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Churchill China (CHH) AI Stock Analysis
Churchill China
(LSE:CHH)
The overall score reflects a compelling blend of financial strength and reasonable valuation, led by an exceptionally conservative balance sheet with very low leverage and healthy returns on equity that reduce financial risk. Attractive pricing, with a single-digit P/E and a dividend yield above 5%, further supports the investment case by offering both value and income. Technical momentum is clearly favorable, with the price above all major moving averages and positive MACD confirming an established uptrend, though the high RSI indicates the stock may be near an overbought area, suggesting investors consider entry timing carefully. Mild risks stem from historical volatility in gross margins and free cash flow within this cyclical sector, but the current trajectory of recovering revenues and strengthening cash flows supports the strong overall score.
Churchill China (CHH) vs. iShares MSCI United Kingdom ETF (EWC)
- Market Cap
- GBP 40.69M
- Dividend Yield
- 5.68%
- Average Volume (3M)
- 14.40K
- Price to Earnings (P/E)
- 10.9
- Beta (1Y)
- 0.42
- Revenue Growth
- -1.20%
- EPS Growth
- -26.38%
- Country
- UK
- Employees
- 687
- Sector
- Consumer Cyclical
- Sector Strength
- 61
- Industry
- Furnishings, Fixtures & Appliances
Churchill China Business Overview & Revenue Model
Company Description
Churchill China plc, a UK-headquartered company based in Stoke-on-Trent, specializes in the global manufacturing and sale of ceramic and related products. Established in 1795, its extensive product range serves markets across the United Kingdom, Euro...
How the Company Makes Money
Churchill China makes money primarily by manufacturing and selling ceramic tableware to commercial customers in the hospitality and foodservice market. Its core revenue stream is product sales from its own-branded tableware ranges, where it earns rev...
Churchill China Financial Statement Overview
Summary
Financial performance is strong overall, supported by a very robust balance sheet with minimal debt and consistently solid returns on equity, alongside a clear recovery in revenue and operating cash flow since 2020. The balance sheet is a standout with debt-to-equity below 0.02 and expanding equity, while improving cash generation and stable net profit margins in the 8–9% range further reinforce quality. The score is moderated slightly below the balance sheet’s peak due to inconsistent gross margins and past volatility in free cash flow, which introduce some cyclical risk.
Income Statement
82Very PositiveBalance Sheet
92Very PositiveCash Flow
78Positive| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 75.24M | 76.28M | 78.28M | 82.34M | 82.53M | 60.84M |
| Gross Profit | -32.68M | 5.79M | 67.38M | 74.85M | 9.17M | 50.79M |
| EBITDA | 9.52M | 9.59M | 12.29M | 14.37M | 12.62M | 8.83M |
| Net Income | 3.73M | 4.36M | 6.37M | 7.72M | 7.89M | 4.17M |
Balance Sheet | ||||||
| Total Assets | 77.50M | 80.33M | 79.11M | 80.55M | 75.87M | 64.30M |
| Cash, Cash Equivalents and Short-Term Investments | 8.53M | 10.81M | 10.10M | 13.93M | 14.66M | 19.05M |
| Total Debt | 2.20M | 3.38M | 918.00K | 1.01M | 730.00K | 409.00K |
| Total Liabilities | 15.76M | 18.79M | 17.85M | 20.61M | 19.23M | 21.62M |
| Stockholders Equity | 61.73M | 61.54M | 61.26M | 59.94M | 56.65M | 42.68M |
Cash Flow | ||||||
| Free Cash Flow | 6.15M | 4.99M | 645.00K | 3.07M | -731.00K | 6.00M |
| Operating Cash Flow | 8.43M | 7.45M | 3.65M | 8.47M | 3.97M | 9.75M |
| Investing Cash Flow | -2.23M | -2.42M | -3.10M | -296.00K | -5.74M | -3.71M |
| Financing Cash Flow | -3.26M | -4.32M | -4.38M | -3.85M | -3.68M | -1.73M |
Churchill China Technical Analysis
Price Trends
Market Momentum
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:CHH, the sentiment is Positive. The current price of 380.00 is above the 20-day moving average (MA) of 363.30, above the 50-day MA of 362.60, and above the 200-day MA of 348.41, indicating a bullish trend. The MACD of 1.42 indicates Negative momentum. The RSI at 59.08 is Neutral, neither overbought nor oversold. The STOCH value of 38.10 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:CHH.
