Caffyns (78GL) AI Stock Analysis

• Market Cap: £13.63M
• Dividend Yield: 714.29%
• Average Volume (3M): 1.08K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.02
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: UK
• Employees: 414
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Auto - Dealerships
• EPS (TTM): N/A
• Shares Outstanding: N/A
• 10 Day Avg. Volume: 3,231
• 30 Day Avg. Volume: 1,077
• PEG Ratio: >-0.01
• Price to Book (P/B): <0.01
• Price to Sales (P/S): 0.00009
• P/FCF Ratio: -0.02
• 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: £94.00
• Price Target Upside: -4.08% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 57 Neutral
• Price Target: 94.00p ▼(-4.08% Downside)

Caffyns' overall stock score is primarily influenced by its financial performance, which shows revenue growth but significant challenges in profitability and cash flow management. The technical analysis indicates a lack of momentum, and while the high dividend yield is a positive, the absence of a P/E ratio raises concerns about earnings sustainability.

Caffyns Business Overview & Revenue Model

Company Description

Caffyns PLC is engaged in offering new and used vehicles. The company is engaged in the sale and maintenance of motor vehicles, including the sale of tyres, oil, parts, and accessories. It has a portfolio of franchises such as Audi, Seat, Skoda, Vauxhall, Volkswagen, Volvo, and others. Geographically, it derives revenue from the United Kingdom.

How the Company Makes Money

Caffyns generates revenue primarily through the sale of new and used vehicles, which constitutes a significant portion of its earnings. The company also earns income from ancillary services, including vehicle financing and insurance products, which are offered to customers at the point of sale. Additionally, Caffyns benefits from service and repair operations, where customers pay for maintenance and related automotive services. Strategic partnerships with automotive manufacturers enable Caffyns to access exclusive vehicle inventory and promotional incentives, further enhancing its revenue streams. The company also leverages its online presence to attract customers, thereby increasing sales through digital channels.

Caffyns Financial Statement Overview

Summary

Caffyns shows revenue growth and stable gross margins but struggles with profitability and cash flow management. High leverage poses financial risks, and improvements in operational efficiency and cash conversion are needed to enhance financial health.

Income Statement

Caffyns has shown consistent revenue growth over the years, with a 3.29% increase in the latest period. Gross profit margins have remained stable, indicating effective cost management. However, net profit margins are low, reflecting challenges in translating revenue growth into net income. The EBIT and EBITDA margins are modest, suggesting room for operational efficiency improvements.

Balance Sheet

The company's debt-to-equity ratio has been relatively high, indicating significant leverage, which could pose financial risks. Return on equity has fluctuated, with recent improvements, but remains low. The equity ratio suggests a moderate reliance on equity financing, but the high debt levels are a concern for financial stability.

Cash Flow

Caffyns has experienced negative free cash flow growth, highlighting cash management challenges. The operating cash flow to net income ratio is negative, indicating issues in converting earnings into cash. The free cash flow to net income ratio is high, but primarily due to low net income levels, which is not sustainable long-term.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	266.69M	275.46M	262.08M	251.43M	223.93M	165.09M
Gross Profit	33.42M	34.69M	31.70M	33.58M	31.95M	22.78M
EBITDA	5.80M	5.11M	3.06M	6.75M	7.32M	4.68M
Net Income	1.29M	176.00K	-1.20M	2.52M	3.00M	1.41M
Balance Sheet
Total Assets	98.10M	101.71M	99.54M	100.03M	84.49M	94.82M
Cash, Cash Equivalents and Short-Term Investments	2.74M	3.76M	438.00K	4.23M	2.76M	5.74M
Total Debt	14.69M	37.09M	34.99M	32.77M	26.41M	38.44M
Total Liabilities	67.44M	71.79M	70.81M	68.37M	49.76M	67.23M
Stockholders Equity	30.66M	29.92M	28.74M	31.66M	34.73M	27.59M
Cash Flow
Free Cash Flow	1.09M	-1.37M	-2.46M	3.33M	553.00K	6.33M
Operating Cash Flow	3.03M	-303.00K	119.00K	4.24M	3.39M	6.72M
Investing Cash Flow	-1.75M	3.83M	-2.33M	-716.00K	-2.65M	-209.00K
Financing Cash Flow	-1.75M	-208.00K	-1.57M	-2.05M	-3.71M	-2.26M

Caffyns Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MAB	74 Outperform	£1.48B	8.80	5.81%	―	1.95%	275.56%
INCH	74 Outperform	£2.49B	6.39	30.53%	3.93%	-15.99%	69.97%
MARS	67 Neutral	£248.11M	5.61	-2.83%	―	0.50%	―
VTU	63 Neutral	£188.19M	11.00	5.06%	3.40%	0.94%	-28.04%
78GL	57 Neutral	£13.63M	―	―	714.29%	―	―
MOTR	55 Neutral	£125.75M	43.31	―	0.63%	7.96%	―
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%