StockRanks - upgrades and downgrades - October 14th: MOSB; MTC; IGG; CAY

Tuesday, Oct 14 2014 by
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StockRanks  upgrades and downgrades  October 14th MOSB MTC IGG CAY

This column usually analyses stocks on a company by company basis, but we will take a different approach this week and compare companies within particular sectors. In the consumer cyclicals sector, we contrast Moss Bros with Mothercare. In the financial sector, IG Group goes head to head with Charles Stanley.

Consumer Cyclicals: Moss Bros vs. Mothercare


Moss Bros has a StockRank of 81, up 20 from last week, while Mothercare has a StockRank of 35. Last week it was 41. What is Moss Bros doing right? What is Mothercare doing wrong?


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Sales growth (Quality)


Both companies have enjoyed different fortunes when it comes to sales growth. Moss Bros has managed to grow revenues each year since 2011. This is thanks partly to online sales. Internet sales doubled over the last half year. They now account for around 7% of total revenues. The company also continues to develop new products, having recently launched a series of sub-brands, including Moss London, Moss 1851 and Moss Esquire. Brokers predict that these products will help the company grow revenues by around 5% in 2014. 

The picture is more gloomy for Mothercare, where sales have consistently fallen since 2012 and are expected to fall again in the twelve months to March 2015. Weaker footfall and price cutting have both worked to hit sales and margins.


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Productivity (Quality)


Both companies are becoming more productive. Moss Bros has a Piotroski score of 7 out of 9 and is more productive than it was last year. Asset turnover can be used to measure productivity. It shows how effective a company is at using assets to generate revenues. Moss Bros asset turnover is now 1.9, compared to 1.8 last year. The company closed 9 stores for refurbishment last year and another 14 units will be refurbished in the second half of their year. The company’s management team claim that their refurbished stores deliver a sales increase of between 8 to 10 per cent in the first year. Mothercare has a lower Piotroski score of 5 out of 9, but generated a…

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Moss Bros Group PLC is engaged in retailing and hiring formal wear for men. The Company operates through Moss Bros branded mainstream stores. The Company's segments include Retail and Hire. The Company offers various types of suits, skirts, jackets, trousers, coats, casualwear, ties, shoes and accessories. The Company offers clothing and accessories for various occasions, including weddings, prom, race day suit, tuxedo and black tie, interview attire and graduation. The Company also trades through Savoy Taylors Guild fascia. It has approximately 100 Moss Bros and Savoy Taylors Guild branded stores and over 20 Moss Bros outlet stores, which trade Moss Bros own brands and selected third-party brands, including Hugo Boss, Canali, Ted Baker, DKNY and French Connection. The Company has approximately 120 Moss Bros Hire outlets, which are contained within Moss Bros Retail and Savoy Taylors Guild Stores. The Company's sub brands consist of Moss London, Moss 1851 and Moss Esq. more »

LSE Price
19.98p
Change
1.3%
Mkt Cap (£m)
19.9
P/E (fwd)
n/a
Yield (fwd)
n/a

Mothercare plc is a retailer for parents and young children. The principal activity of the Company is to operate as a specialist omni-channel retailer, franchisor and wholesaler of products for mothers-to-be, babies and children under the Mothercare and Early Learning Centre brands. The Company's operating segments include the UK business and the International business. The UK business segment includes the United Kingdom store and wholesale operations, catalogue and Web sales. The International business segment includes the Company's franchise and wholesale revenues outside the United Kingdom. Its clothing and footwear product includes ranges for babies, children and maternity wear; home and travel includes pushchairs, car seats, furniture, bedding, feeding and bathing equipment, and toys are mainly for babies. It operates in the United Kingdom through its stores and direct business, and across the world in over 60 countries through its international network. more »

LSE Price
13.95p
Change
1.3%
Mkt Cap (£m)
47.1
P/E (fwd)
n/a
Yield (fwd)
n/a

IG Group Holdings plc is a United Kingdom-based company, which is engaged in online trading. The Company provides contracts for difference (CFDs) in over 17 countries globally. The Company's segments include UK, Australia, Europe and Rest of World. The UK segment consists of its operations in the United Kingdom and Ireland, and derives its revenue from financial spread bets, CFDs, binary options and execution only stockbroking. The Australian segment derives its revenue from CFDs and binary options. The Europe segment consists of its operations in France, Germany, Italy, Luxembourg, the Netherlands, Norway, Spain, Sweden and Switzerland, and derives its revenue from CFDs, binary options and execution only stockbroking. The Rest of World segment consists of its operations in Japan, South Africa, Singapore, the United States, the United Arab Emirates and Dubai, and derives revenue from the operation of a regulated futures and options exchange, as well as CFDs and binary options. more »

LSE Price
587.8p
Change
-0.2%
Mkt Cap (£m)
2,176
P/E (fwd)
14.4
Yield (fwd)
7.4



  Is LON:MOSB fundamentally strong or weak? Find out More »


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