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Chemring Group

LSE:CHG
Snowflake Description

Excellent balance sheet with reasonable growth potential.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
CHG
LSE
£510M
Market Cap
  1. Home
  2. GB
  3. Capital Goods
Company description

Chemring Group PLC manufactures and supplies technology electronics and energetic products for defense and security agencies, and defense prime contractors in the United States, the United Kingdom, Australia, and Norway. The last earnings update was 43 days ago. More info.


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CHG Share Price and Events
7 Day Returns
0.9%
LSE:CHG
4.3%
GB Aerospace & Defense
0.3%
GB Market
1 Year Returns
-20.4%
LSE:CHG
-17%
GB Aerospace & Defense
-1.9%
GB Market
CHG Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Chemring Group (CHG) 0.9% 1.8% 20.9% -20.4% 33.6% -11%
GB Aerospace & Defense 4.3% 5.8% 5% -17% -0.8% -3.1%
GB Market 0.3% 1.9% 0.4% -1.9% 11.4% 6.7%
1 Year Return vs Industry and Market
  • CHG underperformed the Aerospace & Defense industry which returned -17% over the past year.
  • CHG underperformed the Market in United Kingdom of Great Britain and Northern Ireland which returned -1.9% over the past year.
Price Volatility
CHG
Industry
5yr Volatility vs Market

CHG Value

 Is Chemring Group undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Chemring Group to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Chemring Group.

LSE:CHG Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 5 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 7.9%
Perpetual Growth Rate 10-Year GB Government Bond Rate 1.2%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for LSE:CHG
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year GB Govt Bond Rate 1.2%
Equity Risk Premium S&P Global 6.7%
Aerospace & Defense Unlevered Beta Simply Wall St/ S&P Global 0.88
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.876 (1 + (1- 19%) (17.74%))
1.001
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 1.23% + (1.001 * 6.65%)
7.88%

Discounted Cash Flow Calculation for LSE:CHG using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Chemring Group is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

LSE:CHG DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (GBP, Millions) Source Present Value
Discounted (@ 7.88%)
2020 15.20 Analyst x4 14.09
2021 21.75 Analyst x2 18.69
2022 22.79 Est @ 4.79% 18.15
2023 23.64 Est @ 3.72% 17.45
2024 24.34 Est @ 2.97% 16.66
2025 24.94 Est @ 2.45% 15.82
2026 25.46 Est @ 2.08% 14.97
2027 25.92 Est @ 1.83% 14.13
2028 26.35 Est @ 1.65% 13.31
2029 26.75 Est @ 1.52% 12.53
Present value of next 10 years cash flows £155.78
LSE:CHG DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= £26.75 × (1 + 1.23%) ÷ (7.88% – 1.23%)
£406.79
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= £406.79 ÷ (1 + 7.88%)10
£190.46
LSE:CHG Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= £155.78 + £190.46
£346.24
Equity Value per Share
(GBP)
= Total value / Shares Outstanding
= £346.24 / 280.04
£1.24
LSE:CHG Discount to Share Price
Calculation Result
Value per share (GBP) From above. £1.24
Current discount Discount to share price of £1.82
= -1 x (£1.82 - £1.24) / £1.24
-47.2%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of Chemring Group is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Chemring Group's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Chemring Group's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
LSE:CHG PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-04-30) in GBP £-0.07
LSE:CHG Share Price ** LSE (2019-07-18) in GBP £1.82
United Kingdom of Great Britain and Northern Ireland Aerospace & Defense Industry PE Ratio Median Figure of 10 Publicly-Listed Aerospace & Defense Companies 20.79x
United Kingdom of Great Britain and Northern Ireland Market PE Ratio Median Figure of 791 Publicly-Listed Companies 16.52x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Chemring Group.

