Latest news with #Filtronic
Yahoo
a day ago
- Business
- Yahoo
This former penny stock fell 10% after the Musk-Trump clash! Time to buy?
Filtronic (LSE: FTC) has been on an almighty run lately, having risen 82% year to date to reach 137p. But the two-year gain is even more eye-popping, as this was a penny stock trading for just 13p back in June 2023. So that makes it a 10-bagger over this period! However, the Filtronic share price fell as much as 10% on 6 June. What caused this? And should I buy the dip? Filtronic designs and manufactures high-frequency communication products for various sectors, including telecommunications, aerospace, and defence. Its products include E-band transceivers, tower-mounted amplifiers, and other radio frequency (RF) components. Over the years, the firm has secured contracts with the likes of BAE Systems, QinetiQ, and the European Space Agency. However, it was a strategic partnership with SpaceX announced last year to supply specialist equipment for the Starlink satellite constellation that sent the stock surging. In February, Filtronic secured its largest production order from SpaceX, valued at $21m, to be fulfilled over the next couple of years. And this gave the firm confidence that it would beat previous market expectations for FY2025 and FY2026. Looking ahead, the company should also have an attractive pipeline of growth opportunities in the European defence and satellite communications markets. The founder of SpaceX is, of course, Elon Musk, and he's just fell out spectacularly with President Trump. I won't rehash the soap opera-like details here, as they're widely available elsewhere. But Trump did threaten to terminate federal contracts for Musk's enterprises, including SpaceX. This prompted Musk to announce the immediate decommissioning of SpaceX's Dragon spacecraft, which is critical for transporting astronauts and cargo to the International Space Station. What has any of this got to do with Filtronic? Well, Reuters reports that around $22bn worth of federal contracts could be at risk. If so, SpaceX's budget and the continued pace of the Starlink build-out could be jeopardised. That may lead to reduced need for Filtronic's components in the years ahead. Given that Filtronic has scaled up manufacturing and R&D to meet future demand, it might face excess capacity and margin pressure. In this situation, sentiment for Filtronic shares could sour, sending them much lower. Now, this is all just theoretical. As I write, Musk has retracted the kneejerk Dragon capsule decision, and it even seems like there might be some sort of public reunion with Trump. But literally anything could happen from this point onwards. Weighing things up, there doesn't appear to be any immediate threat to Filtronic. And the share price pullback isn't that severe in the grand scheme of things. As I write, it's just 6%. The company's revenue for FY2026, which has just started, is forecast to be £50m. That would be double what it was in FY2023, signalling very robust growth. However, this stock is currently trading at around 45 times forward earnings, and there's no dividend. Much of the company's current value rests on the SpaceX partnership, which could be a double-edged sword if anything goes wrong there. Investors considering the stock should be mindful of the relatively high valuation and customer concentration risks. While I like the SpaceX-related growth story here, I'm currently not looking to buy any shares. The post This former penny stock fell 10% after the Musk-Trump clash! Time to buy? appeared first on The Motley Fool UK. More reading 5 Stocks For Trying To Build Wealth After 50 One Top Growth Stock from the Motley Fool Ben McPoland has positions in BAE Systems. The Motley Fool UK has recommended BAE Systems and QinetiQ Group Plc. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. Motley Fool UK 2025
Yahoo
14-05-2025
- Business
- Yahoo
Discovering Undiscovered Gems in the United Kingdom May 2025
The United Kingdom's stock market has recently faced challenges, with the FTSE 100 and FTSE 250 indices experiencing declines amid weak trade data from China and global economic uncertainties. Despite these hurdles, the pursuit of undiscovered gems within the UK market remains a compelling endeavor, as investors seek stocks that demonstrate resilience and potential for growth even in volatile conditions. Name Debt To Equity Revenue Growth Earnings Growth Health Rating BioPharma Credit NA 7.22% 7.91% ★★★★★★ B.P. Marsh & Partners NA 29.42% 31.34% ★★★★★★ Livermore Investments Group NA 9.92% 13.65% ★★★★★★ MS INTERNATIONAL NA 13.42% 56.55% ★★★★★★ Rights and Issues Investment Trust NA -7.87% -8.41% ★★★★★★ Andrews Sykes Group NA 2.08% 5.03% ★★★★★★ FW Thorpe 2.95% 11.79% 13.49% ★★★★★☆ Goodwin 37.02% 9.75% 15.68% ★★★★★☆ AltynGold 73.21% 26.90% 31.85% ★★★★☆☆ Law Debenture 17.80% 11.81% 7.59% ★★★★☆☆ Click here to see the full list of 59 stocks from our UK Undiscovered