Bodycote PLC : Discover an UK mid-cap
 |
05/31/2012 | 05:53am
Opinion : Bullish above 370 GBp
Target price : 440 GBp
Stop loss: 368.8 GBp
|
LONDON STOCK EXCHANGE
Steel |
Bodycote PLC is English mid cap, member of FTSE 250 Index. It is a holding company, and through its subsidiaries, manufactures and distributes metal technology, operates hot isostatic pressing and provides metallurgical coatings. The company provides manufacturing process for several sectors, including aerospace and defence, automotive, power generation, construction, medical and transportation.
The company’s activities are still concentrated in Western Europe market (60%), and “only” 10% concerning Emerging Markets, according to last full year report.
On 25th April, the company released sales results concerning first quarter. Sales were up 8.3% at constant exchange rates.
Sales in Aerospace, Defence & Energy were ahead by 13.5% compared to the same period in 2011. Sales in Automotive & General Industrial were up 4.8%, even if were less favorable in Europe. This growth was led especially by North America market.
Net debt increased to £20.2m against net cash of £0.1m in December 2011, the increase was caused by acquisition cost of £32m.
At current price, the share is trading 11 times earnings per share estimates for Financial year 2012, according to Thomson Reuters’ consensus.
Graphically, the share is trading in a neutral range on the short-term between GBp 440 and GBp 358. The stock is taking advantage from double bottom on the lower side of this range. The acceleration is not finish and should continue towards GBp 440. This bullish trend is supported by 20 periods moving average in weekly data. For this reason we suggest a long position to aim first target of GBp 440, and the cross of this level could open new targets. We suggest a stop loss on 100 days moving average (GBp 368.8).
 |
|
Copyright (c) 2013 4-Traders.com |
Disclaimer : 4-Traders.com is not registered as a securities broker-dealer or investment adviser with any jurisdiction and is not providing any personalized financial, investment or tax advice. 4-Traders cannot assess or guarantee the suitability of any particular investment to any personal situation. Accordingly, you bear complete responsibility for your own investment, financial, and tax research and decisions and should seek the advice of a qualified professional prior to making any decisions based on 4-Traders' website information. This article is provided solely for informational purposes, and does not constitute an offer or solicitation to buy or sell any securities. All opinions expressed and information and data provided therein are subject to change without notice.
|
|
|
|
|
Valuation |
2013e |
2014e |
|
PER (Price / EPS)
|
14,2x |
13,0x |
|
Capitalization / Revenue
|
1,71x |
1,64x |
|
EV / Revenue
|
1,70x |
1,56x |
|
EV / EBITDA
|
6,74x |
6,06x |
|
Yield (DPS / Price)
|
2,37% |
2,58% |
| Profitability |
2013e |
2014e |
|
Operating Margin (EBIT / Sales)
|
16,7% |
17,5% |
|
operating laverage (Delta EBIT / Delta Sales)
|
1,01x |
2,18x |
|
Net Margin (Net Profit / Revenue)
|
11,6% |
12,3% |
|
ROA (Net Profit / Asset)
|
- |
- |
|
ROE (Net Profit / Equities)
|
14,0% |
13,7% |
|
Rate of Dividend
|
33,7% |
33,6% |
|
|
|