LSE:CHG PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= LSE:CHG Share Price ÷ EPS (both in GBP)

= 1.82 ÷ -0.07

-27.84x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Chemring Group is loss making, we can't compare its value to the GB Aerospace & Defense industry average.
  • Chemring Group is loss making, we can't compare the value of its earnings to the United Kingdom of Great Britain and Northern Ireland market.
Price based on expected Growth
Does Chemring Group's expected growth come at a high price?
Raw Data
LSE:CHG PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section -27.84x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 5 Analysts
47.7%per year
United Kingdom of Great Britain and Northern Ireland Aerospace & Defense Industry PEG Ratio Median Figure of 8 Publicly-Listed Aerospace & Defense Companies 2.04x
United Kingdom of Great Britain and Northern Ireland Market PEG Ratio Median Figure of 572 Publicly-Listed Companies 1.43x

*Line of best fit is calculated by linear regression .

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to calculate PEG ratio for Chemring Group, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on Chemring Group's assets?
Raw Data
LSE:CHG PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-04-30) in GBP £1.01
LSE:CHG Share Price * LSE (2019-07-18) in GBP £1.82
United Kingdom of Great Britain and Northern Ireland Aerospace & Defense Industry PB Ratio Median Figure of 13 Publicly-Listed Aerospace & Defense Companies 2.1x
United Kingdom of Great Britain and Northern Ireland Market PB Ratio Median Figure of 1,377 Publicly-Listed Companies 1.51x
LSE:CHG PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= LSE:CHG Share Price ÷ Book Value per Share (both in GBP)

= 1.82 ÷ 1.01

1.8x

* Primary Listing of Chemring Group.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Chemring Group is good value based on assets compared to the GB Aerospace & Defense industry average.
X
Value checks
We assess Chemring Group's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Aerospace & Defense industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Aerospace & Defense industry average (and greater than 0)? (1 check)
  5. Chemring Group has a total score of 1/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

CHG Future Performance

 How is Chemring Group expected to perform in the next 1 to 3 years based on estimates from 5 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
47.7%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Chemring Group expected to grow at an attractive rate?
  • Chemring Group's earnings growth is expected to exceed the low risk savings rate of 1.2%.
Growth vs Market Checks
  • Chemring Group's earnings growth is expected to exceed the United Kingdom of Great Britain and Northern Ireland market average.
  • Chemring Group's revenue growth is expected to exceed the United Kingdom of Great Britain and Northern Ireland market average.
Annual Growth Rates Comparison
Raw Data
LSE:CHG Future Growth Rates Data Sources
Data Point Source Value (per year)
LSE:CHG Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 5 Analysts 47.7%
LSE:CHG Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 5 Analysts 7.6%
United Kingdom of Great Britain and Northern Ireland Aerospace & Defense Industry Earnings Growth Rate Market Cap Weighted Average 12.5%
United Kingdom of Great Britain and Northern Ireland Aerospace & Defense Industry Revenue Growth Rate Market Cap Weighted Average 5.2%
United Kingdom of Great Britain and Northern Ireland Market Earnings Growth Rate Market Cap Weighted Average 11%
United Kingdom of Great Britain and Northern Ireland Market Revenue Growth Rate Market Cap Weighted Average 4.8%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
LSE:CHG Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 5 Analyst Estimates (S&P Global) See Below
All numbers in GBP Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
LSE:CHG Future Estimates Data
Date (Data in GBP Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2022-10-31 429 37 1
2021-10-31 401 63 28 5
2020-10-31 381 63 25 5
2019-10-31 351 53 19 5
LSE:CHG Past Financials Data
Date (Data in GBP Millions) Revenue Cash Flow Net Income *
2019-04-30 304 49 -18
2019-01-31 301 42 -30
2018-10-31 297 36 -41
2018-04-30 191 62 -20
2018-01-31 249 47 -12
2017-10-31 307 32 -4
2017-07-31 427 43 6
2017-04-30 547 54 16
2017-01-31 512 59 11
2016-10-31 477 65 7
2016-07-31 436 40 0

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Chemring Group's earnings are expected to grow significantly at over 20% yearly.
  • Chemring Group's revenue is expected to grow by 7.6% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
LSE:CHG Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 5 Analyst Estimates (S&P Global) See Below

All data from Chemring Group Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

