UK stock alert

UK

CLOSING UPDATE: Fresnillo down 4.5% in 2 days 17 October 2017 19:03 BST

NEWS BITES - EUROPE

This is an end of day Alert, produced after today's United Kingdom market close. It concludes the BSS News Bites intra-day Alert series (summaries below).

Fresnillo, the 5th largest mining company by market capitalisation in the United Kingdom, extended its slide on Tuesday, shedding an additional GBX22.0 (or 1.5%) to trade at GBX1,413.0. Trading volume was 59% of average at the end of the day. The shares have fallen GBX67.0 (or 4.5%) over the past two trading days vs. the FTSE 100 Index which has fallen 0.2% in the same period.

Technical indicators complementing today's significant downtrend:

+ The negative 16.83 MACD (Moving Average Convergence Divergence) indicator suggests a bearish signal.

+ The stock has underperformed 76% of the United Kingdom market over the past 6 months.

+ The price decreased 1.8% in the last week and 0.9% in the last month.

Fundamental measures by comparison with the sector average [in brackets] indicate:

Overvaluation:

+ Price/Sales of 6.8 [1.0]

+ Price to Book of 5.2 [1.7]

+ Dividend yield of 1.8% [3.1%]

Other Bearish Signals include:

+ Tobin's Q Ratio is 3.2. Compared with the rest of the market the stock is overvalued and ranks in the bottom quartile of stocks by value of Q Ratio.

+ Net profit margin has averaged 11.8% in the last 3 years. This is lower than the sector average of 13.3% and suggests a low margin of safety.

Note

Fresnillo today is at a discount of 22.8% to the 12-month high of GBX1,831.37 on 09 Nov, 2016. It is at a premium of 36.6% to the 12-month low of GBX1,034.70 on 15 Dec, 2016.

Bullish Signals:

Interest cover is less leveraged at 8.4 times.

Total Liabilities/EBITDA of 2 is comfortably below the Joseph Piotroski benchmark of <5.

As per the Du Pont analysis, Return on Equity of 15.8% is better than sector average of 1.3%.

Fundamental measures by comparison with the sector average [in brackets] indicate:

Undervaluation:

Return on Capital Employed 16.4% [3.0%]

TODAY'S ALERTS

Afternoon Alert: Fresnillo down 3.6% in 2 days

17 October 2017 15:42 BST

Fresnillo PLC (L:FRES) extended its slide on Tuesday, shedding an additional GBX9.0 (or 0.6%) to trade at GBX1,426.0. Trading volume was 89% of average so far today. The shares have fallen GBX54.0 (or 3.6%) over the past two trading days vs. the FTSE 100 Index which has risen 0.2% in the same period.

Morning Alert: Fresnillo down 3.6% in 2 days

17 October 2017 11:22 BST

Fresnillo PLC (L:FRES) extended its slide on Tuesday, shedding an additional GBX8.0 (or 0.6%) to trade at GBX1,427.0. Trading volume was 82% of average so far today. The shares have fallen GBX53.0 (or 3.6%) over the past two trading days vs. the FTSE 100 Index which has fallen 0.2% in the same period.

Fresnillo PLC (L:FRES; LON:FRES; LN:FRES)

ISIN: GB00B2QPKJ12

PermID: 4298007715

Source: www.BuySellSignals.com