Begbies Traynor (BEG) AI Stock Analysis

• Market Cap: £146.27M
• Dividend Yield: 4.37%
• Average Volume (3M): 179.79K
• Price to Earnings (P/E): 59.9
• Beta (1Y): 0.20
• Revenue Growth: 13.88%
• EPS Growth: 512.00%
• Country: UK
• Employees: 1,250
• Sector: Industrials
• Sector Strength: 69
• Industry: Corporate Services
• EPS (TTM): 0.01
• Shares Outstanding: 159,683,180
• 10 Day Avg. Volume: 181,174
• 30 Day Avg. Volume: 179,792
• PEG Ratio: 0.12
• Price to Book (P/B): N/A
• Price to Sales (P/S): 1.07
• Price to Cash Flow (P/CF): 70.10
• P/FCF Ratio: 0.00
• 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: 155.00p
• Price Target Upside: 66.67% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

Begbies Traynor demonstrates strong financial management with revenue growth and efficient cash flow. However, challenges in profitability and a high P/E ratio raise concerns about valuation. Technical indicators suggest bearish momentum, and while corporate events highlight growth potential, they also signal economic distress that could impact future performance.

Positive Factors

Financial Performance

Begbies highlights that it has made a good start to FY25E with double-digit YoY growth in revenue and adjusted profits.

Valuation

The current valuation is viewed as incongruous with the group's trading track record and outlook, presenting a compelling entry point.

Negative Factors

Market Conditions

Shares have been under pressure ahead of the UK budget, which may change tax relief on AIM stocks and increase employer national insurance.

Begbies Traynor Business Overview & Revenue Model

Company Description

Begbies Traynor Group plc (BEG) is a leading professional services consultancy in the UK specializing in business recovery, financial advisory, and property services. The company provides a range of services including corporate and personal insolvency, financial restructuring, corporate finance, forensic accounting, and commercial property management to a wide array of clients across various industries.

How the Company Makes Money

Begbies Traynor makes money primarily through the provision of its professional services across three main segments: insolvency and restructuring, property services, and financial advisory. The insolvency and restructuring segment is the largest revenue generator, offering services to businesses and individuals facing financial distress. Revenue is earned through fees charged for managing insolvency processes, restructuring plans, and advisory services. The property services segment generates income from activities such as property management, valuations, and sales, serving both corporate and public sector clients. The financial advisory segment includes services such as corporate finance and forensic accounting, with revenue derived from consultancy fees and transaction-based charges. The company's earnings are also influenced by its strategic partnerships and its robust network of experienced professionals, which help in sourcing and executing high-value engagements.

Begbies Traynor Financial Statement Overview

Summary

Begbies Traynor exhibits solid revenue growth and operational efficiency, as demonstrated by healthy margins and robust cash flow. However, the decline in net income and EBIT margin indicates pressure on profitability, which needs addressing for sustained success.

Income Statement

Begbies Traynor's income statement reflects a solid growth trajectory in revenue, with a notable increase from 2023 to 2024. Despite a decline in net income, the company maintains healthy gross and EBITDA margins, indicating strong operational efficiency. However, the drop in EBIT margin highlights pressure on operating profitability.

Balance Sheet

The balance sheet indicates a stable financial position with a manageable debt-to-equity ratio. Equity has decreased slightly, but the company maintains a favorable equity ratio, providing a cushion against liabilities. The total assets have grown steadily, supporting the company's expansion efforts.

Cash Flow

Cash flow analysis reveals robust free cash flow growth and a strong operating cash flow to net income ratio, suggesting effective cash management and operational efficiency. Despite fluctuations in financing activities, the company has successfully generated sufficient cash to cover capital expenditures.

