| Melrose Industries PLC (GB00BNR5MZ78) | |||
5,25 GBXStand (close): 03.07.25 |
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| 24.06.25 12:00:00 | One Equity Partners Agrees to Sell BRUSH Group’s Power Distribution Business |  |
| NEW YORK, June 24, 2025--(BUSINESS WIRE)--One Equity Partners ("OEP"), a middle market private equity firm, announced that it has entered into a definitive agreement to sell the Power Distribution business of BRUSH Group ("BRUSH" or the "Company"). Financial terms of the private transaction were not disclosed. OEP previously sold BRUSH’s Power Generation business to Baker Hughes (NASDAQ: BKR) in October 2022, one year after OEP’s carve-out of BRUSH from Melrose Industries was completed. Founded in 1889 and headquartered in Loughborough, United Kingdom, BRUSH provides OEM design and assembly and aftermarket parts and services for electrical power generation and distribution equipment. BRUSH’s products are used across a wide range of end markets, including utilities, industrial, rail, data centers and renewable applications. At the time of OEP’s initial investment, the Company operated two divisions, Power Generation and Power Distribution. The Power Generation business designs, assembles, and services large scale generators that provide primary and standby electrical power to utility, datacenter and industrial customers worldwide. The Power Distribution business designs, assembles and services switchgear, transformers and controls for electric power distribution for utilities, electric vehicles, data centers, high speed rail, and other industrial applications mainly throughout the UK. OEP exited the Power Generation business one year after completing the carve-out of BRUSH and subsequently establishing its Power Networks division while growing the remaining sub-scale Power Distribution business into a platform of scale. "OEP’s investment in BRUSH showcases our expertise in carve-out transactions and is a great example of how we effectively grow and improve businesses through our M&A focused strategy," said Steve Lunau, Partner at One Equity Partners. "OEP carved out a non-core business unit of a larger parent company, and in close partnership with management, helped the business become a strong standalone company, well-positioned for strategic M&A driven growth." "BRUSH is another example of OEP’s value creation strategy" said Ori Birnboim, Partner at One Equity Partners. "After the strategic sale of Power Generation, we remained focused on growing the Power Distribution & Networks businesses, making BRUSH a leading electrical solutions and engineered products provider to United Kingdom’s critical infrastructure." Under OEP’s four-year ownership period, BRUSH more than doubled EBITDA. BRUSH completed seven accretive acquisitions during OEP’s hold period, expanding the Power Generation, Power Distribution and Power Networks divisions and enhancing the overall footprint and capabilities of the Company. OEP and management also executed several operational excellence initiatives including initiatives to stand-up the business as an independent company, driving margin expansion, establishing Power Networks and growing the Power Distribution business following the sale of Power Generation. Story Continues "We are proud of BRUSH’s transformation under OEP’s ownership. Our partnership with OEP helped us unlock significant strategic value across three great business units over the last four years," said Nicolas Pitrat, CEO of BRUSH. "OEP was an excellent partner that brought significant expertise in the energy sector, sourcing and execution of transformational M&A, and building the Company as a scaled platform for growth, all of which are key to BRUSH’s evolution." About One Equity Partners One Equity Partners ("OEP") is a middle market private equity firm focused on the industrial, healthcare, and technology sectors in North America and Europe. The firm seeks to build market-leading companies by identifying and executing transformative business combinations. OEP is a trusted partner with a differentiated investment process, a broad and senior team, and an established track record generating long-term value for its partners. Since 2001, the firm has completed more than 400 transactions worldwide. OEP, founded in 2001, spun out of JP Morgan in 2015. The firm has offices in New York, Chicago, Frankfurt and Amsterdam. For more information, please visit www.oneequity.com. View source version on businesswire.com: https://www.businesswire.com/news/home/20250623236866/en/ Contacts Thomas Zadvydas Stanton 646-502-3538 TZadvydas@stantonprm.com View Comments |
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| 20.06.25 09:11:05 | Great week for Melrose Industries PLC (LON:MRO) institutional investors after losing 13% over the previous year | |
