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Apr 26, 2023

Genuit vs Volution shares: we compare like for like

Shares in plastic piping maker Genuit [LON:GEN], the company formerly known as Polypipe, have been having a good run over the last month, up 20.6%. Indeed they are closing on their six month highs, but is this sustainable. In this article we look at Genuit's core metrics and measure these against Volution [LON:FAN], which analysis from Bridgewise shows is a close proxy.

Shares in Genuit have been bought on the back of a trading update that shows annual earnings will be slightly ahead of consensus, but does this really warrant the optimism? After all, Genuit reported a fall in operating profits in March of 20.4% to £53.4m.

Shares in Volution are also on a good run, up 8.3% in the past month, and 27.5% over the last 12 months. At 448p shares are now easily trading above their 52 week high. Like Genuit, Volution specialises in residential and commercial ventilation solutions. It has a good range of brands and enjoys a broad spread of non-UK custom as well. Among it brands are Airtech, National Ventilation and Breathing Buildings.

Genuit is starting to look a little expensive for what you are getting in terms of pure PE. Bridgewise scored the company a 70/100 for total assets and 64/100 for cash and equivalents. This is against an average of 64 for total assets for industry peers, and 67/100 for cash.

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Shares in plastic piping maker Genuit [LON:GEN], the company formerly known as Polypipe, have been having a good run over the last month, up 20.6%. Indeed they are closing on their six month highs, but is this sustainable. In this article we look at Genuit's core metrics and measure these against Volution [LON:FAN], which analysis from Bridgewise shows is a close proxy. Want the full story? Access all of The Armchair Trader's content for just £5.99 per month. Like this article? Investing: Trading:
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