LSE:CHG Future Estimates Data
Date (Data in GBP Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2022-10-31
2021-10-31 0.12 0.12 0.11 2.00
2020-10-31 0.11 0.11 0.10 3.00
2019-10-31 0.07 0.07 0.07 2.00
LSE:CHG Past Financials Data
Date (Data in GBP Millions) EPS *
2019-04-30 -0.07
2019-01-31 -0.11
2018-10-31 -0.15
2018-04-30 -0.07
2018-01-31 -0.04
2017-10-31 -0.02
2017-07-31 0.02
2017-04-30 0.06
2017-01-31 0.04
2016-10-31 0.02
2016-07-31 0.00

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Chemring Group is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Chemring Group's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United Kingdom of Great Britain and Northern Ireland market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United Kingdom of Great Britain and Northern Ireland market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Chemring Group has a total score of 4/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

CHG Past Performance

  How has Chemring Group performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Chemring Group's growth in the last year to its industry (Aerospace & Defense).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Chemring Group does not make a profit and their year on year earnings growth rate was negative over the past 5 years.
  • Unable to compare Chemring Group's 1-year earnings growth to the 5-year average as it is not currently profitable.
  • Unable to compare Chemring Group's 1-year growth to the GB Aerospace & Defense industry average as it is not currently profitable.
Earnings and Revenue History
Chemring Group's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Chemring Group Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

LSE:CHG Past Revenue, Cash Flow and Net Income Data
Date (Data in GBP Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-04-30 303.60 -18.30 113.30 40.80
2019-01-31 300.50 -29.55 113.85 40.80
2018-10-31 297.40 -40.80 114.40 40.80
2018-04-30 190.60 -19.90 118.50 47.90
2018-01-31 248.85 -12.10 118.35 47.90
2017-10-31 307.10 -4.30 118.20 47.90
2017-07-31 426.85 5.85 131.40 49.50
2017-04-30 546.60 16.00 144.60 51.10
2017-01-31 511.85 11.25 144.10 51.10
2016-10-31 477.10 6.50 143.60 51.10
2016-07-31 436.40 -0.45 107.45 25.55
2016-04-30 395.70 -7.40 71.30
2016-01-31 386.50 -6.35 71.30
2015-10-31 377.30 -5.30 71.30
2015-07-31 366.65 -11.10 76.20
2015-04-30 356.00 -16.90 81.10
2015-01-31 379.55 -9.15 81.10
2014-10-31 403.10 -1.40 81.10
2014-07-31 429.40 -22.70 86.45
2014-04-30 455.70 -44.00 91.80
2014-01-31 464.00 -49.80 91.80
2013-10-31 472.30 -55.60 91.80
2013-07-31 552.35 -32.65 96.05
2013-04-30 632.40 -9.70 100.30
2013-01-31 686.35 1.75 100.30
2012-10-31 740.30 13.20 100.30
2012-07-31 739.20 35.10 89.40

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • It is difficult to establish if Chemring Group has efficiently used shareholders’ funds last year (Return on Equity greater than 20%) as it is loss-making.
  • It is difficult to establish if Chemring Group has efficiently used its assets last year compared to the GB Aerospace & Defense industry average (Return on Assets) as it is loss-making.
  • It is difficult to establish if Chemring Group improved its use of capital last year versus 3 years ago (Return on Capital Employed) as it is currently loss-making.
X
Past performance checks
We assess Chemring Group's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Aerospace & Defense industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Chemring Group has a total score of 0/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

CHG Health

 How is Chemring Group's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Chemring Group's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Chemring Group's short term (1 year) commitments are greater than its holdings of cash and other short term assets.
  • Chemring Group's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Chemring Group's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is covered by short term assets, assets are 1.7x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Chemring Group Company Filings, last reported 2 months ago.