Gems With Strong Fundamentals screener. Let's dive into some prime choices out of from the screener. Simply Wall St Value Rating: ★★★★★★ Overview: Filtronic plc designs, develops, manufactures, and sells radio frequency (RF) technology globally and has a market cap of £247.47 million. Operations: Filtronic's primary revenue stream is from its Wireless Communications Equipment segment, generating £42.55 million. The company's financial performance can be analyzed through its net profit margin, which reflects the efficiency of converting revenue into actual profit after all expenses are accounted for. Filtronic, a nimble player in the communications sector, has recently turned profitable and is debt-free, contrasting its previous 12% debt-to-equity ratio five years ago. Despite a volatile share price lately, it maintains a Price-To-Earnings ratio of 23.8x, below the industry average of 29.1x. The company is making waves with strategic partnerships; notably with SpaceX for E-band SSPA modules and a new contract under ESA's ARTES program to develop feeder link technology for satellite networks. However, earnings are forecasted to dip by an average of 43.8% annually over the next three years. Get an in-depth perspective on Filtronic's performance by reading our health report here. Examine Filtronic's past performance report to understand how it has performed in the past. Simply Wall St Value Rating: ★★★★☆☆ Overview: Renew Holdings plc is a UK-based company offering engineering services, with a market cap of £650.67 million. Operations: The company generates revenue primarily from its engineering services segment, amounting to £1.01 billion. Renew Holdings, a UK-based engineering services firm, is making waves with its strategic focus on the onshore wind and transmission sectors. The company has streamlined operations by divesting its Specialist Building division, allowing it to hone in on core services. With a debt to equity ratio rising slightly from 23.7% to 25.2% over five years, financial health remains stable as cash exceeds total debt. Trading at £7.55 per share—41% below fair value estimates—Renew offers potential for growth despite recent negative earnings growth of -4.5%. EBIT covers interest payments 62 times over, indicating strong profitability prospects ahead. Renew Holdings' strategic focus on the UK engineering services sector, particularly in onshore wind and transmission, is poised to drive revenue growth through market penetration. Click here to explore the full narrative on Renew Holdings' investment potential. Simply Wall St Value Rating: ★★★★★☆ Overview: Yü Group PLC, with a market cap of £264.44 million, operates through its subsidiaries to supply energy and utility solutions primarily in the United Kingdom. Operations: Yü Group generates revenue primarily from its Retail segment, contributing £645.26 million, and Smart segment at £12.73 million, with a minor contribution from Metering Assets at £0.66 million. The company experiences a deduction of £13.20 million due to Intra-segment Trading. Yü Group, a dynamic player in the UK market, has been making waves with its robust financial performance. Over the past year, earnings grew by 8.6%, outpacing the Renewable Energy industry's -6.1%. The company is trading at a significant discount of 42% below its estimated fair value and maintains high-quality earnings with more cash than debt on hand. Recent announcements highlight impressive sales growth to £645 million from £460 million last year and net income rising to £33.5 million from £30.86 million, suggesting strong operational momentum and potential for continued expansion in fiscal 2025. Click here and access our complete health analysis report to understand the dynamics of Yü Group. Gain insights into Yü Group's historical performance by reviewing our past performance report. Navigate through the entire inventory of 59 UK Undiscovered Gems With Strong Fundamentals here. Are you invested in these stocks already? Keep abreast of every twist and turn by setting up a portfolio with Simply Wall St, where we make it simple for investors like you to stay informed and proactive. Elevate your portfolio with Simply Wall St, the ultimate app for investors seeking global market coverage. Explore high-performing small cap companies that haven't yet garnered significant analyst attention. Fuel your portfolio with companies showing strong growth potential, backed by optimistic outlooks both from analysts and management. Find companies with promising cash flow potential yet trading below their fair value. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include AIM:FTC AIM:RNWH and AIM:YU.. Have feedback on this article? Concerned about the content? with us directly. Alternatively, email editorial-team@ Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
11-05-2025
- Business
- Yahoo
Up 900% in 2 years, this former penny stock is on fire! Should I buy it?
