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Genuit Group (LSE:GEN) Financial Strength : 6 (As of Dec. 2023)


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What is Genuit Group Financial Strength?

Genuit Group has the Financial Strength Rank of 6.

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors:

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.
2. Debt to revenue ratio. The lower, the better.
3. Altman Z-Score.

Genuit Group's Interest Coverage for the quarter that ended in Dec. 2023 was 5.77. Genuit Group's debt to revenue ratio for the quarter that ended in Dec. 2023 was 0.30. As of today, Genuit Group's Altman Z-Score is 3.47.


Competitive Comparison of Genuit Group's Financial Strength

For the Building Products & Equipment subindustry, Genuit Group's Financial Strength, along with its competitors' market caps and Financial Strength data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Genuit Group's Financial Strength Distribution in the Construction Industry

For the Construction industry and Industrials sector, Genuit Group's Financial Strength distribution charts can be found below:

* The bar in red indicates where Genuit Group's Financial Strength falls into.



Genuit Group Financial Strength Calculation

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors

A company ranks high with financial strength is likely to withstand any business slowdowns and recessions.

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:

Genuit Group's Interest Expense for the months ended in Dec. 2023 was £-6.5 Mil. Its Operating Income for the months ended in Dec. 2023 was £37.5 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2023 was £161.3 Mil.

Genuit Group's Interest Coverage for the quarter that ended in Dec. 2023 is

Interest Coverage=-1*Operating Income (Q: Dec. 2023 )/Interest Expense (Q: Dec. 2023 )
=-1*37.5/-6.5
=5.77

The higher the ratio, the stronger the company's financial strength is.

2. Debt to revenue ratio. The lower, the better.

Genuit Group's Debt to Revenue Ratio for the quarter that ended in Dec. 2023 is

Debt to Revenue Ratio=Total Debt (Q: Dec. 2023 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(5 + 161.3) / 563.4
=0.30

3. Altman Z-Score.

Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.

The zones of discrimination were as such:

When Z-Score is less than 1.81, it is in Distress Zones.
When Z-Score is greater than 2.99, it is in Safe Zones.
When Z-Score is between 1.81 and 2.99, it is in Grey Zones.

Genuit Group has a Z-score of 3.47, indicating it is in Safe Zones. This implies the Z-Score is strong.

Good Sign:

Altman Z-score of 3.47 is strong.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


Genuit Group  (LSE:GEN) Financial Strength Explanation

The maximum rank is 10. Companies with rank 7 or higher will be unlikely to fall into distressed situations. Companies with rank of 3 or less are likely in financial distress.

Genuit Group has the Financial Strength Rank of 6.


Genuit Group Financial Strength Related Terms

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Genuit Group (LSE:GEN) Business Description

Traded in Other Exchanges
Address
4 Victoria Place, Holbeck, Leeds, GBR, LS11 5AE
Genuit Group PLC develops plastic piping and energy ventilation systems for residential, commercial, and infrastructure sectors. The company has two reporting segments: residential systems and commercial & infrastructure systems. Polypipe offers drainage systems, soil and waste, below-ground drainage, and resilience in the residential market. Engineering solutions will also help replace materials like concrete and clay in the civil and infrastructure space. An array of services in the civil and infrastructure market helps the company develop high-performing and reliable products for the U.K. market. The group derives its revenue from the residential sectors.