Victrex Plc (VCT) 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

Itaconix Plc

Victrex Plc

Elementis Plc

Symphony Environmental Technologies Plc

Versarien Plc

Johnson Matthey Plc

Why is Victrex Plc ?

Company's ability to service its debt is strong with a healthy EBIT to Interest (avg) ratio of 68.20

Poor long term growth as Operating profit has grown by an annual rate -10.42% of over the last 5 years

The company has declared Negative results for the last 4 consecutive quarters

INTEREST COVERAGE RATIO(Q) Lowest at 2,715.38
PRE-TAX PROFIT(Q) At GBP 21.7 MM has Fallen at -44.07%
RAW MATERIAL COST(Y) Grown by 14.41% (YoY)

With ROE of 7.24%, it has a very attractive valuation with a 1.28 Price to Book Value

Over the past year, while the stock has generated a return of -45.16%, its profits have risen by 2.8% ; the PEG ratio of the company is 6.4

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -45.16% 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 hold?

Overall Portfolio exposure to Victrex Plc should be less than 10%
Overall Portfolio exposure to Chemicals & Petrochemicals should be less than 30%

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

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

Is Victrex Plc for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Victrex Plc

-45.67%

-2.33

34.87%

FTSE 100

13.98%

1.15

13.60%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

1.93%

EBIT Growth (5y)

-10.42%

EBIT to Interest (avg)

68.20

Debt to EBITDA (avg)

0.17

Net Debt to Equity (avg)

0.08

Sales to Capital Employed (avg)

0.60

Tax Ratio

17.78%

Dividend Payout Ratio

186.36%

Pledged Shares

Institutional Holding

0.38%

ROCE (avg)

16.89%

ROE (avg)

12.62%

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

1.28

EV to EBIT

12.83

EV to EBITDA

8.24

EV to Capital Employed

1.27

EV to Sales

1.96

PEG Ratio

6.36

Dividend Yield

9.33%

ROCE (Latest)

9.90%

ROE (Latest)

7.24%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bullish

RSI

No Signal

Bullish

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bullish

Bearish

Dow Theory

Mildly Bearish

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

2What is working for the Company

DIVIDEND PAYOUT RATIO(Y)

Highest at 318.65%

INVENTORY TURNOVER RATIO(HY)

Highest at 1.46 times

-9What is not working for the Company

INTEREST COVERAGE RATIO(Q)

Lowest at 2,715.38

PRE-TAX PROFIT(Q)

At GBP 21.7 MM has Fallen at -44.07%

RAW MATERIAL COST(Y)

Grown by 14.41% (YoY

CASH AND EQV(HY)

Lowest at GBP 24.2 MM

INTEREST(Q)

Highest at GBP 1.3 MM

Here's what is working for Victrex Plc

Inventory Turnover Ratio

Highest at 1.46 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Dividend Payout Ratio

Highest at 318.65%

in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)

Here's what is not working for Victrex Plc

Interest Coverage Ratio

Lowest at 2,715.38 and Fallen

In each period 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 21.7 MM has Fallen at -44.07%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (GBP MM)

Interest

Highest at GBP 1.3 MM

in the last five periods and Increased by 18.18% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (GBP MM)

Cash and Eqv

Lowest at GBP 24.2 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Raw Material Cost

Grown by 14.41% (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