Coventry Group Limited (CYG) AI Stock Analysis

• Market Cap: AU$63.27M
• Dividend Yield: N/A
• Average Volume (3M): 57.65K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.28
• Revenue Growth: -1.58%
• EPS Growth: -3756.06%
• Country: AU
• Employees: 572
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Distribution
• EPS (TTM): -0.08
• Shares Outstanding: 139,065,860
• 10 Day Avg. Volume: 83,758
• 30 Day Avg. Volume: 57,654
• PEG Ratio: <0.01
• Price to Book (P/B): 0.84
• Price to Sales (P/S): 0.26
• P/FCF Ratio: 8.45
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 0.04
• Revenue Forecast (FY): AU$402.00M

• Rating: 46 Neutral
• Price Target: AU$0.49 ▼(-10.91% Downside)
• Action: Reiterated Date: 02/07/26
• Date: Action: Reiterated 02/07/26

The score is weighed down primarily by weak financial performance (negative profitability, negative ROE, and higher leverage) and bearish technicals (price below all key moving averages with negative MACD and weak momentum). Valuation does not offset these risks due to a negative P/E and no provided dividend yield.

Positive Factors

Healthy gross margin

A 43.13% gross margin provides durable buffer for a distribution business, supporting coverage of fixed costs and investment in services. This margin strength helps absorb supplier cost swings and underpins the ability to sustain value-added services and manufacturing margins over months.

Positive operating cash flow

Consistent positive operating cash flow indicates the core distribution model converts sales into cash, supporting working capital needs and debt servicing. This cash generation is a durable operational strength even while free cash flow variability requires monitoring.

Recurring MRO and value-added services

A business mix anchored in recurring MRO demand and value-added services creates sticky revenue and higher-margin opportunities. Contract account relationships, service work and manufacturing integration increase customer retention and long-term revenue visibility.

Negative Factors

Negative profitability and ROE

Sustained negative net margin and deeply negative ROE indicate the company is destroying shareholder value and cannot currently translate gross profits into net returns. This weak profitability limits reinvestment capacity and undermines durable capital formation over months.

Elevated leverage

A debt-to-equity ratio of 1.27 raises refinancing and interest-rate sensitivity for a working-capital intensive distributor. Elevated leverage constrains strategic flexibility, increases fixed financing costs and heightens risk during cyclical industrial slowdowns.

Declining revenue growth and FCF

Falling top-line and a 20% drop in free cash flow restrict the company's ability to invest in inventory, service capacity and productivity initiatives. This weakens prospects for margin improvement and makes operational recovery more dependent on external financing or restructuring.

Coventry Group Limited Business Overview & Revenue Model

Company Description

Coventry Group Ltd primarily distributes industrial products in Australia and New Zealand. The company operates through Trade Distribution and Fluids Systems segments. The Trade Distribution segment imports, distributes, and markets industrial fasteners, stainless steel fasteners, industrial hardware, construction fasteners, specialized fastener products and systems, and associated industrial tools and consumables. This segment also imports, distributes, and markets hardware, components, and finished products to the commercial cabinet making, joinery, and shop fitting industries; and engages in hiring and sale of fencing, as well as scaffolding plank hire activities. The Fluids Systems segment designs and installs lubrication systems; distributes hoses, connectors, fittings, and hydraulic hose assemblies; designs and supplies service truck components; installs fire suppression systems; designs and distributes fluid handling systems, as well as sells pneumatic components, and hydraulic associated products and consumables; and services and repairs rock hammers. Coventry Group Ltd was incorporated in 1936 and is headquartered in Thomastown, Australia.

How the Company Makes Money

Coventry Group Limited generates revenue through the sale of industrial and trade-related products. The company operates through several key revenue streams, including direct sales to customers in the construction and manufacturing sectors, as well as through its extensive network of retail outlets and online platforms. Additionally, the company benefits from strategic partnerships with leading manufacturers and suppliers, which allows it to offer a diverse range of high-demand products. Moreover, Coventry Group engages in value-added services, such as inventory management and logistical support, which further contribute to its revenue. Economic factors, market demand for construction and industrial supplies, and the company's ability to adapt to market trends are significant contributors to its earnings.

Coventry Group Limited Financial Statement Overview

Summary

Financials show material weakness: revenue declined (-1.65%) and profitability is poor with a negative net margin (-8.11%) and negative ROE (-26.58%). Leverage is elevated (debt-to-equity 1.27). Positives include a healthy gross margin (43.13%) and positive operating cash flow, but free cash flow fell (-20.08%), limiting the overall score.

Income Statement

Coventry Group Limited has experienced a decline in revenue growth with a negative growth rate of -1.65% in the latest year. The gross profit margin is relatively healthy at 43.13%, but the net profit margin is negative at -8.11%, indicating profitability challenges. EBIT and EBITDA margins are low, suggesting operational inefficiencies.

Balance Sheet

The company's debt-to-equity ratio has increased to 1.27, indicating higher leverage and potential financial risk. Return on equity is negative at -26.58%, reflecting poor profitability. However, the equity ratio is stable, suggesting a balanced asset structure.

