Chemring Group (LSE:CHG) Moat Score: 5/10 (As of Jul. 11, 2026)


LSE:CHG Chemring Group PLC LSE:CHG
83 GF Score
Price £5.38
GF Value £4.33
Valuation Modestly Overvalued
! 5 Warning Signs
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What is Chemring Group Moat Score?

Chemring Group LSE:CHG -0.65% 83 Moat Score is 5 as of Jul. 11, 2026. GuruFocus rates LSE:CHG with a GF Score™ of 83/100 and a GF Value™ of £4.33 (Modestly Overvalued). The stock has 5 warning signs investors should review. Among 348 Aerospace & Defense companies, Chemring Group ranks better than 88.22% on this metric.

Chemring Group has the Moat Score of 5, which implies that the company might have Narrow Moat - Solid narrow moat.

Chemring Group has Narrow Moat: Chemring Group benefits from valuable intellectual property and regulatory barriers in the defense sector. However, its market share and brand strength are not sufficient to classify it as having a wide moat.

Moat Score is a ranking system developed by GuruFocus to assess a company's ability to sustain a competitive advantage, rated on a scale from 0 to 10. It takes into account key factors such as market leadership, cost advantages, network effects, customer switching costs, and more.

The company's Moat Score is based on these criteria:

1. Market leadership and sustainable market share
2. Network effects and significant customer switching costs
3. Valuable intellectual property and patents
4. Strong brand strength and deep customer loyalty
5. Durable cost advantages (e.g., economies of scale, proprietary technology)
6. Significant regulatory barriers and exclusive licenses
7. Superior distribution network
8. Strong and sustainable pricing power
9. Consistent and impactful innovation and R&D capabilities

Based on the research, GuruFocus believes Chemring Group might have Narrow Moat - Solid narrow moat.

Chemring Group  (LSE:CHG) Moat Score Explanation

The Moat Score ranges from 0 to 10, with 10 as the highest. GuruFocus divided Moat Score into following 8 categories:

Moat Score Moat Level
10Wide Moat - Exceptionally dominant and durable wide moat
8 - 9Wide Moat - Clear and robust wide moat
7Wide Moat - Entry-level wide moat, clearly possessing durable advantages
6Narrow Moat - Strong narrow moat, clearly distinguishable but not wide
5Narrow Moat - Solid narrow moat
4Narrow Moat - Discernible but modest moat
1 - 3No Moat - Very weak/transient advantages
0No Moat - No discernible moat

Chemring Group Moat Score Related Terms

LSE:CHG vs SPCX, GE, RTX: Moat Score Comparison

For the Aerospace & Defense subindustry, Chemring Group's Moat Score, along with its competitors' market caps and Moat 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 Moat Score vs Aerospace & Defense Industry

For the Aerospace & Defense industry and Industrials sector, Chemring Group's Moat Score distribution charts can be found below:

* The bar in red indicates where Chemring Group's Moat Score falls into.


LSE:CHG
83GF Score
Chemring Group PLC LSE:CHG
Moat Score is just one metric. See GF Score™, valuation, warning signs, and more.
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Frequently Asked Questions Learn more about Moat Score →
What does a Moat Score of 5 mean?
Chemring Group (LSE:CHG) has a Moat Score of 5 as of Jul. 11, 2026. Moat Score is a ranking system developed by GuruFocus to assess a company's ability to sustain a competitive advantage, rated on a scale from 0 to 10. It takes into account key factors such as market leadership, cost advantages, network effects, customer switching costs, and more. According to the industry distribution chart, Chemring Group ranks #41 out of 348 companies in the Aerospace & Defense industry, placing it in the top 11.8%.
Is Chemring Group's Moat Score too high?
Chemring Group's current Moat Score is 5. Based on the distribution chart, Chemring Group ranks #41 out of 348 companies in the Aerospace & Defense industry, which is in the top quartile — a strong position relative to peers. Overall, Chemring Group has a GF Score™ of 83/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Chemring Group's Moat Score compare to SPCX and GE?
According to the Aerospace & Defense industry distribution chart, Chemring Group ranks #41 out of 348 companies for Moat Score. This places Chemring Group in the top 12% of its industry — outperforming the majority of peers. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Moat Score for an Aerospace & Defense company?
A good Moat Score depends on the Aerospace & Defense industry context. However, Moat Score 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 Moat Score mean?
A high Moat Score can signal that a stock is expensive relative to its fundamentals. Moat Score is a ranking system developed by GuruFocus to assess a company's ability to sustain a competitive advantage, rated on a scale from 0 to 10. It takes into account key factors such as market leadership, cost advantages, network effects, customer switching costs, and more. Chemring Group's current Moat Score is 5. 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 £4.33, compared to a current price of £5.38 — trading 24.1% above its estimated fair value. The current Moat Score is 5. Chemring Group's overall GF Score™ is 83/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Moat Score calculated?
Moat Score is calculated from a company's financial statements. For Chemring Group (LSE:CHG), the current Moat Score is 5 as of Jul. 11, 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 £5.38 is trading 24.1% above its estimated GF Value™ of £4.33. GuruFocus considers Chemring Group to be Modestly Overvalued.

Key valuation signals for LSE:CHG:

  • Moat Score: 5
  • GF Value™: £4.33 vs. price of £5.38 (24.1% above fair value)
  • GF Score™: 83/100 with 5 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.
83GF Score

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£5.38
Price
£4.33
GF Value