| Key Insights Given the large stake in the stock by institutions, Melrose Industries' stock price might be vulnerable to their trading decisions The top 8 shareholders own 52% of the company Insiders have been buying lately We've found 21 US stocks that are forecast to pay a dividend yield of over 6% next year. See the full list for free. To get a sense of who is truly in control of Melrose Industries PLC (LON:MRO), it is important to understand the ownership structure of the business. The group holding the most number of shares in the company, around 82% to be precise, is institutions. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn). After a year of 13% losses, last week’s 5.8% gain would be welcomed by institutional investors as a possible sign that returns might start trending higher. Let's take a closer look to see what the different types of shareholders can tell us about Melrose Industries. Check out our latest analysis for Melrose Industries LSE:MRO Ownership Breakdown June 20th 2025 What Does The Institutional Ownership Tell Us About Melrose Industries? Institutional investors commonly compare their own returns to the returns of a commonly followed index. So they generally do consider buying larger companies that are included in the relevant benchmark index. Melrose Industries already has institutions on the share registry. Indeed, they own a respectable stake in the company. This can indicate that the company has a certain degree of credibility in the investment community. However, it is best to be wary of relying on the supposed validation that comes with institutional investors. They too, get it wrong sometimes. When multiple institutions own a stock, there's always a risk that they are in a 'crowded trade'. When such a trade goes wrong, multiple parties may compete to sell stock fast. This risk is higher in a company without a history of growth. You can see Melrose Industries' historic earnings and revenue below, but keep in mind there's always more to the story.LSE:MRO Earnings and Revenue Growth June 20th 2025 Investors should note that institutions actually own more than half the company, so they can collectively wield significant power. We note that hedge funds don't have a meaningful investment in Melrose Industries. Capital Research and Management Company is currently the company's largest shareholder with 19% of shares outstanding. With 8.4% and 6.2% of the shares outstanding respectively, BlackRock, Inc. and Norges Bank Investment Management are the second and third largest shareholders. We also observed that the top 8 shareholders account for more than half of the share register, with a few smaller shareholders to balance the interests of the larger ones to a certain extent. Story Continues While studying institutional ownership for a company can add value to your research, it is also a good practice to research analyst recommendations to get a deeper understand of a stock's expected performance. There are plenty of analysts covering the stock, so it might be worth seeing what they are forecasting, too. Insider Ownership Of Melrose Industries While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. Management ultimately answers to the board. However, it is not uncommon for managers to be executive board members, especially if they are a founder or the CEO. I generally consider insider ownership to be a good thing. However, on some occasions it makes it more difficult for other shareholders to hold the board accountable for decisions. Our most recent data indicates that insiders own less than 1% of Melrose Industries PLC. It is a very large company, so it would be surprising to see insiders own a large proportion of the company. Though their holding amounts to less than 1%, we can see that board members collectively own UK£9.9m worth of shares (at current prices). Arguably recent buying and selling is just as important to consider. You can click here to see if insiders have been buying or selling. General Public Ownership The general public-- including retail investors -- own 10% stake in the company, and hence can't easily be ignored. This size of ownership, while considerable, may not be enough to change company policy if the decision is not in sync with other large shareholders. Next Steps: It's always worth thinking about the different groups who own shares in a company. But to understand Melrose Industries better, we need to consider many other factors. For example, we've discovered 1 warning sign for Melrose Industries that you should be aware of before investing here. If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its future. NB: Figures in this article are calculated using data from the last twelve months, which refer to the 12-month period ending on the last date of the month the financial statement is dated. This may not be consistent with full year annual report figures. Have feedback on this article? Concerned about the content?Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. View Comments |
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| 04.04.25 05:43:33 | Melrose Industries Full Year 2024 Earnings: EPS Beats Expectations, Revenues Lag | |
