Caffyns (79GL) AI Stock Analysis

• Market Cap: £12.95M
• 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 (79GL) is a prominent automotive dealership group based in the UK, specializing in the sale of new and used vehicles, as well as offering a range of associated services including vehicle maintenance, repairs, and financing solutions. The company operates across several sectors, primarily focusing on the automotive industry, and represents multiple well-known car manufacturers, providing customers with diverse options and personalized service.

How the Company Makes Money

Caffyns generates revenue through several key streams. Primarily, the company earns money from the sale of new and used vehicles, where it makes a profit margin on each sale. Additionally, Caffyns provides financing options for vehicle purchases, earning interest and fees from these financial services. The company also has significant revenue from its after-sales services, which include maintenance and repair work, where it charges customers for labor and parts. Partnerships with various automotive manufacturers allow Caffyns to receive incentives and bonuses based on sales performance, further enhancing their revenue. Lastly, Caffyns may also generate income through the sale of vehicle accessories and related products.

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	275.46M	275.46M	262.08M	251.43M	223.93M	165.09M
Gross Profit	34.69M	34.69M	28.99M	33.58M	31.95M	22.78M
EBITDA	5.11M	5.11M	3.25M	6.92M	7.12M	4.48M
Net Income	176.00K	176.00K	-1.20M	2.52M	3.00M	1.41M
Balance Sheet
Total Assets	101.71M	101.71M	99.54M	100.03M	84.49M	94.82M
Cash, Cash Equivalents and Short-Term Investments	3.76M	3.76M	438.00K	4.23M	2.76M	5.74M
Total Debt	37.09M	37.09M	35.80M	33.58M	26.41M	38.44M
Total Liabilities	71.79M	71.79M	70.81M	68.37M	49.76M	67.23M
Stockholders Equity	29.92M	29.92M	28.74M	31.66M	34.73M	27.59M
Cash Flow
Free Cash Flow	-1.37M	-1.37M	-2.46M	3.33M	553.00K	6.33M
Operating Cash Flow	-303.00K	-303.00K	119.00K	4.24M	3.39M	6.72M
Investing Cash Flow	3.83M	3.83M	-2.33M	-716.00K	-2.65M	-209.00K
Financing Cash Flow	-208.00K	-208.00K	-1.57M	-2.05M	-3.71M	-2.26M

Caffyns Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 125.00
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:79GL, the sentiment is Negative. The current price of 125 is above the 20-day moving average (MA) of 125.00, below the 50-day MA of 125.88, and above the 200-day MA of 121.09, indicating a neutral trend. The MACD of -0.22 indicates Negative momentum. The RSI at 38.51 is Neutral, neither overbought nor oversold. The STOCH value of 0.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GB:79GL.

Caffyns Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
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%
SHOE	68 Neutral	£37.67M	14.82	8.50%	―	-6.24%	-82.21%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
79GL	61 Neutral	£12.95M	―	―	8.80%	―	―
MOTR	51 Neutral	£123.76M	42.62	16.70%	1.42%	20.64%	―