3 Stocks Under The Spotlight: BWNG, DC, BOTB

  • Jun 21, 2019 BST
  • Team Kalkine
3 Stocks Under The Spotlight: BWNG, DC, BOTB
N Brown Group PLC (BWNG)

Manchester-based N Brown Group Plc is a widely known, digital fashion retailer. They offer shoppers a wide variety of products, primarily clothes, footwear and homewares. Traditionally a mail-order catalogue business, and now around 80% of the group's total demand comes from the online. INVESCO Asset Management Limited, UBS Asset Management (UK) Ltd. and Aberforth Partners LLP are some of the major investors in this company.

Trading update Q1 FY20

The digital revenue was up by 3 per cent in Q1 FY20. However, the product revenue declined by 5.4 per cent during the same period. The Financial services revenue surged by 8 per cent in the first quarter of Financial Year 2020. 83 per cent of total revenue was contributed by the digital revenue. Also, Mobile devices contribute to 84 per cent of digital traffic.

Financial Performance – FY19 (£mn)

(Source: Company filings) During the FY19, the group’s reported revenue was 0.8% lower at £914.4 mn against the previous year, and product revenue declined by 5.6% to £615.8 mn and Financial services revenue rose by 10.8% to £298.6 mn.

However, the group's adjusted EBITDA surged by 7.9% to £128.0 mn against the adjusted EBITDA of £118.6 mn in FY18. Adjusted EBIDTA margin for FY19 rose to 14.0% from 12.9% in FY18, indicating strong marketing and other operational efficiencies. In FY19, adjusted operating profit accelerated by 8.2 per cent to £97.9 million against £90.5 million accounted last year in FY18. However, digital revenue growth in the JD Williams increased by 8.8%, Simply Be revenue surged by 8.7% and Jacamo revenue increased by 5.1%.

During FY19, depreciation and amortisation expenditure surged by 7.1% to £30.1 mn, on account of historical and ongoing investment in IT system. Despite challenging and highly promotional market, the group has delivered a stable product gross margin of 52.1%.

Share price performance

 Daily Chart as at June-21-19, before the market close (Source: Thomson Reuters)

At the time of writing (as on June 21, 2019, at 09:24 AM GMT), shares of N Brown Group Plc were quoting at GBX 134.3 per share and added 3.7 per cent against the yesterday's closing price level. The outstanding market capitalisation of the company stood at around £383.42 million with a Dividend yield of 5.26 per cent.

In the last 52-wks, shares of N Brown Group Plc have registered a high of GBX 184.00 (as on Jun 25, 2018) and a low of GBX 81.65 (as on Dec 27, 2018). At the current trading level, as quoted in the price chart, its shares are trading 27 per cent below the 52wk high price level and 64.5 per cent above the 52wk low price level.

As on June-21-19, volume in the stock (before the market close, at the time of writing) stood at 11,813. Stock's average traded volume for 5 days was 236,271.40; 30 days 295,356.07 and 90 days – 374,152.42. The average traded volume for 5 days was down by 20 per cent as compared to the 30 days average traded volume. The company’s stock beta was 0.85, reflecting lower volatility as compared to the benchmark index.

From the SMA standpoint, at the time of writing, its shares were trading above the 60-days and 200-days SMA, which indicates a positive trend in the stock price and carrying the potential to move up further from the current trading levels.

In the past 1 year, shares of N Brown Group Plc have delivered a negative price return of 24.62 per cent. However, on a year-to-date basis, the stock was up by approximately 43.34 per cent and surged by 31.29 per cent in the past three months.

Share's RSI for the 30-days, 14-days and 9-days stood at 52.26, 42.55 and 34.45 respectively. However, 3-days RSI of the stock stood at 33.45.

Dixons Carphone PLC (DC)

Dixons Carphone PLC is a British electrical and telecommunications retailer and services company which provides a complete solution for customers across the value chain, ranging from consumer electricals, mobile phones to mobile virtual network operator services. The company’s operations are differentiated in three geographical segments: UK & Ireland, Nordics, and Greece. The company is headquartered in London, the United Kingdom and was founded in 1937. Alex Baldock is the Group Chief Executive.

Financial Highlights for FY19 (£, million)

(Source: Company’s filings)

 

The company revenue declined by 1 per cent to £10,433 million. Earnings before interest and tax reduced from £321 million to a loss of £223 million during the current period. The Net finance costs were £4 million higher than the previous year at £36 million.

