Volution Group Plc (FAN) 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

Goodwin Plc

Porvair Plc

IMI Plc

London Security Plc

Volution Group Plc

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Avingtrans Plc

Xaar Plc

Rotork Plc

Renishaw Plc

IQE Plc

Why is Volution Group Plc ?

Poor Management Efficiency with a low ROCE of 16.13%

The company has been able to generate a Return on Capital Employed (avg) of 16.13% signifying low profitability per unit of total capital (equity and debt)

Low ability to service debt as the company has a high Debt to EBITDA ratio of 2.23 times

Low ability to service debt as the company has a high Debt to EBITDA ratio of 2.23 times
The company has been able to generate a Return on Equity (avg) of 15.54% signifying low profitability per unit of shareholders funds

Weak Long Term Fundamental Strength with an average Return on Capital Employed (ROCE) of 16.13%

Positive results in Jan 26

OPERATING CASH FLOW(Y) Highest at GBP 157.96 MM
ROCE(HY) Highest at 19.14%
RAW MATERIAL COST(Y) Fallen by -1.23% (YoY)

With ROE of 20.12%, it has a fair valuation with a 4.16 Price to Book Value

Over the past year, while the stock has generated a return of 3.32%, its profits have risen by 20.1% ; the PEG ratio of the company is 1

Company is among the highest 1% of companies rated by MarketsMojo across all 4,000 stocks

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Volution Group Plc should be less than 10%
Overall Portfolio exposure to Industrial Manufacturing should be less than 30%

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

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

Is Volution Group Plc for you?

Medium Risk, High Return

Absolute

Risk Adjusted

Volatility

Volution Group Plc

3.32%

1.95

27.79%

FTSE 100

18.59%

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)

14.91%

EBIT Growth (5y)

34.91%

EBIT to Interest (avg)

10.20

Debt to EBITDA (avg)

1.20

Net Debt to Equity (avg)

0.61

Sales to Capital Employed (avg)

1.00

Tax Ratio

22.50%

Dividend Payout Ratio

51.48%

Pledged Shares

Institutional Holding

0.48%

ROCE (avg)

18.63%

ROE (avg)

15.54%

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

4.16

EV to EBIT

15.40

EV to EBITDA

11.80

EV to Capital Employed

3.09

EV to Sales

2.92

PEG Ratio

1.04

Dividend Yield

188.24%

ROCE (Latest)

20.04%

ROE (Latest)

20.12%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Mildly Bearish (Daily)

KST

Mildly Bullish

Mildly Bearish

Dow Theory

Mildly Bullish

OBV

Mildly Bullish

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

13What is working for the Company

OPERATING CASH FLOW(Y)

Highest at GBP 157.96 MM

ROCE(HY)

Highest at 19.14%

RAW MATERIAL COST(Y)

Fallen by -1.23% (YoY

CASH AND EQV(HY)

Highest at GBP 106.35 MM

DIVIDEND PER SHARE(HY)

Highest at GBP 6.56

OPERATING PROFIT(Q)

Highest at GBP 59.12 MM

OPERATING PROFIT MARGIN(Q)

Highest at 25.85 %

PRE-TAX PROFIT(Q)

Highest at GBP 39.84 MM

NET PROFIT(Q)

Highest at GBP 30.49 MM

EPS(Q)

Highest at GBP 0.14

-3What is not working for the Company

INTEREST(HY)

At GBP 6.04 MM has Grown at 62.14%

Here's what is working for Volution Group Plc

Operating Cash Flow

Highest at GBP 157.96 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)

Operating Profit

Highest at GBP 59.12 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (GBP MM)

Operating Profit Margin

Highest at 25.85 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Pre-Tax Profit

Highest at GBP 39.84 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (GBP MM)

Net Profit

Highest at GBP 30.49 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (GBP MM)

EPS

Highest at GBP 0.14

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (GBP)

Cash and Eqv

Highest at GBP 106.35 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Dividend per share

Highest at GBP 6.56

in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (GBP)

Raw Material Cost

Fallen by -1.23% (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 13.4 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 Volution Group Plc

Interest

At GBP 6.04 MM has Grown at 62.14%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (GBP MM)