0R15 8884.0068 1.4156% 0R1E 9171.0 0.4381% 0M69 None None% 0R2V 254.3746 5.7691% 0QYR 1619.0 1.9521% 0QYP 436.689 -0.8652% 0RUK None None% 0RYA 1604.02 0.4396% 0RIH 190.8 0.0% 0RIH 198.5 4.0356% 0R1O 225.0 9877.8271% 0R1O None None% 0QFP None None% 0M2Z 255.4879 -0.0829% 0VSO 33.09 -7.0636% 0R1I None None% 0QZI 599.0 0.0% 0QZ0 220.0 0.0% 0NZF None None% 0YXG 225.74 -0.2871%
FireAngel Safety Technology Group PLC (LON: FA.)
FireAngel Safety Technology Group PLC is an FTSE AIM All-Share index listed Company focused on the business of design, sale and marketing of smoke and carbon monoxide (CO) detectors and accessories. The Company was formerly named as Sprue Aegis PLC.
FA. will release the FY21 trading update in late January 2022.
Growth Prospects
Key Risks
Now, we will analyse the Key Fundamental Statistics & Shareholding Pattern of FireAngel Safety Technology Group PLC.
Downing LLP is the most significant shareholder as it holds nearly 29.63 million shares as of 30 September 2021.
H1 FY21 Financial & Operational Highlights (for six months ended 30 June 2021, as of 27 September 2021)
(Source: Company result)
Financial Ratios (H1 FY21)
Share Price Performance Analysis
(Source: Refinitiv, Research done by Kalkine Group)
On 02 December 2021, at 08:00 AM GMT, FA.’s shares were trading at GBX 13.50, same as the previous day closing price. Stock 52-week High and Low were 28.63 and GBX 9.64, respectively.
From a technical perspective, the stock price is hovering between the lower Bollinger band and the middle Bollinger band, indicating an upside potential in the stock price. Moreover, the 14-days RSI of ~1.43 fell in the oversold territory, supporting an upside momentum in the stock price.
Over the last one year, FA.’s stock price has delivered a positive return of ~25.74%, and it has outperformed the FTSE AIM All-Share index (benchmark index) with a return of approximately 12.08%.
Valuation Methodology: EV/EBITDA Approach (NTM) (Illustrative)
Business Outlook
The Company had reported decent H1 FY21 results with robust top-line revenue growth and posted a positive EBITDA. Moreover, the Company would focus on longer-term margin expansion. Meanwhile, the Company had highlighted of business challenges arising from factory restrictions, port closures, driver shortages, sea freight delays, lost efficiency opportunities, missed collaboration opportunities with partners, component shortages, and ensuing complexity. Nonetheless, the Company remained on track to meet market expectations for the year. The stock price may undergo sizeable corrections amid multiple risk factors such as the new Covid-19 variant, Omicron, and rising inflation worldwide. Thus, it depends on the investors to take a reasonable position on this industrial player having strong fundamentals based on their risk appetite.
Considering the solid revenue growth during H1 FY21, improvement in profitability on EBITDA level, strong balance sheet, recent collaborations, and support from the valuation as done using the above method, we have given a “Speculative Buy” recommendation on FireAngel Safety Technology Group PLC at the current price of GBX 13.50 (as on 02 December 2021 at 08:00 AM GMT), with lower-double digit upside potential based on 6.61x EV/NTM EBITDA (approx.) on FY22E EBITDA (approx.).
*The reference data in this report has been partly sourced from REFINITIV.
*All forecasted figures and Peer information have been taken from REFINITIV.
*Depending upon the risk tolerance, investors may consider unwinding their positions in a respective stock once the estimated target price is reached.
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