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CHG

Chemring GroupLSE:CHG Stock Report

Market Cap

UK£768.3m

7D

-7.8%

1Y

6.7%

Updated

30 Nov, 2021

Data

Company Financials +
CHG fundamental analysis
Snowflake Score
Valuation3/6
Future Growth2/6
Past Performance3/6
Financial Health6/6
Dividends3/6

CHG Stock Overview

Chemring Group PLC supplies countermeasures, sensors, and energetic solutions to aerospace, defense, and security industries in the United States, the United Kingdom, Norway, Australia, and internationally.

Chemring Group Competitors

Cohort

AIM:CHRT

UK£245.2m

Boeing

NYSE:BA

US$116.3b

Lockheed Martin

NYSE:LMT

US$91.9b

Northrop Grumman

NYSE:NOC

US$55.3b

Price History & Performance

Summary of all time highs, changes and price drops for Chemring Group
Historical stock prices
Current Share PriceUK£2.72
52 Week HighUK£3.46
52 Week LowUK£2.40
Beta0.63
1 Month Change-7.01%
3 Month Change-17.07%
1 Year Change6.67%
3 Year Change61.33%
5 Year Change62.87%
Change since IPO666.20%

Recent News & Updates

Sep 28
Is Chemring Group PLC (LON:CHG) Trading At A 37% Discount?

Is Chemring Group PLC (LON:CHG) Trading At A 37% Discount?

In this article we are going to estimate the intrinsic value of Chemring Group PLC ( LON:CHG ) by taking the forecast...

Aug 05
Chemring Group's (LON:CHG) Shareholders Will Receive A Bigger Dividend Than Last Year

Chemring Group's (LON:CHG) Shareholders Will Receive A Bigger Dividend Than Last Year

Chemring Group PLC ( LON:CHG ) has announced that it will be increasing its dividend on the 10th of September to...

Jul 06
Here's Why Chemring Group (LON:CHG) Can Manage Its Debt Responsibly

Here's Why Chemring Group (LON:CHG) Can Manage Its Debt Responsibly

Warren Buffett famously said, 'Volatility is far from synonymous with risk.' It's only natural to consider a company's...

Shareholder Returns

CHGGB Aerospace & DefenseGB Market
7D-7.8%-3.1%-2.6%
1Y6.7%11.2%10.9%

Return vs Industry: CHG underperformed the UK Aerospace & Defense industry which returned 14.3% over the past year.

Return vs Market: CHG underperformed the UK Market which returned 13.8% over the past year.

Price Volatility

Is CHG's price volatile compared to industry and market?
CHG volatility
CHG Average Weekly Movement3.4%
Aerospace & Defense Industry Average Movement4.3%
Market Average Movement4.9%
10% most volatile stocks in GB Market9.8%
10% least volatile stocks in GB Market2.5%

Stable Share Price: CHG is less volatile than 75% of UK stocks over the past 3 months, typically moving +/- 3% a week.

Volatility Over Time: CHG's weekly volatility (3%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
19052,300Michael Ordhttps://www.chemring.co.uk

Chemring Group PLC supplies countermeasures, sensors, and energetic solutions to aerospace, defense, and security industries in the United States, the United Kingdom, Norway, Australia, and internationally. The company operates through two segments, Sensors & Information and Countermeasures & Energetics. The Sensors & Information segment develops and manufactures explosive hazard detection equipment; chemical and biological threat detection equipment; and electronic countermeasures, as well as network protection technologies.

Chemring Group Fundamentals Summary

How do Chemring Group's earnings and revenue compare to its market cap?
CHG fundamental statistics
Market CapUK£768.33m
Earnings (TTM)UK£39.80m
Revenue (TTM)UK£410.00m

19.3x

P/E Ratio

1.9x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
CHG income statement (TTM)
RevenueUK£410.00m
Cost of RevenueUK£136.10m
Gross ProfitUK£273.90m
ExpensesUK£234.10m
EarningsUK£39.80m

Last Reported Earnings

Apr 30, 2021

Next Earnings Date

Dec 14, 2021

Earnings per share (EPS)0.14
Gross Margin66.80%
Net Profit Margin9.71%
Debt/Equity Ratio11.3%

How did CHG perform over the long term?

See historical performance and comparison

Dividends

1.5%

Current Dividend Yield

30%

Payout Ratio

Valuation

Is Chemring Group undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: CHG (£2.72) is trading below our estimate of fair value (£5.82)

Significantly Below Fair Value: CHG is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: CHG is good value based on its PE Ratio (19.3x) compared to the UK Aerospace & Defense industry average (26.5x).

