CPP Group plc (CPP) AI Stock Analysis

• Market Cap: £8.48M
• Dividend Yield: N/A
• Average Volume (3M): 16.04K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.11
• 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: 9,269,605
• 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: Moderate Sell
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 38 Underperform
• Price Target: 86.00p ▼(-5.75% Downside)

The overall stock score for CPP Group plc is heavily influenced by its poor financial performance, characterized by declining revenues, negative profitability, and a weak balance sheet. Technical analysis also indicates bearish trends, with the stock trading below key moving averages and momentum indicators showing oversold conditions. Valuation metrics are unattractive due to a negative P/E ratio and lack of dividend yield, further weighing down the stock's appeal.

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

CPP Group plc Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 91.25
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Positive
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:CPP, the sentiment is Negative. The current price of 91.25 is below the 20-day moving average (MA) of 92.14, below the 50-day MA of 112.73, and below the 200-day MA of 104.46, indicating a bearish trend. The MACD of -5.60 indicates Negative momentum. The RSI at 28.57 is Positive, neither overbought nor oversold. The STOCH value of 67.47 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GB:CPP.

CPP Group plc Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CEPS	67 Neutral	£7.04M	16.58	15.40%	―	6.46%	-32.89%
DSW	65 Neutral	£12.31M	10.70	11.90%	6.00%	186.12%	294.83%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
VNET	63 Neutral	£18.55M	22.35	3.15%	2.13%	-1.00%	7.35%
REAT	56 Neutral	£13.00M	-36.67	-3.75%	―	6.90%	-242.86%
MIND	42 Neutral	£14.55M	-1.77	-106.45%	―	-14.04%	24.84%
CPP	38 Underperform	£8.48M	-1.90	-373.61%	―	-63.82%	-4.47%

CPP Group plc Corporate Events

CPP Group CFO Exercises Share Options, Increases Voting Rights

CPP Group Plc announced that its Chief Financial Officer, Simon Pyper, exercised 109,971 options over ordinary shares under the company’s Deferred Bonus Plan. This exercise increases the company’s total voting rights to 9,269,605, which shareholders can use for determining changes in their interests under FCA rules. Following this transaction, Simon Pyper’s beneficial interest in the company is approximately 2.29% of the issued share capital.

The most recent analyst rating on (GB:CPP) stock is a Sell with a £119.00 price target. To see the full list of analyst forecasts on CPP Group plc stock, see the GB:CPP Stock Forecast page.

CPP Group Transforms into InsurTech Leader with Blink Focus

CPP Group has announced its half-year results for 2025, marking a significant transformation into an InsurTech company focused on its Blink platform. With the sale of its legacy businesses in Turkey and India, CPP Group is now concentrating on scaling Blink, which has shown substantial growth in annual recurring revenue and partnerships. The company aims to capture growth opportunities in travel disruption and consumer cyber-security markets, with a new CEO leading the next phase of development.

The most recent analyst rating on (GB:CPP) stock is a Sell with a £114.00 price target. To see the full list of analyst forecasts on CPP Group plc stock, see the GB:CPP Stock Forecast page.

CPP Group Announces Leadership Restructure and Cost-Cutting Measures

CPP Group plc has announced a reorganization of its leadership team and a series of cost reduction measures ahead of its interim results. This includes significant changes in senior management roles, with Simon Pyper transitioning from CEO to CFO & Managing Director of Legacy Operations, and the planned departures of David Bowling and Eleanor Sykes from their executive roles. The company aims to streamline operations and reduce central costs from £10.1 million to approximately £2.5 million annually. These changes are part of a broader strategy to focus on Blink and manage legacy operations effectively, following the disposal of its businesses in Turkey and India.

The most recent analyst rating on (GB:CPP) stock is a Sell with a £114.00 price target. To see the full list of analyst forecasts on CPP Group plc stock, see the GB:CPP Stock Forecast page.

CPP Group Revises Terms for CPP India Disposal

CPP Group has announced an update regarding the disposal of its entire issued share capital of CPP India. The company has agreed to revised terms in the sale and purchase agreement, reducing the purchase price to the Indian Rupees equivalent of US$20 million. The completion of the disposal is anticipated within the next five business days, contingent on certain formalities in India. This strategic move is expected to impact CPP Group’s operations by potentially streamlining its focus and resources.

The most recent analyst rating on (GB:CPP) stock is a Sell with a £114.00 price target. To see the full list of analyst forecasts on CPP Group plc stock, see the GB:CPP Stock Forecast page.