Bakkavor Group plc (BAKK) AI Stock Analysis

• Market Cap: £1.28B
• Dividend Yield: 3.21%
• Average Volume (3M): 2.56M
• Price to Earnings (P/E): 23.2
• Beta (1Y): 0.25
• Revenue Growth: 4.03%
• EPS Growth: 3.21%
• Country: UK
• Employees: 18,000
• Sector: Consumer Defensive
• Sector Strength: 55
• Industry: Packaged Foods
• EPS (TTM): 0.04
• Shares Outstanding: 579,425,600
• 10 Day Avg. Volume: 1,280,757
• 30 Day Avg. Volume: 2,561,745
• PEG Ratio: -0.57
• Price to Book (P/B): 0.90
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 8.77
• 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: £200.00
• Price Target Upside: -10.31% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 75 Outperform
• Price Target: 246.00p ▲(10.31%Upside)

Bakkavor Group plc's strong financial performance and positive corporate events are the primary drivers of its score. Despite technical indicators suggesting a potential overbought condition, the stock's valuation and dividend yield are attractive. The acquisition by Greencore Group and profit guidance upgrades add to the positive outlook.

Bakkavor Group plc Business Overview & Revenue Model

Company Description

Bakkavor Group plc, together with its subsidiaries, prepares and markets fresh prepared foods in the United Kingdom, the United States, and China. It offers meals, pizzas and breads, desserts, salads, soups and sauces, dips, food-to-go products, fresh cut salads, sandwiches and wraps, and bakery products. The company is also involved in the marketing and distribution of fresh produce; management of properties; manufacture and sale of custom and private label savory and bakery products; and customer invoicing and financing of receivables. It primarily sells its products through high-street supermarkets. The company was formerly known as Diamond Newco plc and changed its name to Bakkavor Group plc in October 2017. Bakkavor Group plc was founded in 1986 and is headquartered in London, the United Kingdom.

How the Company Makes Money

Bakkavor Group plc generates revenue primarily through the production and sale of fresh prepared food products. The company's key revenue streams include direct sales to major grocery retailers, foodservice operators, and other food industry clients. Bakkavor's business model is centered around long-term partnerships with leading retailers, allowing the company to secure stable and predictable income by meeting the demand for private label products. The company also benefits from its ability to innovate and adapt its product offerings in line with emerging consumer trends, such as the increasing demand for healthy, convenience, and premium food options. Bakkavor's strategic investments in its manufacturing capabilities and supply chain efficiency further enhance its profitability and competitive position in the market.

Bakkavor Group plc Financial Statement Overview

Summary

Bakkavor Group plc exhibits stable financial health with consistent revenue growth, solid profitability margins, and a balanced capital structure. Despite a decrease in free cash flow, strong cash flow indicators highlight its capacity for cash generation.

Income Statement

Bakkavor Group plc demonstrates strong revenue growth of 4.03% from 2023 to 2024, driven by consistent increases in total revenue over the years. The gross profit margin for 2024 is 27.71%, indicating effective cost management. The net profit margin improved slightly to 2.43%, showing moderate profitability. The EBIT margin is at 4.08%, while the EBITDA margin is at 7.14%, both reflecting stable operating performance.

Balance Sheet

The company's debt-to-equity ratio is 0.50, indicating a balanced leverage position. The return on equity (ROE) for 2024 is 9.04%, showcasing a reasonable return for shareholders. The equity ratio stands at 41.10%, suggesting a solid capital structure with a healthy proportion of equity.

Cash Flow

Bakkavor's free cash flow decreased slightly to 94 million in 2024 from 103.8 million in 2023, resulting in a negative free cash flow growth rate. However, the operating cash flow to net income ratio of 2.70 and free cash flow to net income ratio of 1.69 indicate strong cash generation relative to earnings.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.29B	2.20B	2.14B	1.87B	1.79B
Gross Profit	635.30M	589.40M	493.70M	475.00M	447.50M
EBITDA	163.80M	168.50M	106.90M	163.70M	131.60M
Net Income	55.70M	53.90M	12.50M	56.80M	34.10M
Balance Sheet
Total Assets	1.50B	1.48B	1.54B	1.50B	1.45B
Cash, Cash Equivalents and Short-Term Investments	29.90M	36.60M	40.20M	31.10M	24.80M
Total Debt	306.60M	355.90M	419.10M	405.00M	434.30M
Total Liabilities	882.50M	872.70M	923.60M	862.80M	851.10M
Stockholders Equity	616.10M	607.60M	617.80M	640.70M	598.10M
Cash Flow
Free Cash Flow	94.00M	103.80M	63.30M	84.90M	32.20M
Operating Cash Flow	150.30M	147.70M	127.30M	144.70M	88.60M
Investing Cash Flow	-50.50M	-39.10M	-63.90M	-55.60M	-56.30M
Financing Cash Flow	-106.50M	-113.30M	-55.40M	-83.00M	-33.20M

Bakkavor Group plc Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 223.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:BAKK, the sentiment is Positive. The current price of 223 is above the 20-day moving average (MA) of 216.45, above the 50-day MA of 198.66, and above the 200-day MA of 159.19, indicating a bullish trend. The MACD of 5.85 indicates Positive momentum. The RSI at 68.16 is Neutral, neither overbought nor oversold. The STOCH value of 79.53 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:BAKK.

