THG Plc (THG) 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

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THG Plc

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Itsarm Plc

Why is THG Plc ?

Poor Management Efficiency with a low ROCE of 0%

The company has reported losses and also has negative networth. This is not a good sign for the investors. Either company will have to raise fresh capital or report profits to sustain going forward

Company's ability to service its debt is weak with a poor EBIT to Interest (avg) ratio of -2.28

Poor long term growth as Operating profit has grown by an annual rate 13.52% of over the last 5 years
Company's ability to service its debt is weak with a poor EBIT to Interest (avg) ratio of -2.28
The company has reported losses. Due to this company has reported negative ROE

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 20.79%, its profits have fallen by -25.3%

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 E-Retail/ E-Commerce)

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

Is THG Plc for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

THG Plc

20.79%

-1.05

52.00%

FTSE 100

17.87%

1.52

11.77%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

1.26%

EBIT Growth (5y)

13.52%

EBIT to Interest (avg)

-2.28

Debt to EBITDA (avg)

2.95

Net Debt to Equity (avg)

1.00

Sales to Capital Employed (avg)

1.30

Tax Ratio

10.80%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

0.01%

ROCE (avg)

ROE (avg)

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

1.34

EV to EBIT

-23.60

EV to EBITDA

15.10

EV to Capital Employed

1.21

EV to Sales

0.49

PEG Ratio

Dividend Yield

ROCE (Latest)

-5.11%

ROE (Latest)

-11.26%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

RSI

Bearish

No Signal

Bollinger Bands

Mildly Bearish

Bearish

Moving Averages

Bearish (Daily)

KST

Mildly Bullish

Dow Theory

No Trend

OBV

No Trend

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

8What is working for the Company

NET PROFIT(HY)

Higher at GBP 13.52 MM

RAW MATERIAL COST(Y)

Fallen by -1.05% (YoY

DEBTORS TURNOVER RATIO(HY)

Highest at 15.24 times

PRE-TAX PROFIT(Q)

Highest at GBP 8.42 MM

-6What is not working for the Company

INTEREST(HY)

At GBP 40.51 MM has Grown at 65.57%

OPERATING CASH FLOW(Y)

Lowest at GBP 50.64 MM

NET PROFIT(Q)

Fallen at -27.65%

Here's what is working for THG Plc

Pre-Tax Profit

At GBP 8.42 MM has Grown at 233.28%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (GBP MM)

Pre-Tax Profit

Highest at GBP 8.42 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (GBP MM)

Debtors Turnover Ratio

Highest at 15.24 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Raw Material Cost

Fallen by -1.05% (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

Here's what is not working for THG Plc

Interest

At GBP 40.51 MM has Grown at 65.57%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (GBP MM)

Operating Cash Flow

Lowest at GBP 50.64 MM

in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (GBP MM)

Net Profit

Fallen at -27.65%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is negative

Net Profit (GBP MM)