Videndum Plc (VTC) 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

Filtronic Plc

Calnex Solutions Plc

Focusrite Plc

t42 IoT Tracking Solutions Plc

BATM Advanced Communications Ltd.

CyanConnode Holdings Plc

Videndum Plc

SRT Marine Systems Plc

MTI Wireless Edge Ltd.

Why is Videndum Plc ?

High Debt company with Weak Long Term Fundamental Strength

Poor long term growth as Operating profit has grown by an annual rate -255.95% of over the last 5 years
High Debt Company with a Debt to Equity ratio (avg) at times
The company has been able to generate a Return on Capital Employed (avg) of 5.87% signifying low profitability per unit of total capital (equity and debt)

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

PRE-TAX PROFIT(Q) At GBP -15.9 MM has Fallen at -44.55%
NET PROFIT(Q) At GBP -16.8 MM has Fallen at -61.54%
OPERATING CASH FLOW(Y) Lowest at GBP -15.9 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 -85.62%, its profits have fallen by -579%

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -85.62% 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 Telecom - Equipment & Accessories)

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

Is Videndum Plc for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Videndum Plc

-85.62%

-0.92

97.44%

FTSE 100

15.94%

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)

-4.59%

EBIT Growth (5y)

-255.95%

EBIT to Interest (avg)

1.43

Debt to EBITDA (avg)

2.45

Net Debt to Equity (avg)

1.28

Sales to Capital Employed (avg)

1.10

Tax Ratio

42.17%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

0.10%

ROCE (avg)

5.87%

ROE (avg)

8.48%

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

0.77

EV to EBIT

-1.65

EV to EBITDA

-2.18

EV to Capital Employed

0.92

EV to Sales

0.66

PEG Ratio

Dividend Yield

ROCE (Latest)

-55.95%

ROE (Latest)

-254.61%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Dow Theory

No Trend

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

4What is working for the Company

NET PROFIT(HY)

Higher at GBP -16.8 MM

CASH AND EQV(HY)

Highest at GBP 59.9 MM

INVENTORY TURNOVER RATIO(HY)

Highest at 2.18%

-18What is not working for the Company

PRE-TAX PROFIT(Q)

At GBP -15.9 MM has Fallen at -44.55%

NET PROFIT(Q)

At GBP -16.8 MM has Fallen at -61.54%

OPERATING CASH FLOW(Y)

Lowest at GBP -15.9 MM

INTEREST(HY)

At GBP 7.6 MM has Grown at 26.67%

ROCE(HY)

Lowest at -113.18%

RAW MATERIAL COST(Y)

Grown by 19.15% (YoY

DEBT-EQUITY RATIO (HY)

Highest at 226.48 %

DEBTORS TURNOVER RATIO(HY)

Lowest at 4.84%

NET SALES(Q)

Lowest at GBP 115.4 MM

Here's what is working for Videndum Plc

Cash and Eqv

Highest at GBP 59.9 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Inventory Turnover Ratio

Highest at 2.18%

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Here's what is not working for Videndum Plc

Pre-Tax Profit

At GBP -15.9 MM has Fallen at -44.55%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (GBP MM)

Net Profit

At GBP -16.8 MM has Fallen at -61.54%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (GBP MM)

Net Sales

At GBP 115.4 MM has Fallen at -24.72%

Year on Year (YoY)

MOJO Watch

Near term sales trend is very negative

Net Sales (GBP MM)

Interest

At GBP 7.6 MM has Grown at 26.67%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (GBP MM)

Operating Cash Flow

Lowest at GBP -15.9 MM

in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (GBP MM)

Net Sales

Lowest at GBP 115.4 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (GBP MM)

Debt-Equity Ratio

Highest at 226.48 %

in the last five Semi-Annual periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio

Debtors Turnover Ratio

Lowest at 4.84%

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 19.15% (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