Caffyns (79GL) AI Stock Analysis

• Market Cap: £12.27M
• Dividend Yield: 8.87%
• Average Volume (3M): 0.00
• Price to Earnings (P/E): ―
• Beta (1Y): -0.21
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: UK
• Employees: 439
• Sector: Consumer Cyclical
• Sector Strength: 57
• Industry: Auto - Dealerships
• EPS (TTM): N/A
• Shares Outstanding: 441,336
• 10 Day Avg. Volume: 0
• 30 Day Avg. Volume: 0
• PEG Ratio: -0.10
• Price to Book (P/B): 0.12
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 1.13
• 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: 51 Neutral
• Price Target: ―

Caffyns exhibits a challenging financial profile with declining profitability and increasing leverage, which are significant risks to its stability. Technical analysis provides some positive signals with upward price trends, but the lack of comprehensive valuation metrics limits a full assessment. Operational efficiency improvements and careful debt management are key to mitigating current financial challenges.

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 the largest portion of its income. The company also earns significant revenue from its aftersales services, which include vehicle servicing, repairs, and the sale of parts. Additionally, Caffyns offers various financing and insurance products, earning commissions and fees from partnerships with financial institutions and insurance providers. These diversified revenue streams are supported by the company's strong relationships with automotive manufacturers and a focus on customer satisfaction, which drives repeat business and brand loyalty.

Caffyns Financial Statement Overview

Summary

Caffyns faces a challenging financial landscape with declining profitability margins and increasing leverage. While revenue shows modest growth, profitability has been adversely affected, and cash flow generation has weakened, potentially impacting future operations and financial flexibility. The company's increasing debt levels and negative return on equity are significant risks. Focus on improving operational efficiency and managing leverage will be crucial for future stability.

Income Statement

Over the recent periods, Caffyns has shown a mixed performance in its income statement. The revenue growth rate from 2023 to 2024 was 4.24%, indicating modest growth. However, the gross profit margin has decreased from 13.35% in 2023 to 11.06% in 2024, which might suggest increasing costs or pricing pressures. Notably, the net profit margin has turned negative in 2024 at -0.46%, down from 1.00% in 2023, reflecting challenges in maintaining profitability. The EBIT and EBITDA margins have also declined, indicating potential operational inefficiencies or increased expenses.

Balance Sheet

Caffyns' balance sheet indicates a moderate financial structure, with a debt-to-equity ratio increasing from 1.03 in 2023 to 1.25 in 2024, highlighting rising leverage which may pose a risk if not managed properly. The return on equity has turned negative in 2024 at -4.19%, down from 7.97% in 2023, suggesting a decline in the efficiency of equity utilization. The equity ratio has slightly decreased from 31.65% in 2023 to 28.87% in 2024, indicating marginally reduced financial stability.

Cash Flow

Caffyns' cash flow performance in 2024 reveals some concerns. The operating cash flow to net income ratio plummeted from 1.68 in 2023 to 0.10 in 2024, suggesting weaker cash generation relative to net income. Free cash flow has turned negative in 2024, indicating potential liquidity constraints. The free cash flow to net income ratio has also turned negative, down from 1.32 in 2023, further signaling cash flow challenges.

Breakdown
TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement		Total Revenue
265.57M	262.08M	251.43M	223.93M	165.09M	197.85M
	Gross Profit
30.21M	28.99M	33.58M	31.95M	22.78M	25.00M
	EBIT
1.41M	1.18M	4.84M	5.67M	2.89M	1.67M
	EBITDA
4.29M	3.86M	6.92M	7.54M	4.68M	3.29M
	Net Income Common Stockholders
-1.08M	-1.20M	2.52M	3.00M	1.41M	-252.00K
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
2.08M	438.00K	4.23M	2.76M	5.74M	1.48M
	Total Assets
103.03M	99.54M	100.03M	84.49M	94.82M	94.54M
	Total Debt
16.70M	35.80M	32.77M	26.41M	38.44M	44.30M
	Net Debt
14.63M	35.36M	28.54M	23.65M	32.70M	42.82M
	Total Liabilities
72.98M	70.81M	68.37M	49.76M	67.23M	68.16M
	Stockholders Equity
30.04M	28.74M	31.66M	34.73M	27.59M	26.38M
Cash Flow		Free Cash Flow
-1.46M	-2.46M	3.33M	553.00K	6.33M	-1.78M
	Operating Cash Flow
-159.00K	119.00K	4.24M	3.39M	6.72M	-802.00K
	Investing Cash Flow
-1.06M	-2.33M	-716.00K	-2.65M	-209.00K	-980.00K
	Financing Cash Flow
560.00K	-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	76 Outperform	£2.56B	6.69	18.69%	6.55%	-19.08%	57.32%
VTU	70 Outperform	£206.56M	11.92	5.09%	2.76%	7.94%	-25.81%
Sector *	63 Neutral	$6.94B	11.34	2.80%	4.26%	2.68%	-24.70%
79GL	51 Neutral	£12.27M	―		8.87%	―	―