Chemring Group (LSE:CHG) EBIT: £66.2 Mil (TTM As of Apr. 2026)


LSE:CHG Chemring Group PLC LSE:CHG
86 GF Score
Price £4.81
GF Value £4.30
Valuation Modestly Overvalued
! 4 Warning Signs
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What is Chemring Group EBIT?

Chemring Group LSE:CHG 86 EBIT is £66.2 Mil as of Apr. 2026. GuruFocus rates LSE:CHG with a GF Score™ of 86/100 and a GF Value™ of £4.30 (Modestly Overvalued). The stock has 4 warning signs investors should review.

Chemring Group's earnings before interest and taxes (EBIT) for the six months ended in Apr. 2026 was £21.7 Mil. Its earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Apr. 2026 was £66.2 Mil.

EBIT or Operating Income is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. Chemring Group's annualized ROC % for the quarter that ended in Apr. 2026 was 4.47%. Chemring Group's annualized ROC (Joel Greenblatt) % for the quarter that ended in Apr. 2026 was 9.19%.

EBIT is also linked to Joel Greenblatt's definition of earnings yield. Chemring Group's Earnings Yield (Joel Greenblatt) % for the quarter that ended in Apr. 2026 was 4.58%.

Chemring Group  (LSE:CHG) EBIT Explanation

1. EBIT or Operating Income is linked to Return on Capital for both regular definition and Joel Greenblatt's definition.

Chemring Group's annualized ROC % for the quarter that ended in Apr. 2026 is calculated as:

ROC % (Q: Apr. 2026 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Oct. 2025 ) + Invested Capital (Q: Apr. 2026 ))/ count )
=43.4 * ( 1 - 24.47% )/( (720.5 + 746.9)/ 2 )
=32.78002/733.7
=4.47 %

where

Invested Capital(Q: Oct. 2025 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=863.1 - 77.3 - ( 65.3 - max(0, 201.4 - 331.8+65.3))
=720.5

Invested Capital(Q: Apr. 2026 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=908.1 - 116.5 - ( 44.7 - max(0, 244.6 - 340.4+44.7))
=746.9

Note: The Operating Income data used here is two times the semi-annual (Apr. 2026) data.

2. Joel Greenblatt's definition of Return on Capital:

Chemring Group's annualized ROC (Joel Greenblatt) % for the quarter that ended in Apr. 2026 is calculated as:

ROC (Joel Greenblatt) %(Q: Apr. 2026 )
=EBIT/Average of (Net fixed Assets + Net Working Capital)
=EBIT/Average of (Property, Plant and Equipment+Net Working Capital)
     Q: Oct. 2025  Q: Apr. 2026
=EBIT/( ( (Property, Plant and Equipment + Net Working Capital) + (Property, Plant and Equipment + Net Working Capital) )/ count )
=43.4/( ( (354.7 + max(82.1, 0)) + (387.9 + max(120.2, 0)) )/ 2 )
=43.4/( ( 436.8 + 508.1 )/ 2 )
=43.4/472.45
=9.19 %

where Working Capital is:

Working Capital(Q: Oct. 2025 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(59.1 + 143.2 + 30.9) - (77.3 + 0 + 73.8)
=82.1

Working Capital(Q: Apr. 2026 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(122.8 + 167.3 + 5.6) - (116.5 + 0 + 59)
=120.2

When net working capital is negative, 0 is used.

Note: The EBIT data used here is two times the semi-annual (Apr. 2026) EBIT data.

3. It is also linked to Joel Greenblatt's definition of Earnings Yield:

Chemring Group's Earnings Yield (Joel Greenblatt) % for today is calculated as:

Earnings Yield (Joel Greenblatt) %=EBIT (TTM)/Enterprise Value (Q: Apr. 2026 )
=66.2/1445.753
=4.58 %

* 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.

Chemring Group EBIT Related Terms

Chemring Group EBIT Historical Data

* Premium members only.

The historical data trend for Chemring Group's EBIT can be seen below:

* 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.

