Caffyns (CFYN) AI Stock Analysis

• Market Cap: £13.63M
• Dividend Yield: 2%
• Average Volume (3M): 245.00
• Price to Earnings (P/E): 77.5
• Beta (1Y): 0.02
• Revenue Growth: 5.11%
• EPS Growth: N/A
• Country: UK
• Employees: 455
• Sector: Consumer Cyclical
• Sector Strength: 66
• Industry: Auto - Dealerships
• EPS (TTM): <0.01
• Shares Outstanding: 2,726,811
• 10 Day Avg. Volume: 246
• 30 Day Avg. Volume: 245
• 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: £501.00
• Price Target Upside: 0.20% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 61 Neutral
• Price Target: 501.00p ▲(0.20% Upside)

Caffyns' overall score is driven by strong technical indicators and positive corporate events, suggesting potential for growth. However, high valuation and financial risks due to leverage and cash flow issues temper the outlook. Investors should be cautious of the high P/E ratio and overbought technical signals.

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 generates revenue through multiple streams, primarily from the sale of new and used vehicles, which constitutes a significant portion of its income. The company also earns money through aftersales services, including vehicle servicing, repairs, and the sale of parts and accessories, which provide recurring revenue. Additionally, Caffyns may engage in financing and insurance services related to vehicle purchases, adding another layer of revenue. Strategic partnerships with automotive manufacturers enable Caffyns to access exclusive deals and promotions, enhancing its competitive edge and driving sales. Overall, the company's diversified offerings and customer-centric approach contribute to its financial success.

Caffyns Financial Statement Overview

Summary

Caffyns shows moderate revenue growth and stable gross margins, but faces challenges with profitability and cash flow management. High leverage and low returns on equity highlight potential financial risks. Improvement in operational efficiency and debt reduction are needed for better financial stability.

Income Statement

Caffyns has shown consistent revenue growth over the years, with a 3.7% increase in the latest period. However, profitability remains a concern with a low net profit margin of 0.06% and fluctuating EBIT margins. The gross profit margin is stable at around 12.5%, indicating efficient cost management despite competitive pressures.

Balance Sheet

The company maintains a high debt-to-equity ratio of 1.24, indicating significant leverage, which could pose risks in a volatile market. Return on equity is low at 0.59%, reflecting challenges in generating returns for shareholders. However, the equity ratio is reasonable, suggesting a balanced asset structure.

Cash Flow

Caffyns faces challenges with negative free cash flow growth and a negative operating cash flow, indicating potential liquidity issues. The free cash flow to net income ratio is high at 4.51, suggesting reliance on non-operational cash flows to cover net income, which could be unsustainable long-term.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	275.46M	275.46M	262.08M	251.43M	223.93M	165.09M
Gross Profit	33.67M	34.69M	31.70M	31.45M	29.92M	20.92M
EBITDA	5.44M	5.11M	3.86M	6.92M	7.54M	4.55M
Net Income	176.00K	176.00K	-1.20M	2.52M	3.00M	1.41M
Balance Sheet
Total Assets	101.71M	101.71M	99.54M	100.03M	84.49M	94.82M
Cash, Cash Equivalents and Short-Term Investments	3.76M	3.76M	438.00K	4.23M	2.76M	5.74M
Total Debt	37.09M	37.09M	35.80M	33.58M	27.23M	39.25M
Total Liabilities	71.79M	71.79M	70.81M	68.37M	49.76M	67.23M
Stockholders Equity	29.92M	29.92M	28.74M	31.66M	34.73M	27.59M
Cash Flow
Free Cash Flow	-1.37M	-1.37M	-2.46M	3.33M	553.00K	6.33M
Operating Cash Flow	-303.00K	-303.00K	119.00K	4.24M	3.39M	6.72M
Investing Cash Flow	3.83M	3.83M	-2.33M	-716.00K	-2.65M	-209.00K
Financing Cash Flow	-208.00K	-208.00K	-1.57M	-2.05M	-3.71M	-2.26M

Caffyns Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 500.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:CFYN, the sentiment is Positive. The current price of 500 is above the 20-day moving average (MA) of 487.50, above the 50-day MA of 472.36, and above the 200-day MA of 445.98, indicating a bullish trend. The MACD of 8.75 indicates Negative momentum. The RSI at 94.16 is Negative, neither overbought nor oversold. The STOCH value of 36.36 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:CFYN.

Caffyns Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
INCH	72 Outperform	£2.48B	6.30	23.07%	3.91%	-15.99%	69.97%
MACF	70 Outperform	£151.36M	9.80	13.06%	3.52%	-3.66%	3.28%
VTU	67 Neutral	£187.63M	10.93	5.09%	3.42%	0.94%	-28.04%
MARS	67 Neutral	£246.10M	5.64	10.69%	―	0.50%	―
Sector *	61 Neutral	$17.16B	12.39	-5.32%	3.05%	1.51%	-15.30%
CFYN	61 Neutral	£13.63M	77.52	0.60%	2.00%	5.11%	―
MOTR	55 Neutral	£134.87M	46.45	11.03%	0.59%	7.96%	―

Caffyns Corporate Events

Caffyns PLC AGM Resolutions Passed with Strong Shareholder Support

Caffyns PLC announced the successful passing of all resolutions at its Annual General Meeting held on August 7, 2025. Key resolutions included the re-election of directors, approval of the Directors’ Remuneration Report, re-appointment of auditors, and authorization for share allotment and market purchases. The overwhelming support for these resolutions, with nearly unanimous votes in favor, underscores strong shareholder confidence and positions the company for continued operational stability and strategic growth.

Caffyns PLC Returns to Profitability with Increased Revenue and Strategic Investments

Caffyns PLC reported a 5% increase in revenue to £275.5 million for the year ending March 31, 2025, marking a return to profitability with a statutory profit before tax of £0.2 million. The company saw growth in new car deliveries and aftersales revenues, despite challenges in used car sales and inflationary pressures. The company’s defined benefit pension scheme deficit was significantly reduced, and net bank borrowings decreased, reflecting improved financial stability. Caffyns continues to invest in its workforce and apprenticeship programs, maintaining a strong position in the competitive automotive retail market.