Colefax (CFX) AI Stock Analysis

• Market Cap: £49.79M
• Dividend Yield: 0.5%
• Average Volume (3M): 914.00
• Price to Earnings (P/E): 7.8
• Beta (1Y): 0.07
• Revenue Growth: 2.64%
• EPS Growth: 23.89%
• Country: UK
• Employees: 378
• Sector: Consumer Cyclical
• Sector Strength: 79
• Industry: Furnishings, Fixtures & Appliances
• EPS (TTM): 0.55
• Shares Outstanding: 5,917,238
• 10 Day Avg. Volume: 433
• 30 Day Avg. Volume: 914
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: £910.00
• Price Target Upside: 7.06% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 74 Outperform
• Price Target: 950.00p ▲(11.76% Upside)

Colefax's strong financial performance and attractive valuation are key strengths, supporting a positive outlook. However, technical indicators suggest caution due to overbought conditions, which could lead to short-term volatility.

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 the sale of its luxury interior furnishings and textiles. The company's revenue model is primarily based on direct sales to consumers and wholesale distribution to retailers and interior designers. Key revenue streams include the sale of fabrics and wallpapers, custom furniture, and other home décor products. Additionally, Colefax benefits from strategic partnerships with designers and industry professionals, which enhances its market reach and brand visibility. The company also invests in marketing and brand development to attract high-end clientele, further contributing to its earnings.

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: 850.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Negative
• 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 850 is above the 20-day moving average (MA) of 847.00, above the 50-day MA of 804.50, and above the 200-day MA of 808.84, indicating a bullish trend. The MACD of 13.52 indicates Positive momentum. The RSI at 83.54 is Negative, neither overbought nor oversold. The STOCH value of 46.81 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	74 Outperform	£49.79M	7.84	19.42%	0.50%	2.64%	23.89%
Sector *	61 Neutral	$17.64B	14.17	-5.23%	3.04%	1.43%	-15.09%
CHH	―	£47.29M	7.43	10.50%	13.08%	―	―
SDG	61 Neutral	£37.87M	6.71	-19.63%	2.86%	-7.59%	-285.33%
LIKE	61 Neutral	£62.42M	76.56	1.96%	1.50%	7.35%	-11.43%
PMP	47 Neutral	£18.06M	52.40	0.62%	2.67%	-11.22%	―
HEAD	46 Neutral	£56.52M	―	-12.15%	6.45%	-9.66%	-425.03%

Colefax Corporate Events

Colefax Group Reports Change in Shareholding by Schroders

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.

Colefax Group Reports Modest Growth Amidst Mixed Market Conditions

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.