# Chemring Group (CHG.LSE)

Canonical: https://gigainvestors.com/s/CHG.LSE

Analysis as of: 2026-10-16T07:41:14.141Z. Financial observations: FY1999–FY2025.

Listing currency: GBX. Reporting currency: GBP.

## Verdict

Not a wonderful business

Quality tests for Buy: not passed (profit record: fail; earnings resilience is evidence only). Published buy qualification: no.

Share price: GBX 520.00 per share; close as of 2026-10-15.

Estimated value: low GBX 60.97 per share, central GBX 68.93 per share, high GBX 78.10 per share. Buy at or below the central value GBX 68.93 per share. Valuation as of 2026-10-16T07:41:14.141Z; scenarios are not confidence intervals.

Expected annual return: 3.8% at the stated quote. About 3.8% a year at today's price (required return 10.0%). required return 10.0% a year (10% floor; GB 10-year bond 5.4% + 4 points).

## Checklist

### understandable: fail

- 3 revenue declines in the last 10 years (informational)

- operating margin variation exceeds 0.35

- Financial history: 10 years

- Years with declining revenue: 3

- Years with a net loss: 1

- Operating margin variation: 0.67×

Chart: Operating margin; fiscal year observations.

- FY2016: 0.05×

- FY2017: 0.03×

- FY2018: -0.05×

- FY2019: 0.09×

- FY2020: 0.12×

- FY2021: 0.13×

- FY2022: 0.12×

- FY2023: 0.10×

- FY2024: 0.11×

- FY2025: 0.15×

### moat: fail

- ROIC median below threshold

- ROIC worst years below threshold (more than 1 bad year allowed)

- ROIC, median of available years: 13.5%

- ROIC, second-lowest year: 3.3%

- Typical minus recent gross margin: 0.0 pp

- Typical gross margin (annual median): 100.0%

- Recent gross margin (lower of latest and 3-year median): 100.0%

- Years with nonpositive capital: 0

- Capital spending / revenue: 8.1%

- ROIC including acquisitions, ten-year median: 5.5%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2016: 5.8%

- FY2017: 3.3%

- FY2018: -4.7%

- FY2019: 9.9%

- FY2020: 13.8%

- FY2021: 15.8%

- FY2022: 14.9%

- FY2023: 13.3%

- FY2024: 15.0%

- FY2025: 15.6%

### economics: fail

- owner earnings cash conversion below threshold

- Owner earnings / net income, 5-yr: 0.39×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: GBP 71M

- Net income, five-year total: GBP 182M

- Return on incremental invested capital: 27.8%

- Working capital / revenue, annual change: 0.6 pp

- Working capital / revenue, change between three-year averages: 2.4 pp

- Working capital / revenue, final three-year average: 35.6%

Chart: Annual owner cash / profit; fiscal year observations.

- FY2021: 0.86×

- FY2022: 0.79×

- FY2023: 0.76×

- FY2024: 0.31×

- FY2025: -0.38×

### management: pass

- Historical market-dollar context (not the management verdict): 2016 to 2025 (9 years)

- buybacks unrelated to price (informational)

- ROIC first 3 years vs last 3 years: 3.3% vs 15.0%

- Per-share earnings: 0.02 to 0.14 (three-year endpoint medians)

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: 1.9%

- Ordinary dilution, 5-year annual growth: -0.4%

- Market cap gain: GBP 1.2B

- Cumulative retained earnings: GBP -43M

- Diluted shares, 10-year annual growth: 1.9%

- Diluted shares, 5-year annual growth: -0.4%

- $1 test, starting fiscal year: FY2016

- $1 test, ending fiscal year: FY2025

- Per-share value growth: 25.4%

- Per-share value change: GBP 0.12

- Per-share value, starting three-year median: GBP 0.02

- Per-share value, ending three-year median: GBP 0.14

- Buybacks concentrated in cheaper years (correlation): -0.26

- Average buyback yield: 1.4%

- Buyback history: 6 years

- Debt-funded buybacks: No

- Acquisition spending: GBP 67M

- Cumulative net income, 10 years: GBP 216M

- ROIC, first three-year median: 3.3%

- ROIC, last three-year median: 15.0%

Chart: Earnings per share; fiscal year observations.

- FY2016: GBP 0.04

- FY2017: GBP 0.02

- FY2018: GBP -0.15

- FY2019: GBP 0.08

- FY2020: GBP 0.12

- FY2021: GBP 0.14

- FY2022: GBP 0.16

- FY2023: GBP 0.02

- FY2024: GBP 0.14

- FY2025: GBP 0.17

### accounting: pass

- Sloan accruals: -4.2%

- Receivables to sales index (DSRI): 1.24×

- Restructuring years, last five: 0

- Stock compensation / operating cash flow: 6.0%

- Earnings backed by cash: Yes

- Operating cash / earnings: 1.76×

- Accounting red flags: 0

- Goodwill and intangibles / equity: 0.43×

Chart: Sloan accruals; fiscal year observations.

- FY2016: -7.0%

- FY2017: -3.6%

- FY2018: -13.9%

- FY2019: -8.0%

- FY2020: -7.6%

- FY2021: -6.4%

- FY2022: -5.3%

- FY2023: -10.1%

- FY2024: -6.0%

- FY2025: -4.2%

## Holders

## Price story

Price needs cash profits to grow 30.1% a year for ten years · sales -2.5%

Story as of 2026-10-16T10:00:11.835Z; price observation 2026-10-15.

Price needs cash profits to grow 30.1% a year for ten years

### Sales · FY2024–2025

sales -2.5%; source https://filings.xbrl.org/213800U9A54VQJ5P2J41/2025-10-31/ESEF/GB/0/213800U9A54VQJ5P2J41-2025-10-31/reports/213800U9A54VQJ5P2J41-2025-10-31-T01.xhtml; observed 2026-01-14.

- FY2016: GBP 477M 

- FY2017: GBP 548M 

- FY2018: GBP 297M 

- FY2019: GBP 335M 

- FY2020: GBP 403M 

- FY2021: GBP 393M 

- FY2022: GBP 401M 

- FY2023: GBP 473M 

- FY2024: GBP 510M 

- FY2025: GBP 498M 

### Gross margin · FY2019

gross margin 72.4%; source https://filings.xbrl.org/213800U9A54VQJ5P2J41/2025-10-31/ESEF/GB/0/213800U9A54VQJ5P2J41-2025-10-31/reports/213800U9A54VQJ5P2J41-2025-10-31-T01.xhtml; observed 2026-01-14.

- FY2016: 25.9% 

- FY2017: 81.4% 

- FY2018: 71.9% 

- FY2019: 72.4% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in aerospace & defense; annual sales are GBP 497.5 million.

- Source: https://filings.xbrl.org/213800U9A54VQJ5P2J41/2025-10-31/ESEF/GB/0/213800U9A54VQJ5P2J41-2025-10-31/reports/213800U9A54VQJ5P2J41-2025-10-31-T01.xhtml (filed 2026-01-14); FY2025: revenue 497500000; grossProfit 497500000; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); CHG.LSE: Chemring Group PLC provides countermeasures, sensors, information, and energy products in the United States, the United Kingdom, Europe, the Asia pacific, and internationally. The company offers sensors and information products, such as point chemical detectors, sensors, JSLSCAD, and I-SCAD; R Visor, 3D radars, husky mounted detection system, groundshark, MDS-10, and groundhunters; resolve, locate, LOCATE-T, and viper products; and advisory, research, and design and engineering services. It also provides countermeasures and energetics products, including aerodynamic and countermeasure flare; chaf cart and pack; seduction and distraction cart; initiator, separation and explosive bolts, nuts, thrusters, cutters, and pin pullers and pushers; pressure cartridges, initiators, actuators, retractors and systems, time delay devices, ejection handles and sequencers, gas generators, cutters, canopy remover thruster, and thermal battery; wing, fin, elevon deployment actuators, wing and tail retention systems, separation nuts, pyrovalves, and safe and arm devices; joint combined aircrew system, system communication and oxygen, and altitude combined aircrew system tester; HMX, RDX, NTO, Alkyl-NENA, and acetic acid; and advanced performance bangalore torpedo, SX4, PE8, charge demolition user filled conical and linear, igniter safety fuze electric, detonating cord booster, demolition detonator electric and non-electric, detonating cord, and safety fuze. In addition, the company offers metron actuators and gas generators; cutters, igniters and fuzeheads, canopy severance cords and explosive transmission cords; extruded double base propellant for ejection systems and rocket motors; and PED MK 2, breach MC, shrike exploder, mini shrike, long range initiation system, WASP, pigstick, hotrod, mini and midi disruptor, freeze neutralizing kit, fuse extractor, and rocket wrench. Chemring Group PLC was incorporated in 1905 and is headquartered in Romsey, the United Kingdom.

### Why customers stay

Margins ranged from 100% to 100% during 2023–25; it earns 13.5% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-01-14); FY2023: grossProfit / revenue = 100%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-01-14); FY2024: grossProfit / revenue = 100%.