PE vs Market: CHG is poor value based on its PE Ratio (19.3x) compared to the UK market (19x).


Price to Earnings Growth Ratio

PEG Ratio: CHG is poor value based on its PEG Ratio (2.2x)


Price to Book Ratio

PB vs Industry: CHG's PB Ratio (2.3x) is in line with the GB Aerospace & Defense industry average.


Future Growth

How is Chemring Group forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?

8.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CHG's forecast earnings growth (8.8% per year) is above the savings rate (0.9%).

Earnings vs Market: CHG's earnings (8.8% per year) are forecast to grow slower than the UK market (12.6% per year).

High Growth Earnings: CHG's earnings are forecast to grow, but not significantly.

Revenue vs Market: CHG's revenue (5.7% per year) is forecast to grow faster than the UK market (4.9% per year).

High Growth Revenue: CHG's revenue (5.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: CHG's Return on Equity is forecast to be low in 3 years time (12.5%).


Past Performance

How has Chemring Group performed over the past 5 years?

39.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CHG has high quality earnings.

Growing Profit Margin: CHG's current net profit margins (9.7%) are higher than last year (9.3%).


Past Earnings Growth Analysis

Earnings Trend: CHG has become profitable over the past 5 years, growing earnings by 39.6% per year.

Accelerating Growth: CHG's earnings growth over the past year (10.9%) is below its 5-year average (39.6% per year).

Earnings vs Industry: CHG earnings growth over the past year (10.9%) underperformed the Aerospace & Defense industry 13.6%.


Return on Equity

High ROE: CHG's Return on Equity (11.8%) is considered low.


Financial Health

How is Chemring Group's financial position?


Financial Position Analysis

Short Term Liabilities: CHG's short term assets (£143.2M) exceed its short term liabilities (£91.6M).

Long Term Liabilities: CHG's short term assets (£143.2M) exceed its long term liabilities (£81.0M).


Debt to Equity History and Analysis

Debt Level: CHG's net debt to equity ratio (10.2%) is considered satisfactory.

Reducing Debt: CHG's debt to equity ratio has reduced from 34.3% to 11.3% over the past 5 years.

Debt Coverage: CHG's debt is well covered by operating cash flow (145.1%).

Interest Coverage: CHG's interest payments on its debt are well covered by EBIT (22x coverage).


Balance Sheet


Dividend

What is Chemring Group current dividend yield, its reliability and sustainability?

1.54%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: CHG's dividend (1.54%) is higher than the bottom 25% of dividend payers in the UK market (1.37%).

High Dividend: CHG's dividend (1.54%) is low compared to the top 25% of dividend payers in the UK market (4.17%).


Stability and Growth of Payments

Stable Dividend: CHG's dividend payments have been volatile in the past 10 years.

Growing Dividend: CHG's dividend payments have fallen over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (29.7%), CHG's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: CHG's dividends in 3 years are forecast to be well covered by earnings (37.7% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

3.3yrs

Average management tenure


CEO

Michael Ord

3.33yrs

Tenure

UK£1,045,000

Compensation

Mr. Michael Ord has been Group Chief Executive at Chemring Group PLC since July 01, 2018 and Director since June 1, 2018. Prior to joining Chemring, Michael worked for BAE Systems, where he held a number o...


CEO Compensation Analysis

Compensation vs Market: Michael's total compensation ($USD1.38M) is above average for companies of similar size in the UK market ($USD1.03M).

Compensation vs Earnings: Michael's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: CHG's management team is considered experienced (3.3 years average tenure).


Board Members

Experienced Board: CHG's board of directors are considered experienced (3.2 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Chemring Group PLC's employee growth, exchange listings and data sources


Key Information

  • Name: Chemring Group PLC
  • Ticker: CHG
  • Exchange: LSE
  • Founded: 1905
  • Industry: Aerospace and Defense
  • Sector: Capital Goods
  • Market Cap: UK£768.329m
  • Shares outstanding: 282.47m
  • Website: https://www.chemring.co.uk

Number of Employees


Location

  • Chemring Group PLC
  • Roke Manor
  • Old Salisbury Lane
  • Romsey
  • Hampshire
  • SO51 0ZN
  • United Kingdom

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/11/30 21:36
End of Day Share Price2021/11/30 00:00
Earnings2021/04/30
Annual Earnings2020/10/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.