| Melrose Industries (LON:MRO) Full Year 2024 Results Key Financial Results Revenue: UK£3.47b (up 3.5% from FY 2023). Net loss: UK£49.0m (down from UK£1.00m profit in FY 2023). UK£0.037 loss per share (down from UK£0.001 profit in FY 2023). AI is about to change healthcare. These 20 stocks are working on everything from early diagnostics to drug discovery. The best part - they are all under $10bn in marketcap - there is still time to get in early.LSE:MRO Revenue and Expenses Breakdown April 4th 2025 All figures shown in the chart above are for the trailing 12 month (TTM) period Melrose Industries EPS Beats Expectations, Revenues Fall Short Revenue missed analyst estimates by 2.8%. Earnings per share (EPS) exceeded analyst estimates by 14%. The primary driver behind last 12 months revenue was the Structures segment contributing a total revenue of UK£2.01b (58% of total revenue). Notably, cost of sales worth UK£2.65b amounted to 76% of total revenue thereby underscoring the impact on earnings. The largest operating expense was General & Administrative costs, amounting to UK£830.0m (95% of total expenses). Explore how MRO's revenue and expenses shape its earnings. Looking ahead, revenue is forecast to grow 7.3% p.a. on average during the next 3 years, compared to a 7.7% growth forecast for the Aerospace & Defense industry in the United Kingdom. Performance of the British Aerospace & Defense industry. The company's shares are down 13% from a week ago. Risk Analysis You should always think about risks. Case in point, we've spotted 2 warning signs for Melrose Industries you should be aware of. Have feedback on this article? Concerned about the content?Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. View Comments |
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| 07.03.25 07:04:24 | Melrose Industries PLC (MLSPF) Full Year 2024 Earnings Call Highlights: Strong Profit Growth ... |  |
| Profit Increase: 42% increase to GBP540 million in 2024. Revenue Growth: 11% like-for-like increase, led by the engines division. Operating Margin: Increased by 400 basis points to 15.6%. Earnings Per Share (EPS): Grew 45% to 26.4p. Engines Division Revenue Growth: 26% increase, driven by aftermarket performance. Aftermarket Revenue Growth: 32% increase, with Swedish military business up 74%. Operating Profit (Engines Division): Grew 40% to GBP422 million, with margins at 28.9%. Structures Division Revenue Growth: 3% increase, with defense revenue up 7%. Operating Profit (Structures Division): Grew 32% to GBP144 million, with margins increasing to 7.2%. Free Cash Flow (2024): GBP23 million before interest and tax. Net Debt: GBP1.321 billion, with leverage at 1.9 times. 2025 Revenue Guidance: GBP3.550 billion to GBP3.700 billion, with 7% like-for-like growth. 2025 Operating Profit Guidance: GBP680 million to GBP720 million, with margins exceeding 19%. Free Cash Flow Guidance (2025): In excess of GBP100 million post interest and tax. Warning! GuruFocus has detected 9 Warning Signs with MLSPF. Release Date: March 06, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Positive Points Melrose Industries PLC (MLSPF) delivered a strong performance in 2024 with a 42% increase in profit to GBP540 million, despite lower-than-expected revenue growth. The company achieved an 80% reduction in lost time accidents and further improvements in quality, highlighting a strong focus on safety and operational excellence. Melrose Industries PLC (MLSPF) completed the sale of three noncore businesses, including two to Boeing, as part of its ongoing portfolio rationalization. The Engines division showed robust revenue growth of 26%, driven by strong aftermarket performance and good OE growth. The company is targeting high single-digit CAGR in revenue, leading to GBP5 billion of revenue by 2029, with significant margin expansion and cash generation. Negative Points The Structures division's growth was dampened by ongoing supply chain challenges and specific customer destocking and production rate changes. Overall revenue fell slightly short of expectations due to a weaker dollar impact of around GBP70 million. The company is tempering its revenue guidance for 2025 due to continued supply chain challenges affecting the aerospace industry. Melrose Industries PLC (MLSPF) faces higher tariffs on imports into the USA, particularly from Mexico, which could impact costs. The GTF program is currently consuming cash, with the program expected to turn cash positive only in 2028. Story Continues Q & A Highlights Q: As we think about the growth of free cash flow from 2025 to 2029, should we expect the relative divergence between profit and cash driven predominantly by that variable consideration to progressively narrow? A: Matthew Gregory, Group Finance Director, explained that the gap is expected to narrow as cash grows faster than the buildup of the under work on asset over time. Peter Dilnot, CEO, added that they are confident in their targets and have a clear line of sight to achieve them, emphasizing the control over restructuring and the GTF powder metallurgy issue. Q: Can you provide more details on the aerostructures margin guidance, which seems stronger than many aerostructures companies? A: Peter Dilnot highlighted that Melrose has repositioned its structures business to focus on design leadership, exiting noncore and unprofitable businesses. The company owns design rights and invests significantly to embed its technology on customer platforms, with repricing efforts in defense contributing to margin improvements. Q: Regarding the GTF RRSP in 2028, what magnitude of delta are we going to see on that program? A: Matthew Gregory stated that while they cannot disclose specific levels of development spend due to commercial sensitivity, they are confident that the GTF will move into positive cash in 2028. The inflection point for the GTF becoming cash positive was always around 2028, with the depth of investment being somewhat higher but the shape