Caffyns (79GL) AI Stock Analysis

• Market Cap: £11.32M
• Dividend Yield: 8.8%
• Average Volume (3M): 27.00
• Price to Earnings (P/E): ―
• Beta (1Y): -0.06
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: UK
• Employees: 439
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Auto - Dealerships
• EPS (TTM): N/A
• Shares Outstanding: 441,336
• 10 Day Avg. Volume: 0
• 30 Day Avg. Volume: 27
• PEG Ratio: -0.17
• Price to Book (P/B): 0.11
• Price to Sales (P/S): 0.01
• P/FCF Ratio: -2.48
• 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: 61 Neutral
• Price Target: 132.00p ▲(5.60% Upside)

The overall stock score is primarily influenced by financial performance challenges, including high leverage and liquidity concerns, which weigh heavily on the score. Technical analysis provides some positive momentum indicators, but caution is advised due to potential overbought conditions. The strong dividend yield supports the valuation score, offering an attractive income component despite the lack of P/E data.

Positive Factors

Revenue Growth

Consistent revenue growth indicates a strong market position and effective sales strategy, contributing to long-term business sustainability.

Operational Efficiency

Moderate profitability through operational efficiency suggests the company can maintain cost control, supporting future growth and competitiveness.

Diverse Revenue Streams

Diverse revenue streams reduce dependency on any single source, enhancing resilience against market fluctuations and supporting long-term stability.

Negative Factors

High Leverage

High leverage can strain financial flexibility and increase risk, potentially impacting the company's ability to invest in growth opportunities.

Cash Flow Issues

Cash flow challenges can limit the company's ability to fund operations and invest in growth, posing risks to long-term financial health.

Low Net Margins

Low net margins suggest difficulty in achieving profitability, which could hinder the company's ability to generate shareholder value over time.

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, leveraging its partnerships with manufacturers to provide a diverse inventory that meets customer demand. Additional revenue streams include vehicle servicing, repairs, and parts sales, which contribute significantly to the company's profitability. The company also offers finance and insurance products to customers, creating further income opportunities. Strategic partnerships with automotive brands enhance the company's market presence and customer reach, while a focus on customer service and satisfaction helps drive repeat business and referrals, contributing to overall earnings.

Caffyns Financial Statement Overview

Summary

Caffyns demonstrates moderate revenue growth and operational efficiency, but profitability remains a challenge with low net margins. The balance sheet shows high leverage, which could be risky if not managed carefully. Cash flow issues, particularly negative free cash flow growth and operating cash flow, indicate potential liquidity concerns. Overall, while there are positive growth trends, the company faces significant financial challenges that need to be addressed to ensure long-term stability.

Income Statement

Caffyns has shown a steady increase in revenue over the past few years, with a notable revenue growth rate of 3.73% in the latest year. Gross profit margins have been relatively stable, but net profit margins remain low, indicating challenges in converting revenue into profit. The EBIT and EBITDA margins show moderate profitability, suggesting some operational efficiency but room for improvement.

Balance Sheet

The company's debt-to-equity ratio has been high, indicating significant leverage, which could pose risks if not managed properly. Return on equity has been low, reflecting limited returns for shareholders. The equity ratio suggests a moderate level of equity financing relative to total assets, but the high debt levels remain a concern.

Cash Flow

Caffyns has faced challenges with negative free cash flow growth and operating cash flow in the latest year, indicating potential liquidity issues. The free cash flow to net income ratio is high, suggesting that despite low net income, the company is generating some cash flow relative to its earnings. However, the negative operating cash flow coverage ratio highlights difficulties in covering net income with operating cash.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	271.68M	275.46M	262.08M	251.43M	223.93M	165.09M
Gross Profit	34.10M	34.69M	28.99M	33.58M	31.95M	22.78M
EBITDA	3.95M	5.11M	3.25M	6.92M	7.12M	4.48M
Net Income	-680.00K	176.00K	-1.20M	2.52M	3.00M	1.41M
Balance Sheet
Total Assets	96.14M	101.71M	99.54M	100.03M	84.49M	94.82M
Cash, Cash Equivalents and Short-Term Investments	2.44M	3.76M	438.00K	4.23M	2.76M	5.74M
Total Debt	15.03M	37.09M	35.80M	33.58M	26.41M	38.44M
Total Liabilities	66.13M	71.79M	70.81M	68.37M	49.76M	67.23M
Stockholders Equity	30.01M	29.92M	28.74M	31.66M	34.73M	27.59M
Cash Flow
Free Cash Flow	-2.31M	-1.37M	-2.46M	3.33M	553.00K	6.33M
Operating Cash Flow	-1.07M	-303.00K	119.00K	4.24M	3.39M	6.72M
Investing Cash Flow	3.65M	3.83M	-2.33M	-716.00K	-2.65M	-209.00K
Financing Cash Flow	-2.21M	-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
INCH	80 Outperform	£2.81B	7.32	23.07%	3.43%	-15.99%	69.97%
MARS	71 Outperform	£371.29M	5.19	9.91%	―	-0.08%	―
VTU	71 Outperform	£194.45M	12.25	4.51%	3.27%	-0.17%	-10.96%
SHOE	68 Neutral	£31.43M	12.36	8.50%	―	-6.24%	-82.21%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
79GL	61 Neutral	£11.32M	―	―	8.80%	―	―
MOTR	55 Neutral	£107.10M	25.76	16.70%	1.48%	20.64%	―