# Chemring Group PLC (CHG.L) fundamentals

Data as of 2026-09-08. LSE, United Kingdom. Sector: Industrials / Aerospace & Defense. Price 530p, market value 1.4 billionp.

## Valuation
- **P/E (trailing): 31.2×** (5-yr avg 4963.7×, 3-yr avg 6948.2×). Chemring Group PLC trades at 31.2× trailing earnings, well below its own five-year average of 4963.7×: cheap by its own standards. The Industrials median in the September 2026 study was 25.7×. Forward P/E is 22.1×, lower than trailing, so analysts expect earnings to grow.
- **PEG: 1.03**. A PEG of 1.03 is in the range usually read as fairly priced for its growth.
- **Price / sales: 1.4×**. Each dollar of revenue is priced at 1.4×.
- **Price / book: 3.9×**. The shares trade at 3.9× book value; book value is a meaningful part of the valuation.
- **EV / EBITDA: 7.9×**. Enterprise value is 7.9× operating earnings before depreciation, the multiple that ignores how the company is financed; below 8× is inexpensive for most sectors.
- **Free-cash-flow yield: -0.5%** (5-yr avg 0.0%). Free cash flow is negative: the business is consuming cash, which is normal for heavy investment phases but a warning otherwise.
- **Earnings yield: 3.2%**. The inverse of the P/E: 3.2% of the price is earned each year.

## Profitability
- **Gross margin: 98.5%**. Chemring Group PLC keeps 98.5% of revenue after the direct cost of what it sells, the kind of margin that comes with software, brands or pricing power.
- **Operating margin: 13.3%**. 13.3% of revenue is left after running the business.
- **Net margin: 9.7%**. 9.7% of each dollar of sales reaches the bottom line.
- **Return on equity: 12.6%**. 12.6% on shareholders' equity is solid.
- **Return on invested capital: 22.7%**. Return on all capital, debt included, is 22.7%: comfortably above what that capital costs.
- **Return on assets: 9.0%**. Each dollar of assets produces 9.0% of profit.

## Growth
- **Revenue growth (1 yr): -2.5%** (3-yr 7.5%/yr, 5-yr 4.3%/yr). Revenue fell 2.5% over the last year, against 4.3% a year compounded over five years: growth is slowing.
- **EPS growth (1 yr): 21.4%** (3-yr 2.0%/yr, 5-yr 7.2%/yr). Earnings per share rose 21.4%, faster than revenue, so margins expanded or the share count shrank.

## Financial health
- **Debt to equity: 0.40**. Debt is 0.40 times equity: a conservative balance sheet.
- **Net debt / EBITDA: 0.5×**. It would take 0.5 years of operating earnings to repay net borrowings, within the comfortable range.
- **Interest coverage: 12.2×**. Operating profit covers interest 12.2× over, a safe margin.
- **Current ratio: 1.60** (quick 0.89). Current assets cover the next year's liabilities 1.60 times.
- **Altman Z-score: 3.46**. A Z-score of 3.46 places the company in the safe zone for bankruptcy risk.
- **Piotroski F-score: 5/9**. 5 of 9 checks pass: mixed.

## Dividends
- **Dividend yield: 1.53%** (0p per share, trailing). Chemring Group PLC yields 1.53%, a modest yield more typical of a growth-oriented payer.
- **Payout ratio: 45%**. 45% of earnings goes out as dividends, leaving room to keep raising it.
- **Consecutive years of increases: 9**. 9 straight years of increases.
- **Dividend growth (5 yr): 16.4%/yr** (1-yr 9.7%). The dividend has compounded at 16.4% a year over five years, doubling roughly every 4 years at that pace.
- **Shareholder yield: 3.3%**. Dividends plus net buybacks return 3.3% of the market value a year.

## Analyst view
- **Analyst consensus: strong_buy** (7 analysts). 7 analysts cover Chemring Group PLC; the consensus is strong_buy, with an average price target of 648p (+22% from the current price). Analyst opinion is shown for context; it is not part of the Fundamental Score.

## Price and momentum
- **Total return (1 yr): -1.3%** (YTD 12.8%, 3-mo 4.5%). The shares are down 1.3% over twelve months including dividends.
- **From 52-week high: -18.6%** (18.7% above the low). Trading 19% below its 52-week high.
- **200-day average: above**. The price sits above its 200-day moving average, the usual definition of an uptrend.
- **RSI (14-day): 32**. An RSI of 32 is neutral.
- **Beta (1 yr): 0.92** (volatility 33%). Beta of 0.92 against the FTSE All-Share: the shares move roughly with the market.

Live score and charts: https://foliofundamentals.com/analyzer?s=CHG.L · Page: https://foliofundamentals.com/stocks/chg.l

Not investment advice.