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

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Currys Plc

Diploma Plc

Brickability Group Plc

RS Group Plc

Bunzl Plc

James Latham Plc

Midwich Group Plc

Glencore 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 3.12 times

Low ability to service debt as the company has a high Debt to EBITDA ratio of 3.12 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 9.62% and Operating profit at 19.50% over the last 5 years

The company has declared Negative results for the last 4 consecutive quarters

INTEREST COVERAGE RATIO(Q) Lowest at 198.86
ROCE(HY) Lowest at -37.89%
DEBT-EQUITY RATIO (HY) Highest at 354.63 %

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 -51.71%, its profits have fallen by -59.7%

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

-51.81%

-1.29

50.96%

FTSE 100

16.5%

1.23

12.99%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

9.62%

EBIT Growth (5y)

19.50%

EBIT to Interest (avg)

0.75

Debt to EBITDA (avg)

3.12

Net Debt to Equity (avg)

1.33

Sales to Capital Employed (avg)

4.54

Tax Ratio

8.48%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

0.42%

ROCE (avg)

8.30%

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

0.75

EV to EBIT

15.10

EV to EBITDA

3.50

EV to Capital Employed

0.91

EV to Sales

0.14

PEG Ratio

Dividend Yield

ROCE (Latest)

6.02%

ROE (Latest)

-15.53%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Moving Averages

Mildly Bearish (Daily)

KST

Mildly Bullish

Bearish

Dow Theory

No Trend

OBV

No Trend

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

5What is working for the Company

OPERATING CASH FLOW(Y)

Highest at GBP 134.8 MM

NET PROFIT(HY)

Higher at GBP -12.2 MM

-17What is not working for the Company

INTEREST COVERAGE RATIO(Q)

Lowest at 198.86

ROCE(HY)

Lowest at -37.89%

DEBT-EQUITY RATIO (HY)

Highest at 354.63 %

PRE-TAX PROFIT(Q)

Lowest at GBP -10.9 MM

RAW MATERIAL COST(Y)

Grown by 5.79% (YoY

CASH AND EQV(HY)

Lowest at GBP 81.7 MM

INTEREST(Q)

Highest at GBP 26.4 MM

NET PROFIT(Q)

Lowest at GBP -12.2 MM

Here's what is working for SIG Plc

Operating Cash Flow

Highest at GBP 134.8 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)

Here's what is not working for SIG Plc

Interest Coverage Ratio

Lowest at 198.86 and Fallen

In each period in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Pre-Tax Profit

Lowest at GBP -10.9 MM and Fallen

In each period in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (GBP MM)

Pre-Tax Profit

At GBP -10.9 MM has Fallen at -37.97%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (GBP MM)

Debt-Equity Ratio

Highest at 354.63 % 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

Interest

Highest at GBP 26.4 MM

in the last five periods and Increased by 20% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (GBP MM)

Net Profit

Lowest at GBP -12.2 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 81.7 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Raw Material Cost

Grown by 5.79% (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