LSE:CHG Past Debt and Equity Data
Date (Data in GBP Millions) Total Equity Total Debt Cash & Short Term Investments
2019-04-30 283.00 90.40 6.40
2019-01-31 283.00 90.40 6.40
2018-10-31 294.20 91.40 9.60
2018-04-30 375.10 85.10 0.50
2018-01-31 375.10 85.10 0.50
2017-10-31 401.20 113.60 33.60
2017-07-31 401.20 113.60 33.60
2017-04-30 396.70 116.60 5.00
2017-01-31 396.70 116.60 5.00
2016-10-31 413.40 150.60 63.10
2016-07-31 413.40 150.60 63.10
2016-04-30 360.20 124.70 10.50
2016-01-31 360.20 124.70 10.50
2015-10-31 290.60 161.40 7.60
2015-07-31 290.60 161.40 7.60
2015-04-30 295.50 161.00 13.40
2015-01-31 295.50 161.00 13.40
2014-10-31 300.30 156.00 21.80
2014-07-31 300.30 156.00 21.80
2014-04-30 301.60 247.70 14.90
2014-01-31 301.60 247.70 14.90
2013-10-31 383.80 262.40 14.20
2013-07-31 383.80 262.40 14.20
2013-04-30 441.80 297.20 25.90
2013-01-31 441.80 297.20 25.90
2012-10-31 433.50 338.60 96.00
2012-07-31 433.50 338.60 96.00
  • Chemring Group's level of debt (31.9%) compared to net worth is satisfactory (less than 40%).
  • The level of debt compared to net worth has been reduced over the past 5 years (82.5% vs 31.9% today).
CASH RUNWAY ANALYSIS

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

  • Whilst loss making Chemring Group has sufficient cash runway for more than 3 years if it maintains the current positive free cash flow level.
  • Whilst loss making Chemring Group has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 10.1% per year.
X
Financial health checks
We assess Chemring Group's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Chemring Group has a total score of 5/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

CHG Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
1.81%
Current annual income from Chemring Group dividends. Estimated to be 2.27% next year.
If you bought £2,000 of Chemring Group shares you are expected to receive £36 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Chemring Group's pays a lower dividend yield than the bottom 25% of dividend payers in United Kingdom of Great Britain and Northern Ireland (1.94%).
  • Chemring Group's dividend is below the markets top 25% of dividend payers in United Kingdom of Great Britain and Northern Ireland (5.46%).
Upcoming dividend payment

Purchase Chemring Group before the 'Buy Limit' to receive their next dividend payment.

Dividends are usually paid every 3 or 6 months, you can time your share purchase to take advantage of upcoming dividend payments.
Dividend payment calendar
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
LSE:CHG Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 5 Analyst Estimates (S&P Global) See Below
United Kingdom of Great Britain and Northern Ireland Aerospace & Defense Industry Average Dividend Yield Market Cap Weighted Average of 9 Stocks 3.7%
United Kingdom of Great Britain and Northern Ireland Market Average Dividend Yield Market Cap Weighted Average of 706 Stocks 4.2%
United Kingdom of Great Britain and Northern Ireland Minimum Threshold Dividend Yield 10th Percentile 1%
United Kingdom of Great Britain and Northern Ireland Bottom 25% Dividend Yield 25th Percentile 1.9%
United Kingdom of Great Britain and Northern Ireland Top 25% Dividend Yield 75th Percentile 5.5%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

LSE:CHG Future Dividends Estimate Data
Date (Data in £) Dividend per Share (annual) Avg. No. Analysts
2022-10-31 0.05 1.00
2021-10-31 0.04 5.00
2020-10-31 0.04 5.00
2019-10-31 0.04 5.00
LSE:CHG Past Annualized Dividends Data
Date (Data in £) Dividend per share (annual) Avg. Yield (%)
2019-02-18 0.033 2.092
2019-01-17 0.033 2.189
2018-02-15 0.030 1.517
2018-01-18 0.030 1.578
2017-06-22 0.010 0.564
2017-02-14 0.013 0.682
2017-01-19 0.013 0.686
2016-06-21 0.000 0.000
2016-01-21 0.000 0.000
2015-06-23 0.041 2.010
2015-01-22 0.041 1.867
2014-02-20 0.072 3.147
2014-01-23 0.072 2.833
2013-06-18 0.076 2.990
2013-01-24 0.095 3.459
2012-02-21 0.148 4.813
2012-01-24 0.148 3.626
2011-01-18 0.118 2.143
2010-01-19 0.100 1.618
2009-11-02 0.100 1.777
2009-06-23 0.078 1.738
2009-01-20 0.070 1.702

