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Caffyns PLC (GB:78GL)
LSE:78GL
UK Market

Caffyns (78GL) AI Stock Analysis

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GB

Caffyns

(LSE:78GL)

Rating:55Neutral
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 (78GL) vs. iShares MSCI United Kingdom ETF (EWC)

Caffyns Business Overview & Revenue Model

Company DescriptionCaffyns 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 MoneyCaffyns 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
68
Positive
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
64
Positive
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
55
Neutral
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
TTMMar 2024Mar 2023Mar 2022Mar 2021Mar 2020
Income StatementTotal Revenue
266.69M262.08M251.43M223.93M165.09M197.85M
Gross Profit
33.42M31.70M33.58M31.95M22.78M25.00M
EBIT
4.09M1.18M4.50M5.67M2.89M1.67M
EBITDA
5.80M3.06M6.75M7.32M4.68M3.29M
Net Income Common Stockholders
1.29M-1.20M2.52M3.00M1.41M-252.00K
Balance SheetCash, Cash Equivalents and Short-Term Investments
2.74M438.00K4.23M2.76M5.74M1.48M
Total Assets
98.10M99.54M100.03M84.49M94.82M94.54M
Total Debt
14.69M34.99M32.77M26.41M38.44M44.30M
Net Debt
11.95M34.55M28.54M23.65M32.70M42.82M
Total Liabilities
67.44M70.81M68.37M49.76M67.23M68.16M
Stockholders Equity
30.66M28.74M31.66M34.73M27.59M26.38M
Cash FlowFree Cash Flow
1.09M-2.46M3.33M553.00K6.33M-1.78M
Operating Cash Flow
3.03M119.00K4.24M3.39M6.72M-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

Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
77
Outperform
£2.57B6.6918.69%6.55%-19.08%57.32%
GBRMV
74
Outperform
£5.97B31.67256.58%1.58%7.02%-0.37%
GBVTU
70
Outperform
£205.71M11.865.09%2.77%7.94%-25.81%
69
Neutral
£692.12M22.434.76%3.93%-7.75%66.58%
63
Neutral
$6.98B11.412.80%4.24%2.68%-24.94%
55
Neutral
£12.27M
7.69%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
GB:78GL
Caffyns
91.00
-7.85
-7.94%
GB:VTU
Vertu Motors
65.30
-11.23
-14.67%
GB:RMV
Rightmove
776.60
225.64
40.95%
GB:MSLH
Marshalls
274.00
-18.97
-6.48%
GB:INCH
Inchcape
689.50
-36.88
-5.08%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.