Caffyns (78GL) AI Stock Analysis

• Market Cap: £11.59M
• Dividend Yield: 714.29%
• Average Volume (3M): 0.00
• 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: 0
• 30 Day Avg. Volume: 0
• 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: 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: 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.

Positive Factors

Revenue Growth

Consistent revenue growth indicates a strong market position and effective sales strategies, enhancing long-term business sustainability.

Stable Gross Margins

Stable gross margins suggest efficient cost control, which supports profitability and competitive pricing over the long term.

Strategic Partnerships

These partnerships provide a competitive edge by ensuring a steady supply of vehicles and promotional incentives, driving sales and customer loyalty.

Negative Factors

High Leverage

High leverage increases financial risk, potentially limiting the company's ability to invest in growth opportunities and affecting long-term financial stability.

Negative Cash Flow

Negative cash flow growth indicates difficulties in converting revenue into cash, which can hinder operational flexibility and long-term investment capacity.

Low Net Profit Margins

Low net profit margins suggest inefficiencies in operations or pricing, which could impact long-term profitability and shareholder value.

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 multiple channels, including the sale of new and used vehicles, which constitutes a significant portion of its income. The company also earns money from aftermarket services, including vehicle maintenance, repairs, and the sale of spare parts, which provide a recurring revenue stream. Additionally, Caffyns may engage in financing and insurance products for vehicle purchases, further enhancing its profit margins. Strategic partnerships with automotive manufacturers enable Caffyns to access exclusive offers and promotions, driving sales and customer loyalty. The combination of these revenue streams, along with an emphasis on customer service and brand reputation, contributes to the company's financial health.

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	262.08M	275.46M	262.08M	251.43M	223.93M	165.09M
Gross Profit	31.70M	34.69M	31.70M	33.58M	31.95M	22.78M
EBITDA	3.06M	5.11M	3.06M	6.75M	7.12M	4.48M
Net Income	-1.20M	176.00K	-1.20M	2.52M	3.00M	1.41M
Balance Sheet
Total Assets	99.54M	101.71M	99.54M	100.03M	84.49M	94.82M
Cash, Cash Equivalents and Short-Term Investments	438.00K	3.76M	438.00K	4.23M	2.76M	5.74M
Total Debt	34.99M	37.09M	34.99M	32.77M	26.41M	38.44M
Total Liabilities	70.81M	71.79M	70.81M	68.37M	49.76M	67.23M
Stockholders Equity	28.74M	29.92M	28.74M	31.66M	34.73M	27.59M
Cash Flow
Free Cash Flow	-2.46M	-1.37M	-2.46M	3.33M	553.00K	6.33M
Operating Cash Flow	119.00K	-303.00K	119.00K	4.24M	3.39M	6.72M
Investing Cash Flow	-2.33M	3.83M	-2.33M	-716.00K	-2.65M	-209.00K
Financing Cash Flow	-1.57M	-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	75 Outperform	£1.43B	8.52	6.58%	―	3.87%	18.31%
INCH	73 Outperform	£2.72B	7.03	23.07%	3.52%	-15.99%	69.97%
MARS	73 Outperform	£381.10M	5.32	9.91%	―	-0.08%	―
VTU	69 Neutral	£194.90M	12.15	4.51%	3.24%	-0.17%	-10.96%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
78GL	57 Neutral	£11.59M	―	―	714.29%	―	―
MOTR	51 Neutral	£123.76M	42.62	16.70%	1.42%	20.64%	―