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dividends per share have been volatile in the past 10 years (annual drop of over 20%).
  • Dividends per share have fallen over the past 10 years.
Current Payout to shareholders
What portion of Chemring Group's earnings are paid to the shareholders as a dividend.
  • The company is paying a dividend however it is incurring a loss.
Future Payout to shareholders
  • Dividends after 3 years are expected to be well covered by earnings (3.3x coverage).
X
Income/ dividend checks
We assess Chemring Group's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Chemring Group afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Chemring Group has a total score of 1/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

CHG Management

 What is the CEO of Chemring Group's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Michael Ord
COMPENSATION £364,200
TENURE AS CEO 1 years
CEO Bio

Mr. Michael Ord has been Group Chief Executive and Director at Chemring Group PLC since June 1, 2018. Prior to joining Chemring, Michael worked for BAE Systems, where he held a number of senior roles across air, land and sea platforms, including Managing Director of the BAE Systems Naval Ships business and Managing Director of the BAE Systems F-35 Joint Strike Fighter business. Prior to his move into industry in 1996, Michael had a successful career in the Royal Navy, where he served as a Commissioned Officer for twelve years in a number of engineering management roles. On completion of his service career, he joined Westland Helicopters spending two years managing military and civil helicopter programmes. In 1999 he joined the British Aerospace Military Aircraft business where he held a number of programme management, engineering and commercial leadership roles. Michael Ord was educated in Northumberland and the Royal Naval Engineering College, Plymouth, graduating in Aeronautical Systems Engineering and is a Chartered Engineer with the UK Engineering Council. Michael completed post-graduate management studies at Manchester Business School, and in 2017 he completed Harvard Business School’s Advanced Management Programme.

CEO Compensation
  • Insufficient data for Michael to compare compensation growth.
  • Michael's remuneration is lower than average for companies of similar size in United Kingdom of Great Britain and Northern Ireland.
Management Team Tenure

Average tenure of the Chemring Group management team in years:

0.9
Average Tenure
  • The average tenure for the Chemring Group management team is less than 2 years, this suggests a new team.
Management Team

Michael Ord

TITLE
Group Chief Executive & Director
COMPENSATION
£364K
TENURE
1 yrs

Andrew Lewis

TITLE
Group Finance Director & Director
COMPENSATION
£476K
AGE
48
TENURE
2.5 yrs

Sarah Ellard

TITLE
Group Legal Director
COMPENSATION
£434K
AGE
48
TENURE
7.8 yrs

Ian Johns

TITLE
Group Operations Director
TENURE
0.7 yrs

Clancy Murphy

TITLE
Chief People Officer
TENURE
0.7 yrs

Bill Currer

TITLE
President of CHG Group
TENURE
0.8 yrs

Simon Darling

TITLE
Managing Director of Chemring Countermeasures - UK
Board of Directors Tenure

Average tenure and age of the Chemring Group board of directors in years:

3
Average Tenure
56.5
Average Age
  • The tenure for the Chemring Group board of directors is about average.
Board of Directors

Carl-Peter Forster

TITLE
Non-Executive Chairman
COMPENSATION
£200K
AGE
65
TENURE
3 yrs

Michael Ord

TITLE
Group Chief Executive & Director
COMPENSATION
£364K
TENURE
1.1 yrs

Andrew Lewis

TITLE
Group Finance Director & Director
COMPENSATION
£476K
AGE
48
TENURE
2.5 yrs

Sarah Ellard

TITLE
Group Legal Director
COMPENSATION
£434K
AGE
48
TENURE
7.8 yrs

Nigel Young

TITLE
Senior Independent Non-Executive Director
COMPENSATION
£65K
AGE
65
TENURE
3.3 yrs

Andrew O. Davies

TITLE
Independent Non-Executive Director
COMPENSATION
£55K
AGE
55
TENURE
3.2 yrs

Stephen King

TITLE
Non-Executive Director
AGE
58
TENURE
0.6 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month individual insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (£) Value (£)
10. Apr 19 Sell Sarah Ellard Individual 10. Apr 19 10. Apr 19 -12,600 £1.44 £-18,194
18. Jan 19 Buy Edmund Moriz Forster Individual 17. Jan 19 17. Jan 19 10,000 £1.65 £16,460
X
Management checks
We assess Chemring Group's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Chemring Group has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

