Two Vividly Trading Stocks To Look At: Boohoo Group Plc And AstraZeneca PLC

  • Aug 21, 2019 BST
  • Team Kalkine
Two Vividly Trading Stocks To Look At: Boohoo Group Plc And AstraZeneca PLC

Boohoo Group PLC

AIM-listed Boohoo Group Plc (BOO) is among the top online fashion retail company in the UK. It has a global footprint, including the UK, Europe, Australia and the US being the primary markets. The company’s products are targeted at the age group of 16-30 years with its brands such as Boohoo, PrettyLittleThings, NastyGal and boohooMAN.

Recent news

In the exchange filing made by the company as on August 06, 2019, the company reported that it had acquired several widely known British brands Karen Millen and Coasts out of its administration. The acquired brands were put up for sale by Icelandic bank, Kaupthing.

Trading Update - 1Q FY20

In the trading update reported by the company as on June 12, 2019, the group’s total revenue increased by 39 per cent to £254.3 million against £183.6 million recorded in the year-ago period, primarily driven by revenue growth across all geographical segments with the UK business recorded a growth of  27 per cent on a YoY basis and international business nudged by 56 per cent. Gross margin during the period under consideration stood at 55 per cent against 55.2 per cent recorded in the first quarter of the previous financial year. Net cash reported at the end of the 1Q FY20 was at £194 million. During the period under consideration, the apparel retailer company acquired the brand and intellectual property assets of the MissPap. On a segment-specific standpoint, its boohoo brand revenue recorded a growth of 27 per cent to £123.5 million with a gross margin of 54.1 per cent, the PrettyLittleThing brand revenue surged by 42 per cent to £112.1 million, with a gross margin of 55.9 per cent and Nasty Gal brand revenue leapt up by 153 per cent to £18.2 million, with a gross margin of 56.1 per cent respectively.

The apparel retailer company Boohoo Group Plc has recorded decent growth during the 1Q of 2020, driven by the decent performance of its key brands like boohoo, PrettyLittleThing and NastyGal. The group's performance in the FY19 in terms of revenue growth, EBITDA margin, net margin and from the return on equity (ROE) standpoint was substantially better than the industry average performance. As group's EBITDA margin during the period was at 9.6 per cent against the industry average EBITDA margin of 3.2 per cent, the net margin was at 6.0 per cent whereas industry average net margin stood at 0.5 per cent, and the ROE stood at 9.2 per cent as compared to the industry average of 0.2 per cent. Above ratios as discussed reflects decent fundamental strength of the company.

Also, the group has given decent full-year guidance for the FY20, in which they forecasted a 10 per cent adjusted EBITDA margin for the FY20, which is approximately 40bps higher than the previous year and revenue growth in between 25-30 per cent on a YoY basis.

Company’s outlook for the full-year FY20

On behalf of the stellar performance of the company recorded in the initial quarter of the FY20, the management expects revenue growth of 25-30 per cent and forecasted a 10 per cent adjusted EBITDA margin for the full-year FY20.

BOO Share price performance

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

While writing (as on 21 August 2019, at 01:18 PM GMT), BOO shares were trading at GBX 230.5 per share; which was up by 0.13 per cent as compared to the previous day closing price level. At the time of writing, the company’s M-cap (market capitalisation) was recorded at around £2.67 billion.

In the last year, BOO shares have touched a new peak of GBX 249.50 (as on 30 April 2019) and a bottom price level of GBX 146.39 (as on 17 December 2018). At the current trading level, as quoted in the price chart, its shares were trading at 7.61 per cent lower than the 52-week high price mark and 57.45 per cent higher than the 52-week low price mark.

While writing, the stock’s traded volume before the market close, was hovering around 619,735. Stock's average traded volume for 5 days was 1,858,580.40; 30 days- 3,462,741.10 and 90 days – 5,276,785.86. The beta as on date of the company’ s stock was 1.39, which means it was 39 per cent more volatile in comparison with the index considered as the benchmark.

At the time of writing, the shares of the company were faring above the 30-days and 60-days simple moving averages, which depicts an uptrend from the current trading levels.

In the past 3 months, BOO shares have delivered a negative return of 2.99 per cent. From the beginning of the year to till date, the company’s stock surged by 42.54 per cent. In the past year, the company’s stock has delivered a positive return of 21.13 per cent. 