Chemring Group EBIT Chart

Chemring Group Annual Data
Trend Oct16 Oct17 Oct18 Oct19 Oct20 Oct21 Oct22 Oct23 Oct24 Oct25
EBIT
Get a 7-Day Free Trial Premium Member Only Premium Member Only 50.40 49.40 45.40 56.60 73.40

Chemring Group Semi-Annual Data
Oct16 Apr17 Oct17 Apr18 Oct18 Apr19 Oct19 Apr20 Oct20 Apr21 Oct21 Apr22 Oct22 Apr23 Oct23 Apr24 Oct24 Apr25 Oct25 Apr26
EBIT Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 17.50 39.10 28.90 44.50 21.70

LSE:CHG vs GE, RTX, BA: EBIT Comparison

For the Aerospace & Defense subindustry, Chemring Group's EV-to-EBIT, along with its competitors' market caps and EV-to-EBIT 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.

Chemring Group EV-to-EBIT vs Aerospace & Defense Industry

For the Aerospace & Defense industry and Industrials sector, Chemring Group's EV-to-EBIT distribution charts can be found below:

* The bar in red indicates where Chemring Group's EV-to-EBIT falls into.


LSE:CHG
86GF Score
Chemring Group PLC LSE:CHG
EBIT is just one metric. See GF Score™, valuation, warning signs, and more.
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Chemring Group EBIT Calculation

EBIT, sometimes also called Earnings Before Interest and Taxes, is a measure of a firm's profit that includes all expenses except interest and income tax expenses. It is the difference between operating revenues and operating expenses. When a firm does not have non-operating income, then Operating Income is sometimes used as a synonym for EBIT and operating profit.

EBIT for the trailing twelve months (TTM) ended in Apr. 2026 adds up the semi-annually data reported by the company within the most recent 12 months, which was £66.2 Mil.

* 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.

Frequently Asked Questions Learn more about EBIT →
What does a EBIT of £66.2 Mil mean?
Chemring Group (LSE:CHG) has a EBIT of £66.2 Mil as of Apr. 2026. Earnings before interest and taxes is the difference between operating revenue and operating expenses. View historical data on Chemring Group.
Is Chemring Group's EBIT too high?
Chemring Group's current EBIT is £66.2 Mil. Overall, Chemring Group has a GF Score™ of 86/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Chemring Group's EBIT compare to GE and RTX?
Chemring Group's EBIT of £66.2 Mil can be compared against companies in the Aerospace & Defense industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good EBIT for an Aerospace & Defense company?
A good EBIT depends on the Aerospace & Defense industry context. However, EBIT should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high EBIT mean?
A high EBIT can signal that a stock is expensive relative to its fundamentals. Earnings before interest and taxes is the difference between operating revenue and operating expenses. View historical data on Chemring Group. Chemring Group's current EBIT is £66.2 Mil. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Chemring Group stock overvalued right now?
Based on GuruFocus' analysis, Chemring Group (LSE:CHG) is currently considered Modestly Overvalued. The stock's GF Value™ is £4.30, compared to a current price of £4.81 — trading 11.9% above its estimated fair value. The current EBIT is £66.2 Mil. Chemring Group's overall GF Score™ is 86/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is EBIT calculated?
EBIT is calculated from a company's financial statements. For Chemring Group (LSE:CHG), the current EBIT is £66.2 Mil as of Apr. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Is Chemring Group (LSE:CHG) Overvalued in 2026?

Based on GuruFocus' analysis, Chemring Group stock appears to be overvalued. The current stock price of £4.81 is trading 11.9% above its estimated GF Value™ of £4.30. GuruFocus considers Chemring Group to be Modestly Overvalued.

Key valuation signals for LSE:CHG:

  • EBIT: £66.2 Mil
  • GF Value™: £4.30 vs. price of £4.81 (11.9% above fair value)
  • GF Score™: 86/100 with 4 warning signs

No single metric tells the full story. See the LSE:CHG stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.

Chemring Group Business Description

Address Old Salisbury Lane, Roke Manor, Romsey, Hampshire, GBR, SO51 0ZN
Chemring Group PLC is a defense technology company. The company's operating segment include: i) Countermeasures and Energetics segment: It is engaged in the development and manufacturing of expendable countermeasures for air and sea platforms, cartridge/propellant actuated devices, pyrotechnic devices for satellite launch and deployment, missile components, propellants, separation sub-systems, actuators, and energetic materials, ii) Sensors and Information: it is engaged in the development and manufacturing of electronic countermeasures, chemical and biological threat detection equipment, and explosive hazard detection (EHD) equipment. It generated the majority of the revenue from the Countermeasures and Energetics segment. Geographically, the maximum revenue is generated from the USA.
86GF Score

Get the complete analysis for LSE:CHG

EBIT is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

£4.81
Price
£4.30
GF Value