Churchill China (CHH) AI Stock Analysis

• Market Cap: £36.84M
• Dividend Yield: 7.98%
• Average Volume (3M): 19.34K
• Price to Earnings (P/E): 7.3
• Beta (1Y): 0.67
• Revenue Growth: -3.45%
• EPS Growth: -35.25%
• Country: UK
• Employees: 836
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Furnishings, Fixtures & Appliances
• EPS (TTM): 0.21
• Shares Outstanding: 10,997,835
• 10 Day Avg. Volume: 13,550
• 30 Day Avg. Volume: 19,341
• PEG Ratio: -0.71
• Price to Book (P/B): 1.26
• Price to Sales (P/S): 0.98
• P/FCF Ratio: 119.36
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 64 Neutral
• Price Target: 375.00p ▲(11.94% Upside)

Churchill China's overall stock score is driven by its strong valuation, with a low P/E ratio and high dividend yield, making it attractive for value and income investors. However, technical analysis indicates a bearish trend, and financial performance shows challenges in revenue growth and cash flow. The recent insider purchase provides a positive signal but is not enough to offset the current market sentiment.

Positive Factors

Strong Profitability

High profitability margins indicate efficient operations and the ability to maintain competitive pricing, supporting long-term financial health.

Robust Balance Sheet

Minimal leverage enhances financial flexibility and reduces risk, providing a solid foundation for future growth and investment opportunities.

Effective Equity Use

A solid return on equity indicates efficient management and the ability to generate returns on investments, supporting shareholder value.

Negative Factors

Declining Revenue Growth

Negative revenue growth suggests challenges in market expansion and product demand, potentially impacting long-term earnings potential.

Cash Flow Challenges

Weak cash flow conversion can limit reinvestment and operational flexibility, posing risks to sustaining growth and meeting financial obligations.

Earnings Decline

A substantial decline in earnings per share reflects reduced profitability, which may affect investor confidence and future capital raising efforts.

Churchill China Business Overview & Revenue Model

Company Description

Churchill China plc manufactures and sells ceramic and related products in the United Kingdom, rest of Europe, the United States, and internationally. It provides plates, bowls, trays and boards, crates and carriers, stands and risers, cookware, counter serving ware, cups, mugs, saucers, beverage pots, jugs, chip mugs, dip pots and sauce dishes, lids, glassware, cutlery, utensils, and accessories, as well as raw materials for the ceramics industry. The company offers its products to pubs, restaurant and hotel chains, sports and conference venues, health and education establishments, and contract caterers, as well as for consumer use. The company was founded in 1795 and is headquartered in Stoke-on-Trent, the United Kingdom.

How the Company Makes Money

Churchill China generates revenue through the sale of its ceramic tableware and related products to various market segments, including hospitality, retail, and export markets. The company has established strong relationships with key customers in the food service industry, which contributes significantly to its earnings. Key revenue streams include direct sales of tableware to restaurants and hotels, as well as partnerships with distributors and wholesalers. Furthermore, Churchill benefits from its ability to offer customized products for specific clients, which allows for higher margins. The company also invests in marketing and brand development to enhance its presence in both domestic and international markets, further driving sales growth.

Churchill China Financial Statement Overview

Summary

Churchill China demonstrates strong profitability and a robust balance sheet with minimal leverage. However, the company faces challenges in revenue growth and cash flow generation, which could impact future financial flexibility. Overall, the financial health is stable but with areas needing attention.

Income Statement

Churchill China has shown a decline in revenue growth with a negative growth rate in the latest year. However, the company maintains strong profitability with a gross profit margin of 86% and a net profit margin of 8.13%. The EBIT and EBITDA margins are also healthy, indicating efficient operations despite revenue challenges.

Balance Sheet

The company has a very low debt-to-equity ratio of 0.009, suggesting minimal leverage and strong financial stability. The return on equity is reasonable at 10.39%, reflecting effective use of equity to generate profits. The equity ratio is solid, indicating a strong capital structure.

Cash Flow

Cash flow performance has been mixed, with a significant decline in free cash flow growth. The operating cash flow to net income ratio is moderate at 0.317, and the free cash flow to net income ratio is relatively low, indicating potential challenges in converting income into cash.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	76.16M	78.28M	82.34M	82.53M	60.84M	36.36M
Gross Profit	65.26M	67.38M	74.85M	9.17M	50.79M	935.00K
EBITDA	10.41M	12.29M	14.37M	12.62M	8.83M	2.71M
Net Income	5.07M	6.37M	7.72M	7.89M	4.17M	113.00K
Balance Sheet
Total Assets	74.86M	79.11M	80.55M	75.87M	64.30M	54.57M
Cash, Cash Equivalents and Short-Term Investments	5.60M	10.10M	13.93M	14.66M	19.05M	14.00M
Total Debt	411.00K	918.00K	1.01M	730.00K	409.00K	433.00K
Total Liabilities	14.20M	17.85M	20.61M	19.23M	21.62M	17.43M
Stockholders Equity	60.66M	61.26M	59.94M	56.65M	42.68M	37.14M
Cash Flow
Free Cash Flow	2.36M	645.00K	3.07M	-731.00K	6.00M	-1.47M
Operating Cash Flow	5.43M	3.65M	8.47M	3.97M	9.75M	987.00K
Investing Cash Flow	-3.15M	-3.10M	-296.00K	-5.74M	-3.71M	-2.41M
Financing Cash Flow	-4.50M	-4.38M	-3.85M	-3.68M	-1.73M	-411.00K

Churchill China Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 335.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:CHH, the sentiment is Negative. The current price of 335 is below the 20-day moving average (MA) of 346.85, below the 50-day MA of 357.10, and below the 200-day MA of 466.52, indicating a bearish trend. The MACD of -6.83 indicates Positive momentum. The RSI at 26.94 is Positive, neither overbought nor oversold. The STOCH value of 31.15 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GB:CHH.

Churchill China Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CFX	78 Outperform	£48.81M	8.72	19.42%	0.55%	2.64%	23.89%
ULTP	68 Neutral	£45.25M	7.91	12.08%	11.91%	-3.45%	-44.02%
CHH	64 Neutral	£36.84M	7.27	8.35%	7.98%	-3.45%	-35.25%
LIKE	64 Neutral	£54.83M	40.74	3.37%	1.76%	9.26%	31.71%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
SDG	49 Neutral	£31.44M	-2.05	-19.58%	3.45%	-4.23%	-435.86%
PMP	48 Neutral	£13.44M	154.76	0.17%	―	-3.72%	―

Churchill China Corporate Events

Churchill China Director Increases Stake with Share Purchase

Churchill China PLC announced that Mark Moore, a Non-Executive Director, purchased 730 shares of the company in an open market transaction at 360.00p per share. This transaction increases Mr. Moore’s total shareholding to 1,000 shares, representing 0.009% of the company’s total voting rights, indicating a modest increase in insider ownership which could reflect confidence in the company’s future prospects.