Smart Metering Systems Plc (SMS) 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

Kier Group Plc

Morgan Sindall Group plc

Keller Group Plc

Balfour Beatty Plc

Costain Group Plc

Andrews Sykes Group Plc

Renew Holdings Plc

Capital Ltd.

Smart Metering Systems Plc

Petrofac Ltd.

Severfield Plc

Why is Smart Metering Systems Plc ?

Poor Management Efficiency with a low ROE of 11.20%

The company has been able to generate a Return on Equity (avg) of 11.20% signifying low profitability per unit of shareholders funds

Low ability to service debt as the company has a high Debt to EBITDA ratio of 1.03 times

Low ability to service debt as the company has a high Debt to EBITDA ratio of 1.03 times
The company has been able to generate a Return on Capital Employed (avg) of 4.20% signifying low profitability per unit of total capital (equity and debt)

Poor long term growth as Operating profit has grown by an annual rate 4.71% of over the last 5 years

Flat results in Jun 23

INTEREST COVERAGE RATIO(Q) Lowest at 698.49
RAW MATERIAL COST(Y) Grown by 8.81% (YoY)
DEBT-EQUITY RATIO (HY) Highest at 21.12 %

With ROE of 3.3, it has a expensive valuation with a 2.6 Price to Book Value

Over the past year, while the stock has generated a return of 0%, its profits have risen by 97.6% ; the PEG ratio of the company is 0.8

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 Engineering & Construction)

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

Is Smart Metering Systems Plc for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Smart Metering Systems Plc

-100.0%

0.50

47.09%

FTSE 100

16.5%

0.54

13.16%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

11.20%

EBIT Growth (5y)

4.71%

EBIT to Interest (avg)

3.67

Debt to EBITDA (avg)

1.03

Net Debt to Equity (avg)

0.19

Sales to Capital Employed (avg)

0.24

Tax Ratio

9.76%

Dividend Payout Ratio

271.06%

Pledged Shares

Institutional Holding

ROCE (avg)

4.20%

ROE (avg)

11.20%

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

2.57

EV to EBIT

48.94

EV to EBITDA

20.54

EV to Capital Employed

2.32

EV to Sales

9.28

PEG Ratio

0.79

Dividend Yield

84.38%

ROCE (Latest)

4.75%

ROE (Latest)

3.33%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Sideways

Mildly Bullish

Moving Averages

Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Mildly Bullish

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

Not enough Data to analyse Financial Trend

Here's what is working for Smart Metering Systems Plc

Operating Cash Flow

Highest at GBP 112.7 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)

Net Sales

Highest at GBP 79.31 MM and Grown

In each period in the last five periods

MOJO Watch

Near term sales trend is very positive

Net Sales (GBP MM)

Dividend per share

Highest at GBP 2.98 and Grown

In each year in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (GBP)

Operating Profit

Highest at GBP 35.57 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (GBP MM)

Debtors Turnover Ratio

Highest at 2.98%

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Depreciation

Highest at GBP 21.01 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 Smart Metering Systems Plc

Interest Coverage Ratio

Lowest at 698.49

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Interest

Highest at GBP 5.09 MM

in the last five periods and Increased by 101.11% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (GBP MM)

Operating Profit Margin

Lowest at 44.85 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Debt-Equity Ratio

Highest at 21.12 %

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

Inventory Turnover Ratio

Lowest at 2.17%

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 8.81% (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