Bakkavor Group plc (BAKK) AI Stock Analysis

• Market Cap: £1.35B
• Dividend Yield: 2.49%
• Average Volume (3M): 841.84K
• Price to Earnings (P/E): 36.2
• Beta (1Y): 0.26
• Revenue Growth: 0.59%
• EPS Growth: -41.66%
• Country: UK
• Employees: 18,000
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Packaged Foods
• EPS (TTM): 0.06
• Shares Outstanding: 579,425,600
• 10 Day Avg. Volume: 619,783
• 30 Day Avg. Volume: 841,840
• PEG Ratio: 5.46
• Price to Book (P/B): 1.37
• Price to Sales (P/S): 0.37
• P/FCF Ratio: 8.99
• 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: £230.00
• Price Target Upside: -3.77% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 64 Neutral
• Price Target: 230.00p ▼(-3.77% Downside)

Bakkavor Group plc's overall stock score is driven primarily by its stable financial performance, which provides a strong foundation for future growth. However, technical analysis indicates potential short-term weakness, and the valuation suggests the stock might be overvalued. The absence of earnings call data and corporate events limits additional insights.

Positive Factors

Stable Financial Health

The company's stable financial health, marked by consistent revenue growth and solid profitability, provides a strong foundation for long-term growth and resilience against market fluctuations.

Strong Cash Generation

Strong cash generation relative to earnings ensures that Bakkavor can support its operations and investments, enhancing its ability to sustain growth and weather economic downturns.

Balanced Capital Structure

A balanced capital structure with a healthy proportion of equity provides financial stability and flexibility, allowing Bakkavor to invest in growth opportunities without excessive leverage risk.

Negative Factors

Slowing Free Cash Flow Growth

The decline in free cash flow growth may limit Bakkavor's ability to invest in expansion or new projects, potentially impacting its long-term competitive position and growth prospects.

Moderate Profitability

Moderate profitability margins suggest limited pricing power and cost control challenges, which could affect Bakkavor's ability to enhance shareholder value over the long term.

Earnings Decline

A significant decline in earnings per share growth indicates potential challenges in maintaining profitability and could signal underlying operational or market issues that need addressing.

Bakkavor Group plc Business Overview & Revenue Model

Company Description

Bakkavor Group plc is a leading international manufacturer of fresh prepared foods, specializing in an array of products across various sectors including ready meals, salads, desserts, and pizzas. Headquartered in the UK, the company operates numerous production facilities and serves major retailers and food service operators, focusing on quality, innovation, and sustainability in its offerings.

How the Company Makes Money

Bakkavor generates revenue primarily through the sale of its fresh prepared food products to major grocery chains and food service companies. The company operates a business model that emphasizes long-term partnerships with its customers, which include some of the largest supermarket chains in the UK and internationally. Key revenue streams include the production and supply of ready meals, salads, and desserts, often tailored to customer specifications. Bakkavor also benefits from economies of scale and operational efficiencies gained from its extensive manufacturing capabilities. Additionally, the company invests in innovation and product development to enhance its product range, which helps in maintaining strong customer relationships and driving sales. Seasonal demand fluctuations and trends toward healthier eating also influence its revenue, while strategic partnerships with retailers further bolster its market presence and profitability.

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. While free cash flow growth has slowed, the company maintains strong cash flow indicators, highlighting its capacity to generate cash and support operations and investments.

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.25B	2.29B	2.20B	2.14B	1.87B	1.79B
Gross Profit	597.70M	635.30M	589.40M	493.70M	475.00M	447.50M
EBITDA	164.90M	163.80M	168.50M	146.90M	163.70M	131.60M
Net Income	37.30M	55.70M	53.90M	12.50M	56.80M	34.10M
Balance Sheet
Total Assets	1.48B	1.50B	1.48B	1.54B	1.50B	1.45B
Cash, Cash Equivalents and Short-Term Investments	21.20M	29.90M	36.60M	40.20M	31.10M	24.80M
Total Debt	311.10M	306.60M	355.90M	419.10M	405.00M	436.60M
Total Liabilities	884.80M	882.50M	872.70M	923.60M	862.80M	851.10M
Stockholders Equity	598.10M	616.10M	607.60M	617.80M	640.70M	598.10M
Cash Flow
Free Cash Flow	81.00M	94.00M	103.80M	63.30M	84.90M	32.20M
Operating Cash Flow	136.00M	150.30M	147.70M	127.30M	144.70M	88.60M
Investing Cash Flow	-56.10M	-50.50M	-36.90M	-63.90M	-55.60M	-56.30M
Financing Cash Flow	-91.80M	-106.50M	-113.30M	-55.40M	-83.00M	-33.20M

Bakkavor Group plc Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 239.00
• 50DMA: Positive
• 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:BAKK, the sentiment is Positive. The current price of 239 is above the 20-day moving average (MA) of 229.12, above the 50-day MA of 224.05, and above the 200-day MA of 209.34, indicating a bullish trend. The MACD of 2.50 indicates Negative momentum. The RSI at 63.06 is Neutral, neither overbought nor oversold. The STOCH value of 64.52 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
CWK	78 Outperform	£2.69B	18.18	15.07%	2.04%	6.96%	28.47%
PFD	76 Outperform	£1.51B	11.47	9.47%	1.58%	0.50%	20.52%
HFG	71 Outperform	£453.28M	11.58	12.72%	6.85%	8.58%	-15.81%
GNC	70 Outperform	£1.08B	18.81	12.23%	0.80%	7.74%	30.09%
TATE	65 Neutral	£1.65B	48.66	2.48%	5.34%	26.84%	-81.73%
BAKK	64 Neutral	£1.35B	36.24	5.88%	2.49%	0.59%	-41.66%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%

Bakkavor Group plc Corporate Events

Bakkavor Director Distributes Shares for Estate Planning

Bakkavor Group plc announced that Lydur Gudmundsson, a Director and Person Discharging Managerial Responsibility, distributed 1,925,306 ordinary shares to a third party for estate planning purposes. This transaction, conducted outside a trading venue, reflects personal financial management decisions without direct financial consideration, and is in compliance with the UK Market Abuse Regulation.

Bakkavor Announces Significant Share Distribution to Director

Bakkavor Group plc announced a significant transaction involving the distribution of 1,925,306 Ordinary shares by Umbriel Ventures Ltd to Lydur Gudmundsson, a director of the company, for personal estate planning purposes. This transaction, conducted outside a trading venue, reflects internal shareholding adjustments and may have implications for the company’s governance and shareholder structure.

Bakkavor Director Receives Share Distribution

Bakkavor Group plc announced that Lydur Gudmundsson, a Director and Person Discharging Managerial Responsibility, received a distribution of 1,925,306 ordinary shares from Umbriel Ventures Ltd for nil consideration. This transaction, conducted for personal estate planning, reflects internal shareholding adjustments and does not involve any trading venue, potentially impacting the company’s internal share distribution but not its market operations.

Bakkavor Director Distributes Shares for Estate Planning

Bakkavor Group plc announced that Lydur Gudmundsson, a Director and Person Discharging Managerial Responsibility, distributed 3,240,741 ordinary shares to a third party for personal estate planning purposes. This transaction, conducted outside a trading venue, reflects internal strategic decisions and may influence stakeholders’ perceptions of the company’s governance and financial strategies.