- Source: https://filings.xbrl.org/213800U9A54VQJ5P2J41/2025-10-31/ESEF/GB/0/213800U9A54VQJ5P2J41-2025-10-31/reports/213800U9A54VQJ5P2J41-2025-10-31-T01.xhtml (filed 2026-01-14); FY2025: grossProfit / revenue = 100%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-01-14); 10-year return on capital observations [[2016,0.05784646739130435],[2017,0.033354430379746836],[2018,-0.04709786276715411],[2019,0.09922966390948654],[2020,0.13778001130293321],[2021,0.15839118897895388],[2022,0.14905728079331942],[2023,0.13273371364049497],[2024,0.14990468076364152],[2025,0.15559394808576912]]; median 0.1352568624717141. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Where the cash goes

Paid dividends in 10 of 10 years; bought back GBP 6.9 million of shares.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-01-14); FY2016: growth capex 0; upkeep 17000000; owner earnings 34200000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-01-14); FY2017: growth capex 0; upkeep 16500000; owner earnings 25600000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-01-14); FY2019: growth capex 15500000; upkeep 29300000; owner earnings 21900000. Growth capex / owner earnings = 0.7077625570776256.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-01-14); FY2020: growth capex 12000000; upkeep 28800000; owner earnings 33640000. Growth capex / owner earnings = 0.356718192627824.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-01-14); FY2021: growth capex 0; upkeep 30200000; owner earnings 35640000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-01-14); FY2022: growth capex 3956491.436563831; upkeep 30543508.56343617; owner earnings 37456491.436563835. Growth capex / owner earnings = 0.10562899206041572.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-01-14); FY2023: growth capex 11900000; upkeep 22300000; owner earnings 4080000. Growth capex / owner earnings = 2.9166666666666665.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-01-14); FY2024: growth capex 19961147.814407967; upkeep 49638852.18559203; owner earnings 12261147.814407967. Growth capex / owner earnings = 1.6279999325146213.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-01-14); Dividend observations: [[2016,6400000],[2017,6400000],[2018,8700000],[2019,9500000],[2020,10400000],[2021,11900000],[2022,14400000],[2023,17300000],[2024,19800000],[2025,21500000]]. Zero only counted when supported by a complete cash-flow statement.

- Source: https://filings.xbrl.org/213800U9A54VQJ5P2J41/2025-10-31/ESEF/GB/0/213800U9A54VQJ5P2J41-2025-10-31/reports/213800U9A54VQJ5P2J41-2025-10-31-T01.xhtml (filed 2026-01-14); FY2025: cash repurchases 6900000 GBP.

### Are managers owners

Insiders own 4.9% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); CHG.LSE SharesStats.PercentInsiders = 4.938 percentage points; cache date 2026-10-16.

### What the price says

The price assumes cash profits grow 30.1% yearly over ten years.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-01-14); Ten-year compound average after fade. Initial solved rate 0.42939473467687794. Price 520; FX 100; discount 0.1; same standard ten-year fade to terminal 0.03. FY2015 owner earnings/share 0.08370130665586688 → FY2025 -0.06630533279661038. Closing-price date 2026-10-15.

