Colefax (CFX) AI Stock Analysis

• Market Cap: £59.40M
• Dividend Yield: 0.55%
• Average Volume (3M): 1.37K
• Price to Earnings (P/E): 9.4
• Beta (1Y): 0.15
• Revenue Growth: 2.64%
• EPS Growth: 23.89%
• Country: UK
• Employees: 378
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Furnishings, Fixtures & Appliances
• EPS (TTM): 0.67
• 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: 1,311.00p ▲(36.56% 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

Consistent Revenue Growth

Sustained top-line growth indicates enduring customer demand in the luxury textiles niche and supports scaling of wholesale and bespoke channels. Over 2–6 months this trend underpins reinvestment in collections, supports margin improvement and reduces execution risk vs cyclical peers.

Strong Free Cash Flow Generation

Robust free cash flow provides durable funding for operations, capex, strategic partnerships and shareholder returns (buybacks/dividends). Reliable cash conversion enhances balance sheet flexibility and resilience to demand swings over multiple quarters.

Decreasing Leverage

Lower leverage improves financial flexibility and lowers refinancing risk, enabling the company to invest in product development and distribution. Over the medium term this makes Colefax better positioned to navigate industry cyclicality and pursue strategic initiatives.

Negative Factors

Moderate Reliance on Debt Financing

A moderate dependence on debt raises exposure to interest rate increases and covenant constraints, which can limit capital allocation choices. If demand softens, servicing debt could force conservative operational choices or defer strategic investments over ensuing quarters.

Free Cash Flow Volatility

Intermittent swings in free cash flow complicate multi-quarter planning and increase the need for precautionary liquidity. Volatility can constrain consistent capital returns, slow product investment cadence, and raise financing costs during weaker periods.

Slight Decline in EBIT Margin

A shrinking EBIT margin suggests pressure from rising costs or operational inefficiencies. If persistent, this erodes operating cash generation and limits reinvestment capacity, making margin recovery a key medium-term priority for sustaining profitability.

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. Cash flow management is robust, though past fluctuations suggest the need for careful monitoring.

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	116.16M	109.99M	107.16M	104.82M	101.80M	77.91M
Gross Profit	65.64M	63.23M	60.03M	59.73M	54.56M	43.94M
EBITDA	18.70M	17.46M	15.62M	17.25M	18.78M	13.73M
Net Income	7.12M	6.51M	5.79M	6.69M	8.49M	4.05M
Balance Sheet
Total Assets	75.71M	79.24M	73.97M	80.25M	78.97M	80.08M
Cash, Cash Equivalents and Short-Term Investments	22.16M	22.31M	17.76M	19.75M	21.79M	19.34M
Total Debt	43.08M	26.28M	23.42M	26.06M	27.98M	30.32M
Total Liabilities	42.80M	43.95M	42.23M	46.29M	45.83M	48.98M
Stockholders Equity	32.91M	35.28M	31.75M	33.96M	33.15M	31.11M
Cash Flow
Free Cash Flow	15.34M	12.07M	10.48M	9.56M	13.59M	14.36M
Operating Cash Flow	17.21M	14.14M	13.47M	13.14M	15.84M	16.25M
Investing Cash Flow	-1.87M	-1.59M	-2.82M	-3.58M	-2.24M	-1.85M
Financing Cash Flow	-12.39M	-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: Negative
• STOCH: Negative

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 below the 20-day moving average (MA) of 1004.50, below the 50-day MA of 967.20, and above the 200-day MA of 864.15, indicating a bullish trend. The MACD of 41.40 indicates Negative momentum. The RSI at 85.25 is Negative, neither overbought nor oversold. The STOCH value of 88.34 is Negative, 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	£59.40M	9.45	19.42%	0.55%	2.64%	23.89%
HWDN	74 Outperform	£4.49B	18.04	24.46%	2.57%	0.13%	-0.06%
DFS	68 Neutral	£455.24M	18.80	10.06%	―	4.38%	―
ULTP	68 Neutral	£45.25M	7.91	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	£33.96M	-2.21	-19.58%	3.45%	-4.23%	-435.86%
HEAD	47 Neutral	£35.39M	-0.78	-19.28%	―	-11.65%	-273.57%

Colefax Corporate Events

Colefax Delivers Strong Half-Year Growth on US Fabric Demand and Shareholder Returns

Colefax Group reported a robust first half for the six months to 31 October 2025, with group sales up 11.7% to £58.96 million and pre-tax profit rising 21.3% to £5.29 million, driven chiefly by strong growth in its Fabric Division and a return to profit in its Decorating Division. The US fabric business performed particularly well despite steep increases in US import tariffs and a weaker dollar, while the company continued to generate strong cash flow, returned £6.1 million to shareholders via a substantial share buyback, and raised its interim dividend in line with a progressive policy, signalling confidence in its outlook even as management cautions that next year’s fabric sales growth will be harder to replicate and performance will depend on stable market conditions.

The most recent analyst rating on (GB:CFX) stock is a Buy with a £1156.00 price target. To see the full list of analyst forecasts on Colefax stock, see the GB:CFX Stock Forecast page.