Quick Review On Three Stocks: GYM, BME, DCC

GYM Group

The Gym Group plc (GYM) is based in the United Kingdom, specialising in low- cost Health & Fitness services. It has close to 165 gyms across the country which are open 24×7. The company offers membership for various gym programs.

Pre-Close Trading Update for H1 FY19 released on 12 July 2019

The company’ total membership accounts stood at 796,000 in H1 FY19, which was 10.6 per cent more than the total membership accounts held by the company in H1 FY18. The company’s total revenue growth was up by 26.9 per cent and stood at £74 million in H1 FY19 as against £58.3 million in H1 FY18.

The gym numbers grew to 165 in H1 FY19 as against 147 in H1 FY18, 8 new gyms were opened in H1 FY19. The company’s market share has increased to 24 per cent in H1 FY19 as against 22.4 per cent in H1 FY18. The company looks forward to opening 20 standard gyms plus a first small box gym by the end of this year.

The company’s premium brand LIVE IT made good progress and gained 16.9 per cent share of total membership with 135,000 members. The company has introduced a new concept known as PT (Personal Trainer) model and looks to implement it across all its gyms. The company has taken extensive marketing initiatives and innovative ideas to promote the brand and generate revenue for the business.

Financial Highlights – FY18 (£, million)

The company generated a revenue of £123.9 million in FY18 as against £91.4 million in FY17, marking an increase of 35.6 per cent. The company’s Group Adjusted EBITDA stood at £36.8 million in FY18 as against £28.0 million in FY17, marking an increase of 31.6 per cent. The company’s Basic adjusted EPS (earnings per share) surged to 8.4 pence in FY18 as against 7.4 pence in FY17. The company’s Adjusted PBT (profit before tax) stood at £14.4 million in FY18 as against £12.0 million in FY17. The company’s statutory PBT (profit before tax) stood at £10 million in FY18 as against £9.2 million in FY17. The company proposed an annual dividend of 1.30 pence in FY18 as against 1.20 pence in FY17.

The management is satisfied with the way the company is performing this year and focuses on LIVE IT to penetrate the market further. According to market experts, the low-cost gyms market will double in approaching 7 years and the expected number of gyms would be somewhere around 1,200-1,400.

GYM Group PLC Share price performance

Daily Chart as at July-15-19, before the market close (Source: Thomson Reuters)

At the time of writing (as on July 15, 2019, at 11:48 AM GMT), shares of GYM Group PLC were quoting at GBX 251.50 per share; up by 1.41 per cent against the yesterday’s closing price level. The company’s market capitalisation (outstanding) stood at £342.41 million.

In the last 52-weeks, shares of GYM Group PLC have registered a high of GBX 344.50 (as on Sep 03, 2018) and a low of GBX 185.00 (as on Mar 13, 2019). At the current trading level, as quoted in the price chart, its shares were trading 26.99 per cent below the 52-week high price level and 35.94 per cent above the 52-week low price level.

The stock’s volume (before the market close, at the time of writing) stood at 88,949. Stock’s average traded volume for 5 days was 231,516.60; 30 days- 212,155.40and 90 days – 289,775.02. The average traded volume for 5 days was up by 9.13 per cent as against the 30 days average traded volume. The company’s stock beta was (0.05), negatively correlated as compared to the benchmark index with a Dividend yield of 0.77 per cent.

The shares of the company (at the time of writing) were trading above the 30-days and 60-days SMA, which shows a positive trend in the stock price movement and could further move up from the current trading levels.

In the past 1 year, shares of GYM Group PLC have delivered a negative price return of 11.90 per cent. Also, on a year-to-date basis, the stock was down by approximately 9.16 per cent and surged by 9.25 per cent in the past three months.

Share’s RSI for the 30-days, 14-days and 9-days stood at 55.51, 57.32 and 59.15 respectively. Also, the stock’s 3-days RSI stood at 76.30. The volatility of the stock for 200 Days, 90 Days, 30 Days stood at 40.86, 31.04 and 34.91 respectively.

B&M European Value Retail SA

B&M European Value Retail SA (BME) is based in the United Kingdom and specialised in variety retailing. The company operates in two sub-divisions: the UK retail and German retail. They include grocery, general merchandise and fast-moving consumer goods (FMCG) products. The company is also a retail seller of DIY (do it yourself) products, decorative stuff, household goods, food& beverages (alcoholic/ non-alcoholic), toiletries and seasonal goods in its B&M stores. It also sells non-grocery items such as Electrical items, pet care, toys, gardening tools, sports and leisure accessories, everyday essentials, clothing and footwear.

Financial Highlights – FY19 (£, million)

The company’s revenue stood at £3,486.3 million in FY19 as against £2,976.3 million in FY18, marking a rise of 17.1 per cent on an absolute basis. The company’s overall gross margin stood at 34.1 per cent this year as against 33.9 per cent in FY18. The company’s operating costs (depreciation and amortisation excluded) rose by 20 per cent to £877.1 million factoring new store pre-opening costs.

The Depreciation and amortisation costs incurred by the company surged by 37.3% to £49.7 million signifying the investments in new store openings. The company’s Adjusted EBITDA surged by 11.9 per cent to £312.3 million in FY19 as against £279 million in FY18. The company’s cash generated from operations surged by 7.2 per cent to £259.4 million in FY19 as against £242 million in FY18. The company’s diluted EPS (earnings per share) surged by 10.2 per cent to 20.5 pence in FY19 as against 18.6 pence in FY18.

