Marlowe plc provides water treatment, air hygiene, health and safety, and risk and compliance software services in the United Kingdom. The company operates through two segments, Governance, Risk & Compliance: and Testing, Inspection & Certification. It provides health and safety, HR compliance, occupational health, and risk management software; designs, installs, and maintains fire protection and security systems; and provides integrated water treatment, hygiene, testing, monitoring, wastewater, and engineering services. The company is also involved in the provision of testing, inspection and risk assessment, ventilation hygiene compliance, ductwork management and fire safety, extract cleaning, asbestos consultancy, air monitoring and clearance testing, and bulk identification and sampling services. Its customers include office complexes, streets and leisure facilities, manufacturing plants and industrial estates, SMEs, local authorities, facilities management providers, NHS trusts, and FTSE companies. The company was formerly known as Marlowe Holdings Limited and changed its name to Marlowe plc. Marlowe plc was founded in 2015 and is headquartered in London, the United Kingdom.
The chart of Marlowe (MRL.L) is shown below over the past two years in my normal format. The share has a strongly defensive nature as the services provided by MRL.L are independent of the business cycle.
VectorVest shows that at present the share is fully valued at around 900p, but it is the future growth path of the share that looks exceptionally interesting.
In the bottom window below the price, the blue study shows that forecast Earnings per share (EPS) is rising and this is the engine that’s been driving the share price upwards. Over the two years, forecast EPS has risen from approximately 25p to 43p.
On VectorVest, the Relative Safety (known as RS) of the earnings stream is ranked as excellent. This share would fit into the VectorVest Worry Free trading system with a RS of 1.43 on a scale graduated between o and 2.
MRL.L is in a growth phase and does not pay a dividend.
The metric measuring long-term share price appreciation potential in relation to a AAA rated corporate bond (known as RV) is rated as very good by VectorVest. MRL.L has a forecast Earnings Growth Rate (GRT) of 20% which VectorVest considers to be very good.
The overall rating of MRL.L using the VectorVest Master Indicator VST (Value, Safety and Trend) is rated as very good.
Technically, MRL.L is trending strongly as measured by the proprietary VectorVest Comfort Index. The Comfort Index (CI) is an indicator which reflects a stocks ability to resist severe and or lengthy price declines. The Comfort Index is unique in investment research and a secret weapon. VectorVest rates the CI of MRL.L at 1.57 which is excellent on a scale measured between 0 and 2.
MRL.L has been trending upwards strongly and this trend has been defined by the trendline shown on the chart. Market Technicians regard a trendline with five touches as an important measure of support. Recently, MRL.L has fallen in price in sync with the weakness in world markets and this fall found support at this trendline as shown above. Upon confirmation, this appears to be an excellent opportunity to enter this quality growth counter.
In summary, MRL.L displays excellent mixture of growth and safety of the underlying earnings fundamentals. The share is presently on a VectorVest Hold recommendation and traders should wait until MRL.L prints a Buy on VectorVest before considering a purchase.
At VectorVest, we believe in buying rising Buy rated stocks with excellent fundamentals when the overall market is rising. As I write on the 3rd of February, the overall UK market as defined by the VectorVest has become much more positive over the last week. The short-term trend of the UK market has turned Up while the underlying trend remains in a Down print. VectorVest advises caution in buying shares currently as shown below.
Summary. Traders should wait for MRL.L to print a VectorVest Buy recommendation and that the front page of VectorVest advises that it is safe to buy stocks.