Fact based stock research
Chemring (LSE:CHG)

GB00B45C9X44

How to read the free ranks

For every stock, we judge its performance against its peers and rank it on a scale of 1 to 100. The higher the rank, the better the stock performs than its peers. And, we do this for six investment strategies:
Value - shows how good of a value the stock is. Green is "inexpensive"; red is "expensive".

Growth - shows a company's growth potential. Green is "high growth" expected; red is "tough times ahead".

Safety - relates to the amount of debt a company has. Green is low debt level; red is high debt level.

Combined Financial - this isn't an average of the first three ranks but rather a consolidated view across several financial indicators. Green = good; red = tread carefully.

(NEW) Sentiment - quantifies professional analyst ratings and holdings as well as market pulse. Green = positive sentiment; red = skepticism (Only available to Premium Subscribers).

(NEW) 360° View - the ultimate rating with all financial and non-financial indicators.

Chemring stock research in summary

chemring.com

ANALYSIS: With an Obermatt Combined Rank of 77 (better than 77% compared with investment alternatives), Chemring (Aerospace & Defense, United Kingdom) shares have much better financial characteristics than comparable stocks. Shares of Chemring are a good value (attractively priced) with a consolidated Value Rank of 59 (better than 59% of alternatives), are safely financed (Safety Rank of 91, which means low debt burdens), but show below-average growth (Growth Rank of 25). ...read more

RECOMMENDATION: A Combined Rank of 77, is a strong buy recommendation based on Chemring's financial characteristics. As the company Chemring's key financial metrics exhibit good value (Obermatt Value Rank of 59) but low growth (Obermatt Growth Rank of 25) while being safely financed (Obermatt Safety Rank of 91), it may be a safer investment because companies with low debt can better withstand times of crises. Yet the good value, better than 59% of comparable companies, may also indicate that the company's future is challenging. If you believe that low growth is temporary or just due to a specific current event, you may conclude that the good value of the stock provides an attractive investment opportunity and the downside is limited due to below-average financing risks. Obermatt Premium subscribers can further check the stock’s Sentiment Ranks, which also flow into the Obermatt 360° View for investors. ...read more

Latest Obermatt Ranks


360° View^new
Sentiment Rank^new
Value Rank	59
Growth Rank	25
Safety Rank	91
Combined Rank	77

Country	United Kingdom
Industry	Aerospace & Defense
Index	FTSE All Shares, FTSE 250, FTSE 350
Size class	Small

31-Jul-2025. Stock data may be delayed. Log in or sign up to get the most recent research.

Further information

Multiple opinions. One number.

Analysts rarely agree on a stock’s future. So, who do you believe? Obermatt translates those collective views into a single Sentiment Rank. That plus the financial ranks give you the ultimate 360° View. Sign up to access them.

Why popular stocks have low ratings

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Review the performance ranks of the individual metrics that form each investment strategy.

Research History: Chemring

RESEARCH HISTORY	2022	2023	2024	2025
VALUE
VALUE	16	31	48	59
GROWTH
GROWTH	5	23	21	25
SAFETY
SAFETY	84	92	73	91
SENTIMENT
SENTIMENT	23	69	94	^new
360° VIEW
360° VIEW	9	54	78	^new

Most recent update of the stock research: 31-Jul-2025. Financial reporting date used for calculating ranks: 30-Apr-2025. Stock research history is based on the Obermatt Method. The higher the rank, the better Chemring is in the corresponding investment strategy.
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Combined financial peformance in Detail

RESEARCH HISTORY	2022	2023	2024	2025
VALUE
VALUE	16	31	48	59
GROWTH
GROWTH	5	23	21	25
SAFETY
SAFETY	84	92	73	91
COMBINED
COMBINED	14	36	51	77

Last update of combined financial performance: 31-Jul-2025. Stock analysis on combined financial performance: The higher the rank of Chemring the better the performance.

Value Metrics in Detail

ANALYSIS: With an Obermatt Value Rank of 59 (better than 59% compared with alternatives), Chemring shares are more attractively priced than the majority of comparable stocks. The Value Rank is based on consolidating four value indicators, with three out of four indicators below average for Chemring. Only the metric dividend yield has an above-average rank, reflecting that dividend practices are expected to be higher than 56% of comparable companies, making the stock an attractive buy for dividend investors. However, dividend investors may get disappointed because all other critical financial indicators are below the market median: Price-to-Sales is 28 which means that the stock price compared with what market professionals expect for future profits is higher than 72% of comparable companies, indicating a low value concerning Chemring's sales levels. The same is valid for Price-to-Profit (also referred to as price-earnings, P/E) with a rank of 32 which means that the stock price compared with what market professionals expect for future profit levels is higher than 68% of comparable companies. In addition, Price-to-Book (also referred to as market-to-book ratio) with a Price-to-Book Rank of 44 is also low. Compared with invested capital, the stock price is higher than for 56% of comparable investments. ...read more

RECOMMENDATION: The overall picture with a consolidated Value Rank of 59, is a buy recommendation based on Chemring's stock price compared with the company's operational size and dividend yields. Should dividend investors pick Chemring? The company-reported financials speak against it. The company is expensive compared with revenue and invested capital levels, two reliable company size indicators. In addition, it currently has a low level of profits. How can future dividends be paid in the case that profits remain low? Dividend investors should choose Chemring only if they reasonably expect the low current profit levels to be transitory. We recommend further analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks, including the 360° View, before making an investment decision, which is essential in this case, as the financial indicators are inconclusive. ...read more

VALUE METRICS	2022	2023	2024	2025
PRICE VS. REVENUES (P/S)
PRICE VS. REVENUES (P/S)	35	24	24	28
PRICE VS. PROFITS (P/E)
PRICE VS. PROFITS (P/E)	52	35	42	32
PRICE VS. CAPITAL (Market-to-Book)
PRICE VS. CAPITAL (Market-to-Book)	1	42	45	44
DIVIDEND YIELD
DIVIDEND YIELD	52	46	57	56
CONSOLIDATED RANK: VALUE
CONSOLIDATED RANK: VALUE	16	31	48	59

Last update of Value Rank: 31-Jul-2025. Stock analysis on value ratios: The higher the rank, the lower the value ratio of Chemring; except for dividend yield where the rank is higher, the higher the yield.

