Treatt Plc (TET) 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

Iofina Plc

Zotefoams Plc

Elementis Plc

Croda International Plc

Europa Oil & Gas (Holdings) Plc

Treatt Plc

Synthomer Plc

Haydale Graphene Industries Plc

Atome Plc

Finsbury Food Group Plc

Why is Treatt Plc ?

With a fall in Net Sales of -12.33%, the company declared Very Negative results in Mar 26

The company has declared negative results for the last 3 consecutive quarters
INTEREST(HY) At GBP 0.43 MM has Grown at 49.65%
ROCE(HY) Lowest at 3.13%
INTEREST COVERAGE RATIO(Q) Lowest at 1,253.5

With ROE of 4.75%, it has a very expensive valuation with a 1.32 Price to Book Value

Over the past year, while the stock has generated a return of 16.51%, its profits have fallen by -43.6%

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 Specialty Chemicals)

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

Is Treatt Plc for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Treatt Plc

-100.0%

-0.54

64.30%

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)

1.97%

EBIT Growth (5y)

-13.25%

EBIT to Interest (avg)

16.84

Debt to EBITDA (avg)

0.50

Net Debt to Equity (avg)

0.01

Sales to Capital Employed (avg)

0.97

Tax Ratio

20.70%

Dividend Payout Ratio

66.83%

Pledged Shares

Institutional Holding

0.12%

ROCE (avg)

13.46%

ROE (avg)

11.59%

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

1.32

EV to EBIT

19.01

EV to EBITDA

12.16

EV to Capital Employed

1.31

EV to Sales

1.43

PEG Ratio

Dividend Yield

188.99%

ROCE (Latest)

6.89%

ROE (Latest)

4.75%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Bearish

Moving Averages

Bearish (Daily)

KST

Mildly Bullish

Bearish

Dow Theory

Mildly 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

0What is working for the Company

NO KEY POSITIVE TRIGGERS

-20What is not working for the Company

INTEREST(HY)

At GBP 0.43 MM has Grown at 49.65%

ROCE(HY)

Lowest at 3.13%

INTEREST COVERAGE RATIO(Q)

Lowest at 1,253.5

DIVIDEND PAYOUT RATIO(Y)

Lowest at 0%

RAW MATERIAL COST(Y)

Grown by 11.1% (YoY

DEBTORS TURNOVER RATIO(HY)

Lowest at 3.82 times

DIVIDEND PER SHARE(HY)

Lowest at GBP 3.82

NET SALES(Q)

Lowest at GBP 59.86 MM

OPERATING PROFIT(Q)

Lowest at GBP 5.37 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 8.96 %

PRE-TAX PROFIT(Q)

Lowest at GBP 2.46 MM

NET PROFIT(Q)

Lowest at GBP 1.78 MM

EPS(Q)

Lowest at GBP 0.02

Here's what is not working for Treatt Plc

Interest Coverage Ratio

Lowest at 1,253.5

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Pre-Tax Profit

At GBP 2.46 MM has Fallen at -33.36%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (GBP MM)

Net Profit

At GBP 1.78 MM has Fallen at -36.18%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (GBP MM)

Interest

At GBP 0.43 MM has Grown at 49.65%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (GBP MM)

Net Sales

Lowest at GBP 59.86 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (GBP MM)

Operating Profit

Lowest at GBP 5.37 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (GBP MM)

Operating Profit Margin

Lowest at 8.96 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at GBP 2.46 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 1.78 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (GBP MM)

EPS

Lowest at GBP 0.02

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (GBP)

Debtors Turnover Ratio

Lowest at 3.82 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

Dividend per share

Lowest at GBP 3.82

in the last five years

MOJO Watch

Company is distributing lower dividend than previous years

DPS (GBP)

Dividend Payout Ratio

Lowest at 0%

in the last five years

MOJO Watch

Company is distributing lower proportion of profits generated as dividend

DPR (%)

Raw Material Cost

Grown by 11.1% (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