This appeared on News Bites newswire a short while ago (note the forward year P/E of 9.6*...... is that expensive for a high quality growth stock?):
Delcam PLC (DLC.L), the 15th largest software & programming company by market capitalisation in the United Kingdom, surged GBX95.0 (or 8.4%) to close at GBX1,232.50. Compared with the FTSE 100 Index, which rose 44.8 points (or 0.7%) on the day, this was a relative price change of 7.6%. The volume was 2.3 times the average trading of 3,731 shares.
RELATIVE VALUATION INDICATORS [RVI] FUNDAMENTALS
Bullish Signals:
Valuation
- Price/Sales of 2.3 versus sector average of 2.4 and market average of 0.7. We estimate the shares are trading at a current year Price/Sales of 2 and a forward year Price/Sales of 1.7.
- The company is cash rich with Cash to Market Capitalisation at 10.5%
Performance
- Return on Equity of 20.1% versus sector average of 8.3% and market average of 11.5%.
- Year-on-Year Earnings growth of 25.8% versus sector average of -25.0% and market average of 15.0%.
- Return on Assets of 10.1% versus sector average of 4.7% and market average of 1.4%.
- Return on Capital Employed of 20.4% versus sector average of 11.0% and market average of 15.5%.
- Interest cover defined by EBIT/I is 56.7 times. This indicates it is less leveraged.
Bearish Signals:
Valuation
- Price/Earnings of 31.4 versus sector average of 23.5 and market average of 10.0. We estimate the shares are trading at a current year P/E of 17.3 and a forward year P/E of 9.6.
- Dividend Yield of 0.2% (based on trailing 12 months dividends of GBX2.50) versus sector average of 2.1% and market average of 2.1%.
- Tobin"s Q Ratio, defined as MCap divided by Total Assets, is 3.2. Compared with the rest of the market the stock is overvalued and ranks in the bottom 10% of stocks by value of Q Ratio.
DYOR
* I'm not sure how they reach that figure but i reckon it is more accurate than the x18 showing at the bottom of this page. It is on my to do list to find out how 9.6 is extrapolated - hope…
