Vertu Motors Plc (VTU) 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

ME Group International Plc

Dunelm Group Plc

Pets At Home Group Plc

Vertu Motors Plc

Watches of Switzerland Group Plc

Inchcape Plc

Pinewood Technologies Group Plc

Wickes Group Plc

Frasers Group Plc

Card Factory Plc

Halfords Group Plc

Why is Vertu Motors Plc ?

Company's ability to service its debt is strong with a healthy EBIT to Interest (avg) ratio of 6.75

Healthy long term growth as Net Sales has grown by an annual rate of 13.52%

Flat results in Feb 25

ROCE(HY) Lowest at 5.09%
INTEREST COVERAGE RATIO(Q) Lowest at 396.83
INVENTORY TURNOVER RATIO(HY) Lowest at 5.41%

With ROE of 5.26%, it has a fair valuation with a 0.56 Price to Book Value

Over the past year, while the stock has generated a return of 2.92%, its profits have fallen by -26.2%

Underperformed the market in the last 1 year

The stock has generated a return of 2.92% in the last 1 year, much lower than market (FTSE 100) returns of 15.94%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Vertu Motors Plc should be less than 10%
Overall Portfolio exposure to Retailing should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Retailing)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Vertu Motors Plc for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

Vertu Motors Plc

-100.0%

-0.71

29.96%

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)

13.52%

EBIT Growth (5y)

44.67%

EBIT to Interest (avg)

6.75

Debt to EBITDA (avg)

0.70

Net Debt to Equity (avg)

0.24

Sales to Capital Employed (avg)

8.75

Tax Ratio

26.86%

Dividend Payout Ratio

37.41%

Pledged Shares

Institutional Holding

0.40%

ROCE (avg)

13.16%

ROE (avg)

9.06%

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

0.56

EV to EBIT

7.32

EV to EBITDA

3.66

EV to Capital Employed

0.64

EV to Sales

0.06

PEG Ratio

Dividend Yield

156.75%

ROCE (Latest)

8.77%

ROE (Latest)

5.26%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Mildly Bullish

Dow Theory

No Trend

OBV

Mildly Bearish

Mildly Bullish

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

6What is working for the Company

OPERATING CASH FLOW(Y)

Highest at GBP 150.6 MM

DIVIDEND PAYOUT RATIO(Y)

Highest at 171.64%

RAW MATERIAL COST(Y)

Fallen by -2.25% (YoY

-10What is not working for the Company

ROCE(HY)

Lowest at 5.09%

INTEREST COVERAGE RATIO(Q)

Lowest at 396.83

INVENTORY TURNOVER RATIO(HY)

Lowest at 5.41%

DEBTORS TURNOVER RATIO(HY)

Lowest at 49.4%

INTEREST(Q)

Highest at GBP 7.6 MM

PRE-TAX PROFIT(Q)

Lowest at GBP 3.58 MM

NET PROFIT(Q)

Lowest at GBP 2.87 MM

EPS(Q)

Lowest at GBP 0.01

Here's what is working for Vertu Motors Plc

Operating Cash Flow

Highest at GBP 150.6 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)

Dividend Payout Ratio

Highest at 171.64% and Grown

In each year in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)

Raw Material Cost

Fallen by -2.25% (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

Depreciation

Highest at GBP 19.53 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 Vertu Motors Plc

Interest Coverage Ratio

Lowest at 396.83

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 7.6 MM

in the last five periods and Increased by 12.84% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (GBP MM)

Pre-Tax Profit

Lowest at GBP 3.58 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 2.87 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (GBP MM)

EPS

Lowest at GBP 0.01

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (GBP)

Inventory Turnover Ratio

Lowest at 5.41%

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Debtors Turnover Ratio

Lowest at 49.4%

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio