AIM:CHH

Stock Analysis Report

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Executive Summary

Churchill China plc manufactures and sells ceramic and related products in the United Kingdom, rest of Europe, the United States, and internationally.


Snowflake Analysis

Flawless balance sheet with solid track record.

Share Price & News

How has Churchill China's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: CHH's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-2.2%

CHH

5.8%

GB Consumer Durables

3.0%

GB Market


1 Year Return

-21.1%

CHH

-3.0%

GB Consumer Durables

-11.7%

GB Market

Return vs Industry: CHH underperformed the UK Consumer Durables industry which returned -6% over the past year.

Return vs Market: CHH underperformed the UK Market which returned -12.8% over the past year.


Shareholder returns

CHHIndustryMarket
7 Day-2.2%5.8%3.0%
30 Day-14.3%-0.2%7.3%
90 Day-29.0%-27.2%-7.9%
1 Year-20.6%-21.1%1.5%-3.0%-7.4%-11.7%
3 Year30.0%23.3%4.6%-10.9%-4.7%-16.3%
5 Year133.4%111.5%31.7%1.2%14.1%-11.5%

Price Volatility Vs. Market

How volatile is Churchill China's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Churchill China undervalued compared to its fair value and its price relative to the market?

15.04x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: CHH (£12.43) is trading above our estimate of fair value (£11.41)

Significantly Below Fair Value: CHH is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: CHH is poor value based on its PE Ratio (15x) compared to the Consumer Durables industry average (8.7x).

PE vs Market: CHH is poor value based on its PE Ratio (15x) compared to the UK market (14.6x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate CHH's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: CHH is overvalued based on its PB Ratio (3.3x) compared to the GB Consumer Durables industry average (1x).


Next Steps

Future Growth

How is Churchill China forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

4.2%

Forecasted Consumer Durables industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Churchill China has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has Churchill China performed over the past 5 years?

19.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CHH has a high level of non-cash earnings.

Growing Profit Margin: CHH's current net profit margins (13.4%) are higher than last year (12.5%).


Past Earnings Growth Analysis

Earnings Trend: CHH's earnings have grown by 19.1% per year over the past 5 years.

Accelerating Growth: CHH's earnings growth over the past year (25.9%) exceeds its 5-year average (19.1% per year).

Earnings vs Industry: CHH earnings growth over the past year (25.9%) exceeded the Consumer Durables industry -6.6%.


Return on Equity

High ROE: CHH's Return on Equity (21.9%) is considered high.


Next Steps

Financial Health

How is Churchill China's financial position?


Financial Position Analysis

Short Term Liabilities: CHH's short term assets (£38.2M) exceed its short term liabilities (£12.1M).

Long Term Liabilities: CHH's short term assets (£38.2M) exceed its long term liabilities (£6.7M).


Debt to Equity History and Analysis

Debt Level: CHH is debt free.

Reducing Debt: CHH has not had any debt for past 5 years.

Debt Coverage: CHH has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: CHH has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet


Next Steps

Dividend

What is Churchill China's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate CHH's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate CHH's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if CHH's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if CHH's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: CHH is not paying a notable dividend for the UK market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of CHH's dividend in 3 years as they are not forecast to pay a notable one for the UK market.


Next Steps

Management

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

5.8yrs

Average management tenure


CEO

David O'Connor (62yo)

5.83yrs

Tenure

UK£810,499

Compensation

Mr. David M. O'Connor has been the Chief Executive Officer of Churchill China plc since August 15, 2014. Mr. O'Connor has been a consultant with WestfieldConsultants Group, an independent business consulti ...


CEO Compensation Analysis

Compensation vs Market: David's total compensation ($USD1.00M) is above average for companies of similar size in the UK market ($USD753.96K).

Compensation vs Earnings: David's compensation has increased by more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
David O'Connor
CEO & Executive Director5.83yrsUK£810.50k0.33% £448.7k
David J. Taylor
Finance Director27.42yrsUK£625.88k0.51% £690.3k
James Roper
Executive Director & Sales and Marketing Director4.92yrsUK£581.21k17.68% £24.1m
Ann Basnett
Human Resources Director of Churchill China (UK) Limitedno datano datano data

5.8yrs

Average Tenure

59yo

Average Age

Experienced Management: CHH's management team is seasoned and experienced (5.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
David O'Connor
CEO & Executive Director5.83yrsUK£810.50k0.33% £448.7k
David J. Taylor
Finance Director27.42yrsUK£625.88k0.51% £690.3k
James Roper
Executive Director & Sales and Marketing Director4.92yrsUK£581.21k17.68% £24.1m
Brendan Hynes
Senior Independent Non Executive Directorno dataUK£43.37k0.036% £49.7k
Alan McWalter
Independent Non-Executive Chairman7.08yrsUK£77.92k0.046% £62.1k
Andrew Roper
Non Executive Director5.83yrsUK£88.90k3.44% £4.7m
Angela Bromfield
Independent Non-Executive Director3.92yrsUK£43.37k0.0089% £12.2k

6.5yrs

Average Tenure

60.5yo

Average Age

Experienced Board: CHH's board of directors are considered experienced (6.5 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

Churchill China plc's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Churchill China plc
  • Ticker: CHH
  • Exchange: AIM
  • Founded: 1795
  • Industry: Housewares and Specialties
  • Sector: Consumer Durables
  • Market Cap: UK£136.502m
  • Shares outstanding: 10.99m
  • Website: https://www.churchill1795.com

Number of Employees


Location

  • Churchill China plc
  • No.1 Marlborough Way
  • Tunstall
  • Stoke-On-Trent
  • Staffordshire
  • ST6 5NZ
  • United Kingdom

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
CHHAIM (London Stock Exchange AIM Market)YesOrdinary SharesGBGBPNov 1994

Biography

Churchill China plc manufactures and sells ceramic and related products in the United Kingdom, rest of Europe, the United States, and internationally. It provides plates, bowls, trays and boards, crates and carriers, stands and risers, cookware, counter servingware, cups, mugs, saucers, beverage pots, jugs, chip mugs, dip pots and sauce dishes, lids, glassware, cutlery, utensils, and accessories. The company offers its products to pubs, restaurant and hotel chains, sports and conference venues, health and education establishments, and contract caterers. Churchill China plc was founded in 1795 and is headquartered in Stoke-on-Trent, the United Kingdom. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/06/01 21:25
End of Day Share Price2020/06/01 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


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.