 4.99% in the last 1 year, much lower than market (FTSE 100) returns of 17.87%
Real-Time Research ReportHow much should you hold?
- Overall Portfolio exposure to Severn Trent Plc should be less than 10%
- Overall Portfolio exposure to Other Utilities should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Other Utilities)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is Severn Trent Plc for you?
Medium Risk, Low Return
Absolute
Risk Adjusted
Volatility
Severn Trent Plc
4.99%
0.44
22.61%
FTSE 100
17.87%
1.52
11.77%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
9.15%
EBIT Growth (5y)
12.86%
EBIT to Interest (avg)
1.48
Debt to EBITDA (avg)
7.67
Net Debt to Equity (avg)
4.83
Sales to Capital Employed (avg)
0.24
Tax Ratio
27.41%
Dividend Payout Ratio
102.04%
Pledged Shares
0
Institutional Holding
0.00%
ROCE (avg)
6.07%
ROE (avg)
10.86%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
25
Industry P/E
Price to Book Value
4.65
EV to EBIT
21.65
EV to EBITDA
13.72
EV to Capital Employed
1.56
EV to Sales
6.59
PEG Ratio
0.67
Dividend Yield
368.08%
ROCE (Latest)
7.22%
ROE (Latest)
18.61%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Bullish
Bullish
RSI
No Signal
No Signal
Bollinger Bands
Bullish
Mildly Bullish
Moving Averages
Mildly Bullish (Daily)
KST
Bullish
Bullish
Dow Theory
Mildly Bearish
Bullish
OBV
Mildly Bearish
Mildly Bullish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend13What is working for the Company
OPERATING CASH FLOW(Y)
Highest at GBP 1,585.9 MM
ROCE(HY)
Highest at 20.54%
DIVIDEND PER SHARE(HY)
Highest at GBP 3.27
INTEREST COVERAGE RATIO(Q)
Highest at 301.86
RAW MATERIAL COST(Y)
Fallen by -31.02% (YoY
DEBTORS TURNOVER RATIO(HY)
Highest at 3.27 times
PRE-TAX PROFIT(Q)
Highest at GBP 250.2 MM
NET PROFIT(Q)
At GBP 165.94 MM has Grown at 55.4%
-4What is not working for the Company
DEBT-EQUITY RATIO
(HY)
Highest at 553.39 %
DIVIDEND PAYOUT RATIO(Y)
Lowest at 158.27%
INVENTORY TURNOVER RATIO(HY)
Lowest at 43.18 times
Here's what is working for Severn Trent Plc
Interest Coverage Ratio
Highest at 301.86
in the last five periodsMOJO Watch
The company's ability to manage interest payments is improving
Operating Profit to Interest
Dividend per share
Highest at GBP 3.27 and Grown
In each year in the last five yearsMOJO Watch
Company is distributing higher dividend from profits generated
DPS (GBP)
Operating Cash Flow
Highest at GBP 1,585.9 MM
in the last three yearsMOJO Watch
The company has generated higher cash revenues from business operations
Operating Cash Flows (GBP MM)
Pre-Tax Profit
Highest at GBP 250.2 MM
in the last five periodsMOJO Watch
Near term Pre-Tax Profit trend is positive
Pre-Tax Profit (GBP MM)
Pre-Tax Profit
At GBP 250.2 MM has Grown at 51.18%
Year on Year (YoY)MOJO Watch
Near term Pre-Tax Profit trend is positive
Pre-Tax Profit (GBP MM)
Net Profit
At GBP 165.94 MM has Grown at 55.4%
Year on Year (YoY)MOJO Watch
Near term Net Profit trend is positive
Net Profit (GBP MM)
Debtors Turnover Ratio
Highest at 3.27 times
in the last five Semi-Annual periodsMOJO Watch
Company has been able to sell its Debtors faster
Debtors Turnover Ratio
Raw Material Cost
Fallen by -31.02% (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
Depreciation
Highest at GBP 254.4 MM
in the last five periodsMOJO Watch
The expenditure on assets done by the company may have gone into operation
Depreciation (GBP MM)
Here's what is not working for Severn Trent Plc
Debt-Equity Ratio
Highest at 553.39 % and Grown
In each half year in the last five Semi-Annual periodsMOJO 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 43.18 times
in the last five Semi-Annual periodsMOJO Watch
Company's pace of selling inventory has slowed
Inventory Turnover Ratio
Dividend Payout Ratio
Lowest at 158.27%
in the last five yearsMOJO Watch
Company is distributing lower proportion of profits generated as dividend
DPR (%)
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