Begbies Traynor (BEG) AI Stock Analysis

• Market Cap: £185.14M
• Dividend Yield: 3.91%
• Average Volume (3M): 407.64K
• Price to Earnings (P/E): 29.3
• Beta (1Y): 0.43
• Revenue Growth: 8.31%
• EPS Growth: 305.88%
• Country: UK
• Employees: 1,300
• Sector: Industrials
• Sector Strength: 72
• Industry: Specialty Business Services
• EPS (TTM): 0.05
• Shares Outstanding: 159,601,230
• 10 Day Avg. Volume: 227,559
• 30 Day Avg. Volume: 407,638
• PEG Ratio: 0.07
• Price to Book (P/B): 1.78
• Price to Sales (P/S): 0.95
• P/FCF Ratio: 10.86
• 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: £155.67
• Price Target Upside: 41.52% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 3
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 69 Neutral
• Price Target: 121.00p ▲(10.00% Upside)

Begbies Traynor's overall stock score reflects a strong financial foundation and positive corporate events, which are the most significant factors. The technical analysis suggests caution due to bearish indicators, and the valuation indicates potential overvaluation. However, the company's strategic acquisitions and solid dividend yield provide a balanced outlook.

Positive Factors

Revenue Growth

Consistent revenue growth signifies the company's ability to expand its market presence and effectively meet client demands, ensuring long-term business sustainability.

Cash Flow Generation

Strong cash flow generation supports future growth and investment opportunities, providing the company with financial flexibility and resilience against market fluctuations.

Balance Sheet Health

A conservative debt-to-equity ratio reflects financial stability, reducing risk and ensuring the company can withstand economic downturns while pursuing growth strategies.

Negative Factors

Profitability Margins

Low net profit margins indicate potential challenges in cost management or pricing power, which could limit the company's ability to maximize shareholder returns over time.

Market Position

Although not directly related to fundamentals, a bearish trend may reflect market concerns about competitive positioning or growth prospects, potentially impacting long-term investor confidence.

Valuation Concerns

High valuation ratios can indicate market expectations of strong future growth, but if not met, they may lead to downward pressure on the stock, affecting long-term capital appreciation potential.

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 a variety of services primarily within the business recovery and insolvency sectors. Key revenue streams include fees charged for insolvency appointments, advisory services, and consultancy projects. The company earns income from corporate recovery services, where it acts as an administrator or liquidator for companies in distress. Additionally, personal insolvency services contribute to revenue through fees for managing individual voluntary arrangements (IVAs) and bankruptcy cases. The firm also benefits from strategic partnerships with financial institutions and legal firms, which can lead to referrals and additional business opportunities. Overall, the company's revenue model is built on providing specialized financial services that address the needs of clients facing financial difficulties.

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. Overall, the financial statements reflect a well-managed company with a positive growth trajectory and sound financial health.

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: 110.00
• 50DMA: Negative
• 100DMA: Negative
• 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 110 is below the 20-day moving average (MA) of 111.35, below the 50-day MA of 111.70, and above the 200-day MA of 106.84, indicating a neutral trend. The MACD of -0.66 indicates Positive momentum. The RSI at 46.31 is Neutral, neither overbought nor oversold. The STOCH value of 27.50 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
KEYS	76 Outperform	£204.26M	20.98	56.75%	5.89%	16.29%	22.80%
BEG	69 Neutral	£185.14M	29.29	12.60%	3.91%	8.31%	305.88%
RST	66 Neutral	£338.89M	36.08	4.01%	2.14%	6.90%	145.00%
CPI	64 Neutral	£402.67M	24.63	9.00%	―	-4.87%	―
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
KGH	61 Neutral	£148.46M	19.59	7.40%	3.05%	8.01%	-23.02%
PPHC	61 Neutral	£280.74M	-44.02	-40.39%	1.07%	15.27%	-73.02%

Begbies Traynor Corporate Events

Begbies Traynor Group Announces Investor Webinar for Half-Year Results

Begbies Traynor Group has announced an investor webinar scheduled for December 12, 2025, where the executive team will present the company’s half-year results for the period ending October 31, 2025. This event is open to existing and potential shareholders, providing an opportunity to engage with the management team and gain insights into the company’s performance and future outlook.