Filtronic (LSE: FTC) could be the posterchild for penny stock investing. In just two years, this AIM-listed share has gone from 11p to 116p, making it a 10-bagger for eagle-eyed investors. I'm partial to a small-cap stock, though I tend to keep them limited in number and size. Unfortunately this one flew completely under my radar until a few months ago. But with strong commercial progress and a lucrative contract with SpaceX in place, Filtronic stock looks like it could move even higher in the years ahead. So should I invest? Let's take a look. Filtronic designs advanced components that enable high-speed wireless communication, supporting applications in 5G infrastructure, aerospace, defence, and satellite systems. While the firm's been around for decades, it was orders received from Elon Musk's SpaceX in 2023 that proved transformational for the business. In April 2024, this partnership was made public, with Filtronic unveiling a strategic agreement to supply E-band Solid State Power Amplifiers (SSPAs) for SpaceX's burgeoning Starlink satellite constellation. SSPAs boost signal strength, helping Starlink provide fast, reliable internet from space to ground. This announcement put a heavy-booster rocket under the Filtronic share price! There are a few things I find interesting about this from an investing standpoint. The first is that SpaceX is highly vertically integrated, typically producing most components in-house. So Filtronic's selection as a supplier is a strong endorsement of its cutting-edge communications technology. Second, the Starlink network already consists of more than 7,200 operational satellites, but the total number could potentially expand to 40,000! So there could be many years of repeat orders ahead, assuming Filtronic fulfils them satisfactorily. Finally, it's worth mentioning that Filtronic has issued SpaceX warrants equivalent to 15% of share capital, with 5% already vested. So there's a commercial alignment of interests here. The impact on the company's financials has already been dramatic. Revenue has grown from £16m in FY2023 to an expected £52m in FY2025. Profits have grown more than tenfold over this time. In recent days, management said revenue growth's currently stronger than market expectations. However, I note the forward price-to-earnings multiple here for FY2026 (starting June) is around 39. Arguably then, the market's fully up to date with the promising growth story unfolding here. Moreover, a key risk is high customer concentration with SpaceX. That relationship is pivotal to the firm's ongoing growth, even though Filtronic has done well to also bag contracts with BAE Systems, QinetiQ, and others. This is an interesting company and one I wish I'd spotted earlier (for obvious reasons). I think the next few years look very bright as management targets over £100m in sales and a more diverse spread of customers. The opportunity in European defence markets appears sizeable due to many NATO members committing to re-arm after decades of reliance on the US for security. This is an area Filtronic already knows well. However, while I also like this stock as an indirect play on SpaceX's growth, I can't help feeling that I've missed the boat on the big gains. I already have indirect exposure to SpaceX through Scottish Mortgage Investment Trust. I'm going to keep it that way for now. The post Up 900% in 2 years, this former penny stock is on fire! Should I buy it? appeared first on The Motley Fool UK. More reading 5 Stocks For Trying To Build Wealth After 50 One Top Growth Stock from the Motley Fool Ben McPoland has positions in BAE Systems and Scottish Mortgage Investment Trust Plc. The Motley Fool UK has recommended BAE Systems and QinetiQ Group Plc. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. Motley Fool UK 2025 Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
Yahoo
19-04-2025
- Business
- Yahoo
3 under-the-radar UK shares that could make investors richer
Smaller UK shares often don't get hit by the spotlight. However, by investing early in these enterprises, investors can potentially reap enormous rewards if they evolve into successful businesses. With that in mind, let's explore three such companies investors may want to dig into a bit deeper. OXB (LSE:OXB) isn't a commonly discussed company in the world of pharmaceuticals. Yet it lists many of today's industry titans as its customers, including AstraZeneca, Bristol Myers Squibb, Novartis and Sanofi, among others. The business has undergone a bit of restructuring in recent years, refocusing its operation on becoming a contract development and manufacturing organisation (CDMO). And looking at its latest results, this shift in strategy's seemingly yielding terrific results. Revenue in 2024 surged by 44% to £128.8m, with operations even becoming profitable in the second half of last year (on an EBITDA basis) for the first time since the post-pandemic boom in 2021. Demand for its services remains strong, with contracted client orders reaching £186m, and management expects the bottom line to reach the black later this year with 20% EBITDA margins. Of course, this isn't a risk-free enterprise. OXB's highly dependent on a few key customers (Novartis, AstraZeneca, and Boehringer Ingelheim), which could compromise cash flows if one of these decides to cut ties. Similarly, operating in the biotech sector comes with its own set of regulatory