Velocity Composites Plc (VEL) 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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Velocity Composites Plc

Why is Velocity Composites 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 -1.79

Poor long term growth as Net Sales has grown by an annual rate of 17.08% and Operating profit at 13.11% over the last 5 years
Company's ability to service its debt is weak with a poor EBIT to Interest (avg) ratio of -1.79
The company has reported losses. Due to this company has reported negative ROE

Poor long term growth as Net Sales has grown by an annual rate of 17.08% and Operating profit at 13.11% over the last 5 years

Negative results in Apr 26

PRE-TAX PROFIT(Q) At GBP -0.89 MM has Fallen at -55.92%
INVENTORY TURNOVER RATIO(HY) Lowest at 6.15 times
NET SALES(Q) Lowest at GBP 8.44 MM

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 -40.43%, its profits have fallen by -80%

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 Aerospace & Defense)

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

Is Velocity Composites Plc for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Velocity Composites Plc

-100.0%

-1.51

42.63%

FTSE 100

19.78%

1.58

11.75%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

17.08%

EBIT Growth (5y)

13.11%

EBIT to Interest (avg)

-1.42

Debt to EBITDA (avg)

Negative Net Debt

Net Debt to Equity (avg)

0.05

Sales to Capital Employed (avg)

2.62

Tax Ratio

1.71%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

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

1.71

EV to EBIT

-7.42

EV to EBITDA

7.42

EV to Capital Employed

1.68

EV to Sales

0.40

PEG Ratio

Dividend Yield

ROCE (Latest)

-10.61%

ROE (Latest)

-36.38%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Bearish

RSI

Bullish

No Signal

Bollinger Bands

Mildly Bullish

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 2.31 MM

NET PROFIT(HY)

Higher at GBP -0.89 MM

RAW MATERIAL COST(Y)

Fallen by -25.94% (YoY

-11What is not working for the Company

PRE-TAX PROFIT(Q)

At GBP -0.89 MM has Fallen at -55.92%

INVENTORY TURNOVER RATIO(HY)

Lowest at 6.15 times

NET SALES(Q)

Lowest at GBP 8.44 MM

NET PROFIT(Q)

Lowest at GBP -0.89 MM

EPS(Q)

Lowest at GBP -0.02

Here's what is working for Velocity Composites Plc

Operating Cash Flow

Highest at GBP 2.31 MM

in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (GBP MM)

Raw Material Cost

Fallen by -25.94% (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 Velocity Composites Plc

Pre-Tax Profit

At GBP -0.89 MM has Fallen at -55.92%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (GBP MM)

Net Profit

At GBP -0.89 MM has Fallen at -55.92%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (GBP MM)

Net Sales

Lowest at GBP 8.44 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (GBP MM)

Net Sales

Fallen at -19.18%

Year on Year (YoY)

MOJO Watch

Near term sales trend is negative

Net Sales (GBP MM)

Net Profit

Lowest at GBP -0.89 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)

Inventory Turnover Ratio

Lowest at 6.15 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio