Colefax (CFX) AI Stock Analysis

• Market Cap: £49.33M
• Dividend Yield: 0.55%
• Average Volume (3M): 1.37K
• Price to Earnings (P/E): 8.8
• Beta (1Y): 0.10
• Revenue Growth: 2.64%
• EPS Growth: 23.89%
• Country: UK
• Employees: 378
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Furnishings, Fixtures & Appliances
• EPS (TTM): 0.55
• Shares Outstanding: 5,225,558
• 10 Day Avg. Volume: 1,386
• 30 Day Avg. Volume: 1,371
• PEG Ratio: 0.32
• Price to Book (P/B): 1.34
• Price to Sales (P/S): 0.43
• P/FCF Ratio: 3.91
• 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: 78 Outperform
• Price Target: 1,077.00p ▲(12.19% Upside)

Colefax Group's overall stock score is driven by strong technical indicators and positive corporate events, which enhance shareholder value. The financial performance is solid, though careful monitoring of cash flow volatility is advised. The valuation suggests the stock is undervalued, offering potential growth opportunities.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong demand for Colefax's luxury interior furnishings, supporting long-term business expansion and market presence.

Profitability Improvement

Improved profitability suggests effective cost management and operational efficiency, enhancing Colefax's ability to reinvest in growth opportunities.

Cash Flow Management

Strong free cash flow growth supports Colefax's capacity to fund operations and strategic investments, ensuring financial flexibility and stability.

Negative Factors

Operational Challenges

A decrease in EBIT margin suggests potential operational challenges, which could impact profitability if not addressed through strategic cost management.

Debt Financing Reliance

Moderate reliance on debt financing could pose financial risks if leverage is not carefully managed, potentially affecting long-term financial health.

Cash Flow Volatility

Volatility in cash flow growth may indicate challenges in cash management, which could affect Colefax's ability to consistently fund operations and investments.

Colefax Business Overview & Revenue Model

Company Description

Colefax Group PLC, together with its subsidiaries, engages in the design, marketing, distribution, and retailing of furnishing fabrics, wallpapers, trimmings, upholstered furniture, and related products in the United Kingdom, the United States, rest of Europe, and internationally. The company operates in two divisions, Product and Decorating. It also sells antiques, as well as provides interior and architectural design, project management, decoration, and furnishing services for private individuals and commercial clients. The company sells its products to interior designers, and retail fabric shops under the Colefax and Fowler, Cowtan and Tout, Jane Churchill, Larsen, and Manuel Canovas brand names. Colefax Group PLC was founded in 1933 and is headquartered in London, the United Kingdom.

How the Company Makes Money

Colefax generates revenue through multiple channels, primarily by selling its premium textile and wallpaper products to interior designers, retailers, and direct consumers. The company benefits from a strong wholesale distribution model, where it partners with high-end boutiques and design showrooms that showcase its products. Additionally, Colefax capitalizes on its brand reputation by offering bespoke services, which allow clients to customize products to meet specific design requirements. The company also engages in strategic partnerships with design firms and hospitality ventures, further expanding its market reach and revenue potential. Seasonal collections and exclusive designer collaborations serve as key revenue streams, driving both product sales and brand visibility in the luxury market.

Colefax Financial Statement Overview

Summary

Colefax exhibits solid financial performance with consistent revenue growth and improving profitability. The balance sheet reflects a stable financial structure with decreasing leverage, and cash flow management is robust despite past fluctuations.

Income Statement

Colefax has shown consistent revenue growth over the years, with a notable increase in gross profit margins, indicating efficient cost management. The net profit margin has improved, reflecting better profitability. However, the EBIT margin has slightly decreased compared to previous years, suggesting some operational challenges.

Balance Sheet

The company's debt-to-equity ratio has been decreasing, indicating a reduction in leverage and a more stable financial position. Return on equity remains strong, showcasing effective use of shareholder funds. However, the equity ratio suggests a moderate reliance on debt financing, which could pose risks if not managed carefully.

Cash Flow

Colefax has demonstrated strong free cash flow growth, supporting its ability to fund operations and investments. The operating cash flow to net income ratio indicates healthy cash generation relative to earnings. However, fluctuations in free cash flow growth in previous years highlight potential volatility in cash management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	109.99M	109.99M	107.16M	104.82M	101.80M	77.91M
Gross Profit	63.23M	63.23M	60.03M	59.73M	54.56M	43.94M
EBITDA	15.04M	17.46M	15.62M	17.25M	18.78M	13.73M
Net Income	6.51M	6.51M	5.79M	6.69M	8.49M	4.05M
Balance Sheet
Total Assets	79.24M	79.24M	73.97M	80.25M	78.97M	80.08M
Cash, Cash Equivalents and Short-Term Investments	22.31M	22.31M	17.76M	19.75M	21.79M	19.34M
Total Debt	26.28M	26.28M	23.42M	26.06M	27.98M	30.32M
Total Liabilities	43.95M	43.95M	42.23M	46.29M	45.83M	48.98M
Stockholders Equity	35.28M	35.28M	31.75M	33.96M	33.15M	31.11M
Cash Flow
Free Cash Flow	12.32M	12.07M	10.48M	9.56M	13.59M	14.36M
Operating Cash Flow	14.38M	14.14M	13.47M	13.14M	15.84M	16.25M
Investing Cash Flow	-2.07M	-1.59M	-2.82M	-3.58M	-2.24M	-1.85M
Financing Cash Flow	-8.48M	-8.48M	-12.65M	-11.63M	-12.11M	-5.92M

Colefax Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 960.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:CFX, the sentiment is Positive. The current price of 960 is above the 20-day moving average (MA) of 952.50, above the 50-day MA of 939.65, and above the 200-day MA of 850.52, indicating a bullish trend. The MACD of 7.93 indicates Negative momentum. The RSI at 55.48 is Neutral, neither overbought nor oversold. The STOCH value of 55.65 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:CFX.

Colefax Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CFX	78 Outperform	£49.33M	8.81	19.42%	0.55%	2.64%	23.89%
HWDN	74 Outperform	£4.58B	18.38	24.46%	2.57%	0.13%	-0.06%
DFS	68 Neutral	£415.95M	17.18	10.06%	―	4.38%	―
ULTP	68 Neutral	£44.25M	7.73	12.08%	11.65%	-3.45%	-44.02%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
SDG	49 Neutral	£31.80M	-2.07	-19.58%	3.45%	-4.23%	-435.86%
HEAD	47 Neutral	£37.72M	-0.83	-19.28%	―	-11.65%	-273.57%

Colefax Corporate Events

Colefax Group Announces Executive Share Sales Amid Tender Offer

Colefax Group PLC announced a tender offer resulting in the sale of ordinary shares by key executives and directors, including the Chairman and Chief Executive, David Green. The transactions, conducted on the London Stock Exchange, AIM, were part of the company’s strategic financial maneuvers, potentially impacting shareholder value and market perception of the company’s financial health.

The most recent analyst rating on (GB:CFX) stock is a Buy with a £950.00 price target. To see the full list of analyst forecasts on Colefax stock, see the GB:CFX Stock Forecast page.

Colefax Group Completes £6.1 Million Share Buyback

Colefax Group PLC has successfully completed its Tender Offer, purchasing 691,800 shares, which represents 11.7% of its issued ordinary share capital, at a price of 880 pence per share. This transaction, valued at £6.1 million, will result in the cancellation of the purchased shares, reducing the company’s total voting rights to 5,225,558. The Tender Offer’s completion signifies a strategic move to optimize the company’s capital structure and potentially enhance shareholder value.

The most recent analyst rating on (GB:CFX) stock is a Buy with a £950.00 price target. To see the full list of analyst forecasts on Colefax stock, see the GB:CFX Stock Forecast page.

Colefax Group Announces 15% Share Buyback via Tender Offer

Colefax Group PLC has announced a Tender Offer to buy back up to 15% of its issued share capital, with Peel Hunt LLP facilitating the purchase. This strategic move aims to optimize the company’s capital structure and potentially enhance shareholder value by reducing the number of shares in circulation. The Tender Offer, priced at a slight discount to the current market price, allows shareholders to tender their shares, with the company planning to cancel any repurchased shares, thereby reducing its overall share capital.

The most recent analyst rating on (GB:CFX) stock is a Buy with a £950.00 price target. To see the full list of analyst forecasts on Colefax stock, see the GB:CFX Stock Forecast page.