The tax charge was flat year-on-year. Basic and diluted EPS both decreased year-on-year, reflecting the loss after tax in the current year.

Share price performance

 

Daily Chart as at June-21-19, before the market close (Source: Thomson Reuters)

At the time of writing (as on June 21, 2019, at 9:30 AM GMT), shares of Dixons Carphone were quoting at GBX 113.05 per share; down by 4.6 per cent against the yesterday's closing price level.

The outstanding market capitalisation of the company stood at around £1.36 billion with a Dividend yield of 5.71 per cent.

In the last 52-wks, shares of Dixons Carphone Plc have registered a high of GBX 201.80 (as on Jun 25, 2018) and a low of GBX 90.00 (as on Jun 20, 2019). At the current trading level, as quoted in the price chart, its shares are trading 44 per cent below the 52wk high price level and 25.6 per cent above the 52wk low price level.

As on June-21-19, volume in the stock (before the market close, at the time of writing) stood at 1,305,955. Stock's average traded volume for 5 days was 4,208,059.40; 30 days-2,098,899.67 and 90 days – 2,364,402.14. The average traded volume for 5 days was up by 100.49 per cent as compared to the 30 days average traded volume. The company’s stock beta was 1.21, reflecting higher volatility as compared to the benchmark index.

From the SMA standpoint, at the time of writing, its shares were trading below the 60-days and 200-days SMA, which indicates a negative trend in the stock price and carrying the potential to move down further from the current trading levels.

In the past 1 year, shares of Dixons Carphone have delivered a negative price return of 38 per cent. However, on a year-to-date basis, the stock was down by approximately 1.6 per cent and declined by 17.69 per cent in the past three months.

Share's RSI for the 30-days, 14-days and 9-days stood at 40.74, 39.61 and 38.44 respectively. However, 3-days RSI of the stock stood at 21.80.

 

Best of The Best PLC

The Company is into consumer services; specifically, travel and leisure and continues to evolve away from being an operator of retail-based car competitions, to a pure online operator.

Financial Highlights for FY19 (£)

(Source: Company’s filings)

The revenue surged by 14.4 per cent to £14.81 million this year as against £12.95 million in FY18. They enjoyed success from marketing initiatives which resulted in growing online sales. The operating profit (before exceptional items) surged by 31.9 per cent to £2.11 million this year as against £1.60 million in FY18. The Net assets stood at £1.28 million this year. The company had cash balances of £2.54 million this year. The company proposed an ordinary dividend of 2 pence to be paid on September 27, 2019. The company’s EPS (Adj.) increased to 17.62 pence (+32.3%) this year as against 13.32 pence in FY18.

Share price performance

Daily Chart as at June-21-19, before the market close (Source: Thomson Reuters)

At the time of writing (as on June 21, 2019, at 9:45 AM GMT), shares of the Best of The Best PLC were quoting at GBX 290 per share; down by 9.4 per cent against the yesterday's closing price level. The outstanding market capitalisation of the company stood at around £29.87 million with a Dividend yield of 0.63 per cent.

In the last 52-wks, shares of Best of The Best PLC have registered a high of GBX 360 (as on Feb 19, 2019) and a low of GBX 204 (as on Oct 29, 2018). At the current trading level, as quoted in the price chart, its shares are trading 19.41 per cent below the 52week high price level and 42.16 per cent above the 52wk low price level.

As on June-21-19, volume in the stock (before the market close, at the time of writing) stood at 5,753. Stock's average traded volume for 5 days was 10,217.80; 30 days- 8,866.8 and 90 days – 5,168.70. The average traded volume for 5 days was up by 15.24 per cent as compared to the 30 days average traded volume. The company’s stock beta was 0.08, reflecting significantly lower volatility as compared to the benchmark index.

From the SMA standpoint, at the time of writing, its shares were trading above the 60-days and 200-days SMA, which indicates a positive trend in the stock price and carrying the potential to move up further from the current trading levels.

In the past 1 year, shares of Best of The Best PLC have delivered a positive price return of 9.11 per cent. However, on a year-to-date basis, the stock was up by approximately 42.86 per cent and surged by 12.28 per cent in the past three months.

Share's RSI for the 30-days, 14-days and 9-days stood at 62.98, 68.93 and 71.08 respectively. However, 3-days RSI of the stock stood at 73.03.

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