19 October 2026

strategyland.uk

Chemring Group PLC (CHG)

Rank #79 of 280 - Industrials - UK Equities

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Chemring Group PLC

CHG.L·Industrials·Market Cap £1.4b

Rank #79 of 280

Quantitative Model · 280 Stocks Analysed

£5.11

+8.15% YTD

52W: £4.47 - £6.51

Factor Analysis Summary

Editorial assessment generated from Chemring Group PLC's live factor scores and sector positioning.

Based on Strategyland's proprietary 7-factor analysis, Chemring Group PLC (CHG.L) currently holds an overall rank of #79 out of 280 FTSE 100 constituents, reflecting its weighted composite score across liquidity, valuation, profitability, solvency, asset efficiency, market trading, and technical dimensions.

Key strengths include technical (RSI 35.2), where it demonstrates positive technical momentum with price action supporting a constructive trend; liquidity, where it demonstrates solid trading liquidity that should accommodate most institutional order sizes; and asset efficiency, where it demonstrates above-average asset turnover and productive use of invested capital.

Areas requiring attention include valuation (P/E 30.3, dividend yield 1.5%), where the stock appears richly priced on forward earnings and cash flow metrics, as well as profitability (ROE 14.4%, net margin 9.3%), where compressed margins and weak returns on equity weigh on the earnings profile.

Within the Industrials sector, Chemring Group PLC sits at composite rank #79, trailing the Industrials peer average (rank 27). It ranks behind all 6 tracked Industrials peers in our model.

The composite profile is weighed down by 3 below-average factor scores, with valuation (rank 278/280) representing the most significant drag on its #79 overall standing.

Strongest Factors

Technical — Rank 54/280 (top quartile)
Liquidity — Rank 85/280 (above average)
Asset Efficiency — Rank 87/280 (above average)

Weakest Factors

Valuation — Rank 278/280 (below average)
Profitability — Rank 236/280 (below average)

Score Analysis

Chemring Group PLC is ranked #79 out of 280 UK stocks. Lower factor scores indicate better performance in that category.

Factor Breakdown

151/280

Average Score

Liquidity

Good85/280

Valuation

Weak278/280

Profitability

Weak236/280

Solvency

Fair114/280

Asset Efficiency

Good87/280

Mkt Trading

Weak206/280

Technical

Excellent54/280

1. Liquidity

Score: 85/280

How liquid is CHG and can it meet its short-term obligations?

2/6

liquidity criteria met

Metric

Sector Range

Value

Rank

✗

Quick Ratio

1.0 - 1.5

0.89xRank 83/280

Range: 1.0 - 1.5Rank 83/280

✓

Current Ratio

1.4 - 2.0

1.60xRank 108/280

Range: 1.4 - 2.0Rank 108/280

✗

TTM Operating Cash Flow

0.6 - 1.0

0.36xRank 145/280

Range: 0.6 - 1.0Rank 145/280

–

Liquidity Coverage Ratio

N/A

Range: N/A

✗

Intangible Asset Ratio

3 - 15

0.07xRank 64/280

Range: 3 - 15Rank 64/280

✓

Cash-to-Debt Ratio

0.3 - 0.8

0.42xRank 100/280

Range: 0.3 - 0.8Rank 100/280

Key Liquidity Metrics

Quick Ratio

0.89x

Sector: 1.0 - 1.5

Current Ratio

1.60x

Sector: 1.4 - 2.0

Overall Liquidity Rank

Rank within universe#85/280

Best (1)Worst (280)

2. Valuation

Score: 278/280

Is CHG undervalued compared to its peers and fair value metrics?