Churchill China Peers Comparison
Overall Rating
- GB:CHH85Outperform
GB:SDG66Neutral
GB:CFX63Neutral
GB:ULTP61Neutral
GB:LIKE54Neutral
GB:PMP29Underperform
Financial Indicators
| Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| GB:CHH | 85Outperform | GBP 40.14M | 10.88 | 6.05% | 5.68% | -1.20% | -26.38% |
| GB:SDG | 66Neutral | GBP 52.39M | 17.99 | 4.12% | 2.07% | 4.46% | ― |
| GB:CFX | 63Neutral | GBP 63.45M | 9.79 | 22.35% | 0.46% | 5.39% | 29.75% |
| Sector * | 61Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% |
| GB:ULTP | 61Neutral | GBP 42.40M | 11.32 | 7.63% | 6.22% | -3.48% | -36.60% |
| GB:LIKE | 54Neutral | GBP 147.34M | 72.41 | 3.23% | 1.05% | 11.51% | 9.26% |
| GB:PMP | 29Underperform | GBP 22.67M | -0.77 | -15.27% | ― | -1.44% | -9296.83% |
* Consumer Cyclical Sector Average
Performance Comparison
| Show on chart | Ticker | Company Name | Price | Change | % Change |
|---|---|---|---|---|---|
| GB:CHH | Churchill China | 370.00 | 30.32 | 8.93% | |
| GB:CFX | Colefax Group plc | 1370.00 | 454.74 | 49.68% | |
| GB:PMP | Portmeirion Group plc | 44.50 | -58.00 | -56.59% | |
| GB:ULTP | Ultimate Products plc | 49.00 | -11.58 | -19.11% | |
| GB:SDG | Sanderson Design Group PLC | 72.50 | 25.92 | 55.65% | |
| GB:LIKE | Likewise Group Plc | 42.00 | 16.39 | 64.02% |
Churchill China Corporate Events
Churchill China stabilises sales but profits slip amid hospitality headwinds
NeutralChurchill China reported interim revenue of £37.4 million for the six months to 30 June 2026, down 2.9% year on year, as UK hospitality and materials sales softened in a contracting market while European and U.S. revenues edged higher. Profit be...
Churchill China Names Panmure Liberum as New Adviser and Sole Broker
PositiveChurchill China has appointed Panmure Liberum as its new Nominated Advisor and Sole Broker with immediate effect, replacing its previous advisory and broking arrangements on the AIM market. The move is expected to strengthen the company’s capit...
Churchill China Sets Date for Interim Results and Analyst Briefing
PositiveChurchill China has announced it will publish its interim results for the six months to 30 June 2026 on 7 September 2026, providing investors and the market with an update on its trading performance in the first half of the year. The company will als...
Churchill China Completes CEO Succession as James Roper Takes Helm
PositiveChurchill China plc has completed its planned leadership succession programme with the appointment of long-serving Sales and Marketing Director James Roper as chief executive, succeeding Dave O’Connor after his 35-year tenure at the company, in...
Churchill China CFO Michael Cunningham to Step Down
NeutralChurchill China has announced that its Chief Financial Officer and Executive Director, Michael Cunningham, has resigned to pursue other opportunities. The board expressed appreciation for his three-year tenure and confirmed that he is expected to rem...
Churchill China Reports Stabilising Hospitality Demand and Strong Cash Generation
PositiveChurchill China reported that first-half 2026 external sales dipped marginally to £37.4 million from £38.5 million a year earlier, signalling stabilisation after 2025’s declines in hospitality demand. Added-value hospitality products...
Churchill China Appoints Forvis Mazars as New Auditor After Tender
NeutralChurchill China has appointed Forvis Mazars LLP as its new statutory auditor, following shareholder approval at its 29 May 2026 annual general meeting. The move follows a competitive tender process in which incumbent auditor PricewaterhouseCoopers LL...
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.
Date of analysis: Aug 06, 2026