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AG Barr (GB:BAG)
LSE:BAG

AG Barr (BAG) AI Stock Analysis

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AG Barr

(LSE:BAG)

Rating:77Outperform
Price Target:
777.00p
▲( 10.84% Upside)
AG Barr scores highly due to its strong financial performance, with consistent revenue and profit growth. The technical analysis supports a positive outlook, although some caution is advised due to potential overbought conditions. Valuation metrics suggest the stock is fairly priced with an attractive dividend yield. Recent corporate events further bolster confidence in the company's strategic direction and management commitment.

AG Barr (BAG) vs. iShares MSCI United Kingdom ETF (EWC)

AG Barr Business Overview & Revenue Model

Company DescriptionAG Barr (BAG) is a leading UK-based manufacturer and distributor of soft drinks, known for its flagship product, IRN-BRU. The company operates in the non-alcoholic beverage sector, producing a wide range of products, including carbonated soft drinks, fruit juices, water, and energy drinks. AG Barr is recognized for its strong brand portfolio, which includes other well-known names such as Rubicon, Strathmore, and Funkin cocktail mixers.
How the Company Makes MoneyAG Barr generates revenue primarily through the sale of its diverse portfolio of soft drinks and beverages. The company's revenue model is centered around manufacturing and distributing its products to a variety of retail and wholesale channels, including supermarkets, convenience stores, and foodservice providers. AG Barr benefits from strong brand recognition and consumer loyalty, which supports consistent sales volume. Additionally, the company engages in strategic partnerships and promotional activities to enhance market penetration and drive sales growth. Export sales also contribute to AG Barr's earnings, as the company expands its reach beyond the UK market.

AG Barr Financial Statement Overview

Summary
AG Barr exhibits strong financial health with significant revenue growth, robust profitability, and a low leverage position. The company efficiently generates cash, supporting its financial stability and growth prospects.
Income Statement
85
Very Positive
AG Barr shows impressive growth, with revenue increasing by 25.9% year-over-year. Gross profit margin stands at 38.55%, and net profit margin is 9.63%, indicating strong profitability. The EBIT margin is 12.53%, and EBITDA margin is 15.95%, reflecting efficient operations.
Balance Sheet
78
Positive
The company has a solid balance sheet with a low debt-to-equity ratio of 0.02 and a high equity ratio of 72.86%, suggesting financial stability. Return on Equity is healthy at 13.15%, demonstrating effective use of shareholder funds.
Cash Flow
82
Very Positive
Operating cash flow is robust at 48.5 million, with a strong operating cash flow to net income ratio of 1.26. Free cash flow grew by 44.13% year-over-year, indicating improved cash generation. The free cash flow to net income ratio is a solid 0.80.
Breakdown
TTMMar 2024Mar 2023Mar 2022Mar 2021Mar 2020
Income StatementTotal Revenue
410.90M400.00M317.60M268.60M227.00M255.70M
Gross Profit
163.40M154.20M128.10M118.60M93.60M105.00M
EBIT
49.00M50.10M45.30M42.70M26.80M38.10M
EBITDA
57.80M63.80M55.70M53.10M39.50M51.00M
Net Income Common Stockholders
36.20M38.50M33.90M27.80M19.10M29.80M
Balance SheetCash, Cash Equivalents and Short-Term Investments
21.80M53.60M53.60M68.70M52.90M10.90M
Total Assets
298.30M401.70M377.50M336.30M302.10M297.90M
Total Debt
0.004.90M5.80M4.40M5.40M7.90M
Net Debt
-21.80M-28.70M-7.80M-64.30M-47.50M-3.00M
Total Liabilities
88.50M109.00M108.70M88.10M73.30M89.60M
Stockholders Equity
209.80M292.70M268.80M244.50M228.80M208.30M
Cash FlowFree Cash Flow
28.10M30.70M21.30M38.40M43.60M25.30M
Operating Cash Flow
46.80M48.50M35.90M43.40M50.70M40.10M
Investing Cash Flow
-62.40M-8.10M-71.50M-9.00M-8.00M-15.70M
Financing Cash Flow
-20.50M-19.70M-20.20M-15.70M-3.60M-35.30M

AG Barr Technical Analysis

Technical Analysis Sentiment
Positive
Last Price701.00
Price Trends
50DMA
644.55
Positive
100DMA
620.05
Positive
200DMA
618.00
Positive
Market Momentum
MACD
15.77
Positive
RSI
62.57
Neutral
STOCH
51.71
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:BAG, the sentiment is Positive. The current price of 701 is above the 20-day moving average (MA) of 686.23, above the 50-day MA of 644.55, and above the 200-day MA of 618.00, indicating a bullish trend. The MACD of 15.77 indicates Positive momentum. The RSI at 62.57 is Neutral, neither overbought nor oversold. The STOCH value of 51.71 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:BAG.

