Begbies Traynor (BEG) AI Stock Analysis

• Market Cap: £189.93M
• Dividend Yield: 3.47%
• Average Volume (3M): 372.20K
• Price to Earnings (P/E): 30.2
• Beta (1Y): 0.26
• Revenue Growth: 12.41%
• EPS Growth: 330.43%
• Country: UK
• Employees: 1,300
• Sector: Industrials
• Sector Strength: 75
• Industry: Specialty Business Services
• EPS (TTM): 0.03
• Shares Outstanding: 158,939,940
• 10 Day Avg. Volume: 239,760
• 30 Day Avg. Volume: 372,198
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: £137.33
• Price Target Upside: 16.38% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3

• Rating: 64 Neutral
• Price Target: 105.00p ▼(-11.02% Downside)

Begbies Traynor's overall stock score is driven by its strong financial performance, particularly in cash flow generation and revenue growth. The technical analysis suggests a neutral market sentiment, while the valuation indicates the stock may be priced on the higher side. The absence of earnings call data and corporate events means these factors did not influence the score.

Positive Factors

Financial Performance

Financial performance across both divisions has been consistent with the board's expectations in the quarter.

Growth Opportunities

The group continues to invest in and develop its teams to take advantage of opportunities for growth.

Investment Opportunity

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

Negative Factors

Economic Environment

The group notes that 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 through multiple streams, primarily by providing insolvency and business recovery services, which account for a significant portion of its income. The company charges fees for its advisory services, which can include hourly rates or fixed fees depending on the complexity of the case. Additional revenue is generated through personal insolvency services, where the company assists individuals in managing their debts. Furthermore, the firm has established key partnerships and collaborations with financial institutions, legal firms, and other stakeholders, enhancing its service offerings and driving client referrals. The company may also earn income from property advisory services, including valuations and asset management, contributing to its overall financial performance.

Begbies Traynor Financial Statement Overview

Summary

Begbies Traynor presents a solid financial profile with consistent revenue growth and strong cash flow generation. While profitability margins could be improved, the company maintains a stable balance sheet with low leverage and a strong equity position.

Income Statement

Begbies Traynor has demonstrated consistent revenue growth over the years, with a notable 4.44% increase in the most recent period. The company maintains a healthy gross profit margin of 44.05%, indicating strong cost management. However, the net profit margin is relatively low at 4.10%, suggesting room for improvement in profitability. The EBIT and EBITDA margins are stable, reflecting efficient operations.

Balance Sheet

The company's balance sheet shows a conservative debt-to-equity ratio of 0.21, indicating prudent financial leverage. Return on equity is moderate at 7.68%, suggesting effective use of equity to generate profits. The equity ratio stands at 50.49%, showcasing a solid equity base relative to total assets. Overall, the balance sheet reflects financial stability with manageable debt levels.

Cash Flow

Begbies Traynor exhibits strong cash flow performance, with a significant free cash flow growth rate of 48.77% in the latest period. The operating cash flow to net income ratio is 2.44, indicating robust cash generation relative to net income. The free cash flow to net income ratio of 0.87 further underscores the company's ability to convert profits into cash, supporting future growth and investment opportunities.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	153.70M	153.70M	136.73M	121.83M	110.00M	83.83M
Gross Profit	67.70M	67.70M	53.11M	47.72M	42.17M	32.37M
EBITDA	16.90M	18.30M	11.64M	16.75M	14.16M	9.36M
Net Income	6.30M	6.30M	1.45M	2.91M	-500.00K	153.00K
Balance Sheet
Total Assets	162.40M	162.40M	157.83M	153.96M	146.29M	144.27M
Cash, Cash Equivalents and Short-Term Investments	7.90M	7.90M	5.56M	8.00M	9.69M	7.99M
Total Debt	17.00M	17.00M	18.65M	13.21M	11.35M	13.82M
Total Liabilities	80.40M	80.40M	79.41M	69.62M	61.77M	58.02M
Stockholders Equity	82.00M	82.00M	78.42M	84.34M	84.53M	86.25M
Cash Flow
Free Cash Flow	13.40M	13.40M	7.70M	5.83M	8.76M	11.74M
Operating Cash Flow	15.40M	15.40M	9.15M	6.81M	9.83M	13.04M
Investing Cash Flow	-2.50M	-2.50M	-3.42M	-943.00K	-913.00K	-21.96M
Financing Cash Flow	-10.60M	-10.60M	-8.18M	-7.55M	-7.21M	9.66M

Begbies Traynor Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 118.00
• 50DMA: Negative
• 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:BEG, the sentiment is Neutral. The current price of 118 is below the 20-day moving average (MA) of 118.20, below the 50-day MA of 118.19, and above the 200-day MA of 101.36, indicating a neutral trend. The MACD of 0.07 indicates Positive momentum. The RSI at 48.93 is Neutral, neither overbought nor oversold. The STOCH value of 37.61 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
KGH	77 Outperform	£150.60M	14.09	11.37%	2.52%	5.40%	19.01%
KEYS	64 Neutral	£187.13M	21.77	45.84%	3.05%	13.00%	11.16%
BEG	64 Neutral	£189.93M	30.18	7.85%	3.47%	12.41%	330.43%
Sector *	64 Neutral	$10.66B	15.60	8.14%	2.00%	2.79%	-14.82%
RST	63 Neutral	£350.53M	37.90	4.01%	2.03%	6.90%	―
PPHC	63 Neutral	£218.67M	―	-28.97%	3.46%	7.76%	-60.70%
CPI	57 Neutral	£278.68M	16.47	9.00%	―	-4.87%	―

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.