Three key FTSE Stocks to look at: Royal Mail Plc, Ricardo Plc and Watches of Switzerland Group Plc

Royal Mail Plc

Royal Mail Plc (LON: RMG) is an Industrial Transportation company based out of London, United Kingdom, whose primary business is the provision of postal services. The company has two major business divisions through which it operates all its services. These divisions are UK Parcels, International and Letters and General Logistics Systems. The GLS System primarily engages in the provision of logistics services with a geographical concentration on the region of North America. The company has a total of 143,000 employees, 48,000 vehicles, 37 mail centres as well as 11,000 local connection points making it one of the strongest logistics and postal service in the United Kingdom.

RMG Financial Performance

On 21st November 2019, the company announced its financial results for the half year period ended 29th September 2019. In terms of the adjusted measures, the company highlighted a year on year increase in the revenue from £4.914 billion to £5.166 billion. The operating profit for the period was reported to be at £61 million as opposed to an operating loss of £4 million in the first half of FY2019. The company also reported that the Profit after tax, for the period stood at £153 million, as against £5 million in the first half of FY2019. Albeit, the company proposed a dividend of GBX 7.5 per share for the period, in comparison with the dividend declared in the first half of the previous year at GBX 8.0 per share, reflecting on the changes made in the dividend policy in the middle of this year.

RMG Share Price Performance

(Source: Thomson Reuters) Daily Chart as on 02-December-19, prior to the close of the market

On 2nd December 2019, at 11:00 A.M GMT, while writing, Royal Mail Plc’s share price was reported to be trading at GBX 214.30 per share, an increase of 2.78 per cent or GBX 5.80 per share, as compared to the previous day’s closing price, which was reported to be at GBX 208.50 per share. At the time of reporting, the Royal Mail Plc share was reported to be trading 14.72 per cent above the 52-week low share price, which was at GBX 186.80 per share, that the company’s shares reached on August 15, 2019. The company’s market capitalisation (M-Cap) was reportedly valued to be at GBP 2.085 billion with respect to the share’s current market price.

The Royal Mail Plc share has given a positive change in the last six months in the value, of around 10.18 per cent from the share price of GBX 194.50 per share that the company’s share achieved on June 03, 2019. Royal Mail Plc’s share has also declined by 1.02 per cent in value, in the last one month from the price of GBX 216.50 per share that the shares closed at on November 01, 2019.

The beta of the Royal Mail Plc’s share has been reported to be at 0.6832. This basically implies that the volatility in the price of the company’s stock, is less than the volatility in the movement of the comparative benchmark index.

Ricardo Plc

Ricardo Plc (LON: RCDO) is a United Kingdom based Industrial support services company that is mainly in the business of providing Engineering, Strategic, Technical as well as environmental consulting and advisory. The company lends its services to sectors such as Energy and environment, Automotive, Commercial vehicles, Defence, Motorsport, Motorcycle, Off highway vehicles as well as Railways.

RCDO Financial Performance

The company, on 12th November 2019, reported its preliminary results for the year ended 30th June 2019. A robust financial performance was highlighted in the results with the revenue up by 2 per cent year on year in terms of the reported change from £378.5 million in FY 2018 to £384.4 million in FY 2019. The underlying profit before tax was reported to have declined marginally by 1 per cent year on year to £37.0 million in FY 2019 from £37.5 million in FY 2018. Underlying Basic Earnings per share  was also down 3 per cent to GBX 53.7 per share in FY 2019 from GBX 55.1 per share in FY 2018. Albeit, as a reflection of the company’s progressive dividend policy, the board declared a dividend for the period at GBX 21.28 per share, an increase of 4 per cent year on year, as opposed to the dividend declared in FY 2018 at GBX 20.46 per share.

RCDO Share Price Performance

(Source: Thomson Reuters) Daily Chart as on 02-December-19, prior to the close of the market

On 2nd December 2019, at 11:10 A.M GMT, while writing, Ricardo Plc’s share price was reported to be trading at GBX 716.00 per share, an increase of 2.29 per cent or GBX 16.00 per share, as compared to the previous day’s closing price, which was reported to be at GBX 700.00 per share. At the time of reporting, the Ricardo Plc share was reported to be trading 25.17 per cent above the 52-week low share price, which was at GBX 572.00 per share, that the company’s shares reached on January 17, 2019. At the current market price, the share was also trading 13.54 per cent below the 52-week high price at GBX 828.13 per share, which the company’s share achieved on May 13, 2019. The company’s market capitalisation (M-Cap) was reportedly valued to be at GBP 373.84 million with respect to the share’s current market price.

The Ricardo Plc share has given a negative change in the last six months in the value, of around 5.29 per cent from the share price of GBX 756.00 per share that the company’s share achieved on June 03, 2019. Ricardo Plc’s share has also increased by 8.48 per cent in value, in the last one month from the price of GBX 660.00 per share that the shares closed at on November 01, 2019.

The beta of the Ricardo Plc’s share has been reported to be at 0.9650. This basically implies that the volatility in the price of the company’s stock, is slightly less than the volatility in the movement of the comparative benchmark index.

Watches of Switzerland Group Plc

Watches of Switzerland Group Plc (LON: WOSG) is a Leicester, United Kingdom based consumer goods company that mainly deals in retailing of watches. The company offers a wide range of luxury brand watches in their stores located in both the United Kingdom as well as the United States of America. The company’s four retail brands include Watches of Switzerland, which is also their flagship brand, Muppin and Webb, Goldsmiths as well as Mayors, through which, the company deals in retailing of fine jewellery as well as other accessories.

WOSG Financial Performance

On 13th August 2019, the company announced its Q1 FY2020 results for the quarter ended 28th July 2019. The performance was primarily driven by the US and UK stores’ robust performance, lead to a 17.8 per cent year on year growth in the revenue to £209.4 million during the period, as opposed to £177.7 million in Q1 FY2019. The United Kingdom region revenue grew by 11.8 per cent year on year while the United States region revenue grew by 39.0 per cent year on year. Segment wise, the Luxury watches segment was the leader with a year on year growth in the revenue in this segment at 22.8 per cent to £177.4 million during the quarter.

WOSG Share Price Performance

(Source: Thomson Reuters) Daily Chart as on 02-December-19, prior to the close of the market

On 2nd December 2019, at 11:20 A.M GMT, while writing, Watches of Switzerland Group Plc’s share price was reported to be trading at GBX 322.20 per share, a decline of 0.86 per cent or GBX 2.80 per share, as compared to the previous day’s closing price, which was reported to be at GBX 325.00 per share. At the time of reporting, the Watches of Switzerland Group Plc share was reported to be trading 27.04 per cent above the 52-week low share price, which was at GBX 253.63 per share, that the company’s shares reached on October 02, 2019. At the current market price, the share was also trading 5.24 per cent below the 52-week high price at GBX 340.00 per share, which the company’s share achieved on November 28, 2019. The company’s market capitalisation (M-Cap) was reportedly valued to be at GBP 778.23 million with respect to the share’s current market price.

The Watches of Switzerland Group Plc share has given a positive change in the last six months in the value, of around 4.27 per cent from the share price of GBX 309.00 per share that the company’s share achieved on June 03, 2019. Watches of Switzerland Group Plc’s share has also increased by 5.29 per cent in value, in the last one month from the price of GBX 306.00 per share that the shares closed at on November 01, 2019.