Chemring Group PLC
Chemring Group PLC Fundamental Analysis
Chemring Group PLC (CMGMF) shows moderate financial fundamentals with a PE ratio of 28.94, profit margin of 9.69%, and ROE of 13.13%. The company generates $0.5B in annual revenue with moderate year-over-year growth of 8.00%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 52.6/100 based on profitability, valuation, growth, and balance sheet metrics. The C grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze CMGMF's fundamental strength across five key dimensions:
Efficiency Score
WeakCMGMF struggles to generate sufficient returns from assets.
Valuation Score
WeakCMGMF trades at a premium to fair value.
Growth Score
ModerateCMGMF shows steady but slowing expansion.
Financial Health Score
ExcellentCMGMF maintains a strong and stable balance sheet.
Profitability Score
WeakCMGMF struggles to sustain strong margins.
Key Financial Metrics
Is CMGMF Expensive or Cheap?
P/E Ratio
CMGMF trades at 28.94 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, CMGMF's PEG of 6.63 indicates potential overvaluation.
Price to Book
The market values Chemring Group PLC at 3.65 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 12.95 times EBITDA. This signals the market has high growth expectations.
How Well Does CMGMF Make Money?
Net Profit Margin
For every $100 in sales, Chemring Group PLC keeps $9.69 as profit after all expenses.
Operating Margin
Core operations generate 14.75 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $13.13 in profit for every $100 of shareholder equity.
ROA
Chemring Group PLC generates $5.59 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Chemring Group PLC produces operating cash flow of $84.80M, showing steady but balanced cash generation.
Free Cash Flow
Chemring Group PLC generates weak or negative free cash flow of $-4.86M, restricting financial flexibility.
FCF Per Share
Each share generates $-0.02 in free cash annually.
FCF Yield
CMGMF converts -0.35% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
28.94
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
6.63
vs 25 benchmark
P/B Ratio
Price to book value ratio
3.65
vs 25 benchmark
P/S Ratio
Price to sales ratio
2.79
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.40
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.65
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.13
vs 25 benchmark
ROA
Return on assets percentage
0.06
vs 25 benchmark
ROCE
Return on capital employed
0.11
vs 25 benchmark
How CMGMF Stacks Against Its Sector Peers
| Metric | CMGMF Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 28.94 | 26.76 | Neutral |
| ROE | 13.13% | 1300.00% | Weak |
| Net Margin | 9.69% | -29570.00% (disorted) | Weak |
| Debt/Equity | 0.40 | 0.79 | Strong (Low Leverage) |
| Current Ratio | 1.65 | 10.68 | Neutral |
| ROA | 5.59% | -1545134.00% (disorted) | Weak |
CMGMF outperforms its industry in 1 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Chemring Group PLC's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
56.30%
Industry Style: Cyclical, Value, Infrastructure
High GrowthEPS CAGR
85.14%
Industry Style: Cyclical, Value, Infrastructure
High GrowthFCF CAGR
34.32%
Industry Style: Cyclical, Value, Infrastructure
High Growth