The stock’s RSI (Relative Strength Index) was recorded at 52.83, 51.89 and 50.49 for the 30-days, 14-days and 9-days respectively, while the stock’s RSI was recorded at 56.34 (3-day).

 

AstraZeneca PLC

AstraZeneca PLC (AZN) is a biopharmaceutical company engaged in the development and commercialisation of prescription medicines. It’s primary focus areas for the treatment of diseases include oncology, respiratory, inflammation & autoimmunity, neuroscience, cardiovascular, renal & metabolism, infection & vaccines.

Recent News

Farxiga (New Drug Application by the company) is known for controlling the glycaemic index in the body along with supporting weight loss and keeping a check on blood-pressure when used in combination with diet and exercise in adults with diabetes. This drug passed the phase III trial with flying colours. It is a landmark discovery in the treatment of late-stage heart-failure, thereby mitigating the risk of death.

Financial Highlights (H1 FY2019, $ million)

In H1 FY2019, the company’s revenue increased by 9% at actual basis to $11,314 million as compared with the corresponding period of the last year, while on a CER basis, revenue surged by 14%. The revenue has increased because of the increased product sales of 12% (actual basis) or 17% (CER basis). In the first half of 2019, the reported gross margin surged by two percentage points to 80%, partly reflecting the mix of manufacturing and Product Sales efficiencies, while the core gross margin rose by one percentage point to 81%. Reported Operating Profit surged by 9% in the first half (12% at CER) to $1,590 million. The core operating profit surged by 39% (44% at CER) to $3,011 million. In H1 FY19, the reported operating margin was stable at 14%, while the core operating margin climbed by six percentage points (five at CER) to 27%. Reported EPS increased by 3% to $0.56 in H1 FY19 against the previous year same period data. Core EPS stood at $1.62 in H1 FY19, an increase of 38% (40% at CER) from the same period in 2018. The company had an unchanged first interim dividend per share of $0.90.

For the full-year result of 2019, the cash performance is projected to include several payments relating to previous business development transactions and most of the value of these payments in the year was settled in the first half. In FY19, the core tax rate will be in the range of 18% - 22% (FY18:11%).

In the latest results, the company had demonstrated decent operating-margin improvement, as its Core Operating Profit also increased over the year.

The company’s return to growth will be based on the strength of the new medicine. The group reported decent top-line and bottom-line performance with a robust balance sheet.

AZN Share price performance

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

While writing (as on 21 August 2019, at 01:22 PM GMT), AZN shares were trading at GBX 7,335 per share; up by 0.90 per cent as compared to the previous day closing price level. At the time of writing, the company’s M-cap (market capitalisation) was recorded at around £95.02 billion.

In the last year, AZN shares have registered a high of GBX 7,475.15 (as on 14 August 2019) and a low of GBX 5,312.00 (as on 28 January 2019). At the current trading level, as quoted in the price chart, its shares were trading at 1.87 per cent below than the 52-week high price level and 38.08 per cent above the 52-week low price level.

While writing, the stock’s traded volume before the market close, was hovering around 544,825. Stock's average traded volume for 5 days was 1,498,915; 30 days- 1,788,624.60 and 90 days – 1,875,699.46. The beta of the company as on date was 0.84, which means it is less volatile in comparison with the index considered as the benchmark.

At the time of writing, the shares of the company were faring above the 30-days and 60-days simple moving averages, which depicts an uptrend from the current trading levels.

In the past 3 months, AZN shares have delivered a positive return of 24.81 per cent. From the beginning of the year to till date, the company’s stock surged by 23.77 per cent. In the past year, the company’s stock has delivered a positive return of 21.58 per cent. 

Share's RSI (Relative Strength Index) was recorded at 64.82, 65.33 and 63.46 for the 30-days, 14-days and 9-days respectively. Also, the stock’s RSI was recorded at 51.13(3-days).

The company has been consistent in paying dividends to investors. In the last seven years, the company’s highest dividend yield has been of 9.94 per cent (FY12), while its lowest has been of 3.66 per cent (FY18). The mean annual dividend yield was around 5.04 per cent in the past seven years.

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.

To know more about these dividend stocks, click here

CLICK HERE FOR YOUR FREE REPORT!
   
x
We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we will assume that you are happy with it. OK