AG Barr Peers Comparison

Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
GBCCH
78
Outperform
£14.36B20.7226.05%2.00%2.77%26.43%
GBBAG
77
Outperform
£772.06M19.3813.01%2.21%5.10%3.23%
76
Outperform
$1.05B40.9110.23%1.79%1.13%58.33%
66
Neutral
£456.53M25.5919.67%2.56%1.21%-2.98%
64
Neutral
$8.88B14.674.78%173.89%3.39%2.18%
GBCCR
56
Neutral
£590.89M-17.41%3.17%-2.68%-511.88%
GBPZC
53
Neutral
£364.96M-2.48%4.14%-16.16%80.50%
* Consumer Defensive Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
GB:BAG
AG Barr
701.00
117.61
20.16%
GB:FEVR
Fevertree Drinks
884.00
-237.71
-21.19%
GB:PZC
PZ Cussons
87.80
-17.21
-16.39%
GB:CCH
Coca Cola HBC
3,994.00
1,306.13
48.59%
GB:NICL
Nichols
1,245.00
276.93
28.61%
GB:CCR
C&C Group Plc
157.00
-8.56
-5.17%

AG Barr Corporate Events

Business Operations and Strategy
AG Barr Executives Participate in Share Ownership Plan
Positive
May 12, 2025

AG Barr PLC has announced a transaction involving the purchase of shares by key executives, including the CEO, CFO, and a Non-Executive Director, under the All Employee Share Ownership Plan (AESOP). This plan allows employees to purchase shares using salary deductions and receive matching shares, indicating a strategy to enhance employee engagement and align interests with shareholders.

The most recent analyst rating on (GB:BAG) stock is a Buy with a £8.00 price target. To see the full list of analyst forecasts on AG Barr stock, see the GB:BAG Stock Forecast page.

M&A TransactionsBusiness Operations and Strategy
A.G. Barr Enters Talks for Potential Strathmore Business Disposal
Neutral
Apr 30, 2025

A.G. Barr has announced its intention to potentially dispose of its Strathmore business, following a prior decision to discontinue the brand. The company is in exclusive discussions with a third party, although the outcome remains uncertain, indicating a strategic shift that could impact its market positioning and stakeholder interests.

Executive/Board Changes
A.G. Barr Executives Acquire Shares Under Bonus Scheme
Neutral
Apr 28, 2025

A.G. Barr p.l.c. announced that its CEO, E A Sutherland, and CFO/COO, S Lorimer, acquired shares as part of the company’s annual bonus scheme. This transaction, conducted on the London Stock Exchange, reflects the deferred element of their 2025 bonus, aligning management interests with shareholder value.

Executive/Board ChangesBusiness Operations and Strategy
A.G. Barr Grants Executive Share Options Under LTIP
Neutral
Apr 28, 2025

A.G. Barr p.l.c. announced the granting of nil-cost options over ordinary shares to key executives under its Long Term Incentive Plan (LTIP). This move is part of the company’s strategy to align management interests with shareholder value, potentially impacting the company’s operational focus and market positioning by incentivizing leadership to achieve performance targets.

Shareholder MeetingsFinancial DisclosuresRegulatory Filings and Compliance
A.G. Barr Releases Annual Report and Announces AGM
Neutral
Apr 22, 2025

A.G. Barr p.l.c. has published its annual report and accounts for the year ending 25 January 2025, which includes the notice for its upcoming 121st annual general meeting. The AGM is scheduled for 23 May 2025, and relevant documents are accessible on the company’s website and the National Storage Mechanism, reflecting compliance with regulatory requirements.

Regulatory Filings and Compliance
A.G. BARR’s CFO Engages in Share Transactions Post-LTIP Vesting
Neutral
Apr 9, 2025

A.G. BARR p.l.c. announced that its Chief Finance & Operating Officer, Stuart Lorimer, acquired 101,190 ordinary shares at nil consideration following the vesting of the 2022 awards under the company’s Long Term Incentive Plan. Subsequently, Lorimer sold 50,595 of these shares at £6.54 each on the London Stock Exchange. This transaction is part of the company’s compliance with the UK Market Abuse Regulation, ensuring transparency in managerial transactions.

Business Operations and Strategy
A.G. Barr Executives Participate in Employee Share Ownership Plan
Positive
Apr 8, 2025

A.G. Barr PLC announced the purchase of shares by key executives under the A.G. BARR All Employee Share Ownership Plan (AESOP), a scheme allowing employees to buy company shares through salary deductions and receive matching shares. This transaction, involving Chief Executive Euan Sutherland, Chief Finance & Operating Officer Stuart Lorimer, and Non-Executive Director Julie Barr, signifies a commitment to aligning employee interests with company performance, potentially enhancing stakeholder confidence.

Business Operations and StrategyFinancial Disclosures
A.G. BARR Reports Strong Financial Growth and Strategic Advancements
Positive
Mar 25, 2025

A.G. BARR reported strong financial results for the year ended January 2025, with a 5.1% increase in revenue and a 15.8% growth in adjusted profit before tax. The company achieved significant progress in its strategic initiatives, including the integration of Boost into its soft drinks business and the enhancement of its convenience channel route to market. Despite economic challenges, A.G. BARR maintained a robust balance sheet and continued to invest in its supply chain and manufacturing capabilities. The company announced plans to discontinue the Strathmore brand and streamline operations, which could lead to the closure of a manufacturing site in Scotland. Looking forward, A.G. BARR expects continued revenue growth and margin improvement in the 2025/26 financial year.

Business Operations and Strategy
AG Barr Executives Participate in Share Ownership Plan
Positive
Mar 10, 2025

AG Barr has announced transactions involving its Chief Executive, Finance Director, and a Non-Executive Director, who have purchased shares under the company’s All Employee Share Ownership Plan (AESOP). This plan allows employees to buy shares using salary deductions and receive matching shares, which is part of AG Barr’s strategy to promote employee investment and engagement. The transactions were conducted on the London Stock Exchange, and the announcement highlights the company’s commitment to employee participation in its financial growth.

Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

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.