Chemring GroupLSE:CHG 86 Piotroski F-Score is 6 as of Jun. 28, 2026, which is at its 10-year median of 6.00. GuruFocus rates LSE:CHG with a GF Score™ of 86/100 and a GF Value™ of £4.30 (Modestly Overvalued). The stock has 5 warning signs investors should review. Among 320 Aerospace & Defense companies, Chemring Group ranks better than 73.75% on this metric.
The zones of discrimination were as such:
Good or high score = 7, 8, 9
Bad or low score = 0, 1, 2, 3
Chemring Group has an F-score of 6 indicating the company's financial situation is typical for a stable company.
The historical rank and industry rank for Chemring Group's Piotroski F-Score or its related term are showing as below:
LSE:CHG'
s Piotroski F-Score Range Over the Past 10 Years
Min: 4 Med: 6 Max: 7
Current: 6
During the past 13 years, the highest Piotroski F-Score of Chemring Group was 7. The lowest was 4. And the median was 6.
Chemring Group (LSE:CHG) Piotroski F-Score Explanation
The developer of the system is Joseph D. Piotroski is relatively unknown accounting professor who shuns publicity and rarely gives interviews.
He graduated from the University of Illinois with a B.S. in accounting in 1989, received an M.B.A. from Indiana University in 1994. Five years later, in 1999, after earning a Ph.D. in accounting from the University of Michigan, he became an associate professor of accounting at the University of Chicago.
He wanted to see if he can develop a system (using a simple nine-point scoring system) that can increase the returns of a strategy of investing in low price to book (referred to in the paper as high book to market) value companies.
What he found was something that exceeded his most optimistic expectations.
Buying only those companies that scored highest (8 or 9) on his nine-point scale, or F-Score as he called it, over the 20 year period from 1976 to 1996 led to an average out-performance over the market of 13.4%.
Even more impressive were the results of a strategy of investing in the highest F-Score companies (8 or 9) and shorting companies with the lowest F-Score (0 or 1).
Over the same period from 1976 to 1996 (20 years) this strategy led to an average yearly return of 23%, substantially outperforming the average S&P 500 index return of 15.83% over the same period.
Chemring Group Piotroski F-Score Related Terms
Chemring Group Piotroski F-Score Historical Data
* Premium members only.
The historical data trend for Chemring Group's Piotroski F-Score 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.
LSE:CHG vs SPCX, GE, RTX: Piotroski F-Score Comparison
For the Aerospace & Defense subindustry, Chemring Group's Piotroski F-Score, along with its competitors' market caps and Piotroski F-Score 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 Piotroski F-Score vs Aerospace & Defense Industry
For the Aerospace & Defense industry and Industrials sector, Chemring Group's Piotroski F-Score distribution charts can be found below:
* The bar in red indicates where Chemring Group's Piotroski F-Score falls into.
* 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.
*Note: If the latest quarterly/semi-annual/annual total assets data is 0, then we will use previous quarterly/semi-annual/annual data for all the items in the balance sheet.
Profitability
Question 1. Return on Assets (ROA)
Net income before extraordinary items for the year divided by Total Assets at the beginning of the year.
Score 1 if positive, 0 if negative.
Chemring Group's current Net Income (TTM) was 48.2.
==> Positive ==> Score 1.
Question 2. Cash Flow Return on Assets (CFROA)
Net cash flow from operating activities (operating cash flow) divided by Total Assets at the beginning of the year.
Chemring Group's return on assets of this year was 0.06964312. Chemring Group's return on assets of last year was 0.06623072.
==> This year is higher. ==> Score 1.
Question 4. Quality of Earnings (Accrual)
Compare Cash flow return on assets (2) to return on assets (1)
Chemring Group's gearing of this year was 0.13374486. Chemring Group's gearing of last year was 0.08164532.
==> Last year is lower than this year ==> Score 0.
Question 6. Change in Working Capital (Liquidity)
Compare this year's current ratio (current assets divided by current liabilities) to last year's current ratio.
Score 1 if this year's current ratio is higher, 0 if it's lower
Chemring Group's current ratio of this year was 1.64746773. Chemring Group's current ratio of last year was 1.58426307.
==> This year's current ratio is higher. ==> Score 1.
