ScoreWhy is Shepherd Neame Ltd. ?
1
Poor Management Efficiency with a low ROCE of 3.45%
- The company has been able to generate a Return on Capital Employed (avg) of 3.45% signifying low profitability per unit of total capital (equity and debt)
2
Low ability to service debt as the company has a high Debt to EBITDA ratio of 3.60 times
- Poor long term growth as Net Sales has grown by an annual rate of 5.85% and Operating profit at 66.35% over the last 5 years
- Low ability to service debt as the company has a high Debt to EBITDA ratio of 3.60 times
- The company has been able to generate a Return on Equity (avg) of 2.68% signifying low profitability per unit of shareholders funds
3
Poor long term growth as Net Sales has grown by an annual rate of 5.85% and Operating profit at 66.35% over the last 5 years
4
Flat results in Jun 25
- INTEREST COVERAGE RATIO(Q) Lowest at 370.42
- NET PROFIT(Q) At GBP 2.22 MM has Fallen at -34.43%
- RAW MATERIAL COST(Y) Grown by 21.1% (YoY)
5
With ROE of 2.86%, it has a fair valuation with a 0.37 Price to Book Value
- Over the past year, while the stock has generated a return of 6.62%, its profits have risen by 0.8% ; the PEG ratio of the company is 9.7
Real-Time Research ReportHow 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 Beverages)
When to re-enter? - We will constantly monitor the company and review our call based on new data
Is Shepherd Neame Ltd. for you?
Low Risk, Low Return
Absolute
Risk Adjusted
Volatility
Shepherd Neame Ltd.
-100.0%
-1.77
14.66%
FTSE 100
18.88%
1.71
11.05%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
5.85%
EBIT Growth (5y)
66.35%
EBIT to Interest (avg)
1.42
Debt to EBITDA (avg)
23.13
Net Debt to Equity (avg)
0.48
Sales to Capital Employed (avg)
8.79
Tax Ratio
28.07%
Dividend Payout Ratio
71.64%
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
3.45%
ROE (avg)
2.68%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
13
Industry P/E
Price to Book Value
0.37
EV to EBIT
12.11
EV to EBITDA
6.29
EV to Capital Employed
0.57
EV to Sales
0.93
PEG Ratio
9.67
Dividend Yield
216.87%
ROCE (Latest)
4.72%
ROE (Latest)
2.86%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Bullish
Mildly Bullish
RSI
Bearish
No Signal
Bollinger Bands
Bullish
Bullish
Moving Averages
Mildly Bearish (Daily)
KST
Mildly Bullish
Mildly Bullish
Dow Theory
No Trend
No Trend
OBV
No Trend
No Trend
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend7What is working for the Company
OPERATING CASH FLOW(Y)
Highest at GBP 36.98 MM
DIVIDEND PAYOUT RATIO(Y)
Highest at 176.99%
DEBT-EQUITY RATIO
(HY)
Lowest at 74.42 %
DEBTORS TURNOVER RATIO(HY)
Highest at 13.21 times
DIVIDEND PER SHARE(HY)
Highest at GBP 13.21
-11What is not working for the Company
INTEREST COVERAGE RATIO(Q)
Lowest at 370.42
NET PROFIT(Q)
At GBP 2.22 MM has Fallen at -34.43%
RAW MATERIAL COST(Y)
Grown by 21.1% (YoY
INVENTORY TURNOVER RATIO(HY)
Lowest at 17.48 times
NET SALES(Q)
Lowest at GBP 79.26 MM
PRE-TAX PROFIT(Q)
Lowest at GBP 2.57 MM
Here's what is working for Shepherd Neame Ltd.
Operating Cash Flow
Highest at GBP 36.98 MM and Grown
In each year in the last three yearsMOJO Watch
The company has generated higher cash revenues from business operations
Operating Cash Flows (GBP MM)
Debt-Equity Ratio
Lowest at 74.42 %
in the last five Semi-Annual periodsMOJO Watch
The company has been reducing its borrowing as compared to equity capital
Debt-Equity Ratio
Debtors Turnover Ratio
Highest at 13.21 times
in the last five Semi-Annual periodsMOJO Watch
Company has been able to sell its Debtors faster
Debtors Turnover Ratio
Dividend per share
Highest at GBP 13.21
in the last five yearsMOJO Watch
Company is distributing higher dividend from profits generated
DPS (GBP)
Dividend Payout Ratio
Highest at 176.99%
in the last five yearsMOJO Watch
Company is distributing higher proportion of profits generated as dividend
DPR (%)
Depreciation
Highest at GBP 6.02 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 Shepherd Neame Ltd.
Pre-Tax Profit
At GBP 2.57 MM has Fallen at -44.18%
Year on Year (YoY)MOJO Watch
Near term Pre-Tax Profit trend is very negative
Pre-Tax Profit (GBP MM)
Interest Coverage Ratio
Lowest at 370.42
in the last five periodsMOJO Watch
The company's ability to manage interest payments is deteriorating
Operating Profit to Interest
Net Profit
At GBP 2.22 MM has Fallen at -34.43%
Year on Year (YoY)MOJO Watch
Near term Net Profit trend is very negative
Net Profit (GBP MM)
Net Sales
Lowest at GBP 79.26 MM
in the last five periodsMOJO Watch
Near term sales trend is negative
Net Sales (GBP MM)
Pre-Tax Profit
Lowest at GBP 2.57 MM
in the last five periodsMOJO Watch
Near term Pre-Tax Profit trend is negative
Pre-Tax Profit (GBP MM)
Inventory Turnover Ratio
Lowest at 17.48 times
in the last five Semi-Annual periodsMOJO Watch
Company's pace of selling inventory has slowed
Inventory Turnover Ratio
Raw Material Cost
Grown by 21.1% (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
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