Redde Northgate (67GX) AI Stock Analysis

• Market Cap: £855.06M
• Dividend Yield: 714.29%
• Average Volume (3M): 0.00
• Price to Earnings (P/E): ―
• Beta (1Y): 0.03
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: UK
• Employees: 7,744
• Sector: Financial
• Sector Strength: 70
• Industry: Rental & Leasing Services
• EPS (TTM): N/A
• Shares Outstanding: N/A
• 10 Day Avg. Volume: 0
• 30 Day Avg. Volume: 0
• PEG Ratio: >-0.01
• Price to Book (P/B): <0.01
• Price to Sales (P/S): 0.00044
• P/FCF Ratio: 0.36
• 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): N/A
• Revenue Forecast (FY): N/A

• Rating: 50 Neutral
• Price Target: 35.00p ▲(0.00% Upside)

The overall stock score is primarily influenced by financial performance and technical analysis. The company shows a stable financial structure but faces profitability and cash flow challenges. Technical indicators reflect market indecision with no clear trend. The valuation is difficult to assess due to the lack of a P/E ratio and an unusually high dividend yield, suggesting potential risks.

Positive Factors

Business Model Strength

The diverse revenue streams from vehicle rentals, fleet management, and accident management services provide resilience and adaptability in varying market conditions.

Market Position

Strong market position in the UK and Europe enhances competitive advantage, allowing the company to leverage scale and customer relationships for sustained growth.

Balance Sheet Health

A stable balance sheet with a healthy equity ratio indicates financial resilience, supporting long-term strategic initiatives and operational stability.

Negative Factors

Profitability Challenges

Decreasing gross and net profit margins highlight cost management issues, which could impact long-term profitability and competitive positioning.

Cash Flow Concerns

Declining free cash flow growth and a low operating cash flow to net income ratio suggest difficulties in cash generation, potentially affecting liquidity and investment capacity.

Debt Levels

Rising debt levels, although manageable, could limit financial flexibility and increase vulnerability to economic downturns, impacting future growth opportunities.

Redde Northgate Business Overview & Revenue Model

Company Description

Redde Northgate PLC provides integrated mobility solutions to businesses and personal customers. These solutions comprise vehicle rental services, accident and incident management services, repair & maintenance services, vehicle disposal and other ancillary services to keep customers mobile. It is engaged in the group functions through the following segments: the Northgate UK&I, Northgate Spain, and Redde. The company generates maximum revenue from the Northgate UK&I segment. Geographically, the business presence of the firm is seen across the region of the UK, Spain, and the Republic of Ireland.

How the Company Makes Money

Redde Northgate generates revenue through multiple streams, primarily by renting out vehicles to businesses and individuals on short-term and long-term contracts. The company also earns money from fleet management services, which include vehicle maintenance and telematics solutions that help clients optimize their operations. Additionally, revenue comes from ancillary services such as insurance and roadside assistance, which are often bundled with vehicle rentals. Strategic partnerships with businesses and public sector organizations enhance its market reach and customer base, contributing significantly to its earnings.

Redde Northgate Financial Statement Overview

Summary

Redde Northgate exhibits a stable financial structure with some profitability challenges. The income statement shows pressure on margins and inconsistent revenue growth. The balance sheet remains strong, but cash flow metrics highlight potential liquidity concerns. The company needs to focus on improving profitability and cash flow generation to enhance its financial health.

Income Statement

Redde Northgate's income statement shows a mixed performance. The gross profit margin has decreased over the years, indicating pressure on cost management. The net profit margin has also declined, reflecting reduced profitability. Revenue growth has been inconsistent, with a notable decline in the most recent year. However, the company maintains a reasonable EBIT and EBITDA margin, suggesting operational efficiency.

Balance Sheet

The balance sheet reflects a stable financial position with a manageable debt-to-equity ratio, although it has increased slightly over the years. The return on equity has decreased, indicating less efficient use of equity capital. The equity ratio remains healthy, suggesting a solid capital structure.

Cash Flow

Cash flow analysis reveals challenges, with a significant decline in free cash flow growth. The operating cash flow to net income ratio is low, indicating potential issues in converting income into cash. The free cash flow to net income ratio has also decreased, suggesting reduced cash generation relative to earnings.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.81B	1.81B	1.83B	1.49B	1.24B	1.11B
Gross Profit	397.90M	397.90M	432.89M	435.57M	346.21M	252.54M
EBITDA	443.49M	443.49M	386.89M	396.53M	365.28M	294.08M
Net Income	79.84M	79.84M	125.02M	139.24M	101.55M	65.57M
Balance Sheet
Total Assets	2.34B	2.34B	2.23B	2.11B	1.85B	1.72B
Cash, Cash Equivalents and Short-Term Investments	33.74M	33.74M	39.80M	14.12M	24.56M	11.17M
Total Debt	869.93M	869.93M	781.53M	708.56M	607.11M	541.51M
Total Liabilities	1.27B	1.27B	1.18B	1.11B	900.15M	807.06M
Stockholders Equity	1.06B	1.06B	1.04B	994.60M	946.76M	908.13M
Cash Flow
Free Cash Flow	2.25M	2.25M	92.48M	75.19M	73.90M	128.58M
Operating Cash Flow	16.45M	16.45M	110.26M	84.32M	127.64M	137.88M
Investing Cash Flow	-11.27M	-11.27M	-17.80M	-15.21M	-47.44M	20.29M
Financing Cash Flow	-2.63M	-2.63M	-110.20M	-72.99M	-71.41M	-167.85M

Redde Northgate Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 35.00
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Negative
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:67GX, the sentiment is Positive. The current price of 35 is below the 20-day moving average (MA) of 35.00, below the 50-day MA of 35.00, and above the 200-day MA of 34.19, indicating a neutral trend. The MACD of <0.01 indicates Positive momentum. The RSI at 100.00 is Negative, neither overbought nor oversold. The STOCH value of >-0.01 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:67GX.

Redde Northgate Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AHT	77 Outperform	£21.60B	20.56	18.88%	1.71%	-3.66%	-9.01%
ASY	69 Neutral	£209.29M	12.20	38.39%	5.18%	-3.57%	-0.80%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
SBRE	65 Neutral	£314.64M	8.04	16.39%	4.89%	7.77%	35.65%
SDY	56 Neutral	£112.76M	-9.65	-7.62%	8.43%	0.38%	-273.53%
67GX	50 Neutral	£855.06M	―	―	714.29%	―	―