5/7

valuation criteria met

Metric

Sector Range

Value

Rank

✓

FY27e P/E

14x - 28x

21.1xRank 203/280

Range: 14x - 28xRank 203/280

✓

FY26e P/E

14x - 28x

25.5xRank 201/280

Range: 14x - 28xRank 201/280

✓

FY27e Net Div Yld (%)

1.5 - 4.0

1.82%Rank 182/280

Range: 1.5 - 4.0Rank 182/280

✓

Div Payout Ratio

30 - 50

47.54%Rank 100/280

Range: 30 - 50Rank 100/280

✗

Current EV/EBITDA

7.0x - 14.0x

15.5xRank 226/280

Range: 7.0x - 14.0xRank 226/280

✗

Current P/TBV

1.5x - 5.0x

7.15xRank 194/280

Range: 1.5x - 5.0xRank 194/280

✓

Current P/B

1.5x - 5.0x

4.09xRank 218/280

Range: 1.5x - 5.0xRank 218/280

Key Valuation Metrics

TTM P/E

Price-to-Earnings

30.3x

FY26e P/E

Forward estimate

25.5x

FY27e P/E

Forward estimate

21.1x

Current P/B

Price-to-Book

4.09x

Current P/TBV

Tangible Book Value

7.15x

Current EV/EBITDA

Enterprise Value

15.5x

FY26e EV/EBITDA

Forward estimate

12.1x

FY27e EV/EBITDA

Forward estimate

11.9x

Dividend

CHG pays a dividend yield of 1.53%.

Current Yield

1.53%

FY27e Net Div Yield

1.82%

FY26e Gross DPS

0.083

FY27e Gross DPS

0.093

Dividend Per Share Forecast

3. Profitability

Score: 236/280

How profitable is CHG relative to its peers?

2/7

profitability criteria met

Metric

Sector Range

Value

Rank

✓

TTM Profit Margin

5 - 10

9.3%Rank 160/280

Range: 5 - 10Rank 160/280

✗

T12 FCF Margin

5 - 20

-0.1%Rank 214/280

Range: 5 - 20Rank 214/280

✓

FY27e RoE

10 - 18

15.1%Rank 119/280

Range: 10 - 18Rank 119/280

✗

FY26 EPS Growth

5 - 12

2.7%Rank 150/280

Range: 5 - 12Rank 150/280

✗

FY27e EPS Growth

8 - 15

24.1%Rank 92/280

Range: 8 - 15Rank 92/280

–

NIM

N/A

Range: N/A

–

Expense Ratio

70 - 80

N/A

Range: 70 - 80

TTM Profit Margin

9.3%

Current RoCE

14.4%

FY27e RoE

15.1%

T12 FCF Margin

-0.1%

EPS Growth

4. Solvency

Score: 114/280

How strong is CHG's balance sheet and financial position?

2/6

solvency criteria met

Metric

Sector Range

Value

Rank

✓

Debt/Eqt

0.4x - 0.8x

0.40xRank 125/280

Range: 0.4x - 0.8xRank 125/280

–

Interest Coverage Ratio

4x - 10x

Rank 88Rank 88/280

Range: 4x - 10xRank 88/280

✓

Net Leverage Ratio

1.0x - 2.5x

1.57xRank 105/280

Range: 1.0x - 2.5xRank 105/280

–

Altman Z-Score (Manufacturing)

<1.10 - >2.99

5.35Rank 119/280

Range: <1.10 - >2.99Rank 119/280

–

Z-Score (Non Manufacturing)

<1.10 - >2.99

Rank 127Rank 127/280

Range: <1.10 - >2.99Rank 127/280

–

CapAdeq Ratio Tier1

N/A

Range: N/A

Key Solvency Metrics

Debt/Eqt

0.40x

Net Leverage Ratio

1.57x

Interest Coverage

Rank 88

T12 FCF Margin

-0.1%

Altman Z-Score

5.35

Safe Zone

01.812.995+

5. Asset Efficiency

Score: 87/280

How efficiently does CHG deploy its assets and intellectual capital?

1/5

asset efficiency criteria met

Metric

Sector Range

Value

Rank

–

Efficiency Ratio

N/A

Range: N/A

✗

TTM Asset Turnover Ratio

0.8x - 1.5x

0.60xRank 105/280

Range: 0.8x - 1.5xRank 105/280

✗

TTM CAPEX/Sales

3 - 8

19.6%Rank 32/280

Range: 3 - 8Rank 32/280

✓

Working Capital Turnover

3x - 8x

5.94xRank 72/280

Range: 3x - 8xRank 72/280

–

R&D/Sales FY27e

2.0 - 5.0

N/A

Range: 2.0 - 5.0

Overall Asset Efficiency Rank

Rank within sector peers#87/280

Best (1)Worst (280)

6. Market Trading

Score: 206/280

How liquid and actively traded is CHG?

