Northcoders Group PLC (CODE) AI Stock Analysis

• Market Cap: £2.56M
• Dividend Yield: N/A
• Average Volume (3M): 11.25K
• Price to Earnings (P/E): 7.3
• Beta (1Y): -0.69
• Revenue Growth: 1.64%
• EPS Growth: N/A
• Country: UK
• Employees: 129
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Education & Training Services
• EPS (TTM): 0.01
• Shares Outstanding: 8,011,469
• 10 Day Avg. Volume: 6,194
• 30 Day Avg. Volume: 11,248
• PEG Ratio: -0.27
• Price to Book (P/B): 2.75
• Price to Sales (P/S): 1.66
• P/FCF Ratio: 16.43
• 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
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 74 Outperform
• Price Target: 36.00p ▲(12.50% Upside)

Northcoders Group PLC demonstrates strong financial performance and strategic growth through recent contract wins, which are significant positives. However, technical analysis indicates bearish momentum, and cash flow management needs improvement. The stock's undervaluation presents an opportunity, but the lack of a dividend yield may deter some investors.

Positive Factors

Revenue Growth

Strong revenue growth indicates robust market demand and effective business strategies, supporting long-term expansion and competitiveness.

Balance Sheet Health

Low leverage enhances financial stability, providing flexibility for future investments and reducing risk during economic downturns.

Profitability Improvement

Improved profitability reflects successful cost management and operational efficiency, which can sustain long-term financial health.

Negative Factors

Cash Flow Management

Inefficient cash management could lead to liquidity issues, affecting the company's ability to fund operations and growth initiatives.

Negative Investing Cash Flow

Persistent negative investing cash flow may limit the company's ability to invest in growth opportunities, impacting long-term expansion.

Cash Flow Management Needs Improvement

Improving cash flow management is crucial for maintaining liquidity and supporting ongoing operational and strategic initiatives.

Northcoders Group PLC Business Overview & Revenue Model

Company Description

Northcoders Group PLC provides various training programs for software coding to individual, government, and corporate customers in the United Kingdom. The company provides bootcamp training courses, government-funded apprenticeships, and bespoke training courses. It offers its courses through classroom and online teaching. Northcoders Group PLC was incorporated in 2021 and is headquartered in Manchester, the United Kingdom.

How the Company Makes Money

Northcoders generates revenue primarily through tuition fees from its coding bootcamps and training programs. The company offers various courses, including full-stack development, which attract a diverse range of students, from career changers to recent graduates. A significant revenue stream also comes from employer partnerships, where Northcoders collaborates with companies to provide tailored training for their employees or to create job placement opportunities for graduates. Additional income may derive from online resources, workshops, and consultancy services offered to organizations seeking to enhance their tech capabilities. The company's focus on aligning its curriculum with industry needs ensures a steady demand for its training services, contributing to its earnings growth.

Northcoders Group PLC Financial Statement Overview

Summary

Northcoders Group PLC shows strong financial performance with significant revenue growth and improved profitability metrics. The balance sheet is robust with low leverage, though cash flow management needs improvement to support long-term growth.

Income Statement

The company exhibited strong revenue growth of 24.1% in the latest annual period, showcasing robust expansion. Gross profit and net income margins improved significantly, indicating enhanced operational efficiency and profitability. The EBIT and EBITDA margins turned positive, reflecting a successful turnaround from previous losses.

Balance Sheet

The balance sheet is solid with a debt-to-equity ratio of 0.12, indicating low leverage and financial stability. The equity ratio of 76.0% signifies a strong equity position. However, the decline in cash and cash equivalents suggests a need for more efficient cash management.

Cash Flow

Free cash flow turned positive, indicating improved liquidity and cash generation. The operating cash flow to net income ratio is robust, reflecting efficient conversion of earnings into cash. However, a consistent negative investing cash flow could indicate potential future liquidity constraints.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	8.14M	8.82M	7.10M	5.60M	3.01M	1.34M
Gross Profit	5.25M	5.50M	4.44M	3.94M	2.16M	892.17K
EBITDA	766.73K	872.27K	-81.70K	715.79K	-167.58K	-843.64K
Net Income	351.21K	388.86K	-1.01M	359.54K	-358.12K	-938.34K
Balance Sheet
Total Assets	7.80M	6.99M	7.26M	7.34M	4.40M	1.80M
Cash, Cash Equivalents and Short-Term Investments	2.30M	1.19M	1.62M	2.78M	1.56M	525.67K
Total Debt	1.59M	670.14K	1.13M	1.79M	1.62M	1.62M
Total Liabilities	2.40M	1.67M	2.45M	2.69M	2.25M	2.34M
Stockholders Equity	5.41M	5.31M	4.82M	4.64M	2.15M	-538.27K
Cash Flow
Free Cash Flow	901.99K	890.51K	-186.07K	-770.15K	-1.40M	-645.40K
Operating Cash Flow	920.34K	928.92K	651.44K	-245.03K	-1.09M	-464.30K
Investing Cash Flow	-543.06K	-819.08K	-996.76K	-515.36K	-302.67K	-196.51K
Financing Cash Flow	640.60K	-588.29K	-814.78K	1.97M	2.43M	765.28K

Northcoders Group PLC Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 32.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:CODE, the sentiment is Neutral. The current price of 32 is above the 20-day moving average (MA) of 31.68, below the 50-day MA of 33.24, and below the 200-day MA of 47.23, indicating a neutral trend. The MACD of -0.26 indicates Negative momentum. The RSI at 41.97 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 Neutral sentiment for GB:CODE.

Northcoders Group PLC Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CODE	74 Outperform	£2.56M	7.31	6.74%	―	1.64%	―
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
MLVN	61 Neutral	£6.23M	72.86	―	―	31.39%	―
TIDE	58 Neutral	£5.26M	―	―	―	―	―
AIQ	41 Neutral	£2.27M	-7.14	―	―	-47.47%	12.50%
CLCO	41 Neutral	£988.70K	―	―	―	―	―
SORT	38 Underperform	£2.29M	-0.93	-556.25%	―	51.87%	62.47%

Northcoders Group PLC Corporate Events

Northcoders’ Counter® Secures Major Contract Wins

Northcoders Group PLC announced that its consultancy brand, Counter®, has secured over £700,000 in new assignments, renewals, and extensions with existing clients. This development underscores the growing demand for Counter’s unique consultancy model and highlights the company’s strategic focus on expanding client relationships for sustainable growth.

The most recent analyst rating on (GB:CODE) stock is a Buy with a £37.00 price target. To see the full list of analyst forecasts on Northcoders Group PLC stock, see the GB:CODE Stock Forecast page.

Northcoders Secures £0.25 Million Contract for London Skills Bootcamp

Northcoders Group PLC has secured a £0.25 million contract under the Skills Bootcamps for Londoners Programme to fund software development training with AI for 31 participants. This contract supports the company’s strategy to expand its B2B consultancy division, Counter®, into the London market by creating a pool of skilled technologists. The move aligns with Northcoders’ selective approach to government-funded training and aims to leverage the growing demand for senior technologists driven by AI and digital transformation.

The most recent analyst rating on (GB:CODE) stock is a Hold with a £36.00 price target. To see the full list of analyst forecasts on Northcoders Group PLC stock, see the GB:CODE Stock Forecast page.