Stocks that have given even consistent performance over a long period of time tend to be very volatile at times in comparison to the benchmark index and their peers, due to various external as well as internal factors and business challenges. Here we are going to discuss a few stocks that have been very volatile in recent times; this can be observed from the comparative charts shown below.
Comparative share price chart of NMC, Schroders, Rolls-Royce, Burberry, Hargreaves
(Source: Thomson Reuters)
NMC Health PLC
NMC Health Plc (NMC) was established in the year 1975 and it is the largest private healthcare company in the UAE. It provides healthcare services internationally with the United Arab Emirates (U.A.E.) and Spain being its major markets. The company has two business segments being Healthcare & Distribution and Services. The company is also involved in the distribution of medical equipment, pharmaceutical products, veterinary products, cosmetics, IT products and consumer products.
The company is expected to release its results for H1 FY19 on 22nd August 2019.
Financial Highlights for FY18 (US$, million)
The company reported revenues of $2,057.3 million in FY18, against $1,603.4 million in FY17. There was an increase of 28.3 per cent due to the introduction of mandatory health insurance coverage in Dubai, and all the divisions have shown significant growth compared to the previous year. The EBITDA for FY18 stood at $487.4 million compared to $353.4 million in FY 2017; there was an increase of 37.9 per cent due to accelerated revenue growth in the current financial year. EBITDA margin surged by 170 bps to 23.7 per cent in comparison with corresponding figures for FY17. The net profit for the year 2018 stood at $251.9 million as compared to $209.2 million in FY 2017, while adjusted profit was $283.5 million. The basic Earnings Per Share for the FY 2018 stood at US$1.196 against US$0.910 in FY 2017. Adjusted EPS surged by 28.5 per cent to US$1.332 in FY 2018 as compared to US$1.036 in FY 2017. The company’s diluted earnings per share were $1.188 in FY2018 versus $0.903 in FY2017.
NMC Share Price Performance
On 13th August 2019, at the time of writing (before the market close, GMT 11:43 AM), NMC shares were trading at GBX 1,805, down by 5.49 per cent as compared to the previous day’s closing price. Stock's 52-week High is GBX 4,376.00, and 52-week Low is GBX 1,791.50. The group’s stock beta as on date stood at 1.03, reflecting almost same level of volatility as compared to the benchmark index.
In the past 1 year, NMC shares have delivered a negative return of 52.39 per cent. On a YTD (Year-to-Date) basis, the stock plunged by approximately 30.19 per cent and was down by 27.60 per cent in the last three months.
Schroders PLC (SDR) is a Britain-based asset manager and is headquartered at London, United Kingdom. The company has been operating the asset management business for more than 25 countries across Europe, the Americas, Asia & Australia and the Middle East and provides advisory and consultancy services to financial institutions, high net-worth clients, large corporates and other institutions.
Financial Highlights (H1 FY2019, £ million)
In H1 FY19, the company’s reported net income stood at £1,032.6 million. Profit before tax and exceptional items was £340.4 million, a decrease of 14 per cent against the £397.1 million recorded in H1 FY18. Reported profit before tax reduced by 14 per cent to £319.3 million against the same period in 2018. Basic earnings per share stood at 92.4 pence, a decrease of 13.6 pence from the previous year’s corresponding period data.
The company’s Board declared an interim dividend per share of 35 pence which remained flat compared to the corresponding period in 2018. On 26th September 2019, the dividend will be paid to shareholders who are on the register as on 23rd of August 2019.
The company’s asset under management (AUM) surged by 9% to £444.4 billion against the £407.2 billion at 31st December 2018. Net outflows were £1.2 billion against net inflows of £1.2 billion in H1 FY18. On 30th June 2019, its total equity outstanding was at £3.6 billion.
SDR Share Price Performance
On 13th August 2019, at the time of writing (before the market close, GMT 11:46 AM), SDR shares were trading at GBX 2,687 and declined by 3.58 per cent as compared with the previous day’s closing price. Stock's 52-week High is GBX 3,226.00 and 52-week Low is GBX 2,289.00. The group’s stock beta as on date stood at 1.26, reflecting higher volatility in comparison to the benchmark index.
In the past 1 year, SDR shares have delivered a negative return of 10.10 per cent. However, on a YTD (Year-to-Date) basis the stock surged by approximately 14.08 per cent but was down by 9.40 per cent in the last three months.
Rolls-Royce Holdings PLC
Rolls-Royce Holdings PLC (RR) is a London, United Kingdom-headquartered multinational engineering company, focused on power and propulsion systems. It is one of the world’s leading industrial technology companies and seeks to deliver clean, safe and competitive solutions to a wide range of industries. It also engages in supporting a worldwide network of 30 plus University Technology Centres and employs 54,500 people in 50 countries, spanning across six continents.
