finnCap Group plc (CAV) AI Stock Analysis

• Market Cap: £39.67M
• Dividend Yield: 5.29%
• Average Volume (3M): 509.31K
• Price to Earnings (P/E): 24.7
• Beta (1Y): 0.83
• Revenue Growth: -9.55%
• EPS Growth: N/A
• Country: UK
• Employees: 197
• Sector: Financial
• Sector Strength: 70
• Industry: Financial - Capital Markets
• EPS (TTM): <0.01
• Shares Outstanding: 387,125,100
• 10 Day Avg. Volume: 491,393
• 30 Day Avg. Volume: 509,310
• PEG Ratio: -0.36
• Price to Book (P/B): 0.80
• Price to Sales (P/S): 0.58
• P/FCF Ratio: 4.77
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 52 Neutral
• Price Target: 11.00p ▲(15.79% Upside)

The overall stock score of 52 reflects a mixed outlook. The company's financial performance shows recovery signs, but technical indicators suggest bearish momentum. The high P/E ratio indicates overvaluation, though the strong dividend yield offers some compensation. Continued focus on improving operational efficiency and revenue growth is essential for future performance.

Positive Factors

Leverage Management

Improved leverage management enhances financial stability, reducing risk and providing more flexibility for future investments and growth.

Cash Flow Generation

Positive free cash flow growth reflects effective cash management, providing resources for reinvestment and shareholder returns, supporting long-term sustainability.

Profitability Improvement

Returning to profitability indicates improved operational performance, enhancing the company's ability to invest in growth and withstand economic fluctuations.

Negative Factors

Revenue Growth Inconsistency

Inconsistent revenue growth can hinder long-term planning and investment, posing challenges to maintaining competitive positioning and market share.

Gross Margin Pressure

Decreasing gross margins suggest rising costs or pricing pressures, which can impact profitability and limit the ability to invest in growth initiatives.

Operational Efficiency

Low operational efficiency can restrict profitability and growth potential, necessitating improvements in cost management and process optimization.

finnCap Group plc Business Overview & Revenue Model

Company Description

Cavendish Financial plc provides various financial services to growth companies in the United Kingdom. The company offers equities research, distribution and execution, and analytics services. It provides investment banking services, such as strategic advisory and capital raising services comprising public market fund raisings, including placings, rights issues, and open offers; IPOs; sell-side or buy-side private M&A; public company M&A; debt arrangement and advice; private capital fund raisings; and general advice on strategic options, as well as acts as a corporate broker/NOMAD on a retained basis. It offers its services to listed and private companies, private equity and hedge funds, institutional investors, family offices, investment trusts, and private client fund managers. It serves various sectors, including technology, consumer, life sciences, support services, industrial technology, energy, mining, and financials. The company was formerly known as finnCap Group plc and changed its name to Cavendish Financial plc in September 2023. Cavendish Financial plc was founded in 2007 and is based in London, the United Kingdom.

How the Company Makes Money

finnCap Group plc generates revenue through multiple streams, primarily from advisory fees, brokerage commissions, and equity underwriting. The company's advisory services, including mergers and acquisitions, generate income through success fees and retainer arrangements. Additionally, the firm earns commissions from trading activities and stockbroking services, which include facilitating the buying and selling of securities for clients. Equity underwriting contributes to revenue by providing capital raising services for companies looking to go public or raise funds through public offerings. Significant partnerships with institutional investors and corporate clients further enhance its earning potential, allowing the firm to expand its service offerings and reach within the market.

finnCap Group plc Financial Statement Overview

Summary

finnCap Group plc has shown signs of recovery with improved profitability and cash flow metrics. While revenue growth has been inconsistent, the company has managed to enhance its financial stability by reducing leverage and generating positive free cash flow. Continued focus on operational efficiency and revenue growth will be crucial for sustained financial health.

Income Statement

The company has shown fluctuating revenue growth with a recent decline of 9.88% in the latest year. Gross profit margins have decreased over time, indicating potential cost pressures. However, the company has returned to profitability with a positive net profit margin of 1.37% after a negative margin in the previous year. EBIT and EBITDA margins have improved but remain low, suggesting limited operational efficiency.

Balance Sheet

The debt-to-equity ratio has improved to 0.24, indicating better leverage management. Return on equity has turned positive, reflecting improved profitability. The equity ratio remains stable, suggesting a solid capital structure. However, the company should continue to monitor its debt levels to maintain financial stability.

