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
With a growth in Net Profit of 116.76%, the company declared Very Positive results in Dec 25
- OPERATING CASH FLOW(Y) Highest at GBP 38.41 MM
- INTEREST COVERAGE RATIO(Q) Highest at 440.85
- RAW MATERIAL COST(Y) Fallen by -35.12% (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 2.53%, its profits have risen by 0.8% ; the PEG ratio of the company is 9.7
Real-Time Research ReportHow much should you hold?
- Overall Portfolio exposure to Shepherd Neame Ltd. should be less than 10%
- Overall Portfolio exposure to Beverages should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Beverages)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is Shepherd Neame Ltd. for you?
Low Risk, Low Return
Absolute
Risk Adjusted
Volatility
Shepherd Neame Ltd.
1.0%
-1.77
14.66%
FTSE 100
17.87%
1.68
11.54%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
11.40%
EBIT Growth (5y)
26.99%
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
14
Industry P/E
Price to Book Value
0.41
EV to EBIT
12.87
EV to EBITDA
6.63
EV to Capital Employed
0.60
EV to Sales
0.99
PEG Ratio
NA
Dividend Yield
199.23%
ROCE (Latest)
4.67%
ROE (Latest)
3.02%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Bullish
Mildly Bullish
RSI
Bearish
No Signal
Bollinger Bands
Mildly Bullish
Mildly Bullish
Moving Averages
Mildly Bearish (Daily)
KST
Bullish
Mildly Bullish
Dow Theory
No Trend
No Trend
OBV
No Trend
Bearish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend10What is working for the Company
OPERATING CASH FLOW(Y)
Highest at GBP 38.41 MM
INTEREST COVERAGE RATIO(Q)
Highest at 440.85
RAW MATERIAL COST(Y)
Fallen by -35.12% (YoY
DEBT-EQUITY RATIO
(HY)
Lowest at 74.16 %
OPERATING PROFIT(Q)
Highest at GBP 13.12 MM
OPERATING PROFIT MARGIN(Q)
Highest at 15.5 %
PRE-TAX PROFIT(Q)
Highest at GBP 4.68 MM
0What is not working for the Company
NO KEY NEGATIVE TRIGGERS
Here's what is working for Shepherd Neame Ltd.
Operating Cash Flow
Highest at GBP 38.41 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)
Interest Coverage Ratio
Highest at 440.85
in the last five periodsMOJO Watch
The company's ability to manage interest payments is improving
Operating Profit to Interest
Operating Profit
Highest at GBP 13.12 MM
in the last five periodsMOJO Watch
Near term Operating Profit trend is positive
Operating Profit (GBP MM)
Operating Profit Margin
Highest at 15.5 %
in the last five periodsMOJO Watch
Company's profit margin has improved
Operating Profit to Sales
Pre-Tax Profit
Highest at GBP 4.68 MM
in the last five periodsMOJO Watch
Near term Pre-Tax Profit trend is positive
Pre-Tax Profit (GBP MM)
Debt-Equity Ratio
Lowest at 74.16 %
in the last five Semi-Annual periodsMOJO Watch
The company has been reducing its borrowing as compared to equity capital
Debt-Equity Ratio
Raw Material Cost
Fallen by -35.12% (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
InfinHub Market Technologies FZ-LLC, Building-2, Unit 112, Dubai Internet City, Dubai, United Arab Emirates
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