Value is all about what a company is worth versus what price it is
available for. If you went into a grocery store and all the bananas were on sale
at half price, they could be considered
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
It is not possible to calculate the future cash flow value for
REACT Group. This is due to cash flow or dividend data being
unavailable. The share price is
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for
it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing
when they are out of season, or how much your home is worth.
The amount the stock market is willing to pay for
is considered below, and whether this is a fair price.
Price based on past earnings
REACT Group's earnings available for a low price, and how does
this compare to other companies in the same industry?
In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as REACT Group has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.
This is quite a rare situation as 97% of companies covered by Simply Wall St do have past financial data. You can see them here.
Show me the analysis anyway
The future performance of a company is measured in the same way as past
performance, by looking at estimated
and how much profit it is expected to make.
Future estimates come from
professional analysts. Just like forecasting the weather, they don’t always get
Expected Commercial Services industry annual growth in earnings.
Earnings growth vs Low Risk Savings
expected to grow at an
Unable to compare REACT Group's earnings growth to the low risk savings rate as no estimate data is available.
Growth vs Market Checks
Unable to compare REACT Group's earnings growth to the United Kingdom of Great Britain and Northern Ireland market average as no estimate data is available.
Unable to compare REACT Group's revenue growth to the United Kingdom of Great Britain and Northern Ireland market average as no estimate data is available.
Unable to determine if REACT Group is high growth as no earnings estimate data is available.
Unable to determine if REACT Group is high growth as no revenue estimate data is available.
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can
be gauged below. We look back 3 years and see if they were any good at
predicting what actually occurred. We also show the highest and lowest estimates
looking forward to see if there is a wide range.
REACT Group's performance over the past 5 years by checking for:
Has earnings increased in past 5 years? (1 check)
Has the earnings growth in the last year exceeded that of the
industry? (1 check)
Is the recent earnings growth over the last year higher than the average annual growth over the
past 5 years? (1 check)
Is the Return on Equity (ROE) higher than 20%? (1 check)
Is the Return on Assets (ROA) above industry average? (1 check)
Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent
earnings report. Some checks require at least 3 or 5 years worth of data.
has a total score of
0/6, see the detailed checks below.
Note: We use GAAP Net Income excluding extraordinary items in all our calculations.
One Thing To Remember About The REACT Group plc (LON:REAT) Share Price
This is above 1, so historically its share price has been influenced by the broader volatility of the stock market. … If this beta value holds true in the future, REACT Group shares are likely to rise more than the market when the market is going up, but fall faster when the market is going down. … What this means for you: Since REACT Group has a reasonably high beta, it's worth considering why it is so heavily influenced by broader market sentiment.
The REACT Group (LON:REAT) Share Price Is Down 80% So Some Shareholders Are Rather Upset
View our latest analysis for REACT Group Because REACT Group is loss-making, we think the market is probably more focussed on revenue and revenue growth, at least for now. … In the last three years, REACT Group saw its revenue grow by 6.7% per year, compound. … If you would like to research REACT Group in more detail then you might want to take a look at whether insiders have been buying or selling shares in the company.
What You Must Know About REACT Group plc's (LON:REAT) Beta Value
If you're interested in REACT Group plc (LON:REAT), then you might want to consider its beta (a measure of share price volatility) in order to understand how the stock could impact your portfolio. … Beta can be a useful tool to understand how much a stock is influenced by market risk (volatility). … A stock with a beta below one is either less volatile than the market, or more volatile but not corellated with the overall market.
Is REACT Group plc (LON:REAT) A Financially Sound Company?
REACT Group plc (LON:REAT), which has zero-debt on its balance sheet, can maximize capital returns by increasing debt due to its lower cost of capital. … Is REAT growing fast enough to value financial flexibility over lower cost of capital. … Debt capital generally has lower cost of capital compared to equity funding
REACT Group plc (LON:REAT): What Does Its Beta Value Mean For Your Portfolio?
The other type, which cannot be diversified away, is the volatility of the entire market. … Every stock in the market is exposed to this volatility, which is linked to the fact that stocks prices are correlated in an efficient market. … Beta can be a useful tool to understand how much a stock is influenced by market risk (volatility).
Will REACT Group plc (LON:REAT) Need To Raise More Money?
Additional cash raising may dilute the value of your shares, and since REACT Group is currently burning more cash than it is making, it’s likely the business will need funding for future growth. … With a negative operating cash flow of -UK£189.00k, REACT Group is chipping away at its UK£631.00k cash reserves in order to run its business … The measure of how fast REACT Group goes through its cash reserves over time is called the cash burn rate.
Will REACT Group plc (LON:REAT) Need To Raise More Money?
View our latest analysis for REACT Group What is cash burn? … AIM:REAT Income Statement May 15th 18 When will REACT Group need to raise more cash? … However, if REACT Group continues to grow its opex at this rate, given how much money it currently has in the bank, it will actually need to raise capital again in within the next 7 months!
Why REACT Group plc's (LON:REAT) Ownership Structure Is Important
Although REAT has a high institutional ownership, such stock moves, in the short-term, are more commonly linked to a particular type of active institutional investors – hedge funds. … Insider Ownership Insiders form another group of important ownership types as they manage the company's operations and decide the best use of capital. … Private Company Ownership Another important group of owners for potential investors in REAT are private companies that hold a stake of 0.066% in REAT.
How Does Investing In REACT Group plc (LON:REAT) Impact Your Portfolio?
A widely-used metric to measure a stock's market risk is beta, and the broad market index represents a beta value of one. … REAT’s beta indicates it is a stock that investors may find valuable if they want to reduce the overall market risk exposure of their stock portfolio. … This is an interesting conclusion, since both REAT’s size and industry indicates the stock should have a higher beta than it currently has.
Should You Be Content With REACT Group plc's (LON:REAT) Earnings Growth?
When REACT Group plc (AIM:REAT) released its most recent earnings update (31 March 2017), I wanted to understand how these figures stacked up against its past performance. … The two benchmarks I used were REACT Group's average earnings over the past couple of years, and its industry performance. … For REACT Group, its latest earnings (trailing twelve month) is -UK£281.00K, which, relative to last year’s figure, has become less negative.
REACT Group Plc provides specialist cleaning and decontamination service to the public sector in the United Kingdom. The company offers ducting and fan cleaning, clinical/non-clinical waste disposal, fly tipping clear, decontamination, roadside/layby and transit area deep clean, search and removal, animal/human fatality management, and pigeon guano removal/anti bird services. It also provides hazardous/non-hazardous waste removal, fire damage, fluid spill, graffiti removal/protection, industrial equipment cleaning, decommissioning, firing range deep clean, platform and track decontamination, forensic cleaning, and needles/paraphernalia clearance services from public spaces. The company serves facilities management, transportation, emergency services/custodial, commercial, manufacturing, housing, education, and healthcare sectors. REACT Group Plc was founded in 2005 and is based in England, the United Kingdom.
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