StockRanks - upgrades and downgrades - July 8th

Tuesday, Jul 08 2014 by
4
StockRanks  upgrades and downgrades  July 8th

This is not our finest hour. England has been kicked out of the world cup and Murray crashed out of Wimbledon. But at least the FTSE 100 got within 1% of its 1999 high and the economy is moving on up. This was a theme we discussed in last week’s GuruScreen column. In particular, we noted that UK business sentiment was at its highest since 1992. This is a trend which also seems to be driving some companies up the StockRanks, as earnings grow and managers take steps to meet future demand.

QVM movers:

Churchill China (CHH) is one company that has started to benefit from the economic recovery. Indeed, Churchill’s QVM StockRank climbed towards 98 this week, up from 79 last week. The company is engaged in the manufacture and sale of ceramic and related products for hospitality and household markets. It has strong fundamental momentum as illustrated by a high F-Score (8/9), reflecting improved profitability (in terms of cashflow and return on assets) and efficiency (in terms of gross margin and asset turnover).

Furthermore, earnings per share have grown each year, without fail, since 2009. In particular, earnings per share grew by 29% in the twelve months to December 2013. Churchill’s management team explain that this is ‘indicative of healthy background demand’ as ‘our UK sales team delivered a 10% increase in sales’ and ‘export revenues increased by an impressive 14%’.

The management team’s confidence in the economic recovery is also reflected in that fact that the company is upgrading its manufacturing capacity in order to meet future demand. The Preliminary Results report note that in 2013 ‘Capital investment was £1.5m, of which the largest part related to the long term development of our Stoke on Trent manufacturing facility.’

All this bullish sentiment is getting the brokers excited. They have consistently upgraded their estimates for the 2014 EPS figures. In July 2013, the brokers’ consensus was 22.1p. In January 2014 it was 25.4p. The consensus is now 26.5p. These upgrades have helped to the company to beat the market by 27% over the last year.

However, the company is still cheap, with a ValueRank of 78. The strong relative strength (27%) and broker upgrades give Churchill China a MomentumRank of 84, while steady operating margins (consistently around 6% since 2008) coupled with the high Piotroski score give a QualityRank of 95. In total, this gives Churchill China…

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Churchill China plc is a United Kingdom-based manufacturer and distributor of tabletop products to the hospitality and retail sectors across the world. The Company's customers include pub, restaurant and hotel chains, sports and conference venues, health and education establishments, and contract caterers. The Company's segments include Hospitality and Retail. The Company primarily offers ceramic tableware. The Company also manufactures and sources product sold through Retail customers for consumer use in the home, in various markets across the world. The Company offers Churchill branded manufactured products. The Company offers various types of products, such as accessories, beverage pots, bowls and dishes, cake stands, cookware, cups, mugs, cutlery, dip pots and sauce dishes, glassware, jugs, melamine items, plate towers, plates, saucers and wooden items. Its collections include Alchemy Fine China, Churchill Super Vitrified, Art de Cuisine, Sola Cutlery and Lucaris Glassware. more »

LSE Price
1571p
Change
-1.5%
Mkt Cap (£m)
175.2
P/E (fwd)
20.1
Yield (fwd)
2.1

Rightmove plc is a United Kingdom-based company, which operates as a property portal. The Company's principal business is the operation of the rightmove.co.uk Website. The Company's Website and mobile platforms provide online property search. The Company's segments include Agency, New Homes and Other. The Agency segment provides resale and lettings property advertising services on www.rightmove.co.uk. The New Homes segment provides property advertising services to new home developers and housing associations on www.rightmove.co.uk. The Other segment consists of overseas and commercial property advertising services and non-property advertising services, which include its third-party and consumer services, as well as data and valuation services. The Company offers its services through estate agents, lettings agents, new homes developers and overseas homes agents offering properties outside the United Kingdom but interested in advertising to the United Kingdom-based home hunters. more »

LSE Price
517p
Change
-0.7%
Mkt Cap (£m)
4,632
P/E (fwd)
25.0
Yield (fwd)
1.4

IG Design Group plc, formerly International Greetings plc, is engaged in the design, manufacture and distribution of gift packaging and greetings; stationery and creative play products, and design-led giftware. The Company's geographic segments include UK and Asia; Europe; USA, and Australia. The Company sells its products in over 150,000 stores across approximately 80 countries. It also offers a portfolio of licensed and customer bespoke products suitable for sale through multi channel distribution. The Company's products include crackers, pens and pencils, stickers, single cards and gift wrap. The Company offers its products under the brands A Star, B Stationery, Papercraft and Pepperpot. Its subsidiaries include Artwrap Pty Ltd, International Greetings UK Ltd, International Greetings USA, Inc, International Greetings Asia Ltd, The Huizhou Gift International Greetings Company Limited, Hoomark BV, Anchor International BV and Hoomark S.p.z.o.o. more »

LSE Price
587p
Change
 
Mkt Cap (£m)
461.5
P/E (fwd)
18.0
Yield (fwd)
1.8



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2 Comments on this Article show/hide all

imranawan 8th Jul '14 1 of 2

Hi Alex

Is there a list/screen of stocks that have been promoted/demoted based on the stock ranks (quality/momentum/value)?

Regards,
Imran.

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Alex Naamani 8th Jul '14 2 of 2

Hi Imran,

We hope to release this as a feature on the site later in the summer.

Best,

Alex

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About Alex Naamani

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