CHG News

Simply Wall St News

Calculating The Fair Value Of Chemring Group PLC (LON:CHG)

In this article we are going to estimate the intrinsic value of Chemring Group PLC (LON:CHG) by taking the expected future cash flows and discounting them to today's value. … Generally we assume that a dollar today is more valuable than a dollar in the future, so we need to discount the sum of these future cash flows to arrive at a present value estimate: 10-year free cash flow (FCF) estimate 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 Levered FCF (£, Millions) £5.50 £21.67 £30.25 £34.27 £37.58 £40.26 £42.42 £44.17 £45.61 £46.82 Growth Rate Estimate Source Analyst x2 Analyst x3 Analyst x2 Est @ 13.29% Est @ 9.67% Est @ 7.14% Est @ 5.36% Est @ 4.12% Est @ 3.25% Est @ 2.65% Present Value (£, Millions) Discounted @ 7.93% £5.10 £18.60 £24.06 £25.25 £25.66 £25.47 £24.86 £23.98 £22.94 £21.82 Present Value of 10-year Cash Flow (PVCF)= £217.73m "Est" = FCF growth rate estimated by Simply Wall St After calculating the present value of future cash flows in the intial 10-year period, we need to calculate the Terminal Value, which accounts for all future cash flows beyond the first stage. … Terminal Value (TV) = FCF2029 × (1 + g) ÷ (r – g) = UK£47m × (1 + 1.2%) ÷ (7.9% – 1.2%) = UK£707m Present Value of Terminal Value (PVTV) = TV / (1 + r)10 = £UK£707m ÷ ( 1 + 7.9%)10 = £329.30m The total value, or equity value, is then the sum of the present value of the future cash flows, which in this case is £547.03m.

Simply Wall St -

Chemring Group PLC (LON:CHG) Is Yielding 2.1% - But Is It A Buy?

Is Chemring Group PLC (LON:CHG) a good dividend stock? How would you know? Dividend paying companies with growing earnings can be highly rewarding in the long term. On the other hand, investors have been known to buy a stock because of its yield, and then lose money if the company's dividend doesn't live up to expectations. A slim 2.1% yield is hard to get excited about, but the long payment history is respectable. At the right price, or with strong growth opportunities, Chemring Group could have potential. Before you buy any stock for its dividend however, you should always remember Warren Buffett's two rules: 1) Don't lose money, and 2) Remember rule #1. … Although it reported a loss over the past 12 months, Chemring Group currently pays a dividend. … Chemring Group has been paying dividends for a long time, but for the purpose of this analysis, we only examine the past 10 years of payments.

Simply Wall St -

Chemring Group PLC (LON:CHG) Has Attractive Fundamentals

Chemring Group PLC (LON:CHG) is a stock with outstanding fundamental characteristics. … When we build an investment case, we need to look at the stock with a holistic perspective. … In the case of CHG, it

Simply Wall St -

Imagine Owning Chemring Group (LON:CHG) And Wondering If The 41% Share Price Slide Is Justified

At this point some shareholders may be questioning their investment in Chemring Group PLC (LON:CHG), since the last five years saw the share price fall 41%. … Chemring Group isn't a profitable company, so it is unlikely we'll see a strong correlation between its share price and its earnings per share (EPS). … Given the weak growth, the share price fall of 10% isn't particularly surprising.

Simply Wall St -

Calculating The Fair Value Of Chemring Group PLC (LON:CHG)

by taking the expected future cash flows and discounting them to today's value. … discounted cash flows (DCF) … If you want to learn more about discounted cash flow, the basis for my calcs can be read in detail in the Simply Wall St analysis model.

Simply Wall St -

Is Chemring Group PLC (LON:CHG) A Financially Sound Company?

While small-cap stocks, such as Chemring Group PLC (LON:CHG) with its market cap of UK£426m, are popular for their explosive growth, investors should also be aware of their balance sheet to judge whether the company can survive a downturn. … the current state of its operations and pathway to profitability.

