CPP Group plc (CPP) AI Stock Analysis

• Market Cap: £7.35M
• Dividend Yield: N/A
• Average Volume (3M): 16.04K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.35
• Revenue Growth: -63.82%
• EPS Growth: -4.47%
• Country: UK
• Employees: 5,080
• Sector: Industrials
• Sector Strength: 72
• Industry: Specialty Business Services
• EPS (TTM): -0.38
• Shares Outstanding: 9,181,628
• 10 Day Avg. Volume: 5,777
• 30 Day Avg. Volume: 16,037
• PEG Ratio: 0.05
• Price to Book (P/B): -384.44
• Price to Sales (P/S): 0.06
• P/FCF Ratio: -0.85
• 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: 38 Underperform
• Price Target: 86.00p ▲(15.44% Upside)

The overall stock score is primarily impacted by the company's poor financial performance and bearish technical indicators. The negative P/E ratio and lack of dividend yield further weigh down the score. While the corporate transformation into an InsurTech company is a positive development, it does not significantly offset the current financial and technical challenges.

Positive Factors

Business Model

CPP's diversified revenue streams, including insurance premiums and partnerships, provide a stable foundation for long-term growth despite current challenges.

Global Operations

CPP's global presence and partnerships enhance its market reach and resilience, allowing it to leverage diverse markets and mitigate regional risks.

Innovative Solutions

CPP's focus on innovative products positions it well to capture emerging market trends and consumer needs, supporting long-term competitive advantage.

Negative Factors

Revenue Decline

Significant revenue decline indicates challenges in market demand or competitive positioning, impacting long-term growth prospects and financial stability.

Negative Profitability

Negative profitability margins suggest operational inefficiencies and challenges in cost management, which can hinder sustainable growth and investor confidence.

Weak Balance Sheet

A weak balance sheet with negative equity and high leverage poses risks to financial stability and limits the company's ability to invest in growth opportunities.

CPP Group plc Business Overview & Revenue Model

Company Description

CPPGroup Plc engages in the provision of assistance products in the United Kingdom, India, Spain, Turkey, and internationally. It offers a range of embedded and ancillary real-time assistance products and resolution services, such as card protection; flight disruption and lost luggage; phone and gadgets insurance; livcare and mobile doctor services; OwlDetect, identity protection, personal cyber insurance, and mobile payments protection; extended warranty; and home emergency, as well as business process management services. The company was founded in 1980 and is headquartered in Leeds, the United Kingdom.

How the Company Makes Money

CPP generates revenue through various streams, predominantly from the sale of insurance and assistance products. The company's primary revenue model is based on subscription fees paid by customers for their insurance policies, which provide coverage for items such as credit cards, mobile phones, and identity theft. Additionally, CPP earns income from partnerships with banks, credit unions, and retailers, who integrate CPP's services into their own offerings, often receiving a commission for each policy sold. The company also benefits from renewal fees as existing customers continue their coverage, contributing to a steady income stream. Furthermore, CPP's model allows for cross-selling opportunities, enhancing customer retention and increasing average revenue per user.

CPP Group plc Financial Statement Overview

Summary

CPP Group plc faces significant financial challenges, with declining revenues, negative profitability margins, and a weak balance sheet characterized by negative equity and high leverage. The company's cash flow position is also strained, with negative operating and free cash flow. These indicators suggest that the company needs to address operational inefficiencies and improve its financial health to sustain long-term viability in the competitive specialty business services industry.

Income Statement

The company's revenue has decreased significantly by approximately 19% from the previous year. The net profit margin is negative, indicating that the company is not profitable, with a net loss reported for the year. Both the EBIT and EBITDA margins are also negative, reflecting operational inefficiencies and challenges in covering operating expenses. The gross profit margin is approximately 13%, which indicates some ability to cover the cost of goods sold, but overall profitability remains a concern.

Balance Sheet

The balance sheet shows a concerning financial structure with negative stockholders' equity, indicating liabilities exceed assets. The debt-to-equity ratio is not meaningful due to negative equity, and overall, the company is highly leveraged. The company's equity ratio is also negative, reflecting a lack of financial stability and potential risks associated with its capital structure.

Cash Flow

The company experienced a significant decline in free cash flow, resulting in a negative free cash flow position. Operating cash flow is also negative, suggesting difficulties in generating cash from core operations. The free cash flow to net income ratio is not applicable due to both being negative, highlighting cash management challenges.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	68.24M	156.43M	193.04M	169.78M	143.63M	141.14M
Gross Profit	7.37M	20.81M	30.95M	30.77M	32.92M	36.95M
EBITDA	-3.29M	699.00K	-2.89M	5.61M	7.59M	4.97M
Net Income	-4.38M	-3.59M	-8.65M	101.00K	518.00K	-1.60M
Balance Sheet
Total Assets	22.49M	28.90M	54.20M	59.66M	53.96M	57.13M
Cash, Cash Equivalents and Short-Term Investments	2.11M	9.49M	17.96M	20.98M	22.32M	21.86M
Total Debt	141.00K	962.00K	3.90M	4.70M	5.82M	6.54M
Total Liabilities	22.06M	28.92M	46.69M	45.18M	38.59M	41.40M
Stockholders Equity	426.00K	-26.00K	5.26M	12.67M	13.82M	14.63M
Cash Flow
Free Cash Flow	-4.47M	-11.78M	404.00K	1.10M	2.67M	1.40M
Operating Cash Flow	-4.34M	-9.74M	4.29M	3.82M	4.56M	3.16M
Investing Cash Flow	2.27M	1.93M	-3.89M	-3.18M	583.00K	-1.24M
Financing Cash Flow	-693.00K	-1.29M	-1.52M	-2.12M	-4.19M	-1.62M

CPP Group plc Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 74.50
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:CPP, the sentiment is Neutral. The current price of 74.5 is above the 20-day moving average (MA) of 73.41, below the 50-day MA of 83.89, and below the 200-day MA of 102.93, indicating a neutral trend. The MACD of -1.75 indicates Negative momentum. The RSI at 53.71 is Neutral, neither overbought nor oversold. The STOCH value of 96.49 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for GB:CPP.

CPP Group plc Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
KEYS	76 Outperform	£202.36M	20.78	56.75%	5.98%	16.29%	22.80%
RTO	74 Outperform	£11.85B	46.35	5.93%	1.68%	-1.58%	-34.64%
SRP	73 Outperform	£2.91B	61.76	5.21%	1.27%	0.84%	-62.73%
BEG	69 Neutral	£189.09M	18.92	12.60%	3.91%	8.31%	305.88%
RST	66 Neutral	£371.75M	39.58	4.01%	2.31%	6.90%	145.00%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
CPP	38 Underperform	£7.35M	-1.66	-373.61%	―	-63.82%	-4.47%

CPP Group plc Corporate Events

CPP Group Announces Total Voting Rights Update

CPP Group has announced that as of November 30, 2025, its capital consists of 9,181,628 ordinary shares, each carrying one voting right. This announcement is in line with the Financial Conduct Authority’s Disclosure and Transparency Rules, providing shareholders with the necessary information to assess their interests in the company.

The most recent analyst rating on (GB:CPP) stock is a Sell with a £86.00 price target. To see the full list of analyst forecasts on CPP Group plc stock, see the GB:CPP Stock Forecast page.