Booker Group Plc : To new upward targets
Booker Group is the UK's largest cash and carry operator, offering branded and private-label goods which are sold to over 459,000 customers including independent convenience stores, grocers, leisure outlets, pubs and restaurants within the UK. The Company currently lists over 18,000 lines of product, comprising an extensive range of branded and own label grocery, fresh and frozen food, beers, wines, spirits, tobacco and non-food items. The stock could breakout the GBp 93.3 resistance in the short term.
From a fundamental viewpoint, the company is trading at a low level as shown by the ratio “entreprise value/revenue” at 0.32x. Besides, analysts polled by Thomson Reuters have regularly revised upward EPS estimates. Consequently, profitability is improving, showing a relatively good financial health of the company.
Graphically, the security is up 25% since the beginning of the year. It seems able to continue this uptrend supported by moving averages and will soon test the GBp 93.3 mid-term resistance. We anticipate a crossing of this level, given the upward orientation of the stock in the medium and long term. Above GBp 93.3, a new bullish signal will be given.
Taking into account all these elements, investors could buy the stock at the current price. The target price is set above the GBp 93.3 mid-term resistance. A stop loss will be fixed below the GBp 90.3 pivot point, threshold that would invalidate the strategy.
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Valuation |
2013e |
2014e |
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PER (Price / EPS)
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26,3x |
25,0x |
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Capitalization / Revenue
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0,54x |
0,48x |
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EV / Revenue
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0,52x |
0,45x |
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EV / EBITDA
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19,0x |
15,3x |
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Yield (DPS / Price)
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2,00% |
2,32% |
| Profitability |
2013e |
2014e |
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Operating Margin (EBIT / Sales)
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2,40% |
2,49% |
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operating laverage (Delta EBIT / Delta Sales)
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2,35x |
1,34x |
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Net Margin (Net Profit / Revenue)
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2,02% |
1,95% |
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ROA (Net Profit / Asset)
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8,60% |
8,70% |
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ROE (Net Profit / Equities)
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16,3% |
15,4% |
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Rate of Dividend
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52,6% |
58,1% |
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