Shepherd Neame Ltd. (SHEP) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

C&C Group Plc

Whitbread Plc

Shepherd Neame Ltd.

InterContinental Hotels Group Plc

Naked Wines Plc

Adnams Plc

Chapel Down Group Plc

Diageo Plc

Gusbourne Plc

Distil Plc

Carnival Plc

Why is Shepherd Neame Ltd. ?

Positive results in Dec 24

OPERATING CASH FLOW(Y) Highest at GBP 38.12 MM
ROCE(HY) Highest at 4.03%
INTEREST COVERAGE RATIO(Q) Highest at 426.25

With ROE of 3.50%, it has a fair valuation with a 0.40 Price to Book Value

Over the past year, while the stock has generated a return of -27.21%, its profits have risen by 15.7% ; the PEG ratio of the company is 0.7

Real-Time Research Report

Verdict Report

How 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.

-10.1%

-2.19

12.66%

FTSE 100

13.98%

0.82

12.89%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality 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

Institutional Holding

ROCE (avg)

3.45%

ROE (avg)

2.68%

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

0.37

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%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Mildly Bullish

Dow Theory

No Trend

OBV

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

7What 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 years

MOJO 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 periods

MOJO 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 periods

MOJO 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 years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (GBP)

Dividend Payout Ratio

Highest at 176.99%

in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)

Depreciation

Highest at GBP 6.02 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 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 periods

MOJO 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 periods

MOJO Watch

Near term sales trend is negative

Net Sales (GBP MM)

Pre-Tax Profit

Lowest at GBP 2.57 MM

in the last five periods

MOJO 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 periods

MOJO 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