Cash Flow

Free cash flow growth is positive at 5.77%, indicating improved cash generation. The operating cash flow to net income ratio is low, suggesting potential challenges in converting earnings into cash. However, the free cash flow to net income ratio is strong, highlighting effective cash management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	55.65M	55.65M	48.09M	32.86M	52.55M	46.63M
Gross Profit	24.91M	24.91M	17.91M	13.51M	25.01M	46.63M
EBITDA	2.70M	3.05M	-1.83M	-40.00K	10.50M	11.98M
Net Income	765.00K	765.00K	-3.55M	-5.52M	6.51M	7.03M
Balance Sheet
Total Assets	77.25M	77.25M	78.30M	51.96M	66.62M	58.79M
Cash, Cash Equivalents and Short-Term Investments	25.41M	25.41M	24.93M	9.63M	25.28M	20.43M
Total Debt	9.55M	9.55M	12.29M	13.26M	14.23M	15.32M
Total Liabilities	37.41M	37.41M	38.68M	25.99M	33.55M	30.49M
Stockholders Equity	39.84M	39.84M	39.62M	25.97M	33.06M	28.30M
Cash Flow
Free Cash Flow	7.39M	6.71M	1.38M	-11.11M	7.90M	15.16M
Operating Cash Flow	7.46M	6.92M	1.66M	-10.34M	8.53M	17.21M
Investing Cash Flow	-311.00K	293.00K	11.59M	-1.92M	879.00K	-2.02M
Financing Cash Flow	-6.72M	-6.73M	-1.89M	-3.39M	-4.47M	52.00K

finnCap Group plc Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 9.50
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:CAV, the sentiment is Negative. The current price of 9.5 is below the 20-day moving average (MA) of 9.83, below the 50-day MA of 10.32, and below the 200-day MA of 10.16, indicating a bearish trend. The MACD of -0.26 indicates Positive momentum. The RSI at 27.77 is Positive, neither overbought nor oversold. The STOCH value of 33.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GB:CAV.

finnCap Group plc Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FKE	74 Outperform	£7.98M	5.92	12.70%	2.64%	6.86%	64.55%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
CAV	52 Neutral	£39.67M	24.65	3.69%	5.29%	-9.55%	―
MAC	51 Neutral	£2.21M	―	-10.57%	―	-57.15%	-77.78%
PEEL	49 Neutral	£125.41M	-49.31	4.84%	―	15.42%	―
WHI	42 Neutral	£3.49M	―	―	―	―	―

finnCap Group plc Corporate Events

Cavendish Directors Reinvest Dividends into Company Shares

Cavendish plc, a company listed on the AIM market under the ticker CAV, announced that its executive directors have reinvested their FY25 Final Dividend into additional ordinary shares as part of the company’s Share Investment Plan. The reinvestment was conducted by the plan’s administrator, purchasing shares at 10.25 pence each, which reflects the company’s ongoing commitment to align the interests of its leadership with those of its shareholders.

The most recent analyst rating on (GB:CAV) stock is a Hold with a £12.50 price target. To see the full list of analyst forecasts on finnCap Group plc stock, see the GB:CAV Stock Forecast page.

Cavendish plc Reports Profitable First Half and Expands Market Presence

Cavendish plc reported a profitable first half of the year, with group revenue rising to £28.0 million, supported by continued equity issuance and private M&A mandates. The company’s cash balances increased by 15% year-on-year, highlighting its financial resilience. Cavendish has added eight new clients and opened a new office in Birmingham, strengthening its market-leading position. Despite fiscal uncertainties, the company is optimistic about closing the financial year on a positive note, especially if inflationary pressures ease.

The most recent analyst rating on (GB:CAV) stock is a Hold with a £12.50 price target. To see the full list of analyst forecasts on finnCap Group plc stock, see the GB:CAV Stock Forecast page.

Cavendish plc Announces Successful AGM Results

Cavendish plc announced that all resolutions were passed at their Annual General Meeting, reflecting shareholder approval and support for the company’s strategic direction. This outcome is likely to positively impact Cavendish’s operations and strengthen its position in the market, signaling stability and confidence to stakeholders.

The most recent analyst rating on (GB:CAV) stock is a Hold with a £13.00 price target. To see the full list of analyst forecasts on finnCap Group plc stock, see the GB:CAV Stock Forecast page.

Cavendish plc Raises £178,000 Through Employee Co-Investment Plan

Cavendish plc, a company listed on AIM, announced the results of its Co-Investment Plan (CIP) August Offer. This initiative allowed eligible employees to acquire ordinary shares using their post-tax funds, with 12 employees participating. The shares, held by the company’s employee benefit trust, are subject to a three-year lock-up period and will rank for dividends and voting rights. Depending on share price targets, additional shares may be awarded. The company raised £178,000 through this offer, issuing 1,435,478 new shares, and aims to manage shareholder dilution to less than 15% of total issued share capital.

The most recent analyst rating on (GB:CAV) stock is a Hold with a £13.00 price target. To see the full list of analyst forecasts on finnCap Group plc stock, see the GB:CAV Stock Forecast page.