Question 7. Change in Shares in Issue
Compare the number of shares in issue this year, to the number in issue last year.
Score 0 if there is larger number of shares in issue this year, 1 otherwise.
Chemring Group's number of shares in issue this year was 276.058. Chemring Group's number of shares in issue last year was 279.133.
==> There is smaller number of shares in issue this year, or the same. ==> Score 1.
Efficiency
Question 8. Change in Gross Margin
Compare this year's gross margin (Gross Profit divided by sales) to last year's.
Score 1 if this year's gross margin is higher, 0 if it's lower.
Chemring Group's gross margin of this year was 1. Chemring Group's gross margin of last year was 1.
==> Last year's gross margin is higher ==> Score 0.
Question 9. Change in asset turnover
Compare this year's asset turnover (total sales for the year divided by total assets at the beginning of the year) to last year's asset turnover ratio.
Score 1 if this year's asset turnover ratio is higher, 0 if it's lower
Chemring Group's asset turnover of this year was 0.71882676. Chemring Group's asset turnover of last year was 0.81874581.
==> Last year's asset turnover is higher ==> Score 0.
Evaluation
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6
Good or high score = 7, 8, 9
Bad or low score = 0, 1, 2, 3
Chemring Group has an F-score of 6 indicating the company's financial situation is typical for a stable company.
Chemring Group (LSE:CHG) has a Piotroski F-Score of 6 as of Jun. 28, 2026. The Piotroski F-score grades a company's business operating strength from 0-9. View historical data on Chemring Group and its competitors. This is near median its historical median of 6.00. Over the past decade, Chemring Group's Piotroski F-Score has ranged from 4.00 to 7.00. According to the industry distribution chart, Chemring Group ranks #84 out of 320 companies in the Aerospace & Defense industry, placing it in the top 26.2%.
Is Chemring Group's Piotroski F-Score too high?
Chemring Group's current Piotroski F-Score of 6 is near median its 10-year median of 6.00. Over the past 10 years, this metric has ranged from a low of 4.00 to a high of 7.00. The Aerospace & Defense industry median Piotroski F-Score is 5.00. Chemring Group's value of 6 is 20% above this industry median. Based on the distribution chart, Chemring Group ranks #84 out of 320 companies in the Aerospace & Defense industry, which is above the industry midpoint. 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 Piotroski F-Score compare to SPCX and GE?
According to the Aerospace & Defense industry distribution chart, Chemring Group ranks #84 out of 320 companies for Piotroski F-Score. This puts Chemring Group in the upper half of its industry. The industry median Piotroski F-Score is 5.00. Chemring Group's value of 6 is 20% above this benchmark. Historically, Chemring Group's own Piotroski F-Score has ranged from 4.00 to 7.00 over the past decade. While the company's 10-year median is 6.00 vs. the industry median of 5.00, Chemring Group has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Piotroski F-Score for an Aerospace & Defense company?
The median Piotroski F-Score among Aerospace & Defense companies is 5.00, based on 320 companies in the industry. Companies in the top quartile (top 25%) have a Piotroski F-Score significantly above this median, while those in the bottom quartile fall well below. However, Piotroski F-Score should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Chemring Group's current Piotroski F-Score of 6 is 20% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Piotroski F-Score mean?
A high Piotroski F-Score can signal that a stock is expensive relative to its fundamentals. The Piotroski F-score grades a company's business operating strength from 0-9. View historical data on Chemring Group and its competitors. For the Aerospace & Defense industry, the median Piotroski F-Score is 5.00 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Chemring Group's current Piotroski F-Score is 6, which is near median its own 10-year median of 6.00. 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 Piotroski F-Score is 6, which is near median its 10-year median of 6.00 and 20% above the Aerospace & Defense industry median of 5.00. Chemring Group's overall GF Score™ is 86/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Piotroski F-Score calculated?
Piotroski F-Score is calculated from a company's financial statements. For Chemring Group (LSE:CHG), the current Piotroski F-Score is 6 as of Jun. 28, 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:
Piotroski F-Score: 6 (near median its 10-year median of 6.00)
GF Value™: £4.30 vs. price of £4.81 (11.9% above fair value)
Industry Position: 20% above the Aerospace & Defense median (#84 of 320)
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 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
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