Coventry Group Limited (CYG) AI Stock Analysis

• Market Cap: AU$107.36M
• Dividend Yield: 4.17%
• Average Volume (3M): 38.66K
• Price to Earnings (P/E): 173.1
• Beta (1Y): 0.12
• Revenue Growth: 1.00%
• EPS Growth: -16.13%
• Country: AU
• Employees: 572
• Sector: Industrials
• Sector Strength: 89
• Industry: Industrial - Distribution
• EPS (TTM): <0.01
• Shares Outstanding: 119,291,306
• 10 Day Avg. Volume: 41,237
• 30 Day Avg. Volume: 38,665
• PEG Ratio: -9.75
• Price to Book (P/B): 0.72
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 7.73
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: AU$1.24
• Price Target Upside: 44.19% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

Coventry Group Limited's stock score is primarily influenced by solid revenue growth but is offset by profitability challenges and increased financial leverage. Technical analysis reflects weak momentum with bearish indicators, while valuation suggests the stock is overvalued based on its P/E ratio, despite a decent dividend yield. The absence of earnings call and corporate events data means these factors did not influence the overall score.

Coventry Group Limited Business Overview & Revenue Model

Company Description

Coventry Group Limited (CYG) is a leading industrial supply company based in Australia, specializing in the distribution of fastening systems, industrial products, and fluid systems. The company primarily operates in two segments: Trade Distribution and Fluid Systems, providing a comprehensive range of products and services to various sectors including construction, mining, and manufacturing.

How the Company Makes Money

Coventry Group Limited generates revenue through the sale of its extensive range of industrial products and services across its Trade Distribution and Fluid Systems segments. The Trade Distribution segment focuses on the supply of fasteners, hardware, and construction-related products to contractors and industrial clients. Meanwhile, the Fluid Systems segment provides hydraulic and lubrication products, systems, and solutions to industries such as mining and agriculture. The company's earnings are bolstered by strategic partnerships with key suppliers and a well-established distribution network that ensures efficient product delivery and customer service. Additionally, Coventry Group's focus on expanding its product offerings and entering new markets contributes significantly to its revenue growth.

Coventry Group Limited Financial Statement Overview

Summary

Coventry Group Limited demonstrates solid revenue growth, but faces profitability challenges with declining net profit margins and a 0% EBIT margin. The balance sheet reflects increased leverage with a rising debt-to-equity ratio of 0.95, potentially increasing financial risk. Cash flows are positive, but a decrease in free cash flow suggests a need for better cash management. Overall, while growth is evident, profitability and leverage management are critical areas for improvement.

Income Statement

The income statement shows a consistent revenue growth trend over the years, with total revenue increasing from 202346000 in 2019 to 370805000 in 2024. However, gross profit margins have fluctuated, with a recent improvement to 41.66% in 2024. Net profit has seen a decline, especially in 2024, with a margin of 0.18%. Although EBITDA remains positive at 6.34% in 2024, the EBIT margin has dropped to 0%, indicating potential challenges in operational efficiency.

Balance Sheet

Coventry Group Limited has maintained a stable equity base with stockholders' equity increasing to 143073000 in 2024. The debt-to-equity ratio has risen to 0.95, suggesting higher leverage, which could pose a risk if not managed properly. The equity ratio is stable at 40.96%, indicating a balanced capital structure. Return on equity has decreased significantly to 0.46% in 2024, highlighting lower profitability on equity investments.

Cash Flow

The cash flow statement indicates a decline in free cash flow growth, with free cash flow reducing from 15874000 in 2023 to 12951000 in 2024. The operating cash flow to net income ratio is robust, reflecting strong cash generation relative to net income. However, the decline in free cash flow suggests potential issues in cash management or increased capital expenditures.

Breakdown
TTM	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement		Total Revenue
370.76M	370.81M	358.20M	322.81M	289.25M	247.18M
	Gross Profit
105.37M	154.48M	44.77M	38.92M	34.42M	22.99M
	EBIT
35.16M	29.01M	14.37M	14.11M	9.08M	-2.72M
	EBITDA
22.20M	26.38M	25.71M	26.68M	21.38M	-1.51M
	Net Income Common Stockholders
368.00K	659.00K	2.47M	4.84M	7.25M	-455.00K
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
2.67M	10.34M	3.86M	15.32M	8.22M	7.54M
	Total Assets
345.84M	349.38M	282.80M	278.80M	248.67M	214.34M
	Total Debt
139.15M	135.41M	104.92M	104.48M	78.49M	63.16M
	Net Debt
136.49M	127.68M	101.06M	89.16M	70.27M	55.61M
	Total Liabilities
205.03M	206.31M	169.85M	165.21M	138.90M	113.46M
	Stockholders Equity
140.81M	143.07M	112.95M	113.59M	109.77M	100.87M
Cash Flow		Free Cash Flow
13.88M	12.95M	15.87M	6.51M	3.50M	10.10M
	Operating Cash Flow
19.58M	18.55M	19.61M	10.91M	7.24M	13.24M
	Investing Cash Flow
-46.77M	-46.12M	-3.53M	-14.62M	-11.29M	-3.08M
	Financing Cash Flow
28.15M	31.37M	-27.10M	11.24M	4.89M	-7.29M

