Caffyns (CFYN) AI Stock Analysis

• Market Cap: £12.95M
• Dividend Yield: 2.41%
• Average Volume (3M): 193.00
• Price to Earnings (P/E): 73.6
• Beta (1Y): >-0.01
• Revenue Growth: 2.30%
• EPS Growth: 37.27%
• Country: UK
• Employees: 455
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Auto - Dealerships
• EPS (TTM): -0.26
• Shares Outstanding: 2,726,811
• 10 Day Avg. Volume: 321
• 30 Day Avg. Volume: 193
• PEG Ratio: -0.61
• Price to Book (P/B): 0.41
• Price to Sales (P/S): 0.04
• P/FCF Ratio: -8.98
• 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: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 49 Neutral
• Price Target: 423.00p ▲(1.93% Upside)

Caffyns faces significant financial and operational challenges, reflected in its low profitability and negative cash flow. The bearish technical indicators and unattractive valuation further weigh on the stock's outlook. Despite maintaining a dividend, the company's high leverage and recent losses highlight the need for strategic improvements.

Positive Factors

Revenue Growth

Consistent revenue growth indicates a strong market position and effective business strategies, supporting long-term sustainability.

Stable Gross Margins

Stable gross margins reflect effective cost control, which can help maintain profitability despite competitive pressures.

Recurring Revenue Streams

Recurring revenue from services like maintenance and repairs ensures a stable income base, enhancing financial resilience.

Negative Factors

High Leverage

High leverage can increase financial risk, particularly in volatile markets, potentially impacting long-term stability.

Profitability Concerns

Low profitability margins suggest challenges in converting revenue into profit, which may hinder long-term growth and shareholder returns.

Negative Cash Flow

Negative cash flow indicates potential liquidity issues, which could affect the company's ability to invest in growth and meet financial obligations.

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 primarily through the sale of new and used vehicles, which constitutes a significant portion of its earnings. Additionally, the company earns income from aftersales services, including vehicle servicing, repairs, and parts sales, which provide a steady stream of recurring revenue. Financing and insurance products offered to customers during the vehicle purchase process also contribute to the company's revenue. Caffyns benefits from partnerships with major automotive manufacturers, providing access to a wide range of vehicles and potential incentives that can enhance profitability. Furthermore, the company may leverage trade-ins and vehicle valuations to optimize its inventory and sales strategy, ensuring sustainable growth in its earnings.

Caffyns Financial Statement Overview

Summary

Caffyns shows moderate revenue growth and stable gross margins, but faces significant challenges with profitability, cash flow management, and high leverage. The low net profit margin and negative cash flow highlight potential financial risks.

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	271.68M	275.46M	262.08M	251.43M	223.93M	165.09M
Gross Profit	32.04M	34.69M	31.70M	31.45M	29.92M	20.92M
EBITDA	4.20M	5.11M	3.25M	6.75M	7.32M	4.55M
Net Income	-680.00K	176.00K	-1.20M	2.52M	3.00M	1.41M
Balance Sheet
Total Assets	96.14M	101.71M	99.54M	100.03M	84.49M	94.82M
Cash, Cash Equivalents and Short-Term Investments	2.44M	3.76M	438.00K	4.23M	2.76M	5.74M
Total Debt	14.21M	37.09M	35.80M	33.58M	27.23M	23.25M
Total Liabilities	66.13M	71.79M	70.81M	68.37M	49.76M	67.23M
Stockholders Equity	30.01M	29.92M	28.74M	31.66M	34.73M	27.59M
Cash Flow
Free Cash Flow	-2.31M	-1.37M	-2.46M	3.33M	553.00K	6.33M
Operating Cash Flow	-1.07M	-303.00K	119.00K	4.24M	3.39M	6.72M
Investing Cash Flow	3.65M	3.83M	-2.33M	-716.00K	-2.65M	-209.00K
Financing Cash Flow	-2.21M	-208.00K	-1.57M	-2.05M	-3.71M	-2.26M

Caffyns Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 415.00
• 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 415 is below the 20-day moving average (MA) of 441.13, below the 50-day MA of 465.92, and below the 200-day MA of 456.54, indicating a bearish trend. The MACD of -16.16 indicates Positive momentum. The RSI at 12.05 is Positive, neither overbought nor oversold. The STOCH value of 53.33 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
INCH	80 Outperform	£2.72B	7.03	23.07%	3.52%	-15.99%	69.97%
MARS	73 Outperform	£372.87M	5.15	9.91%	―	-0.08%	―
MACF	72 Outperform	£105.63M	8.92	10.01%	5.08%	6.97%	-18.59%
VTU	71 Outperform	£194.90M	12.15	4.51%	3.25%	-0.17%	-10.96%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
MOTR	55 Neutral	£123.76M	42.62	16.70%	1.47%	20.64%	―
CFYN	49 Neutral	£12.95M	73.64	-2.26%	2.41%	2.30%	37.27%

Caffyns Corporate Events

Caffyns PLC Faces Challenges Amidst Declining New Car Sales

Caffyns PLC reported a challenging half-year ending 30 September 2025, with a loss before tax of £0.9 million compared to a profit of £0.2 million in the previous year. Revenue decreased by 3% due to reduced demand for new cars, although used car sales and aftersales activities saw revenue growth. The company faced inflationary pressures and increased costs, but maintained a dividend of 5.0 pence per share, reflecting confidence in its long-term prospects. Operational changes are underway to improve performance, and the company’s pension scheme deficit has reduced significantly.