Market's view on Churchill China
Published on April 2024
- There are expectations of an additional 20p per share in retained cash flow due to a possible pension contribution holiday.
- The company’s earnings per share (EPS) of 70.2p missed forecasts of 82.5p, largely due to tax issues.
- Churchill China is acknowledged for producing high-quality tableware.
- The company is increasing investments in automation, which could enhance margins in the future.
- There are concerns about limited sales forecast and EPS growth.
- The company has a solid reputation for high-quality products and is considered a strong candidate for growth, particularly in export hospitality.
- There is a discussion about the stock being at its cheapest multiple in 15 years, excluding 2020, and expectations for a rebound in stock price.
- The weak outlook for 2024 has negatively impacted the stock price.
- Stock watchers observe that Churchill China’s stock is a good trading share, bouncing between predictable price points.
- Despite cost pressures globally, the company is still profitable and considered worth holding.
- The company maintains performance in line with expectations and continues to focus on margin improvement and strategic investments.
- The acquisition of Wade Ceramics could lead to minor competitive pressure on wages but also provides a larger pool of skilled resources in the area.
- There’s renewed optimism that Churchill China will demonstrate its strengths over a two-year period despite challenges like rising energy costs.