Growth Metrics in Detail

ANALYSIS: With an Obermatt Growth Rank of 25 (better than 25% compared with alternatives), Chemring shows a below-average growth dynamic in its industry. There is limited momentum in this company. The Growth Rank is based on consolidating four value indicators, with half of the indicators below and half above average for Chemring. Sales Growth has a rank of 84 which means that currently professionals expect the company to grow more than 84% of its competitors. Stock Returns are also above average with a rank of 59. But Capital Growth has only a rank of 6, which means that currently professionals expect the company to grow its invested capital less than 94% of its competitors. Profit Growth is also low, with a rank of only 21, which means that, currently, professionals expect the company to grow its profits below average. ...read more

RECOMMENDATION: The overall picture with a consolidated Growth Rank of 25, is a hold recommendation for growth and momentum investors. This is a surprising picture, as the messages from the operating growth indicators of revenues, profits, and invested capital are mixed, while stock returns are above average. It may indicate new intellectual properties, such as brand improvement or a strong market position that shows in revenues but not in the capital. The low profit-growth rate may indicate an early phase where costs are still high, and revenues don't fully cover upfront investments or fixed costs. The positive investor outlook with a 59% peer outperformance is reaffirmed in this case which may be a good sign for an investment into a well-protected high-growth company. This fact needs to be confirmed by researching the company website and press. While momentum is a popular investment factor, the value aspect might be the more important one, in the longer term. We recommend analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks to arrive at a 360° View of the stock purchase case, especially since the growth performance is mixed here. ...read more

GROWTH METRICS	2022	2023	2024	2025
REVENUE GROWTH
REVENUE GROWTH	27	70	89	84
PROFIT GROWTH
PROFIT GROWTH	26	31	31	21
CAPITAL GROWTH
CAPITAL GROWTH	4	14	4	6
STOCK RETURNS
STOCK RETURNS	19	55	34	59
CONSOLIDATED RANK: GROWTH
CONSOLIDATED RANK: GROWTH	5	23	21	25

Last update of Growth Rank: 31-Jul-2025. Stock analysis on growth metrics: The higher the rank, the higher the growth and returns of Chemring.

Safety Metrics in Detail

ANALYSIS: With an Obermatt Safety Rank of 91 (better than 91% compared with alternatives) for 2025, the company Chemring has safe financing practices, which means that their overall debt burden is low. This doesn't mean that the business of Chemring is safe, it only means that the company is on the safer side regarding possible bankruptcy, assuming that public reporting is correct. The Safety Rank is based on consolidating three financing indicators, with two out of three indicators above average for Chemring. Leverage is at a rank of 84, meaning the company has a below-average debt-to-equity ratio. It has less debt than 84% of its competitors. Liquidity is also good at a rank of 84, meaning the company generates more profit to service its debt than 84% of its competitors. This indicates that the company is on the safer side when it comes to debt service. But Refinancing is lower at a rank of 39, which means that the portion of the debt that is about to be refinanced is above-average. It has more debt in the refinancing stage than 61% of its competitors. ...read more

RECOMMENDATION: With a consolidated Safety Rank of 91 (better than 91% compared with alternatives), Chemring has a financing structure that is significantly safer than that of its competitors. The refinancing issues could be a short-term problem, especially if the company has reputation issues. Banks and investors don't like to refinance debt if there are clouds on the horizon. For this reason, investors should look at the refinancing environment for Chemring. Does it look safe that debt that is coming due can be covered with new debt? If that is the case, then the financing situation of the company is on the safer side. If not, it may be better to wait until refinancing has been completed and the Refinancing rank is good again. Investors may have a short-term debt challenge with Chemring and should also compare Obermatt’s Value, Growth, and Sentiment Ranks before making a decision. ...read more

SAFETY METRICS	2022	2023	2024	2025
LEVERAGE
LEVERAGE	90	90	74	84
REFINANCING
REFINANCING	33	33	30	39
LIQUIDITY
LIQUIDITY	82	92	72	84
CONSOLIDATED RANK: SAFETY
CONSOLIDATED RANK: SAFETY	84	92	73	91

Last update of Safety Rank: 31-Jul-2025. Stock analysis on safety metrics: The higher the rank, the lower the leverage of Chemring and the more cash is available to service its debt.

Sentiment Metrics in Detail

SENTIMENT	2022	2023	2024	2025
ANALYST OPINIONS
ANALYST OPINIONS	n/a	73	87	^new
OPINIONS CHANGE
OPINIONS CHANGE	8	69	50	^new
PRO HOLDINGS
PRO HOLDINGS	97	25	94	^new
MARKET PULSE
MARKET PULSE	74	75	85	^new
CONSOLIDATED RANK: SENTIMENT
CONSOLIDATED RANK: SENTIMENT	23	69	94	^new

Last update of Sentiment Rank: 31-Jul-2025. Stock analysis on sentiment metrics: The higher the rank, the more positive the sentiment for Chemring.
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