threats and hurdles that can jeopardise long-term growth. Nevertheless, with the progress made so far, OXB's a UK share investors may want to mull. Two other businesses with promising potential, in my opinion, are Filtronic (LSE:FTC) and Solid State (LSE:SOLI). Both specialise in electronic components used in a variety of applications. Filtronic specialises in RF telecommunications, which is essential to the aerospace, defence, and space exploration industry. Solid State also has a portfolio of electronic telecommunications components that serve the defence sector. However, it also has more diversified offerings for the industrial sector through numerous industry-recognised brands such as Custom Power, Solsta, Active Silicon and Durakool, among others. There's some overlap between these businesses. Yet the electronics sector's sufficiently large enough for multiple winners. And with European defence spending on the rise, both companies have enjoyed a sudden uptick in customer orders. Of course, there are always risks to consider. Just like OXB, Filtronic's revenue is largely dependent on SpaceX as a key customer. Meanwhile, with notable defence contracts driving its sales, Solid State's somewhat at the mercy of political cycles as well as industrial and defence budgets. Having said that, both firms still have promising long-term potential, which makes them worthy of further research, in my opinion. The post 3 under-the-radar UK shares that could make investors richer appeared first on The Motley Fool UK. More reading 5 Stocks For Trying To Build Wealth After 50 One Top Growth Stock from the Motley Fool Zaven Boyrazian has positions in OXB. The Motley Fool UK has recommended AstraZeneca Plc and Solid State Plc. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. Motley Fool UK 2025
Yahoo
22-03-2025
- Business
- Yahoo
At 108p, is this one of the best ex-penny stocks to consider buying today?
Penny stocks are enormously popular among investors with a high tolerance for risk and volatility. That shouldn't be surprising, given all it takes is for one of these tiny companies to erupt into success to unlock skyrocketing returns. And that's exactly what's happened with Filtronic (LSE:FTC) over the last two years. In March 2023, shares of this avionics enterprise were trading close to 12p with a market cap of around £25m. Today, they're at 108p with a £235m market cap. That's an 800% return in the space of two years. And to demonstrate just how explosive this is, a £10,000 investment two years ago would now be worth around £90,000! Considering the UK stock market only averages around 6% to 8% returns each year, this level of growth is pretty phenomenal. But with so much growth already under its belt, is it too late to hop on the gravy train? The primary catalyst behind Filtronic's current success is its newly formed relationship with Elon Musk's SpaceX. The company has secured a collection of multi-million-dollar contracts that sent its top line flying, with half-year revenues surging from £8.5m to £25.6m. With SpaceX planning on drastically expanding its mega-constellation of satellites, demand for Filtronic's electronic components isn't likely to subside any time soon. And with management using the proceeds of these new contracts to expand its production capacity in the future, Filtronic may soon find new customers from the aerospace industry knocking on its door. Analyst forecasts currently predict sales in its 2025 fiscal year (ending in May) will come in just over the £50m threshold, with earnings rising to £4.8m. Assuming these projections are accurate, that's a notable increase from the £16m and £0.24m of sales and profits reported in its 2023 fiscal year. And it's easy to understand why there's a lot of excitement surrounding this enterprise right now. Even if Filtronic meets analyst expectations this year, today's share price puts the forward price-to-sales ratio at 4.7 and the forward price-to-earnings ratio at 49. These aren't the sort of figures that can typically be used to describe a cheap stock. And it's clear that investors are baking in a lot of future long-term growth into the current valuation. Should Filtronic fail to keep up with investor expectations, the small-cap enterprise could begin behaving like a penny stock again. That would mean enormous share price volatility. So, what could go wrong? Beyond the usual challenges of supply chain disruptions that many electronic firms have to navigate, Filtronic's revenue and earnings are currently almost entirely dependent on SpaceX. And this customer concentration risk is problematic. Given Filtronic's current dependence on SpaceX, the firm likely doesn't hold much pricing power when negotiating contracts. And if Filtronic starts falling behind on its existing obligations, the chances of signing future deals could be negatively impacted. Combining this with the stock's rich valuation, I'm not rushing to add any Filtronic shares to my portfolio today. The risk is simply too high for my tastes. The post At 108p, is this one of the best ex-penny stocks to consider buying today? appeared first on The Motley Fool UK. More reading 5 Stocks For Trying To Build Wealth After 50 One Top Growth Stock from the Motley Fool Zaven Boyrazian has no position in any of the shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. Motley Fool UK 2025 Sign in to access your portfolio
