Begbies Traynor (BEG) AI Stock Analysis

• Market Cap: £159.73M
• Dividend Yield: 4.1%
• Average Volume (3M): 194.54K
• Price to Earnings (P/E): 65.4
• Beta (1Y): 0.17
• Revenue Growth: 13.88%
• EPS Growth: 512.00%
• Country: UK
• Employees: 1,300
• Sector: Industrials
• Sector Strength: 92
• Industry: Specialty Business Services
• EPS (TTM): 0.05
• Shares Outstanding: 159,730,560
• 10 Day Avg. Volume: 221,396
• 30 Day Avg. Volume: 194,538
• PEG Ratio: 0.37
• Price to Book (P/B): 1.85
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 18.94
• 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: £156.50
• Price Target Upside: 56.50% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 64 Neutral
• Price Target: 105.00p ▲( 5.00% Upside)

Begbies Traynor's solid financial performance and positive corporate developments are offset by valuation concerns due to a high P/E ratio. The technical outlook is stable, supporting a moderately positive view.

Positive Factors

Financial Performance

The company's trading track record, with a 15% adjusted EPS CAGR since FY15A, supports the positive outlook.

Investment Case

A 9% free cash flow yield and 4.6% dividend yield support the investment case for Begbies.

Valuation

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

Negative Factors

Insolvency Risk

With recent reports of rising insolvencies and business financial distress, market conditions remain supportive.

Market Conditions

The report highlights significant financial distress among UK businesses, with a sharp rise in companies facing critical financial challenges.

Begbies Traynor Business Overview & Revenue Model

Company Description

Begbies Traynor Group plc provides various professional services to businesses, professional advisors, large corporations, and financial institutions in the United Kingdom. The company operates in two segments, Business Recovery and Financial Advisory Services, and Property Advisory and Transactional Services. It offers business rescue and recovery services comprising company voluntary arrangement, company administration, corporate simplification and streamlining, and financing and refinancing options; closure options for insolvent companies; advisory services for corporate and commercial finance, restructuring and turnaround, financial consulting and options, forensic accounting and technology, investigations, and corporate solutions; and red flag alert services, as well as personal insolvency solutions comprising individual voluntary arrangement, bankruptcy, debt arrangement scheme, sequestration, and trust deed services. The company also provides property services, such as property auctions, building and project consultancy, machinery and business assets, valuations, property management, rating, insurance broking and valuations, and lease advice, as well as occupier and vacant property compliance services. It offers its services to accountants, asset-based lenders, banks, creditors, and solicitors, as well as directors and business owners. Begbies Traynor Group plc was founded in 1989 and is headquartered in Manchester, the United Kingdom.

How the Company Makes Money

Begbies Traynor generates revenue primarily through fees charged for its professional services in business recovery, financial advisory, and property services. The company's revenue streams include fees from insolvency and restructuring assignments, advisory services for corporate finance transactions, and management fees from property services. Key factors contributing to its earnings include the demand for insolvency and restructuring expertise in challenging economic conditions, as well as strategic acquisitions that expand its service offerings and geographic reach. Additionally, partnerships with legal firms and financial institutions enhance its ability to secure high-profile cases and broaden its client base.

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: Positive
• Last Price: 100.00
• 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:BEG, the sentiment is Positive. The current price of 100 is above the 20-day moving average (MA) of 95.92, above the 50-day MA of 96.43, and above the 200-day MA of 94.17, indicating a bullish trend. The MACD of 0.70 indicates Negative momentum. The RSI at 58.98 is Neutral, neither overbought nor oversold. The STOCH value of 58.07 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:BEG.

Begbies Traynor Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
KGH	77 Outperform	£127.43M	11.19	11.37%	2.84%	5.40%	19.01%
KEYS	73 Outperform	£187.98M	21.96	45.84%	3.14%	12.22%	7.48%
RST	68 Neutral	£360.11M	28.77	5.32%	2.02%	-0.65%	―
Sector *	64 Neutral	$4.39B	11.81	5.20%	249.38%	3.96%	-12.36%
BEG	64 Neutral	£159.73M	65.36	3.11%	4.10%	13.88%	512.00%
CPI	62 Neutral	£202.28M	3.18	49.03%	―	-10.33%	―
PPHC	50 Neutral	£166.30M	―	-28.97%	5.19%	7.76%	-60.70%

Begbies Traynor Corporate Events

Begbies Traynor Achieves Tenth Year of Profit Growth with Strong Financial Performance

Begbies Traynor Group plc reported strong financial performance for the year ending April 2025, with revenue and EBITDA surpassing expectations. The company achieved double-digit growth in revenue and adjusted EBITDA, marking its tenth consecutive year of profit growth. The business recovery and advisory division saw significant organic growth, while the property advisory services benefited from previous investments. The group maintained strong cash generation, supporting acquisitions and shareholder returns, and expanded its team with senior hires to drive future growth.

The most recent analyst rating on (GB:BEG) stock is a Buy with a £150.00 price target. To see the full list of analyst forecasts on Begbies Traynor stock, see the GB:BEG Stock Forecast page.

Begbies Traynor Announces Total Voting Rights Update

Begbies Traynor Group PLC has announced that the total number of shares in issue and total voting rights as of May 2, 2025, is 159,730,566. This information is crucial for shareholders to determine their interests or any changes in their interests in the company, reflecting the company’s commitment to transparency and regulatory compliance.

UK Businesses Face Rising Financial Distress Amid Economic Challenges

The latest ‘Red Flag Alert’ report from Begbies Traynor reveals a concerning rise in financial distress among UK businesses, with a 13.1% year-on-year increase in ‘critical’ financial distress despite a slight decrease in the first quarter of 2025. Consumer-facing industries such as Bars & Restaurants and Travel & Tourism have been hit the hardest, with significant increases in distress levels. The report highlights the potential impact of impending US tariffs and domestic tax changes, which could exacerbate the situation, pushing many businesses towards insolvency. Business leaders are urged to consider restructuring and refinancing options as they navigate these challenges.

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.