SIG Plc (SHI) 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

Currys Plc

RS Group Plc

Bunzl Plc

Diploma Plc

James Latham Plc

Glencore Plc

Brickability Group Plc

Midwich Group Plc

SIG Plc

Headlam Group Plc

Yellow Cake Plc

Why is SIG Plc ?

Poor Management Efficiency with a low ROCE of 8.30%

The company has been able to generate a Return on Capital Employed (avg) of 8.30% signifying low profitability per unit of total capital (equity and debt)

Low ability to service debt as the company has a high Debt to EBITDA ratio of 3.22 times

Low ability to service debt as the company has a high Debt to EBITDA ratio of 3.22 times
The company has been able to generate a Return on Equity (avg) of 2.94% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of 6.71% and Operating profit at 18.70% over the last 5 years

Negative results in Jun 26

DEBT-EQUITY RATIO (HY) Highest at 532.73 %
INTEREST COVERAGE RATIO(Q) Lowest at 183.52
CASH AND EQV(HY) Lowest at GBP 64.2 MM

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 -31.97%, its profits have fallen by -11.6%

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 Trading & Distributors)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is SIG Plc for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

SIG Plc

-31.97%

-1.39

49.20%

FTSE 100

18.59%

1.58

11.75%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

6.71%

EBIT Growth (5y)

18.70%

EBIT to Interest (avg)

1.30

Debt to EBITDA (avg)

1.77

Net Debt to Equity (avg)

1.33

Sales to Capital Employed (avg)

4.77

Tax Ratio

3.89%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

0.42%

ROCE (avg)

9.76%

ROE (avg)

2.94%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

NA (Loss Making)

Industry P/E

Price to Book Value

0.78

EV to EBIT

13.15

EV to EBITDA

3.33

EV to Capital Employed

0.93

EV to Sales

0.14

PEG Ratio

Dividend Yield

ROCE (Latest)

7.07%

ROE (Latest)

-20.00%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bullish

RSI

Bullish

No Signal

Bollinger Bands

Mildly Bearish

Bearish

Moving Averages

Mildly Bearish (Daily)

KST

Bearish

Mildly Bullish

Dow Theory

No Trend

Bearish

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

2What is working for the Company

NET PROFIT(HY)

Higher at GBP -16.6 MM

-14What is not working for the Company

DEBT-EQUITY RATIO (HY)

Highest at 532.73 %

INTEREST COVERAGE RATIO(Q)

Lowest at 183.52

CASH AND EQV(HY)

Lowest at GBP 64.2 MM

OPERATING PROFIT(Q)

Lowest at GBP 50.1 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 3.87 %

PRE-TAX PROFIT(Q)

Lowest at GBP -16.8 MM

NET PROFIT(Q)

Lowest at GBP -16.6 MM

Here's what is not working for SIG Plc

Pre-Tax Profit

At GBP -16.8 MM has Fallen at -54.13%

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 183.52

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 -16.6 MM has Fallen at -36.07%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (GBP MM)

Debt-Equity Ratio

Highest at 532.73 % and Grown

In each half year in the last five Semi-Annual periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio

Operating Profit

Lowest at GBP 50.1 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (GBP MM)

Operating Profit Margin

Lowest at 3.87 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at GBP -16.8 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 -16.6 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (GBP MM)

Cash and Eqv

Lowest at GBP 64.2 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents