Chemring Group PLC
Chemring Group PLC Fundamental Analysis
Chemring Group PLC (CMGMY) shows moderate financial fundamentals with a PE ratio of 29.30, profit margin of 9.69%, and ROE of 11.28%. 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 53.4/100 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 CMGMY's fundamental strength across five key dimensions:
Efficiency Score
WeakCMGMY struggles to generate sufficient returns from assets.
Valuation Score
ModerateCMGMY shows balanced valuation metrics.
Growth Score
ModerateCMGMY shows steady but slowing expansion.
Financial Health Score
ExcellentCMGMY maintains a strong and stable balance sheet.
Profitability Score
WeakCMGMY struggles to sustain strong margins.
Key Financial Metrics
Is CMGMY Expensive or Cheap?
P/E Ratio
CMGMY trades at 29.30 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, CMGMY's PEG of 0.40 indicates potential undervaluation.
Price to Book
The market values Chemring Group PLC at 2.81 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 12.74 times EBITDA. This signals the market has high growth expectations.
How Well Does CMGMY 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 $11.28 in profit for every $100 of shareholder equity.
ROA
Chemring Group PLC generates $5.58 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 $87.32M, showing steady but balanced cash generation.
Free Cash Flow
Chemring Group PLC generates weak or negative free cash flow of $-5.75M, restricting financial flexibility.
FCF Per Share
Each share generates $-0.02 in free cash annually.
FCF Yield
CMGMY converts -0.41% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
29.30
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.40
vs 25 benchmark
P/B Ratio
Price to book value ratio
2.81
vs 25 benchmark
P/S Ratio
Price to sales ratio
2.82
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.31
vs 25 benchmark
Current Ratio
Current assets to current liabilities
2.10
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.11
vs 25 benchmark
ROA
Return on assets percentage
0.06
vs 25 benchmark
ROCE
Return on capital employed
0.11
vs 25 benchmark
How CMGMY Stacks Against Its Sector Peers
| Metric | CMGMY Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 29.30 | 26.76 | Neutral |
| ROE | 11.28% | 1300.00% | Weak |
| Net Margin | 9.69% | -29570.00% (disorted) | Weak |
| Debt/Equity | 0.31 | 0.79 | Strong (Low Leverage) |
| Current Ratio | 2.10 | 10.68 | Strong Liquidity |
| ROA | 5.58% | -1545134.00% (disorted) | Weak |
CMGMY outperforms its industry in 2 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