2/2

market trading criteria met

Metric

Sector Range

Value

Rank

✓

Intraday Sentiment (%)

25 - 75

30.0%Rank 178/280

Range: 25 - 75Rank 178/280

–

10D-Avg v/s 3M-Avg Vol

N/A

108%Rank 50/280

Range: N/ARank 50/280

✓

Avg Directional Index 30D

012 - 45

25.4Rank 78/280

Range: 012 - 45Rank 78/280

–

Parabolic SAR

N/A

541.99Rank 147/280

Range: N/ARank 147/280

–

Stock Rating Rank

N/A

Rank 100Rank 100/280

Range: N/ARank 100/280

Market Cap

£1,390,567,979

Enterprise Value

£1,535,067,979

Trading Volume

7. Technical

Score: 54/280

What do the technical indicators say about CHG?

0/5

technical criteria met

Metric

Chart

Sector Range

Value

Rank

–

CMP v/s 52-WH

£6.51£4.47

-21.5%CMP: £5.11

N/A

-21.5%Rank 213/280

£6.51£4.47

-21.5%CMP: £5.11

Range: N/ARank 213/280

–

CMP v/s 52-WL

£6.51£4.47

+14.4%CMP: £5.11

N/A

14.4%Rank 77/280

£6.51£4.47

+14.4%CMP: £5.11

Range: N/ARank 77/280

–

RSI 14D

035.2 - Bearish100

N/A

35.2Rank 50/280

035.2 - Bearish100

Range: N/ARank 50/280

–

MA50 - MA200

£5.33+0.25£5.59

N/A

BullishRank 112/280

£5.33+0.25£5.59

Range: N/ARank 112/280

–

MACD Rank

Golden Cross

MACD: -2.22

N/A

-2.22

Golden Cross

MACD: -2.22

Range: N/A

RSI (14 Day)

35.2

Bearish

0 (Oversold)50100 (Overbought)

Moving Averages

50 SMA£5.59

200 SMA£5.33

SignalGolden Cross (Bullish)

MACD-2.22

Risk Metrics

Beta

N/A

3-Yr Std Dev

N/A

5-Yr Std Dev

N/A

Peer Comparison

How does CHG compare to other Industrials stocks?

Overall Rank Comparison

Factor Score Comparison

Stock	Rank	Liquidity	Valuation	Profitability	Solvency	Mkt Trading	Technical
CHG	#79	85	278	236	114	206	54
RR.L	#6	100	268	87	140	114	40
FAN.L	#12	81	132	29	91	147	142
DPLM.L	#21	8	275	70	94	20	45
RSW.L	#30	22	280	91	32	4	6
EXPN.L	#43	47	241	81	123	79	161
CKN.L	#50	130	250	85	83	14	41

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Methodology Note

The analysis presented for Chemring Group PLC is produced using Strategyland's proprietary 7-factor quantitative model, which evaluates each stock across Liquidity, Valuation, Profitability, Solvency, Asset Efficiency, Market Trading, and Technical dimensions. Individual factor scores and the composite rank reflect relative rankings within the FTSE 100 universe — a lower rank number indicates stronger performance in that category.

Underlying financial and market data is sourced from LSEG (London Stock Exchange Group) and processed through our scoring engine. Scores are recalculated as new data becomes available and should be interpreted as a systematic screening output, not a forecast of future share price performance.

This content is for informational purposes only and does not constitute investment advice, a recommendation, or an offer to buy or sell any security. Past performance and factor rankings are not indicative of future results. Please read our Risk Disclaimer before making any investment decisions.

Strategyland Research Center - strategyland.ukThis report is for informational purposes only. Not financial advice.