Check Before You Invest : Cheviot Company Ltd

Snapshot

Q.1 Which industry/sub-sector does Cheviot Company Ltd belong to?

Cheviot Company Ltd belongs to the Textiles & Apparels sector, operating specifically within the Textile segment.

Q.2 Is Cheviot Company Ltd a good quality company?

Cheviot Company Ltd is a good quality company, based on a consistently good 10-year financial track record.

Q.3 Is Cheviot Company Ltd undervalued or overvalued?

Cheviot Company Ltd appears Overvalued, as its key valuation ratios are above with their past averages.

Q.4 Is Cheviot Company Ltd a good buy now?

Cheviot Company Ltd is a good buy now, based on strong price trend analysis suggesting prices may rise. However, you need to check its quality and valuation before making a decision

Performance Analysis

Q.1 Revenue growth of Cheviot Company Ltd?

Cheviot Company Ltd revenue growth is -5.1% for FY-2025, which is below its 5-year CAGR of -0.83%, indicating slower growth.

Q.2 Return on capital employed (ROCE) of Cheviot Company Ltd?

Cheviot Company Ltd Return on capital employed is 14.07% for FY-2025, which is below its 5-year historical median of 17.06%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 14%, indicating value creation.

Q.3 Return on Asset of Cheviot Company Ltd?

Cheviot Company Ltd Return on Asset is 8.29%, which is below its 5-year historical median of 10.66%, indicating deteriorated asset utilization efficiency.

Q.4 Return on Equity (ROE) of Cheviot Company Ltd?

Cheviot Company Ltd Return on equity is 10.91% for FY-2025, which is below its 5-year historical median of 14.09%, indicating the business is making worse use of its shareholders capital.

Q.5 Cash conversion cycle of Cheviot Company Ltd?

Cheviot Company Ltd Cash conversion cycle is 111 days, above its 5-year historical median of 100 days, indicating deteriorated working capital management. However, you need to compare this with its peers in the industry.

	Current Level	5-year Historic Median
Asset Turnover	0.63	0.71
ROE	10.91	14.09
ROCE	14.07	17.06
Cash Conversion Cycle	111 days	100 days

Q.6 Gross Profit margin of Cheviot Company Ltd?

Cheviot Company Ltd Gross profit margin which is the profit after deduction of direct costs, is 18.6% for FY-2025, which is in line with its 5-year median of 18.6%, indicating stable margins.

Q.7 Operating Profit Margin of Cheviot Company Ltd?

Cheviot Company Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 12.1% for FY-2025, which is in line with its 5-year median of 12.1% indicating stable margins.

Q.8 Net Profit Margin of Cheviot Company Ltd?

Cheviot Company Ltd Net Profit Margin is 13.14% for FY-2025, is below with its 5-year median of 13.89%, indicating decreasing margins.

	Current Level	5-year Historic Median
Gross Profit Margin	18.6	18.6
Operating Profit Margin	12.1	12.1
Net Profit Margin	13.14	13.89

Q.9 Debt to Equity ratio of Cheviot Company Ltd?

Cheviot Company Ltd Debt-to-Equity ratio is 0.01, which is lower with the industry average of 0.5, indicating lower debt levels in the industry.

Q.10 Debt to cash flow from operations of Cheviot Company Ltd?

Cheviot Company Ltd Debt to cash flow from operations is 0.19, which is at a healthy level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Cheviot Company Ltd?

Promoters hold 74.88% of the Cheviot Company Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Cheviot Company Ltd vs industry peers?

Cheviot Company Ltd revenue CAGR is -0.83%, compared to the industry median CAGR of 4.23%, indicating slower growth and losing its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth	-5.1	4.2
Gross Profit Growth	-10.9	8.6
Operating Profit Growth	12.8	7.3
Net Profit Growth	-15.9	NAN

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover	0.63	0.98
ROE	10.91	6.1
ROCE	14.07	7.6
Cash Conversion Cycle (days)	110.97	109

Valuation & price assessment

Q.1 Stock return of Cheviot Company Ltd over the last decade?

Over the last 9 year(s), the stock has delivered a CAGR of 10.5% based on the current price.

Q.2 What return has the stock given over the last decade?

	9Y	5Y	3Y	1Y
Share Price CAGR	10.5%	11.1%	4.8%	23.5%

Q.3 Valuation ratios of Cheviot Company Ltd vs historical?

The current P/E is similar that its historical median.

Q.4 How do the current valuation ratios compare with 5-year historical median and industry numbers?

Valuation Ratios	Current	5-year Historic Median	5-year Industry Median
Price to Earnings	10.72	10.92	19.97
Price to Book	1.24	1.53	1.32
Price to Sales	1.39	1.42	1.06
EV to EBITDA	7.6	7.68	9.32

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