Caffyns (CFYN) AI Stock Analysis

• Market Cap: £11.59M
• Dividend Yield: 2.35%
• Average Volume (3M): 1.99K
• Price to Earnings (P/E): ―
• Beta (1Y): -0.14
• Revenue Growth: -0.42%
• EPS Growth: -183.34%
• Country: UK
• Employees: 455
• Sector: Consumer Cyclical
• Sector Strength: 58
• Industry: Auto - Dealerships
• EPS (TTM): -0.40
• Shares Outstanding: 2,726,811
• 10 Day Avg. Volume: 5,960
• 30 Day Avg. Volume: 1,987
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.05
• Price to Cash Flow (P/CF): -7.10
• P/FCF Ratio: 0.00
• 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

Caffyns is struggling with financial performance, marked by negative net income and weak cash flow generation. The technical analysis indicates a bearish trend with oversold conditions, suggesting caution for investors. Valuation metrics are unfavorable due to a negative P/E ratio, though the dividend yield offers some relief. The company needs to improve profitability and address operational inefficiencies to enhance its stock performance.

Caffyns Business Overview & Revenue Model

Company Description

Caffyns plc operates as a motor vehicle retailer in the south-east of the United Kingdom. The company offers a range of new and used cars; and sells tires, oil, parts, and accessories, as well as provides aftersales, maintenance, and other services. It provides products of various brands, such as Audi, LEVC, Lotus, MG, SEAT, Skoda, Vauxhall, Volkswagen, and Volvo. Caffyns plc was founded in 1865 and is headquartered in Eastbourne, the United Kingdom.

How the Company Makes Money

Caffyns makes money primarily through the sale of new and used vehicles, which constitutes the largest portion of its revenue. Additionally, the company generates income from aftersales services such as vehicle maintenance, repair, and parts sales. The company benefits from partnerships with major car manufacturers, which allow it to offer a wide variety of vehicle brands. These partnerships also support Caffyns in terms of inventory and parts availability, contributing significantly to its earnings. Finance and insurance products related to vehicle sales also form a part of the company's revenue streams.

Caffyns Financial Statement Overview

Summary

Caffyns faces financial challenges, with profitability under pressure due to a negative net income and weak cash flow generation. While revenue shows modest growth, operational inefficiencies and leverage levels could pose risks. The balance sheet reveals moderate leverage, but declining equity and negative return on equity are concerns. Overall, the company needs to address profitability and cash flow generation to strengthen its financial position.

Income Statement

Caffyns experienced a modest revenue growth of 4.24% from the previous year, but its profitability metrics showed significant strain. The company reported a negative net income, leading to a negative net profit margin of -0.46%. This indicates challenges in maintaining profitability. The gross profit margin is 12.09%, reflecting stable cost management relative to revenue. However, the decline in EBIT margin to 0.45% suggests operational inefficiencies or increased costs.

Balance Sheet

The debt-to-equity ratio stands at 1.25, indicating a moderate level of leverage for the company. Equity ratio is 28.87%, suggesting a reasonable level of equity financing, though it has decreased from the previous year. Return on equity is negative at -4.19%, highlighting profitability challenges. Overall, the balance sheet reflects moderate leverage with some risk associated with declining equity.

Cash Flow

The cash flow statement reveals challenges in cash generation, with a negative free cash flow of -£2.46 million. The operating cash flow to net income ratio is 0.1, indicating inefficiencies in converting net income to cash. The free cash flow growth rate is significantly negative, reflecting operational and capital investment pressures.

Breakdown
Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement		Total Revenue
262.08M	251.43M	223.93M	165.09M	195.79M
	Gross Profit
31.70M	31.45M	29.92M	20.92M	23.33M
	EBIT
1.18M	4.50M	5.17M	-206.00K	944.00K
	EBITDA
3.86M	6.92M	7.54M	4.55M	3.16M
	Net Income Common Stockholders
-1.20M	2.52M	3.00M	1.41M	-252.00K
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
438.00K	4.23M	2.76M	5.74M	1.48M
	Total Assets
99.54M	100.03M	84.49M	94.82M	96.28M
	Total Debt
35.80M	33.58M	27.23M	39.25M	45.11M
	Net Debt
35.36M	29.35M	24.47M	33.51M	43.63M
	Total Liabilities
70.81M	68.37M	49.76M	67.23M	69.89M
	Stockholders Equity
28.74M	31.66M	34.73M	27.59M	26.38M
Cash Flow		Free Cash Flow
-2.46M	3.33M	553.00K	6.33M	-1.78M
	Operating Cash Flow
119.00K	4.24M	3.39M	6.72M	-802.00K
	Investing Cash Flow
-2.33M	-716.00K	-2.65M	-209.00K	-795.00K
	Financing Cash Flow
-1.57M	-2.05M	-3.71M	-2.26M	-833.00K

Caffyns Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 425.00
• 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:CFYN, the sentiment is Negative. The current price of 425 is below the 20-day moving average (MA) of 438.75, below the 50-day MA of 443.00, and below the 200-day MA of 446.59, indicating a bearish trend. The MACD of -6.59 indicates Positive momentum. The RSI at 8.74 is Positive, neither overbought nor oversold. The STOCH value of 25.44 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GB:CFYN.

Caffyns Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CAML	74 Outperform	£291.41M	7.11	13.74%	11.23%	6.77%	32.64%
INCH	73 Outperform	£2.66B	6.67	18.69%	5.17%	-19.08%	57.32%
VTU	70 Outperform	£186.08M	10.12	5.36%	4.12%	7.94%	-25.81%
Sector *	59 Neutral	$6.44B	11.30	3.27%	4.27%	2.37%	-21.19%
CFYN	40 Underperform	£11.59M	―	-3.56%	2.35%	-0.42%	-183.34%