remaining intact. Q: Can you clarify your CapEx commentary, particularly regarding the additive manufacturing CapEx? A: Matthew Gregory clarified that the CapEx guidance of 1 to 1.2 times includes additive fabrication expenditure. They have updated their view on costs and are receiving subsidies and grants, allowing them to absorb these costs within the guidance. Q: How confident are you in achieving the GBP600 million free cash flow target by 2029, and what assumptions are included? A: Matthew Gregory explained that the GBP600 million free cash flow target includes assumptions of low cash tax, working capital efficiency, and interest cost reductions. The target does not include any buybacks beyond the current program, and they are confident in achieving it based on current visibility and assumptions. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. View Comments |
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| 07.03.25 05:42:42 | Melrose Industries Full Year 2024 Earnings: EPS Beats Expectations, Revenues Lag | |
| Melrose Industries (LON:MRO) Full Year 2024 Results Key Financial Results Revenue: UK£3.47b (up 3.5% from FY 2023). Net loss: UK£49.0m (down from UK£1.00m profit in FY 2023). UK£0.037 loss per share (down from UK£0.001 profit in FY 2023).LSE:MRO Earnings and Revenue Growth March 7th 2025 All figures shown in the chart above are for the trailing 12 month (TTM) period Melrose Industries EPS Beats Expectations, Revenues Fall Short Revenue missed analyst estimates by 2.8%. Earnings per share (EPS) exceeded analyst estimates by 14%. Looking ahead, revenue is forecast to grow 7.6% p.a. on average during the next 3 years, compared to a 7.7% growth forecast for the Aerospace & Defense industry in the United Kingdom. Performance of the British Aerospace & Defense industry. The company's shares are down 11% from a week ago. Risk Analysis What about risks? Every company has them, and we've spotted 1 warning sign for Melrose Industries you should know about. Have feedback on this article? Concerned about the content?Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. View Comments |
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| 06.03.25 10:31:13 | Aerospace group Melrose's revenue outlook triggers share price slide | |
| By Pushkala Aripaka (Reuters) - GKN Aerospace owner Melrose (MRO.L) forecast 2025 revenue below most analysts' expectations, sending its shares sharply lower on Thursday, as global trade uncertainties and industry-wide supply chain challenges persist. Shares of the aerospace parts supplier fell as much as 12%, making it the biggest loser on Britain's blue-chip FTSE-100 index (^FTSE). Production delays and supply chain issues at top plane makers Boeing (BA) and Airbus (AIR.PA) have hurt aerospace, but Melrose has benefited from growing demand for after-market services as airlines extend the use of older aircraft. It is also benefiting from burgeoning spending on defence, which makes up about a third of its business. "We are well positioned for further progress in 2025, including the expected delivery of substantial free cash flow, despite ongoing industry challenges," CEO Peter Dilnot said. Melrose did not factor potential trade tariffs in its forecasts but said any impact was likely to be "pretty small" for the company as a whole. "If they land as they do today and they stick, in the context of a group that's going to generate 700 million (pounds) of operating profit, it's pretty small and it really impacts the flow of material between Mexico, where we have quite a large operating base, and into the US," Dilnot told Reuters, referring to Melrose's forecast for 2025. "The rest of it is not covered by the tariffs." Melrose expects 2025 revenue of 3.55-3.70 billion pounds ($4.58-$4.77 billion), below analysts' consensus of 3.77 billion pounds. It is targeting annual revenue growth in the high single digits over a five-year period. "We continue to view Melrose as an attractive pureplay aerospace company, benefiting from market recovery and self-help initiatives, combined with an appealing valuation," Quilter Cheviot's Matt Dorset said. For 2024, Melrose reported adjusted operating profit of 540 million pounds, and revenue of 3.47 billion pounds. ($1 = 0.7757 pounds) (Reporting by Pushkala Aripaka and Raechel Thankam Job in Bengaluru; Editing by Rashmi Aich and Christina Fincher) View Comments |
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| 06.03.25 06:07:48 | 3 UK Stocks Estimated To Be Undervalued By Up To 48.1% | |
| The United Kingdom's FTSE 100 index has recently faced challenges, closing lower due to weak trade data from China and concerns about global economic recovery. In such a volatile market environment, identifying undervalued stocks can be crucial for investors seeking potential opportunities, as these stocks may offer value despite broader market fluctuations. Top 10 Undervalued Stocks Based On Cash Flows In The United Kingdom Name Current Price Fair Value (Est) Discount (Est) Dr. Martens (LSE:DOCS) £0.6315 £1.20 47.5% GlobalData (AIM:DATA) £1.805 £3.37 46.5% Victrex (LSE:VCT) £9.46 £18.23 48.1% Deliveroo (LSE:ROO) £1.302 £2.50 47.9% Ibstock (LSE:IBST) £1.648 £3.08 46.6% Likewise Group (AIM:LIKE) £0.195 £0.37 47.6% Foxtons Group (LSE:FOXT) £0.614 £1.22 49.8% Kromek Group (AIM:KMK) £0.06 £0.11 