Caffyns (78GL) AI Stock Analysis

• Market Cap: £12.27M
• Dividend Yield: 7.69%
• Average Volume (3M): 0.00
• Price to Earnings (P/E): ―
• Beta (1Y): >-0.01
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: UK
• Employees: 414
• Sector: Consumer Cyclical
• Sector Strength: 59
• Industry: Auto - Dealerships
• 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): 0.00
• P/FCF Ratio: <0.01
• 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

• Rating: 55 Neutral
• Price Target: ―

Caffyns is experiencing revenue growth but is struggling with profitability and cash flow issues, which are major concerns. The technical indicators show a bearish trend, adding to the negative outlook. The lack of valuation metrics further adds uncertainty. Improvement in profitability and cash flow is crucial for a more favorable stock performance.

Caffyns Business Overview & Revenue Model

Company Description

Caffyns plc is a prominent UK-based automotive retail and service company, primarily engaged in the sale of new and used vehicles. The company represents a range of well-known automotive brands, offering a variety of cars across different segments. In addition to vehicle sales, Caffyns provides related services such as financing, insurance, servicing, and parts supply, serving both individual customers and businesses.

How the Company Makes Money

Caffyns generates revenue primarily through the sale of new and used vehicles, which is its largest income stream. The company benefits from representing various prestigious automotive brands, allowing it to cater to a broad customer base. Additional revenue streams include aftersales services, such as vehicle maintenance, repairs, and the sale of spare parts. Caffyns also offers financial services, including vehicle financing and insurance, which provide additional income. The company's strategic partnerships with automotive manufacturers and financial institutions are crucial in enhancing its product offerings and financial services, contributing significantly to its earnings.

Caffyns Financial Statement Overview

Summary

Caffyns demonstrates revenue growth, yet faces profitability and cash flow challenges. High leverage increases financial risk, and negative net income impacts return metrics. Sustainability of revenue growth and improvement in cash flows are essential for long-term financial health.

Income Statement

Caffyns has shown consistent growth in revenue over the years, with a 4.24% increase from 2023 to 2024. However, the company reported a net loss in 2024, resulting in a negative net profit margin of -0.46%. EBIT and EBITDA margins have also decreased, indicating pressure on operating profitability.

Balance Sheet

The company's debt-to-equity ratio is high, reflecting significant leverage, which poses financial risk. However, the company maintains a stable equity ratio of 28.87%, suggesting a reasonable level of assets financed by equity. The return on equity is negative due to net losses.

Cash Flow

Caffyns' free cash flow has turned negative in 2024, indicating challenges in generating cash after capital expenditures. The operating cash flow to net income ratio is positive, suggesting some level of cash generation capability despite net losses.

Breakdown
TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement		Total Revenue
266.69M	262.08M	251.43M	223.93M	165.09M	197.85M
	Gross Profit
33.42M	31.70M	33.58M	31.95M	22.78M	25.00M
	EBIT
4.09M	1.18M	4.50M	5.67M	2.89M	1.67M
	EBITDA
5.80M	3.06M	6.75M	7.32M	4.68M	3.29M
	Net Income Common Stockholders
1.29M	-1.20M	2.52M	3.00M	1.41M	-252.00K
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
2.74M	438.00K	4.23M	2.76M	5.74M	1.48M
	Total Assets
98.10M	99.54M	100.03M	84.49M	94.82M	94.54M
	Total Debt
14.69M	34.99M	32.77M	26.41M	38.44M	44.30M
	Net Debt
11.95M	34.55M	28.54M	23.65M	32.70M	42.82M
	Total Liabilities
67.44M	70.81M	68.37M	49.76M	67.23M	68.16M
	Stockholders Equity
30.66M	28.74M	31.66M	34.73M	27.59M	26.38M
Cash Flow		Free Cash Flow
1.09M	-2.46M	3.33M	553.00K	6.33M	-1.78M
	Operating Cash Flow
3.03M	119.00K	4.24M	3.39M	6.72M	-802.00K
	Investing Cash Flow
-1.75M	-2.33M	-716.00K	-2.65M	-209.00K	-980.00K
	Financing Cash Flow
-1.75M	-1.57M	-2.05M	-3.71M	-2.26M	-648.00K

Caffyns Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
INCH	77 Outperform	£2.57B	6.69	18.69%	6.55%	-19.08%	57.32%
RMV	74 Outperform	£5.97B	31.67	256.58%	1.58%	7.02%	-0.37%
VTU	70 Outperform	£205.71M	11.86	5.09%	2.77%	7.94%	-25.81%
MSLH	69 Neutral	£692.12M	22.43	4.76%	3.93%	-7.75%	66.58%
Sector *	63 Neutral	$6.98B	11.41	2.80%	4.24%	2.68%	-24.94%
78GL	55 Neutral	£12.27M	―		7.69%	―	―