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Caffyns (79GL) (GB:79GL)
:79GL
UK Market

Caffyns (79GL) AI Stock Analysis

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GB

Caffyns

(LSE:79GL)

Rating:51Neutral
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 (79GL) vs. iShares MSCI United Kingdom ETF (EWC)

Caffyns Business Overview & Revenue Model

Company DescriptionCaffyns 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 MoneyCaffyns 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
45
Neutral
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
50
Neutral
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
40
Negative
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
TTMMar 2024Mar 2023Mar 2022Mar 2021Mar 2020
Income StatementTotal Revenue
265.57M262.08M251.43M223.93M165.09M197.85M
Gross Profit
30.21M28.99M33.58M31.95M22.78M25.00M
EBIT
1.41M1.18M4.84M5.67M2.89M1.67M
EBITDA
4.29M3.86M6.92M7.54M4.68M3.29M
Net Income Common Stockholders
-1.08M-1.20M2.52M3.00M1.41M-252.00K
Balance SheetCash, Cash Equivalents and Short-Term Investments
2.08M438.00K4.23M2.76M5.74M1.48M
Total Assets
103.03M99.54M100.03M84.49M94.82M94.54M
Total Debt
16.70M35.80M32.77M26.41M38.44M44.30M
Net Debt
14.63M35.36M28.54M23.65M32.70M42.82M
Total Liabilities
72.98M70.81M68.37M49.76M67.23M68.16M
Stockholders Equity
30.04M28.74M31.66M34.73M27.59M26.38M
Cash FlowFree Cash Flow
-1.46M-2.46M3.33M553.00K6.33M-1.78M
Operating Cash Flow
-159.00K119.00K4.24M3.39M6.72M-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

Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
76
Outperform
£2.56B6.6918.69%6.55%-19.08%57.32%
GBVTU
70
Outperform
£206.56M11.925.09%2.76%7.94%-25.81%
63
Neutral
$6.94B11.342.80%4.26%2.68%-24.70%
51
Neutral
£12.27M
8.87%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
GB:79GL
Caffyns
124.00
14.58
13.32%
GB:VTU
Vertu Motors
63.20
-12.65
-16.68%
GB:INCH
Inchcape
679.00
-42.09
-5.84%
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.