Colefax (CFX) AI Stock Analysis

• Market Cap: £45.69M
• Dividend Yield: 0.53%
• Average Volume (3M): 1.32K
• Price to Earnings (P/E): 8.3
• Beta (1Y): 0.21
• Revenue Growth: 2.96%
• EPS Growth: 9.77%
• Country: UK
• Employees: 378
• Sector: Consumer Cyclical
• Sector Strength: 59
• Industry: Furnishings, Fixtures & Appliances
• EPS (TTM): 0.93
• Shares Outstanding: 5,917,238
• 10 Day Avg. Volume: 807
• 30 Day Avg. Volume: 1,320
• PEG Ratio: -0.66
• Price to Book (P/B): 1.65
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 5.87
• 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

• Rating: 73 Outperform
• 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 Business Overview & Revenue Model

Company Description

Colefax 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 Money

The 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

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

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

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.

Breakdown	TTM	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement
Total Revenue	108.11M	107.16M	104.82M	101.80M	77.91M	78.36M
Gross Profit	60.78M	60.03M	59.73M	54.56M	43.94M	43.76M
EBITDA	10.96M	15.62M	17.25M	18.78M	13.73M	10.67M
Net Income	5.78M	5.79M	6.69M	8.49M	4.05M	1.92M
Balance Sheet
Total Assets	79.28M	73.97M	80.25M	78.97M	80.08M	68.59M
Cash, Cash Equivalents and Short-Term Investments	18.59M	17.76M	19.75M	21.79M	19.34M	11.54M
Total Debt	28.10M	23.42M	26.06M	27.98M	30.32M	29.37M
Total Liabilities	47.05M	42.23M	46.29M	45.83M	48.98M	40.38M
Stockholders Equity	32.23M	31.75M	33.96M	33.15M	31.11M	28.21M
Cash Flow
Free Cash Flow	9.51M	10.48M	9.56M	13.59M	14.36M	6.05M
Operating Cash Flow	12.45M	13.47M	13.14M	15.84M	16.25M	9.23M
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 Price: 780.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CFX	73 Outperform	£45.69M	8.35	18.68%	0.53%	2.96%	9.77%
SDG	68 Neutral	£37.87M	6.71	-19.63%	0.95%	-7.45%	-51.68%
Sector *	66 Neutral	£1.85B	11.46	6.20%	2.99%	0.64%	-17.57%
PMP	51 Neutral	£18.96M	55.00	0.62%	2.18%	-11.22%	―
HEAD	48 Neutral	£71.61M	―	-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.