Quality growth shares


The quality growth shares theme explores equity research and video content for companies that meet our quality growth stock criteria. 

UK stocks that meet the following criteria:

Latest PE Ratio less than 18x  |  Latest ROCE greater than 15%  |  Latest Revenue Growth greater than 5%  |  Latest FCF/Sales greater than 5%  |  Latest EPS Growth greater than 10%


 

Quality Growth Shares


The quality growth shares theme explores equity research and video content for companies that meet our quality growth stock criteria. 

UK stocks that meet the following criteria:

Latest PE Ratio less than 18x  |  Latest ROCE greater than 15%  |  Latest Revenue Growth greater than 5%  |  Latest FCF/Sales greater than 5%  |  Latest EPS Growth greater than 10%

Latest Content

Utilitywise

Fog on the Tyne begins to clear. Raise to buy.

Adoption of IFRS15 validates our modelling At long last UTW may have crossed the Rubicon, to build on our riparian metaphor. IFRS15 may have forced the issue, but far from wiping out the P&L, we believe that it has more accurately rebalanced the apportionment of accruals between the P&L and the balance sheet. This, finally allows us to have confidence enough in our valuation to raise our target price (88p from 74p) and our recommendation (Buy from Hold). On 31 Jul’17 UTW announced a restatement of historical revenues, accruals and PBT that deflated all of them materially, giving distributable retained earnings a thorough kicking. We have long argued that such a restatement was inevitable, but taking the hit in the balance sheet means they will miss the 2017 dividend (to which the market has reacted with customary alacrity). Last year’s net assets (as restated) now has only £12m of distributable retained earnings, which will be pushed in negative territory in FY’17 due to the huge exceptional charge generated by the restatement. This is good, not bad in our view, not least as they have also increased their provisioning to a safer 20% (up from 15%). The classic profile of high-accruers like UTW is to pump up the balance sheet and then blow up on the write back to equity. In the case of UTW, the share price has now fallen 85%+ from its peak during the “pump up” period, and we show in this note how a potentially valuable business emerges as the fog of overstated earnings begins to clear.

  • 01 Aug 17
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Research Tree aggregates the latest equity research from 367 analysts at 31 city brokerages and research houses in one platform, giving users full access to the latest valuations, target prices, analysis, and financial models on the companies they care about, in real-time.