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Colefax Group PLC (GB:CFX)
LSE:CFX
UK Market

Colefax (CFX) AI Stock Analysis

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GB

Colefax

(LSE:CFX)

Rating:73Outperform
Price Target:
896.00p
▲(14.87%Upside)
Colefax's solid financial performance and attractive valuation are significant strengths, supporting its stability and growth potential. The current technical indicators suggest some bearish sentiment, but potential upside remains given the low P/E ratio. The absence of data from earnings calls and corporate events limits the analysis, but the overall outlook is cautiously optimistic based on existing financial and valuation metrics.

Colefax (CFX) vs. iShares MSCI United Kingdom ETF (EWC)

Colefax Business Overview & Revenue Model

Company DescriptionColefax Group PLC is a leading designer and distributor of luxury furnishing fabrics and wallpapers. The company operates through a diverse portfolio of brands, including Colefax and Fowler, Cowtan and Tout, Jane Churchill, Larsen, and Manuel Canovas. These brands are well-regarded for their high-quality, distinctive designs, and are targeted towards the premium segment of the interior design market. Colefax Group primarily serves markets in the United Kingdom, the United States, Europe, and other international regions.
How the Company Makes MoneyThe company generates revenue primarily through the sale of its luxury furnishing fabrics and wallpapers. Colefax Group's business model revolves around designing unique and high-end products that are sold through a network of showrooms, agents, and distributors globally. In addition to direct sales, the company also collaborates with interior designers and architects who specify Colefax products for residential and commercial projects, contributing to its revenue streams. Key factors that influence earnings include market demand for luxury interior products, brand reputation, and the company's ability to innovate and maintain a strong portfolio of designs.

Colefax Financial Statement Overview

Summary
Colefax maintains a solid financial performance with consistent revenue growth and strong cash flow generation capabilities. The balance sheet reflects some leverage, which warrants careful monitoring, but overall, the company is well-positioned for future growth and stability. Opportunities exist for margin improvements and optimizing capital structure.
Income Statement
78
Positive
Colefax shows stable revenue growth with a compound annual growth rate (CAGR) from 2020 to 2024. The gross profit margin remains solid above 55%, indicating efficient production and sales processes. However, the EBIT margin has decreased over the years, reflecting increased operational costs, and net profit margin has slightly declined, suggesting potential areas for improving cost management.
Balance Sheet
72
Positive
The company's debt-to-equity ratio is moderately high, reflecting significant leverage, which could pose risks in economic downturns. However, the equity ratio remains healthy at around 40%, indicating a stable capital structure. The return on equity (ROE) is consistent, reflecting stable shareholder returns but with room for improvement.
Cash Flow
75
Positive
Colefax generates strong operating cash flow relative to net income, indicating robust cash generation capabilities. The free cash flow has shown growth, supporting potential reinvestment and debt servicing. However, fluctuations in capital expenditure and financing cash flows suggest variability in strategic investments and financing activities.
BreakdownTTMJun 2024Jun 2023Jun 2022Jun 2021Jun 2020
Income Statement
Total Revenue108.11M107.16M104.82M101.80M77.91M78.36M
Gross Profit60.78M60.03M59.73M54.56M43.94M43.76M
EBITDA10.96M15.62M17.25M18.78M13.73M10.67M
Net Income5.78M5.79M6.69M8.49M4.05M1.92M
Balance Sheet
Total Assets79.28M73.97M80.25M78.97M80.08M68.59M
Cash, Cash Equivalents and Short-Term Investments18.59M17.76M19.75M21.79M19.34M11.54M
Total Debt28.10M23.42M26.06M27.98M30.32M29.37M
Total Liabilities47.05M42.23M46.29M45.83M48.98M40.38M
Stockholders Equity32.23M31.75M33.96M33.15M31.11M28.21M
Cash Flow
Free Cash Flow9.51M10.48M9.56M13.59M14.36M6.05M
Operating Cash Flow12.45M13.47M13.14M15.84M16.25M9.23M
Investing Cash Flow-2.58M-2.82M-3.58M-2.24M-1.85M-3.12M
Financing Cash Flow-7.80M-12.65M-11.63M-12.11M-5.92M-4.15M

Colefax Technical Analysis

Technical Analysis Sentiment
Negative
Last Price780.00
Price Trends
50DMA
797.40
Negative
100DMA
821.26
Negative
200DMA
809.89
Negative
Market Momentum
MACD
-7.34
Positive
RSI
25.97
Positive
STOCH
38.01
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:CFX, the sentiment is Negative. The current price of 780 is below the 20-day moving average (MA) of 794.25, below the 50-day MA of 797.40, and below the 200-day MA of 809.89, indicating a bearish trend. The MACD of -7.34 indicates Positive momentum. The RSI at 25.97 is Positive, neither overbought nor oversold. The STOCH value of 38.01 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GB:CFX.

Colefax Peers Comparison

Overall Rating
UnderperformOutperform
Sector (66)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
GBCFX
73
Outperform
£45.69M8.3518.68%0.53%2.96%9.77%
GBSDG
68
Neutral
£37.87M6.71-19.63%0.95%-7.45%-51.68%
66
Neutral
£1.85B11.466.20%2.99%0.64%-17.57%
GBPMP
51
Neutral
£18.96M55.000.62%2.18%-11.22%
48
Neutral
£71.61M-12.15%6.45%-9.66%-425.03%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
GB:CFX
Colefax
780.00
-89.26
-10.27%
GB:HEAD
Headlam
89.20
-46.80
-34.41%
GB:SDG
Sanderson Design Group PLC
52.50
-26.95
-33.92%
GB:PMP
Portmeirion
137.50
-88.48
-39.15%

Colefax Corporate Events

Other
Colefax Group Reports Change in Shareholding by Schroders
Neutral
Feb 3, 2025

Colefax Group PLC, a company involved in the interior design industry, has reported a significant change in its shareholding structure. Schroders Investment Management Limited has decreased its stake in Colefax Group, crossing a major threshold by reducing its holdings from 20.957886% to 19.941736%. This adjustment may impact the company’s stock dynamics and reflects a strategic move by Schroders in its investment approach.

Stock BuybackBusiness Operations and StrategyFinancial Disclosures
Colefax Group Reports Modest Growth Amidst Mixed Market Conditions
Neutral
Jan 22, 2025

Colefax Group PLC reported its half-year financial results, showing a modest increase in group sales by 1.8% to £52.79 million, although pre-tax profits slightly decreased by 0.5% to £4.36 million. The Fabric Division, which constitutes a significant portion of the group’s sales, performed strongly in the US with a 7% increase but faced challenges in the UK with an 8% decrease. The company returned £2.4 million to shareholders through a share buyback, which is expected to benefit future earnings per share. Despite a challenging market environment in the UK and Europe, the company remains optimistic about future prospects, particularly in the US, and plans to invest further in its US distribution network and Fabric Division brands.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jun 04, 2025