Coventry Group Limited (CYG) AI Stock Analysis

• Market Cap: AU$81.12M
• Dividend Yield: 5.51%
• Average Volume (3M): 34.76K
• Price to Earnings (P/E): 130.8
• Beta (1Y): 0.25
• Revenue Growth: 1.00%
• EPS Growth: -16.13%
• Country: AU
• Employees: 572
• Sector: Industrials
• Sector Strength: 83
• Industry: Industrial - Distribution
• EPS (TTM): >-0.01
• Shares Outstanding: 119,291,306
• 10 Day Avg. Volume: 60,273
• 30 Day Avg. Volume: 34,756
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: 82.35% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 61 Neutral
• Price Target: AU$1.00 ▲(47.06% Upside)

The overall score reflects solid revenue growth but significant challenges in profitability and valuation. The company's high leverage and declining free cash flow are concerns, while technical indicators suggest a bearish trend. The high P/E ratio is offset by a strong dividend yield, which partially supports the stock's attractiveness.

Coventry Group Limited Business Overview & Revenue Model

Company Description

Coventry Group Limited (CYG) is an Australian company that operates in the industrial supply sector, primarily focused on the distribution of fastening systems, hydraulics, and industrial products. The company serves a diverse range of industries including construction, mining, manufacturing, and agriculture, offering a wide array of products such as bolts, nuts, screws, industrial tools, and hydraulic components. Through a network of branches and distribution centers, Coventry Group Limited emphasizes quality, reliability, and service to support its customers' needs.

How the Company Makes Money

Coventry Group Limited makes money primarily through the sale of its industrial supply products. The company's revenue model is based on distributing a wide variety of fastening systems, hydraulics, and industrial products to businesses in sectors like construction, mining, and manufacturing. Key revenue streams include direct sales to industrial clients, as well as business-to-business transactions facilitated through their distribution network. The company may also form strategic partnerships with manufacturers and suppliers to ensure a consistent and diverse product offering, enhancing its ability to meet customer demands and drive sales growth. These partnerships, along with its extensive distribution network, are significant contributors to Coventry Group's earnings.

Coventry Group Limited Financial Statement Overview

Summary

Coventry Group Limited shows consistent revenue growth but faces challenges in profitability with declining net profit margins. The balance sheet indicates higher leverage with a rising debt-to-equity ratio, and cash flow is stable but declining in free cash flow. Overall, the company is growing but must address profitability and leverage concerns.

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	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement
Total Revenue	370.81M	358.20M	322.81M	289.25M	247.18M
Gross Profit	154.48M	44.77M	38.92M	34.42M	93.09M
EBITDA	23.53M	22.60M	22.60M	17.75M	-3.75M
Net Income	659.00K	2.47M	4.84M	7.25M	-455.00K
Balance Sheet
Total Assets	349.38M	282.80M	278.80M	248.67M	214.34M
Cash, Cash Equivalents and Short-Term Investments	10.34M	3.86M	15.32M	8.22M	7.54M
Total Debt	135.41M	104.92M	104.48M	78.49M	63.16M
Total Liabilities	206.31M	169.85M	165.21M	138.90M	113.46M
Stockholders Equity	143.07M	112.95M	113.59M	109.77M	100.87M
Cash Flow
Free Cash Flow	12.95M	15.87M	6.51M	3.50M	10.10M
Operating Cash Flow	18.55M	19.61M	10.91M	7.24M	13.24M
Investing Cash Flow	-46.12M	-3.53M	-14.62M	-11.29M	-3.08M
Financing Cash Flow	31.37M	-27.10M	11.24M	4.89M	-7.29M

Coventry Group Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.68
• 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 0.68 is below the 20-day moving average (MA) of 0.74, below the 50-day MA of 0.77, and below the 200-day MA of 1.02, indicating a bearish trend. The MACD of -0.02 indicates Positive momentum. The RSI at 30.72 is Neutral, neither overbought nor oversold. The STOCH value of 16.76 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
SND	80 Outperform	AU$105.44M	10.11	18.42%	5.18%	12.06%	-8.98%
KOV	80 Outperform	AU$164.50M	12.42	23.03%	4.67%	16.21%	18.21%
CLX	72 Outperform	AU$146.99M	9.24	12.68%	5.74%	6.34%	8.63%
MXI	68 Neutral	AU$125.31M	20.49	6.97%	2.49%	25.55%	135.68%
SGI	64 Neutral	AU$86.79M	29.91	12.38%	1.25%	11.82%	113.33%
Sector *	64 Neutral	$10.65B	16.19	5.48%	2.12%	2.75%	-22.21%
CYG	61 Neutral	AU$81.12M	130.77	0.29%	5.51%	1.00%	-16.13%

Coventry Group Limited Corporate Events

Coventry Group Announces Leadership Changes with New CEO and CFO Appointments

Coventry Group Limited has appointed Mr. Nik Alpert as Acting Group Chief Executive Officer, recognizing his leadership qualities and experience in driving growth in distribution businesses. The company also announced the retirement of Chief Financial Officer Rod Jackson and the upcoming appointment of Patrick Maloney, who brings a strong financial leadership background and experience with the company’s new ERP system.

The most recent analyst rating on (AU:CYG) stock is a Buy with a A$1.85 price target. To see the full list of analyst forecasts on Coventry Group Limited stock, see the AU:CYG Stock Forecast page.

Coventry Group Director Increases Shareholding

Coventry Group Limited announced a change in the director’s interest, with Neil George Cathie acquiring an additional 12,000 ordinary fully paid shares through Romney Lodge Pty Ltd. This acquisition reflects a strategic move by the director, potentially indicating confidence in the company’s future performance and stability, which could positively impact stakeholder perceptions and market positioning.

The most recent analyst rating on (AU:CYG) stock is a Buy with a A$1.85 price target. To see the full list of analyst forecasts on Coventry Group Limited stock, see the AU:CYG Stock Forecast page.

Coventry Group Director Increases Stake with New Share Acquisition

Coventry Group Limited announced a change in the director’s interest, with Alexander James White acquiring an additional 60,000 fully paid ordinary shares through Richmond Hill Capital Pty Ltd. This transaction, executed as an on-market trade at $0.8600 per share, reflects a strategic adjustment in the director’s investment portfolio. The acquisition indicates confidence in the company’s future prospects and could potentially influence stakeholder perceptions positively.

The most recent analyst rating on (AU:CYG) stock is a Buy with a A$1.85 price target. To see the full list of analyst forecasts on Coventry Group Limited stock, see the AU:CYG Stock Forecast page.

Coventry Group Limited Announces Director’s Interest Change

Coventry Group Limited has announced a change in the director’s interest, specifically concerning Alexander James White. The change involves the acquisition of 50,295 fully paid ordinary shares by Richmond Hill Capital Pty Ltd, an entity related to the director, through on-market trades. This adjustment in shareholding reflects a strategic move within the company’s leadership, potentially impacting its market dynamics and signaling confidence in the company’s future prospects.

The most recent analyst rating on (AU:CYG) stock is a Buy with a A$1.85 price target. To see the full list of analyst forecasts on Coventry Group Limited stock, see the AU:CYG Stock Forecast page.

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.