Cash Flow

Operating cash flow is positive, but free cash flow has declined by 20.08%, which could impact future investments. The operating cash flow to net income ratio is low, indicating challenges in converting income into cash. However, the free cash flow to net income ratio is relatively strong at 68.36%.

Breakdown	TTM	Jun 2025	Jun 2024	Jun 2023	Jun 2022	Jun 2021
Income Statement
Total Revenue	368.47M	364.63M	370.81M	358.20M	322.81M	289.25M
Gross Profit	92.69M	157.27M	154.48M	143.09M	126.64M	110.16M
EBITDA	6.63M	8.16M	23.53M	22.60M	22.60M	17.75M
Net Income	-38.59M	-29.55M	659.00K	2.47M	4.84M	7.25M
Balance Sheet
Total Assets	316.92M	328.17M	349.38M	282.80M	278.80M	248.67M
Cash, Cash Equivalents and Short-Term Investments	5.06M	3.33M	10.34M	3.86M	15.32M	8.22M
Total Debt	197.76M	140.91M	135.41M	104.92M	104.48M	78.49M
Total Liabilities	205.48M	216.97M	206.31M	169.85M	165.21M	138.90M
Stockholders Equity	111.44M	111.20M	143.07M	112.95M	113.59M	109.77M
Cash Flow
Free Cash Flow	6.00M	11.09M	12.95M	15.87M	6.51M	3.50M
Operating Cash Flow	11.42M	16.23M	18.55M	19.61M	10.91M	7.24M
Investing Cash Flow	-5.25M	-5.04M	-46.12M	-3.53M	-14.62M	-11.29M
Financing Cash Flow	-1.91M	-14.80M	31.37M	-27.10M	11.24M	4.89M

Coventry Group Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.55
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• 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 0.55 is above the 20-day moving average (MA) of 0.47, above the 50-day MA of 0.52, and below the 200-day MA of 0.63, indicating a bearish trend. The MACD of -0.01 indicates Negative momentum. The RSI at 41.16 is Neutral, neither overbought nor oversold. The STOCH value of 18.41 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
KOV	79 Outperform	AU$190.15M	7.58	23.03%	4.48%	16.21%	18.21%
CLX	71 Outperform	AU$179.20M	3.47	11.37%	4.59%	1.33%	-11.07%
MXI	66 Neutral	AU$106.09M	8.53	8.32%	2.65%	9.53%	173.53%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
SGI	61 Neutral	AU$149.56M	27.44	12.33%	0.74%	24.67%	96.27%
SND	56 Neutral	AU$119.63M	-6.43	4.01%	2.78%	-0.72%	-78.03%
CYG	46 Neutral	AU$63.27M	-1.95	-23.25%	―	-1.58%	-3756.06%

Coventry Group Limited Corporate Events

Coventry Group Lifts 1H Earnings and Launches Strategic Review After Approaches for Business Units

Coventry Group Limited reported unaudited first-half FY26 sales of $188.5 million and EBITDA of $3.2 million, representing improvements on the prior half as its “back to basics” operating initiatives across sales, gross margins and costs begin to take effect. While stronger sales momentum in the second quarter was partially offset by lower gross margins, growth investments in new branches and relocation costs for its largest Fluids branch in Mackay, the company’s cost-out program has already delivered about $5.1 million in annualised savings and is expected to further reduce expenses, underpinning management’s optimism for higher earnings in the second half; net debt and working capital remained broadly in line with plan, with adequate funding and bank support in place. In parallel, the Board has launched a strategic review of the business portfolio following unsolicited approaches for individual units, appointing Allier Capital as corporate advisor and Talbot Sayer as legal advisor to examine options such as portfolio simplification or separation and other value-enhancing initiatives; with no decisions yet made and outcomes uncertain, Coventry has withdrawn its FY26 earnings guidance but stressed that operations continue as normal while the review progresses and shareholders will be updated as required under disclosure rules.

The most recent analyst rating on (AU:CYG) stock is a Hold with a A$0.50 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 Cessation of Securities

Coventry Group Limited has announced the cessation of 718,843 performance rights due to the conditions for these securities not being met or becoming incapable of being satisfied. This announcement may impact the company’s capital structure and could have implications for stakeholders regarding the company’s performance and strategic direction.

The most recent analyst rating on (AU:CYG) stock is a Hold with a A$0.50 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 Issues Unlisted Options to Employees

Coventry Group Limited announced the issuance of 1,300,000 unlisted options under an employee incentive scheme. These securities are subject to transfer restrictions and will not be quoted on the ASX until the restrictions are lifted, indicating a strategic move to retain and motivate key personnel, potentially impacting the company’s operational dynamics and stakeholder interests.

The most recent analyst rating on (AU:CYG) stock is a Hold with a A$0.50 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 Acquires Significant Options Post-AGM

Coventry Group Limited announced a significant change in the interest of its director, Nissim Alpert, who acquired 2,400,000 unlisted options following shareholder approval at the recent Annual General Meeting. This change reflects strategic decisions made by the company to potentially enhance its governance and align director interests with shareholder value, which could impact its operational strategies and stakeholder confidence.

The most recent analyst rating on (AU:CYG) stock is a Hold with a A$0.50 price target. To see the full list of analyst forecasts on Coventry Group Limited stock, see the AU:CYG Stock Forecast page.