Begbies Traynor Expands Property Advisory Services with Kirkby Diamond Acquisition

Begbies Traynor Group PLC has announced the acquisition of Kirkby Diamond LLP and Kirkby Diamond Property Management Ltd, integrating them with its Eddisons division to expand its property advisory services. This acquisition, valued at up to £8.25 million, aims to strengthen the group’s market position by extending its geographical coverage along the M1 corridor and increasing its annualized revenue run rate to over £50 million. The move aligns with the group’s strategy to enhance service offerings and achieve sustainable financial growth, benefiting stakeholders by consolidating its presence in key industrial locations.

Begbies Traynor Expands Property Auctions with Network Auctions Acquisition

Begbies Traynor Group plc has announced the acquisition of Network Auctions by its division Eddisons, as part of its strategy to expand its property auction business. This acquisition aims to enhance the group’s service offering and increase its market presence in the south east of England, with the Network Auctions team joining Eddisons to contribute to its growth.

Begbies Traynor Group Reports Strong First Half Performance Amidst Growth Initiatives

Begbies Traynor Group plc reported a strong first half of the year, driven by organic growth that increased revenue by approximately 7% and adjusted profit before tax by around 5%. Despite a reduction in operating margins due to increased employer national insurance costs, the company remains confident in meeting full-year market expectations. The restructuring and property advisory segments performed well, with the latter seeing a 25% profit growth. However, the financial advisory segment faced challenges due to the macroeconomic environment, impacting revenue and margins. The company continues to invest in organic development and acquisitions, expecting these efforts to benefit the second half of the year.

UK Businesses Face Rising Financial Distress Amid Economic Uncertainty

Begbies Traynor’s latest Red Flag Alert report reveals a significant 78% year-on-year increase in ‘critical’ financial distress among UK businesses, with 55,530 companies affected as of Q3 2025. This surge is attributed to economic uncertainty, high inflation, and increased taxes, with consumer-facing sectors like leisure, hospitality, and retail experiencing the most severe impacts. The report highlights the urgent need for government intervention in the upcoming Budget to prevent further business failures and economic decline. Without decisive pro-business measures, the UK economy faces rising insolvencies and a loss of confidence, with many companies already scaling back operations to survive.

Begbies Traynor Transfers Treasury Shares for Acquisition Obligations

Begbies Traynor Group PLC has transferred 398,134 ordinary shares from its treasury to fulfill earn-out obligations related to a corporate acquisition. This transaction leaves the company with 163,806 shares in treasury, maintaining the total number of ordinary shares in issue at 159,765,037, and the voting rights at 159,601,231. This adjustment is significant for shareholders as it affects the calculation of their interests in the company.

Begbies Traynor Announces Total Voting Rights Update

Begbies Traynor Group PLC has announced its total voting rights, with 159,203,097 shares available for voting after accounting for shares held in treasury. This information is crucial for shareholders to determine their notification requirements regarding their interest in the company, impacting how they manage their investments and stake in Begbies Traynor.

Begbies Traynor Group Announces New CEO and Management Board

Begbies Traynor Group plc has appointed Mark Fry as the new Group CEO, a role created to optimize the leadership structure in line with the company’s growth ambitions. The establishment of a new management board will support the execution of the growth strategy, with Julian Pitts and Anthony Spencer taking on significant roles in restructuring and real estate advisory, respectively. These changes are expected to enhance the company’s ability to manage its increased scale and deliver on its ambitious plans.

Begbies Traynor Group PLC Announces Successful AGM Resolutions

At the Annual General Meeting of Begbies Traynor Group PLC held on September 18, 2025, all proposed resolutions were successfully passed by the shareholders. This outcome reflects the company’s stable governance and shareholder support, potentially reinforcing its position in the professional services industry and signaling confidence to stakeholders.

Begbies Traynor Reports Strong Financial Performance and Growth Prospects

Begbies Traynor Group plc reported a successful financial year, surpassing market expectations in revenue, EBITDA, and net cash, driven by strong organic growth. The company continues to invest in organic development and acquisitions, maintaining a robust balance sheet and cash flow, and is on track to meet its medium-term revenue target of £200m. The firm is optimistic about future growth, supported by a diversified client base and multiple growth opportunities.

Begbies Traynor Transfers Treasury Shares to Settle Staff Options

Begbies Traynor Group PLC has transferred 13,432 ordinary shares from its treasury to fulfill staff share options that have been exercised. This transfer reduces the company’s treasury shares to 561,940, while the total number of shares in issue, excluding treasury shares, stands at 159,203,097. This move reflects the company’s ongoing commitment to employee incentives and may impact its financial structure and shareholder dynamics.