Bytes Technology Group Plc (BYIT) AI Stock Analysis

• Market Cap: £717.07M
• Dividend Yield: 5.54%
• Average Volume (3M): 1.00M
• Price to Earnings (P/E): 13.7
• Beta (1Y): 0.85
• Revenue Growth: 7.83%
• EPS Growth: 2.36%
• Country: UK
• Employees: 1,245
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Infrastructure
• EPS (TTM): 0.12
• Shares Outstanding: 236,344,130
• 10 Day Avg. Volume: 1,159,484
• 30 Day Avg. Volume: 1,000,012
• PEG Ratio: 0.87
• Price to Book (P/B): 10.30
• Price to Sales (P/S): 4.65
• P/FCF Ratio: 15.56
• 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: £400.00
• Price Target Upside: 31.84% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1
• EPS Forecast (FY): 0.23
• Revenue Forecast (FY): £243.79M

• Rating: 76 Outperform
• Price Target: 343.00p ▲(13.05% Upside)
• Action: Upgraded Date: 12/07/25
• Date: Action: Upgraded 12/07/25

Bytes Technology Group's strong financial performance and strategic share buybacks are significant strengths, contributing positively to the stock's attractiveness. However, the current bearish technical indicators slightly offset these strengths. The valuation remains appealing, providing a balanced investment opportunity.

Positive Factors

High Profitability / Margins

Bytes' very high gross, EBIT and net margins reflect its value-added reseller and services mix, enabling durable profitability. Strong margins provide long-term reinvestment capacity and buffer against revenue volatility, supporting sustained free cash flow and strategic spending.

Strong Cash Generation

Consistent cash conversion and 16.6% FCF growth show the business reliably turns earnings into cash. This supports dividends, buybacks, and investment without heavy external financing, enhancing resilience and strategic optionality over medium-term cycles.

Low Leverage and High ROE

Very low leverage reduces financial risk and preserves flexibility for M&A, buybacks or capex. The high ROE indicates efficient use of shareholder capital, supporting shareholder returns and demonstrating effective operational profitability relative to equity.

Negative Factors

Vendor / Reseller Dependence

Bytes' core model is dependent on third-party vendors and channel agreements. Structural reliance on vendor pricing, incentives and contract terms limits control over product roadmaps and margins, increasing exposure to vendor strategy shifts and competitive distributor dynamics.

Modest Revenue Growth

Latest-year revenue growth near 5% is modest relative to tech/cloud peers. With already high margins, slower top-line expansion could constrain absolute earnings growth and limit scale benefits unless recurring cloud and services penetration accelerates materially.

Equity Base / ROE Sustainability

The firm's strong ROE may be partly driven by a relatively small equity base. A lower equity ratio reduces buffers against shocks; without improving equity levels, high ROE could prove less sustainable and leave the balance sheet more exposed during downturns.

Bytes Technology Group Plc Business Overview & Revenue Model

Company Description

Bytes Technology Group plc offers software, IT security, hardware, and cloud services in the United Kingdom, rest of Europe, and internationally. The company sells servers, laptops, and other devices; various cloud-based and non-cloud-based licenses; and externally and internally provided training and consulting services. It also offers IT consulting and support services, including IT deployment and training. The company sells its products and services under the Bytes Software Services and Phoenix brands. It serves small- and medium-sized businesses, enterprises, and public sector organizations. The company was founded in 1982 and is headquartered in Leatherhead, the United Kingdom.

How the Company Makes Money

Bytes Technology Group Plc generates revenue through multiple streams, primarily from software licensing and IT procurement services. The company acts as an intermediary between software vendors and end-users, earning commissions and margins on the sale of software licenses. Additionally, Bytes provides managed services, which include ongoing support and maintenance, generating recurring revenue. Significant partnerships with leading software vendors enhance its product offerings and drive sales. The company also benefits from value-added services such as consulting and implementation, further contributing to its earnings.

Bytes Technology Group Plc Financial Statement Overview

Summary

Bytes Technology Group shows strong financial performance with consistent revenue growth, high profit margins, and effective cash flow management. The low debt-to-equity ratio indicates minimal leverage risk, enhancing financial stability.

Income Statement

Bytes Technology Group has demonstrated consistent revenue growth with a 4.88% increase in the latest year. The company maintains a strong gross profit margin of 75.2% and a robust net profit margin of 25.26%, indicating operational efficiency. Additionally, the EBIT margin of 30.6% and EBITDA margin of 35.72% reflect healthy profitability levels. Despite these strengths, monitoring the sustainability of profit margins amidst industry competition is crucial.

