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

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Iofina Plc

Zotefoams Plc

Croda International Plc

Synthomer Plc

Treatt Plc

Elementis Plc

Europa Oil & Gas (Holdings) Plc

Haydale Graphene Industries Plc

Atome Plc

Finsbury Food Group Plc

Why is Treatt Plc ?

Negative results in Mar 25

ROCE(HY) Lowest at 8.02%
RAW MATERIAL COST(Y) Grown by 12.34% (YoY)
DEBTORS TURNOVER RATIO(HY) Lowest at 3.94%

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -51.63% returns in the last 1 year, the stock has also underperformed FTSE 100 in each of the last 3 annual periods

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

-53.7%

-0.89

62.52%

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)

5.76%

EBIT Growth (5y)

3.55%

EBIT to Interest (avg)

16.84

Debt to EBITDA (avg)

0.50

Net Debt to Equity (avg)

0.01

Sales to Capital Employed (avg)

1.01

Tax Ratio

20.70%

Dividend Payout Ratio

35.62%

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

1.15

EV to EBIT

10.45

EV to EBITDA

7.81

EV to Capital Employed

1.15

EV to Sales

1.12

PEG Ratio

Dividend Yield

309.93%

ROCE (Latest)

10.99%

ROE (Latest)

8.36%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Dow Theory

Mildly Bearish

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 39.57 MM

DEBT-EQUITY RATIO (HY)

Lowest at -0.66 %

DIVIDEND PAYOUT RATIO(Y)

Highest at 73.03%

-16What is not working for the Company

ROCE(HY)

Lowest at 8.02%

RAW MATERIAL COST(Y)

Grown by 12.34% (YoY

DEBTORS TURNOVER RATIO(HY)

Lowest at 3.94%

NET SALES(Q)

Lowest at GBP 64.19 MM

OPERATING PROFIT(Q)

Lowest at GBP 6.49 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 10.11 %

PRE-TAX PROFIT(Q)

Lowest at GBP 3.64 MM

NET PROFIT(Q)

Lowest at GBP 2.75 MM

EPS(Q)

Lowest at GBP 0.04

Here's what is working for Treatt Plc

Debt-Equity Ratio

Lowest at -0.66 % and Grown

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

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Operating Cash Flow

Highest at GBP 39.57 MM

in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (GBP MM)

Dividend Payout Ratio

Highest at 73.03%

in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)

Depreciation

Highest at GBP 2.66 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 Treatt Plc

Pre-Tax Profit

At GBP 3.64 MM has Fallen at -52.14%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (GBP MM)

Net Profit

At GBP 2.75 MM has Fallen at -51.47%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (GBP MM)

Net Sales

Lowest at GBP 64.19 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (GBP MM)

Operating Profit

Lowest at GBP 6.49 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (GBP MM)

Operating Profit Margin

Lowest at 10.11 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at GBP 3.64 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 2.75 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (GBP MM)

EPS

Lowest at GBP 0.04

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (GBP)

Debtors Turnover Ratio

Lowest at 3.94%

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

Raw Material Cost

Grown by 12.34% (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