Simply Wall St -

Should You Buy Chemring Group PLC (LON:CHG) For Its Dividend?

Historically, Chemring Group PLC (LON:CHG) has paid dividends to shareholders, and these days it yields 1.9%. … Does Chemring Group tick all the boxes of a great dividend stock? … Check out our latest analysis for Chemring Group

Simply Wall St -

What Should Investors Know About Chemring Group plc's (LON:CHG) Capital Returns?

and want to better understand how you can grow your money by investing in Chemring Group plc (LON:CHG). … This is because the actual cash flow generated by the business dictates the potential for income (dividends) and capital appreciation (price increases), which are the two ways to achieve positive returns when buying a stock. … Therefore, looking at how efficiently Chemring Group is able to use capital to create earnings will help us understand your potential return.

Simply Wall St -

Estimating The Fair Value Of Chemring Group plc (LON:CHG)

In this article I am going to calculate the intrinsic value of Chemring Group plc (LON:CHG). … by projecting its future cash flows and then discounting them to today's value. … Anyone interested in learning a bit more about intrinsic value should have a read of the Simply Wall St analysis model

Simply Wall St -

Estimating The Fair Value Of Chemring Group plc (LON:CHG)

In this article I am going to calculate the intrinsic value of Chemring Group plc (LON:CHG). … by projecting its future cash flows and then discounting them to today's value. … Anyone interested in learning a bit more about intrinsic value should have a read of the Simply Wall St analysis model

Simply Wall St -

CHG Company Info

Description

Chemring Group PLC manufactures and supplies technology electronics and energetic products for defense and security agencies, and defense prime contractors in the United States, the United Kingdom, Australia, and Norway. It operates through three segments: Countermeasures, Sensors, and Energetic. The Countermeasures segment designs, develops, manufactures, and sells expendable countermeasures for protecting air, sea, and land platforms; and land–based electronic warfare equipment. This segment’s products include conventional and advanced flares, special material decoys, and chaffs, as well as RF and IR naval decoys, and naval decoy launchers. The Sensors segment develops, manufactures, and sells improvised explosive device (IED) detection equipment, chemical and biological threat detection equipment, IED electronic countermeasures, network protection technologies, and explosive ordnance disposal equipment. This segment also provides under-vehicle surveillance systems, remote initiators, detonators, explosive charges, recoilless de-armers/disruptors, electronic intelligence equipment, and lawful intercept equipment. The Energetic segment develops, procures, manufactures, and sells signals and illumination devices and payloads, cartridge/propellant actuated devices, pyrotechnic devices for satellite launch and deployment, missile and ammunition components, propellants, warheads, fuses, separation sub–systems, actuators, and energetic materials. The company also exports its products worldwide. Chemring Group PLC was founded in 1905 and is headquartered in Romsey, the United Kingdom.

Details
Name: Chemring Group PLC
CHG
Exchange: LSE
Founded: 1905
£509,678,385
280,043,069
Website: http://www.chemring.co.uk
Address: Chemring Group PLC
Roke Manor,
Old Salisbury Lane,
Romsey,
Hampshire, SO51 0ZN,
United Kingdom
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
LSE CHG Ordinary Shares London Stock Exchange GB GBP 02. Jan 1992
OTCPK CMGM.F Ordinary Shares Pink Sheets LLC US USD 02. Jan 1992
DB CMN1 Ordinary Shares Deutsche Boerse AG DE EUR 02. Jan 1992
BATS-CHIXE CHGL Ordinary Shares BATS 'Chi-X Europe' GB GBP 02. Jan 1992
OTCPK CMGM.Y UNSPONSORD ADR Pink Sheets LLC US USD 13. Oct 2010
Number of employees
Current staff
Staff numbers
2,500
Chemring Group employees.
Industry
Aerospace and Defense
Capital Goods
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/07/18 20:35
End of day share price update: 2019/07/18 00:00
Last estimates confirmation: 2019/07/10
Last earnings filing: 2019/06/05
Last earnings reported: 2019/04/30
Last annual earnings reported: 2018/10/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.