47.5% Calnex Solutions (AIM:CLX) £0.55 £1.04 46.9% Melrose Industries (LSE:MRO) £6.80 £12.67 46.3% Click here to see the full list of 53 stocks from our Undervalued UK Stocks Based On Cash Flows screener. Below we spotlight a couple of our favorites from our exclusive screener. GlobalData Overview: GlobalData Plc, with a market cap of £1.43 billion, provides proprietary data, analytics, and insights across Europe, North America, and the Asia Pacific. Operations: The company's revenue segment, amounting to £276.80 million, is derived from its provision of business information through data, analytics, and insights across its operational regions. Estimated Discount To Fair Value: 46.5% GlobalData is trading at £1.81, significantly below its estimated fair value of £3.37, suggesting it may be undervalued based on cash flows. The company's earnings are expected to grow significantly at 23.1% per year, outpacing the UK market's 14.1%. Despite insider selling and a dividend not fully covered by earnings, GlobalData plans a £50 million share buyback and aims to move from AIM to the Main Market for broader investor access. In light of our recent growth report, it seems possible that GlobalData's financial performance will exceed current levels. Unlock comprehensive insights into our analysis of GlobalData stock in this financial health report.AIM:DATA Discounted Cash Flow as at Mar 2025 Ibstock Overview: Ibstock plc manufactures and sells clay and concrete building products and solutions to the residential construction sector in the United Kingdom, with a market cap of £649.33 million. Operations: The company's revenue is derived from two main segments: Clay products generating £249.97 million and Concrete products contributing £111.32 million. Estimated Discount To Fair Value: 46.6% Ibstock is trading at £1.65, well below its estimated fair value of £3.08, indicating potential undervaluation based on cash flows. Despite a drop in net income to £15.09 million for 2024 and lower profit margins, earnings are projected to grow significantly at 37.2% annually over the next three years, surpassing UK market expectations. However, the dividend yield of 4.25% isn't fully covered by earnings or cash flows, signaling caution for income-focused investors. Story Continues Upon reviewing our latest growth report, Ibstock's projected financial performance appears quite optimistic. Dive into the specifics of Ibstock here with our thorough financial health report.LSE:IBST Discounted Cash Flow as at Mar 2025 Victrex Overview: Victrex plc, with a market cap of £822.63 million, manufactures and sells polymer solutions globally through its subsidiaries. Operations: The company generates revenue from its segments, with Medical contributing £53 million and Sustainable Solutions accounting for £240.60 million. Estimated Discount To Fair Value: 48.1% Victrex is trading at £9.46, significantly below its estimated fair value of £18.23, highlighting potential undervaluation based on cash flows. While profit margins have decreased from 20.1% to 5.9%, earnings are forecast to grow substantially at 30.44% annually over the next three years, outpacing UK market expectations. However, the dividend yield of 6.3% isn't adequately covered by earnings or free cash flows, requiring careful consideration for income investors. Our expertly prepared growth report on Victrex implies its future financial outlook may be stronger than recent results. Click here and access our complete balance sheet health report to understand the dynamics of Victrex.LSE:VCT Discounted Cash Flow as at Mar 2025 Seize The Opportunity Discover the full array of 53 Undervalued UK Stocks Based On Cash Flows right here. Hold shares in these firms? Setup your portfolio in Simply Wall St to seamlessly track your investments and receive personalized updates on your portfolio's performance. Elevate your portfolio with Simply Wall St, the ultimate app for investors seeking global market coverage. Looking For Alternative Opportunities? Explore high-performing small cap companies that haven't yet garnered significant analyst attention. Diversify your portfolio with solid dividend payers offering reliable income streams to weather potential market turbulence. Fuel your portfolio with companies showing strong growth potential, backed by optimistic outlooks both from analysts and management. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include AIM:DATA LSE:IBST and LSE:VCT. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com View Comments |
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| 04.03.25 06:08:05 | 3 UK Stocks Estimated To Be Trading Below Intrinsic Value By Up To 40.5% | |
