C

Chemring Group PLC
LSE:CHG

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Chemring Group PLC
LSE:CHG
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Price: 360.5 GBX 1.12% Market Closed
Market Cap: 977m GBX
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Intrinsic Value

The intrinsic value of one CHG stock under the Base Case scenario is 554.4 GBX. Compared to the current market price of 360.5 GBX, Chemring Group PLC is Undervalued by 35%.

The Intrinsic Value is calculated as the average of DCF and Relative values:

CHG Intrinsic Value
554.4 GBX
Undervaluation 35%
Intrinsic Value
Price
C
Base Case Scenario

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Chemring Group PLC

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Backtest Conclusion
Very Attractive
Current Valuation
+45%
Avg Valuation
-12%
Worst Valuation
-49%
Best Valuation
+45%

Stock is trading at its lowest valuation over the past 5 years.

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Fundamental Analysis

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Financials
Annual
Quarterly
TTM
Annual
Quarterly
TTM

Balance Sheet Decomposition
Chemring Group PLC

Current Assets 215.8m
Cash & Short-Term Investments 4.6m
Receivables 86.4m
Other Current Assets 124.8m
Non-Current Assets 399.6m
PP&E 261m
Intangibles 125.4m
Other Non-Current Assets 13.2m
Current Liabilities 174.2m
Accounts Payable 147.1m
Other Current Liabilities 27.1m
Non-Current Liabilities 90.3m
Long-Term Debt 64.6m
Other Non-Current Liabilities 25.7m
Efficiency

Earnings Waterfall
Chemring Group PLC

Revenue
696m GBP
Operating Expenses
-611.7m GBP
Operating Income
84.3m GBP
Other Expenses
-62.5m GBP
Net Income
21.8m GBP

Free Cash Flow Analysis
Chemring Group PLC

Last Value
3-Years Average
FCF Margin
Conversion Rate
Earnings Calls

The company reported an 8% increase in revenue to GBP 223 million despite weather challenges and an FX headwind. Their order book saw a record 39% growth to over GBP 1 billion. Operational issues in Tennessee led to a 22% drop in operating profit. However, the company plans to invest GBP 200 million in expanding its Norwegian facility, supported by GBP 90 million in grants. They maintain a forecast to achieve annual revenues of GBP 1 billion by 2030. The strong cash conversion of 83% and the 2.6p interim dividend, up 13%, underscore robust financial health and confidence in future growth .

What is Earnings Call?
Fundamental Scores

CHG Profitability Score
Profitability Due Diligence

Chemring Group PLC's profitability score is 54/100. The higher the profitability score, the more profitable the company is.

Positive 3-Years Revenue Growth
Positive Free Cash Flow
Positive Revenue Growth Forecast
ROIC is Increasing
54/100
Profitability
Score

Chemring Group PLC's profitability score is 54/100. The higher the profitability score, the more profitable the company is.

CHG Solvency Score
Solvency Due Diligence

Chemring Group PLC's solvency score is 71/100. The higher the solvency score, the more solvent the company is.

High Interest Coverage
High Altman Z-Score
Low D/E
Long-Term Solvency
71/100
Solvency
Score

Chemring Group PLC's solvency score is 71/100. The higher the solvency score, the more solvent the company is.

Wall St
Price Targets

CHG Price Targets Summary
Chemring Group PLC

Wall Street analysts forecast CHG stock price to rise over the next 12 months.

According to Wall Street analysts, the average 1-year price target for CHG is 481.44 GBX with a low forecast of 454.5 GBX and a high forecast of 525 GBX.

Lowest
Price Target
454.5 GBX
26% Upside
Average
Price Target
481.44 GBX
34% Upside
Highest
Price Target
525 GBX
46% Upside
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Dividends

Dividend Yield
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Dividend Per Share
N/A
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Growth 5Y
Growth 10Y
Dividend Safety Score
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0
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Shareholder Yield

Current shareholder yield for CHG is .

Shareholder yield represents the total return a company provides to its shareholders, calculated as the sum of dividend yield, buyback yield, and debt paydown yield. What is shareholder yield?

Shareholder Yield
Dividend Yield
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Buyback Yield
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Debt Paydown Yield
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Profile

Chemring Group PLC

Country

United Kingdom

Industry

Aerospace & Defense

Market Cap

982.7m GBP

Dividend Yield

2%

Description

Chemring Group Plc engages in the manufacture of technology products and services for the aerospace, defense, and security markets. The firm is engaged in developing critical solutions that protect and safeguard its customer's needs. The firm offers its solutions to defense organizations and security agencies, as well as commercial markets such as space and transport. The firm operates through two segments: Sensors & Information, and Countermeasures & Energetics. Its Sensors & Information segment is engaged in the development and manufacture of explosive hazard detection (EHD) equipment, chemical and biological threat detection equipment, electronic countermeasures and network protection technologies. Its Countermeasures & Energetics segment is engaged in the development and manufacture of expendable countermeasures for air and sea platforms, cartridge/propellant actuated devices, pyrotechnic devices for satellite launch and deployment, missile components, propellants, separation sub-systems, actuators and energetic materials.

Contact

Romsey
Roke Manor, Old Salisbury Lane, Hampshire
+441794833901.0
www.chemring.co.uk

IPO

1986-01-06

Employees

2 300

Officers

Group Chief Executive & Director
Mr. Michael Ord
Group Legal Director, Company Secretary & Executive Director
Ms. Sarah Louise Ellard FCIS
CFO & Director
Mr. James Mortensen
President of US Operations
Mr. Bill Currer
Managing Director of Nobel
Helge Husby
Group HSE Director
Mr. Steven Messam

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Discover More
What is the Intrinsic Value of one CHG stock?

The intrinsic value of one CHG stock under the Base Case scenario is 554.4 GBX.

Is CHG stock undervalued or overvalued?

Compared to the current market price of 360.5 GBX, Chemring Group PLC is Undervalued by 35%.

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