Coventry Group Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.86
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:CYG, the sentiment is Negative. The current price of 0.86 is below the 20-day moving average (MA) of 0.91, below the 50-day MA of 0.96, and below the 200-day MA of 1.18, indicating a bearish trend. The MACD of -0.02 indicates Positive momentum. The RSI at 40.94 is Neutral, neither overbought nor oversold. The STOCH value of 15.67 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AU:CYG.

Coventry Group Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ARB	70 Outperform	$2.75B	26.64	15.18%	2.14%	6.17%	10.45%
NCK	66 Neutral	AU$1.62B	23.39	29.48%	3.33%	9.36%	-21.69%
Sector *	64 Neutral	$4.40B	12.09	5.26%	250.03%	4.08%	-11.05%
CYG	59 Neutral	AU$107.36M	173.08	0.29%	4.17%	1.00%	-16.13%
AMA	55 Neutral	AU$373.04M	410.00	1.53%	―	-1.09%	―
BAP	54 Neutral	AU$1.82B	―	-16.06%	2.74%	-0.30%	-267.50%

Coventry Group Limited Corporate Events

Coventry Group Limited Announces Strategic Investor Update

Coventry Group Limited, a company listed on the Australian Securities Exchange under the ticker CYG, has announced an investor update for May 2025. The company’s new executive management team, including Brody Sewell and Nik Alpert, along with new Director Anne Lockwood, will engage with institutional investors in Sydney to discuss the company’s strategic direction. This investor meeting signifies a potential shift in Coventry Group’s operational focus, emphasizing a ‘reset for growth’ and a ‘back to basics’ approach, which may influence its market positioning and stakeholder engagement.

Coventry Group Limited Announces Director’s Change in Shareholding

Coventry Group Limited has announced a change in the director’s interest, specifically involving Alexander James White. The changes pertain to indirect interests held through Richmond Hill Capital Pty Ltd, with a significant acquisition of shares conducted through on-market trades. This update reflects a strategic adjustment in the director’s holdings, potentially impacting the company’s governance dynamics and shareholder interests.

Coventry Group Limited Announces New Alternate Director Appointment

Coventry Group Limited has announced the appointment of Robert Joseph Martino as an Alternate Director, effective April 23, 2025. While Mr. Martino does not hold any securities directly, he is an employee and holds less than 20% of Viburnum Funds Pty Ltd, which has a significant interest in Coventry Group Limited’s securities, amounting to 33,992,442 shares.

Coventry Group Limited Announces New Director Appointment

Coventry Group Limited has announced the appointment of Craig Evan Coleman as a director, effective from April 23, 2025. Coleman holds a significant interest in the company through Viburnum Funds Pty Ltd, which owns 33,992,442 ordinary shares, potentially influencing the company’s strategic direction and decision-making processes.

Coventry Group Limited Appoints New Director Anne Nicole Lockwood

Coventry Group Limited has announced the appointment of Anne Nicole Lockwood as a new director, effective April 24, 2025. The initial director’s interest notice reveals that Lockwood currently holds no securities or interests in the company, indicating a fresh start in her role. This appointment is part of the company’s ongoing efforts to strengthen its leadership team, potentially impacting its strategic direction and stakeholder relations.

Coventry Group Reports Mixed Q3 FY25 Results Amid Weather Challenges

Coventry Group Limited reported a 3.6% increase in Q3 FY25 sales to $87.0 million, but a significant 41.1% drop in unaudited EBITDA compared to the previous year. The decline in EBITDA was largely due to sales shortfalls in Konnect New Zealand and Fluid Systems, exacerbated by adverse weather conditions in Queensland. Despite challenges, Konnect Australia showed strong performance with a 45% increase in EBITDA and improved gross margins. The company is implementing cost reduction strategies and management restructuring to address performance issues and improve margins into FY26.

Coventry Group Announces Director Departure

Coventry Group Limited announced the cessation of Robert Joseph Martino as a director effective April 23, 2025. While Mr. Martino holds no direct securities, he is an employee and a minority shareholder in Viburnum Funds Pty Ltd, which holds a significant interest in Coventry Group Limited. This change in directorship may influence the company’s governance and stakeholder dynamics, given Viburnum Funds’ substantial shareholding.

