Bakkavor Group plc (BAKK) AI Stock Analysis

• Market Cap: £1.26B
• Dividend Yield: 3.27%
• Average Volume (3M): 1.38M
• Price to Earnings (P/E): 22.5
• Beta (1Y): 0.28
• Revenue Growth: 4.03%
• EPS Growth: 3.21%
• Country: UK
• Employees: 18,000
• Sector: Consumer Defensive
• Sector Strength: 58
• Industry: Packaged Foods
• EPS (TTM): 0.04
• Shares Outstanding: 579,425,600
• 10 Day Avg. Volume: 737,390
• 30 Day Avg. Volume: 1,383,815
• PEG Ratio: -1.83
• Price to Book (P/B): 2.04
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 12.38
• 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: -7.62% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 74 Outperform
• Price Target: 241.00p ▲(11.32%Upside)

Bakkavor Group plc's overall performance is solid, driven by stable financial health and strategic corporate events. While technical analysis and valuation provide moderate support, significant corporate actions like the acquisition and strategic divestments boost confidence in the stock’s future prospects.

Bakkavor Group plc Business Overview & Revenue Model

Company Description

Bakkavor Group plc (BAKK) is a leading provider of fresh prepared foods, predominantly operating in the United Kingdom with a presence in the United States and China. The company specializes in creating and delivering a wide range of fresh meals, salads, desserts, and other convenience food products. Bakkavor collaborates closely with major grocery retailers and foodservice operators to supply high-quality, innovative food solutions that cater to changing consumer tastes and preferences.

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 shows strong revenue growth and effective cost management, with stable profitability margins. The company's capital structure is well-balanced, despite a slight decrease in free cash flow.

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: 216.50
• 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 216.5 is below the 20-day moving average (MA) of 218.22, above the 50-day MA of 211.48, and above the 200-day MA of 164.07, indicating a bullish trend. The MACD of 2.16 indicates Positive momentum. The RSI at 60.48 is Neutral, neither overbought nor oversold. The STOCH value of 70.18 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
GNC	80 Outperform	£1.03B	19.57	12.12%	0.84%	0.49%	14.18%
CWK	79 Outperform	£2.80B	20.87	14.14%	2.92%	4.77%	18.94%
HFG	74 Outperform	£775.51M	19.72	12.74%	5.81%	-0.03%	7.88%
BAKK	74 Outperform	£1.26B	22.51	9.10%	3.27%	4.03%	3.21%
PFD	70 Outperform	£1.63B	13.22	9.02%	1.49%	1.01%	11.12%
TATE	67 Neutral	£2.29B	36.70	3.39%	5.15%	5.40%	-67.46%
Sector *	66 Neutral	£10.38B	8.21	3.35%	3.64%	-1.42%	18.13%

Bakkavor Group plc Corporate Events

Bakkavor Group Exits China with £50m Sale

Bakkavor Group plc has completed the sale of its China operations to Lihe Xing (Qingdoa) Food Technology Co. Ltd., marking the company’s exit from the region. The transaction, valued at approximately £50 million, is expected to yield a net profit of around £18 million. This strategic move allows Bakkavor to focus on its core markets and supports its medium-term margin target of 6%, enhancing its operational focus and financial leverage.

The most recent analyst rating on (GB:BAKK) stock is a Buy with a £2.00 price target. To see the full list of analyst forecasts on Bakkavor Group plc stock, see the GB:BAKK Stock Forecast page.

Bakkavor Shareholders Approve Acquisition by Greencore

Bakkavor Group plc has announced that its shareholders have voted in favor of a proposed acquisition by Greencore Group plc, which will be executed through a Court-sanctioned scheme of arrangement. The approval from both Bakkavor and Greencore shareholders marks a significant step forward in the transaction, which is expected to be finalized in early 2026, pending court approval. This acquisition is anticipated to enhance the market positioning of both companies in the fresh prepared foods sector, potentially benefiting stakeholders through expanded market reach and operational synergies.

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 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.