B&M European Value Retail Share price performance

Daily Chart as at July-15-19, before the market close (Source: Thomson Reuters)

At the time of writing (as on July 15, 2019, at 12:25 PM GMT), shares of B&M European Value Retail were quoting at GBX 343.9 per share; up by 0.37 per cent against the yesterday’s closing price level. The company’s market capitalisation (outstanding) stood at £3.43 billion.

In the last 52-weeks, shares of B&M European Value Retail have registered a high of GBX 436.40 (as on Jul 25, 2018) and a low of GBX 277.70 (as on Dec 27, 2018). At the current trading level, as quoted in the price chart, its shares were trading 21.19 per cent below the 52-week high price level and 23.83 per cent above the 52-week low price level.

The stock’s volume (before the market close, at the time of writing) stood at 795,752. Stock’s average traded volume for 5 days was 1,899,389.20; 30 days- 2,513,366.07 and 90 days – 2,312,280.81. The average traded volume for 5 days was down by 24.43 per cent as compared to the 30 days average traded volume. The company’s stock beta was 0.97, reflecting roughly the same directional movement of the stock against the benchmark, with a dividend yield of 2.22 per cent.

The shares of the company (at the time of writing) were trading below the 60-days and 200-days SMA, which shows a negative trend in the stock price movement and could further move down from the current trading levels.

In the past 1 year, shares of B&M European Value Retail have delivered a negative price return of 19.14 per cent. However, on a year-to-date basis, the stock was up by approximately 21.71 per cent and plunged by 12.62 per cent in the past three months.

Share’s RSI for the 30-days, 14-days and 9-days stood at 47.64, 53.39 and 60.25 respectively. Also, the stock’s 3-days RSI stood at 79.66. The volatility of the stock for 200 Days, 90 Days, 30 Days stood at 26.73, 21.84 and 21.28 respectively.

DCC PLC

DCC PLC (DCC) is a sales, distribution, and support services group operating primarily in the UK, Ireland and mainland Europe. The company’s operations are split into four divisions: Liquified Petroleum Gas (LPG), Retail & Oil, Healthcare, and Technology.

Recent Developments

DCC’s management expressed its pleasure with the company’s progress for the First quarter ended 30 June 2019, as it remained in line with the company’s expectations. This progress can be attributed to the acquisitions completed in the previous year. The company previously got customary regulatory approvals and acquired Comm-Tec (Germany) and Amacom (Netherlands). These acquisitions would strengthen the company’s relationships with suppliers and customers in the European region.

Financial Highlights- FY19 (£)

The company’s revenue (continuing operations) stood at £15.2 billion in FY19. The PBT (Profit before tax) surged to £326.7 million this year. The management of the company recommended an increase of 13.7 per cent in the final dividend to make it to 93.37 pence per share along with an interim dividend of 44.98 pence per share which will lead to an annual dividend of 138.35 pence per share in FY19. This annual dividend will be 12.5 per cent more than the annual dividend declared in FY18.

 The company’s adjusted operating profit (continuing operations) stood at £460.5 million in FY19. The company’s Adjusted EPS (earnings per share) on continuing activities was up due to the placement of equity shares during the period by 12.8 per cent amounting to 358.2 pence in FY19.

DCC PLC Share price performance

Daily Chart as at July-15-19, before the market close (Source: Thomson Reuters)

At the time of writing (as on July 15, 2019, at 12:40 PM GMT), shares of DCC PLC were quoting at GBX 7,014 per share; up by 2.54 per cent against the yesterday’s closing price level. The company’s market capitalisation (outstanding) stood at £6.72 billion.

In the last 52-weeks, shares of DCC PLC have registered a high of GBX 7,450.00 (as on Sep 21, 2018) and a low of GBX 5,555.00 (as on Nov 20, 2018). At the current trading level, as quoted in the price chart, its shares were trading 5.85 per cent below the 52-week high price level and 34.11 per cent above the 52-week low price level.

The stock’s volume (before the market close, at the time of writing) stood at 79,104. Stock’s average traded volume for 5 days was 197,570.00; 30 days- 205,760.20 and 90 days – 208,222.59. The average traded volume for 5 days was down by 3.98 per cent as against the 30 days average traded volume. The company’s stock beta was 0.98, showing almost the same amount of volatility as compared to the benchmark index. Its dividend yield was 2.02 per cent.

The shares of the company (at the time of writing) were trading below the 30-days and 60-days SMA, which shows a negative trend in the stock price movement and could further move down from the current trading levels.

In the past 1 year, shares of DCC PLC have delivered a negative price return of 0.87 per cent. However, on a year-to-date basis, the stock was up by approximately 14.29 per cent and plunged by 1.10 per cent in the past three months.

Share’s RSI for the 30-days, 14-days and 9-days stood at 48.68, 41.28 and 35.11 respectively. Also, the stock’s 3-days RSI stood at 24.07. The volatility of the stock for 200 Days, 90 Days, 30 Days stood at 24.60, 18.93 and 14.08 respectively.

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