Checkit plc (CKT) AI Stock Analysis

• Market Cap: £16.20M
• Dividend Yield: N/A
• Average Volume (3M): 78.06K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.53
• Revenue Growth: 17.50%
• EPS Growth: 20.14%
• Country: UK
• Employees: 161
• Sector: Technology
• Sector Strength: 90
• Industry: Software - Application
• EPS (TTM): >-0.01
• Shares Outstanding: 108,008,560
• 10 Day Avg. Volume: 80,964
• 30 Day Avg. Volume: 78,061
• PEG Ratio: -0.19
• Price to Book (P/B): 1.50
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -12.88
• 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: £15.50
• Price Target Upside: 3.33% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 46 Neutral
• Price Target: 14.50p ▼(-3.33%Downside)

Checkit plc's stock is challenged by negative profitability and cash flow, which significantly affects its financial performance score. Technical indicators suggest limited momentum, and the valuation is unattractive due to a negative P/E ratio. The CEO's stake increase is a positive sign but is not enough to substantially uplift the overall score.

Checkit plc Business Overview & Revenue Model

Company Description

Checkit plc is a technology company that operates in the digital workplace management sector. The company provides a range of software and services designed to optimize the performance of frontline workers and operations in sectors such as healthcare, retail, and facilities management. Checkit's core products include digital workflow management tools that help organizations monitor, manage, and improve the efficiency and compliance of their operations.

How the Company Makes Money

Checkit plc makes money through a combination of software-as-a-service (SaaS) subscriptions, professional services, and hardware sales. The company's primary revenue stream is its SaaS model, where customers pay recurring fees to access Checkit's digital workflow management platform. In addition to subscription fees, Checkit generates revenue from professional services, which include implementation, training, and consulting services to help clients integrate and optimize the use of its solutions. The company also sells specialized hardware that complements its software solutions, such as sensors and monitoring devices that enhance data collection and operational oversight. Strategic partnerships with organizations in targeted industries further contribute to Checkit's revenue by expanding its customer base and enhancing its product offerings.

Checkit plc Financial Statement Overview

Summary

Checkit plc shows positive revenue growth but faces challenges with profitability and cash flow. The balance sheet is stable with low leverage, but declining equity ratios and negative cash flows are concerns.

Income Statement

Checkit plc has demonstrated some growth in total revenue, increasing from £8.4 million in 2022 to £14.1 million in 2025, indicating a positive trajectory. However, the company is facing substantial challenges with profitability, as evidenced by persistent negative EBIT and net income over the years. The gross profit margin has improved, but the negative net profit margin reveals ongoing losses, which is a concern for financial health.

Balance Sheet

The company maintains a relatively healthy balance sheet with a low debt-to-equity ratio, reflecting conservative leverage. Stockholders' equity has decreased over time, but it remains positive, which is a good indicator of financial stability. The equity ratio has been declining, suggesting a reduction in asset backing by equity, which could be a potential risk if the trend continues.

Cash Flow

Checkit plc's cash flow situation highlights significant challenges, with negative operating cash flow and free cash flow in recent years. This indicates that the company struggles to generate sufficient cash from its core operations. Although there has been some improvement in free cash flow from 2024 to 2025, the overall cash flow remains negative, posing a risk to liquidity and financial flexibility.

Breakdown	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	14.10M	12.00M	10.30M	8.40M	13.20M
Gross Profit	8.30M	8.00M	5.00M	2.70M	4.70M
EBITDA	-2.90M	-3.20M	-7.00M	-6.60M	-3.40M
Net Income	-3.60M	-4.50M	-12.30M	-6.80M	-4.90M
Balance Sheet
Total Assets	19.90M	23.10M	27.40M	37.30M	24.30M
Cash, Cash Equivalents and Short-Term Investments	5.10M	9.00M	15.60M	24.20M	11.50M
Total Debt	600.00K	500.00K	600.00K	700.00K	500.00K
Total Liabilities	8.80M	8.50M	8.50M	6.30M	6.70M
Stockholders Equity	11.10M	14.60M	18.90M	31.00M	17.60M
Cash Flow
Free Cash Flow	-1.30M	-6.80M	-6.70M	-5.70M	-3.20M
Operating Cash Flow	-1.10M	-4.70M	-6.30M	-4.90M	-2.90M
Investing Cash Flow	-2.60M	-1.60M	-2.00M	-2.30M	82.70M
Financing Cash Flow	-200.00K	-300.00K	-300.00K	19.90M	100.00K

Checkit plc Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 15.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:CKT, the sentiment is Positive. The current price of 15 is below the 20-day moving average (MA) of 15.45, below the 50-day MA of 15.26, and below the 200-day MA of 16.32, indicating a neutral trend. The MACD of 0.10 indicates Positive momentum. The RSI at 54.07 is Neutral, neither overbought nor oversold. The STOCH value of 50.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:CKT.

Checkit plc Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ALT	75 Outperform	£14.73M	20.40	6.94%	―	15.82%	37.50%
ARC	73 Outperform	£11.97M	11.43	13.09%	418.99%	5.35%	-8.63%
Sector *	63 Neutral	£505.90M	23.92	-8.45%	170.41%	4.53%	-18.72%
CRDL	52 Neutral	£14.37M	―	-26.44%	―	17.06%	-78.26%
PEN	50 Neutral	£13.40M	―	-28.36%	―	-11.33%	-139.92%
BIRD	49 Neutral	£11.71M	―	-28.72%	―	-17.02%	10.29%
CKT	46 Neutral	£16.20M	―	-28.02%	―	17.50%	20.14%

Checkit plc Corporate Events

Checkit plc Awards Share Options to CFO

Checkit plc has granted 833,333 share options to Kris Shaw, the Chief Financial Officer, under its EMI Options Scheme. These options, exercisable at 15 pence per share, are contingent upon the company achieving or maintaining an EBITDA breakeven status, reflecting a strategic move to align executive incentives with financial performance goals.

Checkit plc AGM Resolutions Passed Amid Shareholder Dissent on Share Allotment

Checkit plc announced that all resolutions at its Annual General Meeting were passed, including the re-election of directors and the re-appointment of auditors. However, more than 20% of votes opposed the resolution to authorize directors to allot shares, prompting the board to engage with significant shareholders to understand their concerns.

Checkit plc Releases Annual Report and AGM Notice

Checkit plc has announced the posting of its Annual Report for the fiscal year ending January 31, 2025, along with the Notice of its Annual General Meeting (AGM) to shareholders. The AGM is scheduled for June 5, 2025, in London, and shareholders are advised to submit proxy votes by June 3, 2025. This announcement underscores Checkit’s commitment to transparency and shareholder engagement, potentially impacting its market positioning and stakeholder relations.

Checkit CEO Increases Stake in Company

Checkit plc announced that its CEO, Kit Kyte, has purchased 497,925 ordinary shares, increasing his total beneficial interest to 665,797 shares, representing 0.62% of the company’s total issued share capital. This transaction, conducted on the London Stock Exchange, underscores the CEO’s confidence in the company’s future prospects and may positively influence stakeholder sentiment.