| The United Kingdom's FTSE 100 index has recently experienced a downturn, influenced by weak trade data from China, highlighting the interconnectedness of global markets and the challenges faced by economies attempting to recover post-pandemic. Amid these conditions, investors may find opportunities in stocks that are trading below their intrinsic value, offering potential for growth if market sentiments shift favorably. Top 10 Undervalued Stocks Based On Cash Flows In The United Kingdom Name Current Price Fair Value (Est) Discount (Est) On the Beach Group (LSE:OTB) £2.275 £4.47 49.1% Dr. Martens (LSE:DOCS) £0.656 £1.22 46.4% Gaming Realms (AIM:GMR) £0.365 £0.67 45.7% Legal & General Group (LSE:LGEN) £2.46 £4.87 49.5% Victrex (LSE:VCT) £9.24 £18.16 49.1% Deliveroo (LSE:ROO) £1.35 £2.46 45.2% Likewise Group (AIM:LIKE) £0.195 £0.37 47.5% Calnex Solutions (AIM:CLX) £0.555 £1.01 45.2% Optima Health (AIM:OPT) £1.82 £3.34 45.4% Melrose Industries (LSE:MRO) £6.55 £12.22 46.4% Click here to see the full list of 56 stocks from our Undervalued UK Stocks Based On Cash Flows screener. Below we spotlight a couple of our favorites from our exclusive screener. Fintel Overview: Fintel Plc provides intermediary services and distribution channels to the retail financial services sector in the United Kingdom, with a market cap of £287.57 million. Operations: The company's revenue segments include Research & Fintech (£24.20 million), Distribution Channels (£21.40 million), and Intermediary Services (£23.30 million). Estimated Discount To Fair Value: 33.8% Fintel appears undervalued, trading at £2.76 compared to a fair value estimate of £4.17, with earnings expected to grow significantly at 31.7% annually over the next three years, outpacing the UK market's 14%. Revenue growth is forecasted at 7.5%, above the market average but below high-growth thresholds. Recent executive changes include Neil Stevens stepping down as Joint CEO by June 2025, with Matt Timmins assuming sole CEO responsibilities post-AGM in May 2025. According our earnings growth report, there's an indication that Fintel might be ready to expand. Take a closer look at Fintel's balance sheet health here in our report.AIM:FNTL Discounted Cash Flow as at Mar 2025 Hochschild Mining Overview: Hochschild Mining plc is a precious metals company involved in the exploration, mining, processing, and sale of gold and silver across Peru, Argentina, the United States, Canada, Brazil, and Chile with a market cap of £944.55 million. Operations: The company's revenue segments include $266.70 million from San Jose and $451.91 million from Inmaculada, with a segment adjustment of $79.60 million. Story Continues Estimated Discount To Fair Value: 23.8% Hochschild Mining is trading at £1.84, significantly below its estimated fair value of £2.41, with a forecasted earnings growth of 40.3% annually, surpassing the UK market's 14%. Despite high debt and recent share price volatility, revenue is expected to grow at 9.1% per year, above the market average. Recent board changes include Andrew Wray joining as an independent Non-Executive Director post-June AGM, enhancing governance with his extensive sector experience. Our comprehensive growth report raises the possibility that Hochschild Mining is poised for substantial financial growth. Unlock comprehensive insights into our analysis of Hochschild Mining stock in this financial health report.LSE:HOC Discounted Cash Flow as at Mar 2025 Morgan Advanced Materials Overview: Morgan Advanced Materials plc is a UK-based materials science and application engineering company with a market cap of approximately £602 million. Operations: Morgan Advanced Materials plc generates revenue through its operations in the materials science and application engineering sectors, primarily within the United Kingdom. Estimated Discount To Fair Value: 40.5% Morgan Advanced Materials is trading at £2.14, below its estimated fair value of £3.59, with earnings expected to grow significantly at 21.8% annually, outpacing the UK market's 14%. Despite high debt levels and a dividend not well covered by free cash flows, revenue growth is forecasted at 3.9% per year. Recent leadership changes include CEO Pete Raby retiring in July 2025, with Damien Caby set to assume the role, potentially impacting strategic direction. Our expertly prepared growth report on Morgan Advanced Materials implies its future financial outlook may be stronger than recent results. Navigate through the intricacies of Morgan Advanced Materials with our comprehensive financial health report here.LSE:MGAM Discounted Cash Flow as at Mar 2025 Summing It All Up Gain an insight into the universe of 56 Undervalued UK Stocks Based On Cash Flows by clicking here. Have a stake in these businesses? Integrate your holdings into Simply Wall St's portfolio for notifications and detailed stock reports. Unlock the power of informed investing with Simply Wall St, your free guide to navigating stock markets worldwide. Ready For A Different Approach? Explore high-performing small cap companies that haven't yet garnered significant analyst attention. Diversify your portfolio with solid dividend payers offering reliable income streams to weather potential market turbulence. Fuel your portfolio with companies showing strong growth potential, backed by optimistic outlooks both from analysts and management. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include AIM:FNTL LSE:HOC and LSE:MGAM. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com View Comments |
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| 03.03.25 06:07:52 | UK Stocks Trading At Estimated Discounts: A Trio Of Value Opportunities | |