Coventry Group Limited Announces Director Departure

Coventry Group Limited announced the cessation of James Scott Charles Todd as a director, effective April 22, 2025. This change in the board may impact the company’s governance structure and strategic direction, as directors play a crucial role in shaping company policies and decisions. Stakeholders may need to consider the implications of this leadership change on Coventry Group’s future operations and market positioning.

Coventry Group Limited Announces Board of Directors Reshuffle

Coventry Group Limited announced significant changes to its Board of Directors, with the resignation of James Todd and Robert Martino as Non-Executive Directors. Craig Coleman, co-founder and Managing Partner of Viburnum Funds, has been appointed as a Non-Executive Director, bringing extensive experience in banking, finance, and corporate advisory. Additionally, Anne Lockwood has been appointed as a Non-Executive Director and will chair the Audit & Risk Committee, leveraging her 30 years of experience in finance and risk management. These changes are expected to enhance the board’s expertise and strategic direction, potentially impacting Coventry’s operations and stakeholder relations.

Coventry Group Announces Leadership Changes and Strategic Focus

Coventry Group Limited announced the resignation of its Managing Director and CEO, Robert Bulluss, effective by September 2025, marking the end of a transformative era for the company. Under his leadership, Coventry revitalized its corporate culture, integrated seven businesses, and implemented a new ERP system, setting a strong foundation for future growth. The company is restructuring its management, with Nik Alpert appointed as Head of Trade Distribution and Brody Sewell as Head of Fluid Systems, to enhance operational leadership and decision-making. Coventry is focusing on optimizing its branch network and exploring greenfield opportunities to improve profitability and expand its footprint, while also identifying cost-saving measures to enhance operating margins.

Coventry Group Director Increases Shareholding

Coventry Group Limited announced a change in the director’s interest, with Tony Howarth acquiring an additional 9,000 shares through an on-market trade, bringing his total shareholding to 54,564 shares. This change reflects a vote of confidence in the company’s future prospects and may influence stakeholder perceptions positively, reinforcing the director’s commitment to the company’s growth and stability.

Coventry Group Limited Announces Director’s Interest Change

Coventry Group Limited has announced a change in the director’s interest, specifically involving Alexander James White. The change, which occurred through on-market trades, resulted in an increase in the number of fully paid ordinary shares held by Richmond Hill Capital Pty Ltd, a company associated with the director. This update reflects the director’s increased stake in the company, potentially impacting investor perceptions and stakeholder interests.

Coventry Group Director Increases Shareholding

Coventry Group Limited has announced a change in the director’s interest, with Tony Howarth acquiring an additional 11,000 ordinary fully paid shares through an on-market trade. This transaction increases his total holdings to 45,564 shares, potentially indicating confidence in the company’s future performance and impacting stakeholder perceptions positively.

Coventry Group Limited Announces Director’s Shareholding Change

Coventry Group Limited announced a change in the director’s interest, specifically involving Alexander James White. The change involved the acquisition of additional fully paid ordinary shares through on-market trades, increasing the total number of shares held by Richmond Hill Capital Pty Ltd. This adjustment in shareholding reflects ongoing investment activities and may influence the company’s governance dynamics.

Coventry Group’s H1 FY25 Results Affected by ERP Implementation

Coventry Group Limited reported its H1 FY25 financial results, highlighting the impact of the D365 ERP system implementation on performance. The company’s sales remained stable at $185.2 million, with EBIT and EBITDA reflecting minimal change compared to the previous year. However, the company experienced a slight increase in statutory net loss, showcasing the challenges faced during this period.

Coventry Group Limited Reports Stable Half-Year Results Amid Strategic Growth Initiatives

Coventry Group Limited reported its 2025 half-year results, showing stable sales at $185.2 million and a slight increase in underlying EBITDA to $9.9 million. Despite a statutory net loss impacted by ERP project costs, Coventry Group is optimistic about future sales growth, citing the performance of its recent acquisition, Steelmasters, and successful organic growth efforts. With the ERP upgrade largely completed, the company is focused on expanding its market share through strategic initiatives, although it decided not to declare an interim dividend.

Coventry Group Limited Reports Half-Year Financials with Reinstated Dividend Plan

Coventry Group Limited reported a slight decrease in revenue from ordinary operations, falling by 0.5% to $184.7 million for the half year ending December 31, 2024, compared to the previous period. Despite this, the underlying EBITDA saw a marginal increase of 1.0% to $9.9 million. The company incurred a net loss of $0.7 million, marking a 75% increase in losses attributable to members. No interim dividends were declared for this half-year, but a final dividend of $4.4 million was paid for the previous financial year. The company’s Dividend Reinvestment Plan has been reinstated, signaling a strategic move to bolster its financial positioning.