Chemring Group PLC (CHG.L)
Chemring manufactures high-tech countermeasures and sensors that protect military aircraft, ships, and armed forces worldwide.
Is Chemring Group PLC a good stock for a UK beginner?
The honest version: There's no rating here and nothing for sale. In its favour: High gross margin indicates strong pricing power for specialized safety gear. Worth weighing: Recent earnings experienced a steep year-on-year drop. Below, we lay out what it does, what its numbers mean, and the honest risks, so you can decide for yourself.
Over about 2 years to 2026-07-31. This is the share price only - reinvesting the dividends would add to it. Past performance is not a guide to the future, and it could just as easily have fallen.
How much has Chemring Group PLC actually fallen?
Over the last 2 years of daily prices, Chemring Group PLC fell as much as −28% from a high to a later low. Drops of this size are a normal part of owning a share - worth knowing in advance, so a dip doesn't come as a shock.
Worst peak-to-trough fall in the daily closing price over the period we hold. Past falls are not a forecast - it can fall further, or recover.
Based on beta - how much the price swings versus the whole market. Bumpier isn't bad; it just means a rougher ride, which matters more the sooner you might need the money.
Prices move on results, news and the mood of the whole market - no single headline explains a day, and a quiet week is usually just noise, not a signal.
Advanced sensor technology wins widespread adoption in modern fleets.
Shifting geopolitical priorities lead to defense spending cuts.
What does Chemring Group PLC do?
This British engineering firm builds specialized countermeasures—like decoy flares that trick incoming missiles—as well as sensors used in detection and electronic warfare. It makes its money by supplying defense departments and prime contractors globally with vital safety equipment. Anyone following the stock should keep a close eye on government defense budgets and order renewals.
On our factor screen it looks strongest on momentum and quality, and weakest on value.
- ✓Pays a dividend - about 1.4% a year
- ✓Growing - revenue up about 6% over the year
- !High P/E of 35 - big growth is already priced in
- Momentum screens high (73/100)
- High gross margin indicates strong pricing power for specialized safety gear.
- Supplies essential, hard-to-replace components for national security.
- Lower-than-average beta suggests less volatility than the wider market.
- Value screens low (19/100)
- Growth screens low (29/100)
- Heavy reliance on government defense budgets and political decisions.
- Operational or safety mishaps in manufacturing hazardous materials.
- Potential supply chain hurdles affecting specialized chemical inputs.
What do Chemring Group PLC's numbers mean?
Does Chemring Group PLC pay a dividend?
Yes - Chemring Group PLC currently pays a dividend of about 1.4% a year (the yearly payout as a share of the price). A dividend is a slice of profit handed to shareholders; the yield moves as the price moves, and a company can cut or stop it.
What do the numbers say about Chemring Group PLC's dividend?
There's no rating here, and we don't judge whether the dividend will continue - that would be advice. Here are the figures income investors usually look at, and what each one means, so you can weigh it up yourself.
Figures are from the latest available data and can be distorted by one-off results. Past payments don't predict future ones, and a dividend can be cut at any time. This lays out the numbers to help you understand them - it is not a view on what will happen.
When does Chemring Group PLC report earnings, and how did recent quarters go?
Chemring Group PLC is next scheduled to report on about 2026-12-08 - dates can move, and we don't predict results; this just tells you when to look.
Each quarter a company reports its results against what analysts expected. ‘Beating’ or ‘missing’ is about that expectation, not whether the business is doing well in absolute terms.
See who else reports over the next two weeks →
Reported vs expected earnings per share (EPS) from published results; the expectation is the analyst consensus, not our view. Report dates are estimates that can move.
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An illustrative range for the year ahead, with the assumption behind each case — not a prediction or a price target.
What are the pros and cons of Chemring Group PLC?
How many points the write-up makes each way — a balance check, not a score or verdict.
- High gross margin: The share of each £1 of sales left after the direct cost of making the product, before other running costs. Higher usually means more pricing power. indicates strong pricing power for specialized safety gear.
- Supplies essential, hard-to-replace components for national security.
- Lower-than-average beta suggests less volatility than the wider market.
- Recent earnings experienced a steep year-on-year drop.
- Modest net margin: How much of each £1 of sales becomes profit after all costs. Higher = more profitable per sale. means high production overheads eat into final profits.
- Relatively low dividend yield: The yearly dividend as a percentage of the share price - roughly the income you'd earn from dividends alone. compared to traditional income shares.
- Heavy reliance on government defense budgets and political decisions.
- Operational or safety mishaps in manufacturing hazardous materials.
- Potential supply chain hurdles affecting specialized chemical inputs.
The write-up's own warning lights — if these start happening, the case above changes.
- Major, sustained cuts to defense spending in key Western nations.
- A prolonged contraction in profit margins despite growing revenues.
Built from public filings & market prices, checked for an education-only tone, and never a price target. How we make these →
This plain-English summary was auto-generated on 2026-08-02 from public data and checked for an education-only, no-advice tone (the figures above carry their own, usually fresher, 'as of' date). It's information, never a recommendation.