| The UK stock market has recently faced challenges, with the FTSE 100 index experiencing declines due to weak trade data from China and a broader global economic slowdown. As investors navigate these uncertain conditions, identifying undervalued stocks becomes crucial for those seeking potential value opportunities amidst the current market turbulence. Top 10 Undervalued Stocks Based On Cash Flows In The United Kingdom Name Current Price Fair Value (Est) Discount (Est) On the Beach Group (LSE:OTB) £2.25 £4.47 49.7% Dr. Martens (LSE:DOCS) £0.6565 £1.22 46.4% Gaming Realms (AIM:GMR) £0.372 £0.67 44.7% Legal & General Group (LSE:LGEN) £2.447 £4.86 49.6% Victrex (LSE:VCT) £9.24 £18.17 49.1% Deliveroo (LSE:ROO) £1.362 £2.46 44.7% Likewise Group (AIM:LIKE) £0.195 £0.37 47.7% Calnex Solutions (AIM:CLX) £0.555 £1.01 45.2% Optima Health (AIM:OPT) £1.825 £3.34 45.3% Melrose Industries (LSE:MRO) £6.41 £12.22 47.5% Click here to see the full list of 57 stocks from our Undervalued UK Stocks Based On Cash Flows screener. Let's explore several standout options from the results in the screener. Gamma Communications Overview: Gamma Communications plc, with a market cap of £1.26 billion, offers technology-based communications and software services to businesses of various sizes across the United Kingdom and Europe. Operations: The company's revenue segments include £78.50 million from European operations, £373.10 million from Gamma Business, and £119.90 million from Gamma Enterprise. Estimated Discount To Fair Value: 35.7% Gamma Communications is trading at £13.2, significantly below its estimated fair value of £20.52, presenting a potential undervaluation based on discounted cash flow analysis. The company's earnings are projected to grow at 14.16% annually, outpacing the UK market's growth rate of 14%. While revenue growth is moderate at 6.7% per year, it surpasses the broader market's forecasted revenue increase of 3.8%. Analysts expect a stock price rise by approximately 40%. In light of our recent growth report, it seems possible that Gamma Communications' financial performance will exceed current levels. Get an in-depth perspective on Gamma Communications' balance sheet by reading our health report here.AIM:GAMA Discounted Cash Flow as at Mar 2025 Savills Overview: Savills plc is a global real estate services provider operating across the United Kingdom, Continental Europe, Asia Pacific, Africa, North America, and the Middle East with a market cap of £1.41 billion. Operations: The company's revenue segments include Consultancy (£464.80 million), Transaction Advisory (£803.60 million), Investment Management (£100.50 million), and Property and Facilities Management (£920.90 million). Story Continues Estimated Discount To Fair Value: 13.2% Savills is trading at £10.4, slightly below its estimated fair value of £11.98, indicating a modest undervaluation based on cash flows. Earnings are forecast to grow significantly at 32.66% annually, well above the UK market average of 14%, though revenue growth remains moderate at 5.1% per year. Recent executive changes with experienced hires like James Hiatt may enhance investment opportunities in central London, potentially impacting future cash flow positively despite an unstable dividend history and lower profit margins compared to last year. Our growth report here indicates Savills may be poised for an improving outlook. Navigate through the intricacies of Savills with our comprehensive financial health report here.LSE:SVS Discounted Cash Flow as at Mar 2025 Vp Overview: Vp plc offers equipment rental and associated services both in the United Kingdom and internationally, with a market cap of £220.98 million. Operations: The company's revenue segments include £339.21 million from the United Kingdom and £43.35 million from international operations. Estimated Discount To Fair Value: 41% Vp is trading at £5.6, significantly below its estimated fair value of £9.5, presenting a strong undervaluation based on cash flows. Despite its high debt levels and unsustainable 6.96% dividend, Vp is expected to achieve profitability within three years with earnings projected to grow at 55.72% annually, surpassing market averages. The recent appointment of Richard Smith as a non-executive director may bolster strategic oversight as he brings substantial growth experience from his tenure at Unite Group plc. Our expertly prepared growth report on Vp implies its future financial outlook may be stronger than recent results. Click here and access our complete balance sheet health report to understand the dynamics of Vp.LSE:VP. Discounted Cash Flow as at Mar 2025 Turning Ideas Into Actions Delve into our full catalog of 57 Undervalued UK Stocks Based On Cash Flows here. Are you invested in these stocks already? Keep abreast of every twist and turn by setting up a portfolio with Simply Wall St, where we make it simple for investors like you to stay informed and proactive. Elevate your portfolio with Simply Wall St, the ultimate app for investors seeking global market coverage. Contemplating Other Strategies? Explore high-performing small cap companies that haven't yet garnered significant analyst attention. Diversify your portfolio with solid dividend payers offering reliable income streams to weather potential market turbulence. Fuel your portfolio with companies showing strong growth potential, backed by optimistic outlooks both from analysts and management. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include AIM:GAMA LSE:SVS and LSE:VP.. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com View Comments |