## Monthly share-price history (GBX per share)

- 2016-10: GBX 145.00 per share

- 2016-11: GBX 166.00 per share

- 2016-12: GBX 170.00 per share

- 2017-01: GBX 192.00 per share

- 2017-02: GBX 194.25 per share

- 2017-03: GBX 192.00 per share

- 2017-04: GBX 188.25 per share

- 2017-05: GBX 180.50 per share

- 2017-06: GBX 185.00 per share

- 2017-07: GBX 179.00 per share

- 2017-08: GBX 177.00 per share

- 2017-09: GBX 180.00 per share

- 2017-10: GBX 172.50 per share

- 2017-11: GBX 176.25 per share

- 2017-12: GBX 183.75 per share

- 2018-01: GBX 191.60 per share

- 2018-02: GBX 192.60 per share

- 2018-03: GBX 200.00 per share

- 2018-04: GBX 209.00 per share

- 2018-05: GBX 201.00 per share

- 2018-06: GBX 222.50 per share

- 2018-07: GBX 228.50 per share

- 2018-08: GBX 195.80 per share

- 2018-09: GBX 215.00 per share

- 2018-10: GBX 182.40 per share

- 2018-11: GBX 167.60 per share

- 2018-12: GBX 161.20 per share

- 2019-01: GBX 153.60 per share

- 2019-02: GBX 150.00 per share

- 2019-03: GBX 138.80 per share

- 2019-04: GBX 154.00 per share

- 2019-05: GBX 162.00 per share

- 2019-06: GBX 184.60 per share

- 2019-07: GBX 181.60 per share

- 2019-08: GBX 178.60 per share

- 2019-09: GBX 196.80 per share

- 2019-10: GBX 201.00 per share

- 2019-11: GBX 201.00 per share

- 2019-12: GBX 240.50 per share

- 2020-01: GBX 272.00 per share

- 2020-02: GBX 241.00 per share

- 2020-03: GBX 200.50 per share

- 2020-04: GBX 198.20 per share

- 2020-05: GBX 215.50 per share

- 2020-06: GBX 242.00 per share

- 2020-07: GBX 239.00 per share

- 2020-08: GBX 242.00 per share

- 2020-09: GBX 241.50 per share

- 2020-10: GBX 260.50 per share

- 2020-11: GBX 249.00 per share

- 2020-12: GBX 285.50 per share

- 2021-01: GBX 296.50 per share

- 2021-02: GBX 277.00 per share

- 2021-03: GBX 266.00 per share

- 2021-04: GBX 263.00 per share

- 2021-05: GBX 306.00 per share

- 2021-06: GBX 287.50 per share

- 2021-07: GBX 307.50 per share

- 2021-08: GBX 332.50 per share

- 2021-09: GBX 319.00 per share

- 2021-10: GBX 292.50 per share

- 2021-11: GBX 272.00 per share

- 2021-12: GBX 296.00 per share

- 2022-01: GBX 271.50 per share

- 2022-02: GBX 309.50 per share

- 2022-03: GBX 325.50 per share

- 2022-04: GBX 351.50 per share

- 2022-05: GBX 353.00 per share

- 2022-06: GBX 315.00 per share

- 2022-07: GBX 346.00 per share

- 2022-08: GBX 313.00 per share

- 2022-09: GBX 284.00 per share

- 2022-10: GBX 302.00 per share

- 2022-11: GBX 310.00 per share

- 2022-12: GBX 297.50 per share

- 2023-01: GBX 282.00 per share

- 2023-02: GBX 293.50 per share

- 2023-03: GBX 278.00 per share

- 2023-04: GBX 284.00 per share

- 2023-05: GBX 255.50 per share

- 2023-06: GBX 283.00 per share

- 2023-07: GBX 283.50 per share

- 2023-08: GBX 291.00 per share

- 2023-09: GBX 277.50 per share

- 2023-10: GBX 279.50 per share

- 2023-11: GBX 315.50 per share

- 2023-12: GBX 350.50 per share

- 2024-01: GBX 352.00 per share

- 2024-02: GBX 347.00 per share

- 2024-03: GBX 363.00 per share

- 2024-04: GBX 375.00 per share

- 2024-05: GBX 386.00 per share

- 2024-06: GBX 372.50 per share

- 2024-07: GBX 414.00 per share

- 2024-08: GBX 407.00 per share

- 2024-09: GBX 367.50 per share

- 2024-10: GBX 355.00 per share

- 2024-11: GBX 354.50 per share

- 2024-12: GBX 328.50 per share

- 2025-01: GBX 319.00 per share

- 2025-02: GBX 373.50 per share

- 2025-03: GBX 370.00 per share

- 2025-04: GBX 399.00 per share

- 2025-05: GBX 483.00 per share

- 2025-06: GBX 565.00 per share

- 2025-07: GBX 550.00 per share

- 2025-08: GBX 537.00 per share

- 2025-09: GBX 589.00 per share

- 2025-10: GBX 573.00 per share

- 2025-11: GBX 481.50 per share

- 2025-12: GBX 472.50 per share

- 2026-01: GBX 498.50 per share

- 2026-02: GBX 534.00 per share

- 2026-03: GBX 508.00 per share

- 2026-04: GBX 522.00 per share

- 2026-05: GBX 549.00 per share

- 2026-06: GBX 512.00 per share

- 2026-07: GBX 590.50 per share

- 2026-08: GBX 550.50 per share

- 2026-09: GBX 545.50 per share

- 2026-10: GBX 520.00 per share

## Annual estimated value (GBX per share)

- FY2016: low GBX 57.64 per share, central GBX 62.99 per share, high GBX 70.10 per share

- FY2017: low GBX 106.30 per share, central GBX 119.86 per share, high GBX 137.91 per share

- FY2018: low GBX 55.61 per share, central GBX 63.10 per share, high GBX 73.06 per share

- FY2019: low GBX 65.08 per share, central GBX 74.06 per share, high GBX 86.00 per share

- FY2020: low GBX 104.22 per share, central GBX 118.26 per share, high GBX 136.96 per share

- FY2021: low GBX 97.59 per share, central GBX 111.04 per share, high GBX 128.95 per share

- FY2022: low GBX 130.92 per share, central GBX 148.41 per share, high GBX 171.69 per share

- FY2023: low GBX 154.48 per share, central GBX 175.78 per share, high GBX 204.13 per share

- FY2024: low GBX 180.17 per share, central GBX 203.29 per share, high GBX 234.06 per share

- FY2025: low GBX 68.44 per share, central GBX 76.39 per share, high GBX 85.57 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

## Sources

[Original ESEF filing](https://filings.xbrl.org/213800U9A54VQJ5P2J41/2025-10-31/ESEF/GB/0/213800U9A54VQJ5P2J41-2025-10-31/reports/213800U9A54VQJ5P2J41-2025-10-31-T01.xhtml); period 2025-10-31, filed 2026-01-14.

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.