Financial Highlights for H1 FY19
In H1 FY19, the company’s underlying revenue was £7,213 million as compared to £6,680 million in the H1 FY18. The 8 per cent rise can be attributed to the surge in the revenue from services. Gross profit was recorded at £995 million in H1 FY19 against £897 million in H1 FY18. The company’s operating profit for the H1 FY19 stood at £203 million against operating profit of £146 million in H1 FY18. The company’s finance costs surged by 68% year over year to £109 million. The Underlying Loss of the company stood at £24 million for H1 FY19 against the profit of £59 million in H1 FY18. Underlying earnings per share stood at negative 1.4 pence in H1 FY19 as compared to a positive 3.1 pence in H1 FY18.
RR Share Price Performance
On 13th August 2019, at the time of writing (before the market close, GMT 11:50 AM), RR shares were trading at GBX 732, down by 2.68 per cent as compared with the previous day’s closing price. Stock's 52-week High is GBX 1,033.25, and 52-week Low is GBX 723.40. The group’s stock beta as on date stood at 1.13, reflecting higher volatility as compared to the benchmark index.
In the past 1 year, RR shares have delivered a negative return of 26.99 per cent. Also, on a YTD (Year-to-Date) basis, the stock plunged by approximately 8.67 per cent and was down by 18.11 per cent in the last three months.
Burberry Group Plc
Burberry Group Plc (BRBY) is a British-based luxury goods company specialising in leather goods and ready-to-wear items. The company designs, sources, manufactures and distributes luxury- men’s, women’s and children’s clothing and non-apparel accessories through directly owned stores, wholesale and licenced channels.
Trading Update for the first quarter FY20
The company’s revenues in the first quarter of FY 20 surged by 4 per cent (statutory basis) to £498 million from £479 million in Q1 FY19. The revenue rose by 2 per cent on the CER (constant exchange rate) basis. The company’s comparable-store sales surged by 4 per cent in the Q1 FY20 due to consistent demand for the new products.
Financial Highlights (FY19, £ million)
The company’s revenues were £2.7 billion in FY19 and plunged by 1 per cent at constant exchange rates (CER) against that in the previous year. The reported gross profit declined by 2 per cent to £1,861 million as against £1,897 million in FY18, while gross margin stood at 68.4 per cent in FY19.
Adjusted operating profit decreased by 6 per cent to £438 million as compared with the corresponding period of prior year, while it remained flat on a CER basis. The adjusted operating profit margin decreased to 16.1 per cent from 17.1 per cent in FY 2018. Reported operating profit stood at £437 million, a surge of 7 per cent from the corresponding period of previous year. Reported profit before taxation rose by 7 per cent to £441 million against £413 million in FY18.
The profit attributable to shareholders stood at £339 million. Adjusted diluted EPS (earnings per share) was 82.1 pence. Full-year dividend increased by 3 per cent to 42.5 pence per share against the 41.3 pence per share in FY18.
BRBY Share Price Performance
On 13th August 2019, at the time of writing (before the market close, GMT 03:51 PM), BRBY shares were trading at GBX 2,106 and declined by 1.72 per cent as compared with the previous day’s closing price. Stock's 52-week High is GBX 2,362.00, and 52-week Low is GBX 1,618.50. The group’s stock beta as on date stood at 1.53, reflecting higher volatility as compared to the benchmark index.
In the past 1 year, BRBY shares have delivered a negative return of 3.42 per cent. On a YTD (Year-to-Date) basis, the stock surged by approximately 23.48 per cent and was up by 11.53 per cent in the last three months with an overall gross dividend yield of 8.90 per cent.
Hargreaves Lansdown PLC
Hargreaves Lansdown (HL) is a provider of investment management products and services to private investors in the UK. It offers a range of investment products, financial planning and advisory, and investment services.
Financial Results for FY19
Hargreaves Lansdown reported its financial results for the year ended June 30, 2019. The company’s net new business in the FY19 declined by 4% to £7.3 billion from £7.6 billion recorded in the FY18. Total AUM surged by 8% to £99.3 billion from £91.6 billion recorded in the previous financial year. The group’s revenue during the year under consideration increased by 7% to £480.5 million against £447.5 million recorded in the FY18. Before-tax profit stood at £305.8 million against £292.2 million recorded in the previous financial year.
Hargreaves Lansdown Share Price Performance
On 13th August 2019, at the time of writing (before the market close, GMT 12:02 PM), HL shares were trading at GBX 1,960.5, down by 1.77 per cent as compared to the previous day’s closing price. Stock's 52-week High is GBX 2,447.33 and 52-week Low is GBX 1,622.00. The group’s stock beta as on date stood at 1.15, reflecting higher volatility as compared to the benchmark index.
In the past 1 year, HL shares have delivered a negative return of 4.21 per cent. On a YTD (Year-to-Date) basis, the stock surged by approximately 7.95 per cent and was down by 13.14 per cent in the last three months.
With Bank of England reducing the interest rates to a historic low level, the spotlight is back on diverse investment opportunities.
Amidst this, are you getting worried about these falling interest rates and wondering where to put your money?
Well! Team Kalkine has a solution for you. You still can earn a relatively stable income by putting money in the dividend-paying stocks.
We think it is the perfect time when you should start accumulating selective dividend stocks to beat the low-interest rates, while we provide a tailored offering in view of valuable stock opportunities and any dividend cut backs to be considered amid scenarios including a prolonged market meltdown.