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Chemring Group has the Financial Strength Rank of 6.
GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is rated on a scale of 1 to 10 and 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.
4. Other debt related ratios.
A higher score indicates a stronger financial position, with companies rated 7 or above considered financially stable and unlikely to face distress. Conversely, a score of 3 or below suggests potential financial difficulties, indicating a higher risk of distress.
Chemring Group's Interest Coverage for the quarter that ended in Apr. 2026 was 7.48.
Chemring Group's debt to revenue ratio for the quarter that ended in Apr. 2026 was 0.40.
As of today, Chemring Group's Altman Z-Score is 3.00.
Chemring Group (CHIX:CHGl) Financial Strength Explanation
The rank is rated on a scale of 1 to 10. A higher score indicates a stronger financial position, with companies rated 7 or above considered financially stable and unlikely to face distress. Conversely, a score of 3 or below suggests potential financial difficulties, indicating a higher risk of distress.
Chemring Group has the Financial Strength Rank of 6.
Chemring Group Financial Strength Related Terms
CHIX:CHGL vs SPCX, GE, RTX: Financial Strength Comparison
For the Aerospace & Defense subindustry, Chemring 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.
Chemring Group Financial Strength vs Aerospace & Defense Industry
For the Aerospace & Defense industry and Industrials sector, Chemring Group's Financial Strength distribution charts can be found below:
* The bar in red indicates where Chemring Group's Financial Strength falls into.
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:
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.
Chemring Group has a Z-score of 3.00, indicating it is in Safe Zones. This implies the Z-Score is strong.
Good Sign:
Altman Z-score of 3 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.
Chemring Group (CHIX:CHGL) has a Financial Strength of 6 as of Apr. 2026. The financial strength rank measures the strength of a company's balance sheet based on revenue and debt. View historical data on Chemring Group and its competitors. This is 14% below median its historical median of 7.00. Over the past decade, Chemring Group's Financial Strength has ranged from 4.00 to 9.00.
Is Chemring Group's Financial Strength too high?
Chemring Group's current Financial Strength of 6 is 14% below median its 10-year median of 7.00. Over the past 10 years, this metric has ranged from a low of 4.00 to a high of 9.00. Overall, Chemring Group has a GF Score™ of 78/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Chemring Group's Financial Strength compare to SPCX and GE?
Chemring Group's Financial Strength of 6 can be compared against companies in the Aerospace & Defense industry. Historically, Chemring Group's own Financial Strength has ranged from 4.00 to 9.00 over the past decade. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Financial Strength for an Aerospace & Defense company?
A good Financial Strength depends on the Aerospace & Defense industry context. However, Financial Strength 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 Financial Strength mean?
A high Financial Strength can signal that a stock is expensive relative to its fundamentals. The financial strength rank measures the strength of a company's balance sheet based on revenue and debt. View historical data on Chemring Group and its competitors. Chemring Group's current Financial Strength is 6, which is 14% below median its own 10-year median of 7.00. 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 (CHIX:CHGL) is currently considered Significantly Overvalued. The stock's GF Value™ is £4.00, compared to a current price of £5.34 — trading 33.4% above its estimated fair value. The current Financial Strength is 6, which is 14% below median its 10-year median of 7.00. Chemring Group's overall GF Score™ is 78/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Financial Strength calculated?
Financial Strength is calculated from a company's financial statements. For Chemring Group (CHIX:CHGL), the current Financial Strength is 6 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 (CHIX:CHGL) Overvalued in 2026?
Based on GuruFocus' analysis, Chemring Group stock appears to be overvalued.
The current stock price of £5.34 is trading 33.4% above its estimated GF Value™ of £4.00.
GuruFocus considers Chemring Group to be Significantly Overvalued.
Key valuation signals for CHIX:CHGL:
Financial Strength: 6 (14% below median its 10-year median of 7.00)
GF Value™: £4.00 vs. price of £5.34 (33.4% above fair value)
No single metric tells the full story. See the CHIX:CHGL 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.
78GF Score
Get the complete analysis for CHIX:CHGL
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