CEPS plc (CEPS) AI Stock Analysis

• Market Cap: £7.35M
• Dividend Yield: N/A
• Average Volume (3M): 13.15K
• Price to Earnings (P/E): 17.3
• Beta (1Y): -0.43
• Revenue Growth: 6.46%
• EPS Growth: -32.89%
• Country: UK
• Employees: 265
• Sector: Industrials
• Sector Strength: 72
• Industry: Specialty Business Services
• EPS (TTM): 0.02
• Shares Outstanding: 21,000,000
• 10 Day Avg. Volume: 8,391
• 30 Day Avg. Volume: 13,147
• PEG Ratio: 2.05
• Price to Book (P/B): 1.75
• Price to Sales (P/S): 0.16
• P/FCF Ratio: 1.46
• 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: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 67 Neutral
• Price Target: 39.00p ▲(9.86% Upside)

CEPS plc's overall stock score is driven by its strong financial performance and bullish technical indicators. The company's financial turnaround and operational efficiencies are significant positives, though high leverage and overbought technical conditions present risks. The valuation is moderate, aligning with the company's growth prospects.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong market demand and effective business strategies, supporting long-term financial stability.

Operational Efficiency

Improved margins suggest better cost management and operational efficiency, enhancing profitability and competitive positioning.

Strategic Enhancements

The appointment of a new adviser and broker can enhance market engagement and strategic execution, supporting long-term growth.

Negative Factors

High Leverage

High leverage increases financial risk, potentially impacting cash flow and limiting flexibility in adverse market conditions.

Discrepancy in Cash Flow

Discrepancies between cash flow and net income may indicate issues in cash generation, affecting liquidity and investment capacity.

Low Net Income

Persistently low net income could hinder reinvestment and shareholder returns, challenging long-term profitability and growth.

CEPS plc Business Overview & Revenue Model

Company Description

CEPS PLC operates as an industrial trading holding company in the United Kingdom, rest of Europe, and internationally. It operates through Aford Awards, Friedman's, and Hickton Group segments. The Aford Awards segment offers sports trophies and engraving services. The Friedman's segment converts and distributes specialist lycra. The Hickton Group segment provides services to the construction industry. It also provides building control, gas and electrical safety, and gas safety consultancy services, as well as designs and manufactures leotards. CEPS PLC was founded in 2004 and is based in Bath, the United Kingdom.

How the Company Makes Money

CEPS generates revenue through multiple streams, including the sale of engineering solutions and products tailored for the energy and telecommunications sectors. A significant portion of its income comes from long-term contracts with utility companies and telecommunications providers, which often include maintenance and support services. Additionally, CEPS benefits from strategic partnerships with technology firms that enhance its service offerings and expand its market reach. The company also engages in consulting services that help clients improve their operational efficiency, further contributing to its revenue.

CEPS plc Financial Statement Overview

Summary

CEPS plc shows a strong recovery trend with consistent revenue growth and improved margins, indicating operational efficiency. However, high leverage and a discrepancy between cash flows and net income remain concerns.

Income Statement

CEPS plc shows a strong recovery trend in its income statement, with consistent revenue growth over the years. The gross profit margin improved significantly, reflecting operational efficiency, while the net profit margin turned positive after previous losses, indicating profitability improvements. EBIT and EBITDA margins have increased, suggesting enhanced core earnings. However, the net income remains relatively low, which might be a concern for sustained profitability.

Balance Sheet

The balance sheet of CEPS plc presents a mixed picture. The debt-to-equity ratio is high, indicating significant leverage, which could pose a risk in volatile markets. Despite this, the company has managed to increase its stockholders' equity, leading to a better equity ratio. Return on equity remains modest, though it has improved over time, reflecting better utilization of equity capital.

Cash Flow

The cash flow statement indicates healthy cash flow management, with a positive and growing operating cash flow. The free cash flow has shown substantial growth, which underlines the company's ability to generate cash after capital expenditures. However, the operating cash flow to net income ratio suggests a discrepancy between accounting profits and cash generation, which needs monitoring.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	32.48M	31.56M	29.68M	26.45M	20.33M	11.86M
Gross Profit	13.62M	13.29M	12.49M	10.91M	8.39M	4.35M
EBITDA	3.13M	3.32M	3.38M	2.87M	2.21M	374.00K
Net Income	425.00K	580.00K	556.00K	460.00K	296.00K	-980.00K
Balance Sheet
Total Assets	24.88M	21.80M	22.75M	21.52M	19.51M	16.47M
Cash, Cash Equivalents and Short-Term Investments	1.55M	677.00K	916.00K	1.28M	2.08M	2.33M
Total Debt	12.21M	10.65M	11.24M	11.69M	11.55M	11.41M
Total Liabilities	19.61M	16.84M	17.15M	17.01M	15.97M	15.38M
Stockholders Equity	2.85M	2.82M	2.19M	1.59M	1.08M	-861.00K
Cash Flow
Free Cash Flow	2.29M	3.37M	2.13M	1.47M	804.00K	1.15M
Operating Cash Flow	2.37M	3.54M	2.83M	1.67M	1.19M	1.27M
Investing Cash Flow	-1.11M	-290.00K	-996.00K	-791.00K	-1.55M	-2.35M
Financing Cash Flow	-1.43M	-3.49M	-1.31M	-1.68M	117.00K	1.46M

CEPS plc Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 35.50
• 50DMA: Positive
• 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:CEPS, the sentiment is Neutral. The current price of 35.5 is below the 20-day moving average (MA) of 35.58, above the 50-day MA of 34.61, and above the 200-day MA of 27.74, indicating a neutral trend. The MACD of 0.18 indicates Positive momentum. The RSI at 50.41 is Neutral, neither overbought nor oversold. The STOCH value of 28.57 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for GB:CEPS.

CEPS plc Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SRP	73 Outperform	£2.91B	61.76	5.21%	1.27%	0.84%	-62.73%
BEG	69 Neutral	£189.09M	18.92	12.60%	3.91%	8.31%	305.88%
CEPS	67 Neutral	£7.35M	17.33	15.40%	―	6.46%	-32.89%
RST	66 Neutral	£371.75M	39.58	4.01%	2.31%	6.90%	145.00%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
RWS	60 Neutral	£346.51M	-3.50	-12.00%	15.28%	-3.91%	-310.36%
CPP	38 Underperform	£7.35M	-1.66	-373.61%	―	-63.82%	-4.47%

CEPS plc Corporate Events

CEPS PLC Engages in Potential Sale Discussions for ICA Group

CEPS PLC, a company involved in various business sectors, is currently in discussions regarding the potential sale of its subsidiary, ICA Group Limited. While negotiations are ongoing, no definitive agreement has been reached, and the company has emphasized the uncertainty of a firm offer or its terms. This announcement, classified as inside information under UK MAR regulations, highlights CEPS’s transparency in its operations and its commitment to keeping stakeholders informed about significant corporate developments.

The most recent analyst rating on (GB:CEPS) stock is a Hold with a £39.00 price target. To see the full list of analyst forecasts on CEPS plc stock, see the GB:CEPS Stock Forecast page.