Bakkavor Group plc Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PFD	79 Outperform	£1.72B	13.98	9.02%	1.02%	5.90%	11.24%
CWK	78 Outperform	£2.90B	21.50	14.14%	0.93%	8.74%	-8.69%
GNC	78 Outperform	£1.02B	19.45	12.12%	0.85%	0.49%	14.18%
HFG	76 Outperform	£787.18M	20.02	12.74%	4.22%	-0.03%	7.88%
TATE	76 Outperform	£2.33B	37.23	3.39%	3.78%	-11.03%	-2.05%
BAKK	75 Outperform	£1.28B	23.18	9.10%	3.21%	4.03%	3.21%
Sector *	68 Neutral	¥196.82B	21.24	8.29%	2.39%	4.99%	2.94%

Bakkavor Group plc Corporate Events

Bakkavor Group to be Acquired by Greencore Group

Bakkavor Group plc has announced the publication of the Scheme Document regarding its acquisition by Greencore Group plc, which will be executed through a Court-approved scheme of arrangement. The transaction, which involves a cash and share offer for Bakkavor’s entire issued share capital, is recommended by Bakkavor’s board as being in the best interest of its shareholders. The Scheme Document outlines the terms and conditions of the acquisition, the expected timetable, and the necessary shareholder approvals required for the transaction to proceed. The acquisition is expected to enhance Bakkavor’s market positioning and operational capabilities, with the Scheme anticipated to become effective in early 2026, pending shareholder and court approvals.

The most recent analyst rating on (GB:BAKK) stock is a Hold with a £120.00 price target. To see the full list of analyst forecasts on Bakkavor Group plc stock, see the GB:BAKK Stock Forecast page.

Bakkavor Group plc Announces Successful AGM with All Resolutions Passed

Bakkavor Group plc successfully held its 2025 Annual General Meeting virtually, where all proposed resolutions were passed. Key decisions included the approval of the 2024 Annual Report and Accounts, the declaration of a final dividend, and the re-election of several directors. The meeting’s outcomes reflect strong shareholder support and are expected to reinforce the company’s governance and strategic direction.

The most recent analyst rating on (GB:BAKK) stock is a Hold with a £120.00 price target. To see the full list of analyst forecasts on Bakkavor Group plc stock, see the GB:BAKK Stock Forecast page.

Bakkavor Group Reports Strong Q1 2025 Performance and Upgrades Profit Guidance

Bakkavor Group plc reported a strong performance in Q1 2025, with a 3.9% increase in like-for-like revenue driven by international volume growth and pricing strategies in the UK. The company has made significant strategic progress, including the sale of its Hong Kong and mainland China operations, and has upgraded its full-year profit guidance, reflecting confidence in inflation recovery and efficiency improvements across its markets.

The most recent analyst rating on (GB:BAKK) stock is a Hold with a £1.55 price target. To see the full list of analyst forecasts on Bakkavor Group plc stock, see the GB:BAKK Stock Forecast page.

Bakkavor Extends Deadline for Potential Greencore Acquisition Offer

Bakkavor Group plc has announced an extension of the deadline for a possible acquisition offer by Greencore Group plc. The extension allows more time for discussions on the terms and conditions of the potential cash and share offer, including mutual due diligence. The new deadline is set for May 23, 2025, with the possibility of further extensions if agreed by the Panel on Takeovers and Mergers. This development indicates ongoing negotiations and uncertainty about the finalization of the deal, which could impact Bakkavor’s market positioning and shareholder interests.

Bakkavor Group Sells China Operations to Focus on Core Markets

Bakkavor Group plc has announced the sale of its China operations to Lihe Xing (Qingdao) Food Technology Co. Ltd. for approximately RMB 500 million. This strategic move is part of Bakkavor’s efforts to simplify its operations and exit the Chinese market, which has historically diluted its profit margins. The transaction is expected to complete in the second half of 2025, with proceeds aimed at reducing the Group’s leverage and supporting its medium-term margin target of 6%. This decision reflects Bakkavor’s focus on enhancing its financial performance and operational efficiency while maintaining strong customer service.

Bakkavor Group Sees Change in Major Shareholder Holdings

Bakkavor Group plc announced a change in major holdings, with FIL Limited reducing its voting rights from 10.71% to 9.87%. This adjustment in FIL Limited’s stake could influence Bakkavor’s shareholder dynamics and potentially impact its strategic decisions, given the company’s significant market presence and growth opportunities in the UK, US, and China.

Bakkavor and Greencore Extend Deadline for Potential Acquisition Talks

Bakkavor Group plc and Greencore Group plc are in discussions regarding a potential cash and share offer by Greencore to acquire Bakkavor. The deadline for Greencore to announce its firm intention has been extended to May 9, 2025, to allow further negotiations and due diligence. This extension indicates ongoing interest and potential strategic alignment between the two companies, although there is no certainty of a firm offer being made.

Bakkavor Group Awards Long Term Incentives to Key Executives

Bakkavor Group plc announced the grant of ordinary course awards under its Long Term Incentive Plan and Deferred Annual Bonus Plan to key managerial personnel, including CEO Michael Edwards and CFO Lee Miley. These awards, which are contingent on continued service and performance conditions related to earnings per share, total shareholder return, and environmental social governance, are structured to vest over a period of three years with a subsequent two-year holding period. This move is part of Bakkavor’s strategy to align management incentives with company performance and shareholder interests.