Balance Sheet

The company exhibits a solid equity base with a debt-to-equity ratio of 0.02, showcasing minimal leverage risk. The equity ratio stands at 21.54%, reflecting a balanced capital structure. Moreover, a return on equity of 55.94% highlights efficient use of shareholder funds to generate profits. However, maintaining or improving equity levels relative to total assets would enhance financial robustness.

Cash Flow

Bytes Technology Group has achieved a commendable free cash flow growth rate of 16.56%, driven by effective cash management. The operating cash flow to net income ratio of 1.37 indicates strong cash generation capability. The free cash flow to net income ratio of 1.18 further underlines effective conversion of profits into cash. Continued focus on sustaining cash flow growth will be beneficial.

Breakdown	TTM	Feb 2024	Feb 2023	Feb 2022	Feb 2021	Feb 2021
Income Statement
Total Revenue	219.74M	217.13M	207.02M	184.42M	145.84M	393.57M
Gross Profit	163.54M	163.25M	145.78M	149.39M	123.31M	86.89M
EBITDA	65.56M	77.55M	64.20M	53.33M	44.74M	29.54M
Net Income	53.42M	54.84M	46.85M	40.42M	32.85M	19.93M
Balance Sheet
Total Assets	419.94M	455.23M	379.72M	320.77M	283.57M	189.55M
Cash, Cash Equivalents and Short-Term Investments	82.30M	113.08M	88.84M	73.02M	67.12M	20.73M
Total Debt	3.08M	1.94M	1.74M	992.00K	1.18M	1.38M
Total Liabilities	342.52M	357.19M	301.38M	259.27M	236.00M	172.81M
Stockholders Equity	77.42M	98.04M	78.34M	61.50M	47.57M	16.75M
Cash Flow
Free Cash Flow	59.81M	64.90M	55.67M	36.79M	51.43M	30.62M
Operating Cash Flow	66.81M	74.97M	57.01M	38.15M	52.05M	31.22M
Investing Cash Flow	-11.40M	-10.07M	-4.36M	-1.36M	-617.00K	-17.28M
Financing Cash Flow	-44.62M	-40.66M	-36.83M	-30.89M	-5.05M	-40.56M

Bytes Technology Group Plc Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 303.40
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:BYIT, the sentiment is Negative. The current price of 303.4 is above the 20-day moving average (MA) of 300.20, below the 50-day MA of 331.34, and below the 200-day MA of 376.56, indicating a neutral trend. The MACD of -9.86 indicates Negative momentum. The RSI at 46.22 is Neutral, neither overbought nor oversold. The STOCH value of 68.02 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GB:BYIT.

Bytes Technology Group Plc Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BYIT	76 Outperform	£717.07M	13.71	68.93%	5.54%	7.83%	2.36%
CNS	64 Neutral	£66.58M	-52.00	-9.83%	―	-5.43%	-292.31%
BKS	64 Neutral	£145.21M	47.97	7.35%	―	26.09%	32.43%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
SYS	51 Neutral	£11.71M	-5.47	-9.20%	―	-7.45%	78.23%
IOM	48 Neutral	£17.65M	-0.29	-67.57%	23.79%	25.44%	-1877.56%
CLCO	41 Neutral	£776.84K	―	―	―	―	―

Bytes Technology Group Plc Corporate Events

Bytes Technology Group Confirms Total Voting Rights at 236.3 Million Shares

Bytes Technology Group plc has confirmed that its issued share capital consists of 236,344,134 ordinary voting shares of £0.01 each, with no shares held in treasury, resulting in an equivalent number of total voting rights. This updated share capital and voting rights figure provides the official denominator for shareholders to assess and report any notifiable holdings or changes in their interest under UK disclosure and transparency regulations, reinforcing ongoing compliance obligations for investors in the company’s London- and Johannesburg-listed stock.

The most recent analyst rating on (GB:BYIT) stock is a Hold with a £400.00 price target. To see the full list of analyst forecasts on Bytes Technology Group Plc stock, see the GB:BYIT Stock Forecast page.

Bytes Technology Group Confirms Total Voting Rights and Share Capital

Bytes Technology Group plc has confirmed that its issued share capital consists of 236,344,134 ordinary voting shares of £0.01 each, with no shares held in treasury, resulting in an equal number of voting rights. This updated share capital and voting rights figure provides the reference denominator for investors to assess and report any notifiable holdings or changes in their interests in accordance with UK disclosure and transparency rules, reinforcing regulatory clarity for shareholders across its London and Johannesburg listings.

The most recent analyst rating on (GB:BYIT) stock is a Buy with a £394.00 price target. To see the full list of analyst forecasts on Bytes Technology Group Plc stock, see the GB:BYIT Stock Forecast page.