Breakdown
Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement		Total Revenue
136.73M	121.83M	110.00M	83.83M	70.50M
	Gross Profit
53.11M	47.72M	42.17M	32.37M	26.87M
	EBIT
7.70M	15.39M	12.95M	9.16M	6.65M
	EBITDA
11.64M	16.75M	14.16M	9.36M	9.96M
	Net Income Common Stockholders
1.45M	2.91M	-500.00K	153.00K	931.00K
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
5.56M	8.00M	9.69M	7.99M	7.25M
	Total Assets
157.83M	153.96M	146.29M	144.27M	116.55M
	Total Debt
18.65M	13.21M	11.35M	13.82M	18.37M
	Net Debt
13.10M	5.21M	1.66M	5.83M	11.12M
	Total Liabilities
79.41M	69.62M	61.77M	58.02M	50.98M
	Stockholders Equity
78.42M	84.34M	84.53M	86.25M	65.57M
Cash Flow		Free Cash Flow
7.70M	5.83M	8.76M	11.74M	869.00K
	Operating Cash Flow
9.15M	6.81M	9.83M	13.04M	1.66M
	Investing Cash Flow
-3.42M	-943.00K	-913.00K	-21.96M	-1.12M
	Financing Cash Flow
-8.18M	-7.55M	-7.21M	9.66M	2.70M

Begbies Traynor Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 93.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:BEG, the sentiment is Neutral. The current price of 93 is below the 20-day moving average (MA) of 93.43, below the 50-day MA of 94.24, and below the 200-day MA of 95.89, indicating a neutral trend. The MACD of -0.45 indicates Positive momentum. The RSI at 52.09 is Neutral, neither overbought nor oversold. The STOCH value of 41.67 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for GB:BEG.

Begbies Traynor Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FRP	78 Outperform	£340.46M	12.63	34.33%	3.69%	29.83%	60.50%
GTLY	67 Neutral	£182.25M	31.02	7.13%	6.96%	4.95%	-53.49%
BEG	56 Neutral	£146.27M	59.87	3.11%	4.37%	13.88%	512.00%
Sector *	54 Neutral	C$5.99M	-3.01	-12.59%	―	0.00%	0.00%

Begbies Traynor Corporate Events

Begbies Traynor Announces Total Voting Rights Update

Begbies Traynor Group PLC announced its total voting rights and shares in issue, which stands at 159,683,185 as of the date of the notice. This information is crucial for shareholders to calculate their interests and any changes therein, impacting how they engage with the company and make investment decisions.

Begbies Traynor Group Maintains Strong Q3 Performance Amid Supportive Market Conditions

Begbies Traynor Group reported consistent financial performance across its divisions in the third quarter of 2025, aligning with the board’s expectations. With a strong pipeline and sustained activity levels, the company anticipates maintaining its growth trajectory for the full year. The market conditions, marked by rising insolvencies and financial distress, are supportive of the company’s strategic investments and team developments aimed at seizing growth opportunities.

UK Businesses Face Escalating Financial Distress: Begbies Traynor Report

The latest report from Begbies Traynor highlights a significant rise in the number of UK businesses in ‘critical’ financial distress, with a 50% increase in Q4 2024, affecting 46,853 companies. This surge, particularly in consumer-facing sectors, underscores a deteriorating economic outlook exacerbated by rising operational costs, higher wages, and recent tax hikes. The report predicts continued financial strain and potential insolvencies in 2025, painting a challenging picture for UK businesses facing compounding economic pressures.

Begbies Traynor Mourns Loss of Key Non-Executive Director

Begbies Traynor Group plc announced the death of Graham McInnes, a non-executive director, after a short illness. McInnes, who joined the board in 2004 and played a crucial role in the company’s listing on AIM, had served as a senior independent non-executive director since 2018. His passing is a significant loss to the company, noted for his vast experience and wise counsel, impacting the board and the company’s future direction.

Begbies Traynor Group Announces Half-Year Results Webinar

Begbies Traynor Group will hold a webinar on January 9, 2025, where Executive Chairman Ric Traynor and Group Finance Director Nick Taylor will present the company’s half-year results for the period ending October 31, 2024. This webinar is intended for both existing and potential shareholders, allowing for interactive participation through questions that management will address. The availability of a recording post-event ensures broader accessibility, potentially enhancing stakeholder engagement.