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| 28.02.25 06:07:55 | UK Stocks Estimated To Be Trading Below Intrinsic Value In February 2025 | |
| As the FTSE 100 and FTSE 250 indices experience downward pressure due to weak trade data from China, concerns about global economic recovery continue to weigh on investor sentiment in the United Kingdom. In such a challenging market environment, identifying stocks that are trading below their intrinsic value can present opportunities for investors looking to capitalize on potential long-term growth. Top 10 Undervalued Stocks Based On Cash Flows In The United Kingdom Name Current Price Fair Value (Est) Discount (Est) On the Beach Group (LSE:OTB) £2.25 £4.48 49.7% Gaming Realms (AIM:GMR) £0.372 £0.67 44.7% Legal & General Group (LSE:LGEN) £2.437 £4.86 49.8% Victrex (LSE:VCT) £9.13 £18.15 49.7% Gateley (Holdings) (AIM:GTLY) £1.37 £2.65 48.4% AstraZeneca (LSE:AZN) £120.18 £220.00 45.4% Likewise Group (AIM:LIKE) £0.195 £0.37 47.7% Calnex Solutions (AIM:CLX) £0.555 £1.01 45% Optima Health (AIM:OPT) £1.83 £3.33 45% Melrose Industries (LSE:MRO) £6.222 £12.19 49% Click here to see the full list of 56 stocks from our Undervalued UK Stocks Based On Cash Flows screener. Below we spotlight a couple of our favorites from our exclusive screener. CVS Group Overview: CVS Group plc operates in the veterinary, pet crematoria, online pharmacy, and retail sectors with a market cap of £744.66 million. Operations: The company generates revenue through its operations in veterinary services, pet crematoria, online pharmacy, and retail businesses. Estimated Discount To Fair Value: 38.6% CVS Group is trading at £10.38, significantly below its estimated fair value of £16.92, indicating it may be undervalued based on cash flows. Despite a decline in net income to £11.2 million from £14.6 million year-over-year, earnings are forecast to grow significantly at 22.8% annually over the next three years, outpacing the UK market's growth rate of 14.5%. However, profit margins have decreased and interest payments are not well covered by earnings. Upon reviewing our latest growth report, CVS Group's projected financial performance appears quite optimistic. Click to explore a detailed breakdown of our findings in CVS Group's balance sheet health report.AIM:CVSG Discounted Cash Flow as at Feb 2025 Coats Group Overview: Coats Group plc, along with its subsidiaries, manufactures and supplies industrial sewing threads globally and has a market cap of £1.41 billion. Operations: The company's revenue segments consist of Apparel at $731 million, Footwear at $381.90 million, and Performance Materials at $327 million. Estimated Discount To Fair Value: 40.6% Coats Group is trading at £0.88, significantly below its estimated fair value of £1.49, suggesting it is undervalued based on cash flows. Revenue growth is projected to outpace the UK market at 5.9% annually, while earnings are expected to rise by 17.3% per year, surpassing the market's rate of 14.5%. Despite a high debt level and an unstable dividend history, analysts anticipate a price increase of 38.7%. Story Continues The analysis detailed in our Coats Group growth report hints at robust future financial performance. Dive into the specifics of Coats Group here with our thorough financial health report.LSE:COA Discounted Cash Flow as at Feb 2025 Dr. Martens Overview: Dr. Martens plc designs, develops, procures, markets, sells, and distributes footwear under the Dr. Martens brand and has a market cap of approximately £660.59 million. Operations: Dr. Martens generates revenue primarily from its footwear segment, which amounts to £805.90 million. Estimated Discount To Fair Value: 44.1% Dr. Martens is trading at £0.69, considerably below its estimated fair value of £1.23, highlighting its undervaluation based on cash flows. The company forecasts a robust annual earnings growth of 40.6%, significantly exceeding the UK market's average growth rate of 14.5%. However, recent financials show a decline in profit margins from 10.6% to 3.6% and an unstable dividend history, which may temper investor enthusiasm despite expected revenue growth surpassing the market average at 4.7%. Our growth report here indicates Dr. Martens may be poised for an improving outlook. Click here to discover the nuances of Dr. Martens with our detailed financial health report.LSE:DOCS Discounted Cash Flow as at Feb 2025 Where To Now? Discover the full array of 56 Undervalued UK Stocks Based On Cash Flows right here. Have a stake in these businesses? Integrate your holdings into Simply Wall St's portfolio for notifications and detailed stock reports. Elevate your portfolio with Simply Wall St, the ultimate app for investors seeking global market coverage. Ready To Venture Into Other Investment Styles? Explore high-performing small cap companies that haven't yet garnered significant analyst attention. Diversify your portfolio with solid dividend payers offering reliable income streams to weather potential market turbulence. Fuel your portfolio with companies showing strong growth potential, backed by optimistic outlooks both from analysts and management. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include AIM:CVSG LSE:COA and LSE:DOCS. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com View Comments |
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