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Chemring Group (CHG) Fair Value & Analysis

Industrials · GB · Market cap 1.4B GBX

CG Chemring Group CHG · LSE
Price£4.90
Fair Value£3.45
Upside-29.6%
Quality95/100
Evidence: High Range £2.42 – £4.49

Fair value as of: Jun 24, 2026

From 16 valuation models · updated 5 days ago

Fair value updated Jun 24, 2026 — revised from £1.98 to £3.45 (+74.2%) since Jun 23, 2026. Share price −11.3% over the past month.

Price vs Fair Value (12 months)

£5.97 £4.59 Fair Value £3.45 Jun 2025 Jun 2026

12‑month range £4.59 – £5.97 · fair‑value band £2.42 – £4.49 · the £4.90 price screens above the £3.45 fair value. As of Jun 24, 2026.

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Analysis

Chemring Group (CHG) currently trades at £4.90, while our model-based Fair Value estimate is £3.45 — implying the stock looks roughly 29.6% overvalued today. We read business quality at 95/100 (high quality), in the Industrials sector. Bear case: priced above our estimate, the market already discounts strong expectations. Bull case: above-average quality can justify a premium — the entry price still matters most (evidence: high).

Over the trailing twelve months, Chemring Group generated revenue of £498M at a net margin of 9.7%. Revenue declined 0.6% year over year. It earns a return on equity of 14.4%. Net debt stands at £89.0M. Fundamentals as of Jun 24, 2026

Key figures & financial health

Revenue (TTM) 498M GBX
Revenue growth (YoY) -0.6%
Net margin 9.7%
Return on equity 14.4%
Free cash flow −5.6M GBX FY2025
P/E ratio 26.9
More key figures
Operating margin 15.5%
EPS (TTM) £0.1900
Dividend yield 1.5%
EPS growth (YoY) +20.2%
Net debt 89.0M GBX FY2025

Figures from reported company fundamentals (EODHD) · as of Jun 24, 2026. TTM = trailing twelve months.

About the company

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 re…

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Chemring Group reported revenue of £498M in FY2025 versus £393M in FY2021, a compound +6.1%/yr. Reported net income was £48.2M in FY2025, compounding +3.8%/yr from FY2021.

Revenue +6.1%/yr
FY21 £393M
FY22 £401M
FY23 £473M
FY24 £510M
FY25 £498M
Net income +3.8%/yr
FY21 £41.5M
FY22 £47.4M
FY23 £5.4M
FY24 £39.5M
FY25 £48.2M

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6 more Aerospace & Defense stocks, each showing price versus our Fair Value estimate (as of Jun 24, 2026).

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RTX Corporation RYTT34 R$154.00 R$88.18 -43%
The Boeing Company BCO €198.20 €51.07 -74%
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Frequently asked questions

Is Chemring Group (CHG) undervalued?
As of Jun 24, 2026, our model estimates a fair value of £3.45 versus a price of £4.90 — about −30% (overvalued). Model-based estimate, not financial advice.
What is the fair value of CHG?
Our 21-model fair value for Chemring Group is £3.45 (as of Jun 24, 2026), built from audited fundamentals. The current price is £4.90.
What is the quality score of CHG?
Chemring Group has a Quality Score of 95/100, measuring profitability, growth and balance-sheet strength from non-valuation factors.
What is the revenue of Chemring Group (CHG)?
Chemring Group reported trailing-twelve-month revenue of about £498M (latest available figure, as of Jun 24, 2026).
What is the net profit margin of CHG?
The net profit margin of Chemring Group is about 9.7%, meaning it keeps roughly 9.7% of revenue as net income. Based on the latest reported figures.
Does Chemring Group pay a dividend?
Chemring Group currently shows a dividend yield of about 1.46% relative to its recent price (as of Jun 24, 2026).

How we calculate Fair Value

Each company is valued through a stack of independent intrinsic-value models (DCF variants, residual-income, multiples and more), blended into one family-balanced consensus and weighted by how much trustworthy data backs it. A separate quality layer scores the fundamentals. Every input is real reported data — nothing guessed.

Educational research only · not financial advice · no buy/sell recommendation. Model-based estimates are not certainties; their reliability depends on data quality and assumptions.