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Crest Nicholson Holdings PLC (GB:CRST)
LSE:CRST

Crest Nicholson Holdings (CRST) AI Stock Analysis

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GB

Crest Nicholson Holdings

(LSE:CRST)

54Neutral
Crest Nicholson Holdings presents a complex investment profile. The company is currently facing financial challenges, with declining revenues and profitability. Despite these issues, there is positive technical momentum. Valuation metrics show a mixed picture due to negative earnings but are partially offset by a high dividend yield. Recent strategic plans and AGM outcomes provide a longer-term positive outlook, but near-term volatility is likely due to operational and market challenges.
Positive Factors
Financial Performance
The company has already shown success in improving selling prices and sales rates, indicating progress towards achieving its financial targets.
Management
The new management team, led by industry veteran Martyn Clark, has provided a clear analysis and path to resolving the company's issues and restoring industry-level returns.
Negative Factors
Legacy Costs
New CEO Martyn Clark has not needed to increase legacy building costs or cladding provisions.
Market Exposure
Crest Nicholson faces the most challenging immediate trading outlook, given its southern exposure, and may still see more cladding costs.

Crest Nicholson Holdings (CRST) vs. S&P 500 (SPY)

Crest Nicholson Holdings Business Overview & Revenue Model

Company DescriptionCrest Nicholson Holdings (CRST) is a prominent British residential developer known for creating sustainable and high-quality housing communities. The company operates primarily within the UK, focusing on designing and constructing a diverse range of properties including houses, apartments, and mixed-use developments. Crest Nicholson emphasizes sustainability and community integration in its projects, catering to various market segments from first-time buyers to larger family homes.
How the Company Makes MoneyCrest Nicholson Holdings generates revenue primarily through the development and sale of residential properties. The company's key revenue streams include the sale of newly built homes and properties within its housing developments. Crest Nicholson often acquires land, develops it into residential communities, and sells the completed homes. The company also engages in strategic partnerships with local authorities and private sector entities to enhance its development opportunities and maximize land value. Additionally, Crest Nicholson may earn from joint ventures and property management services, although these are not as significant as its core homebuilding operations. Market demand, land acquisition, and development efficiency are critical factors influencing the company's earnings.

Crest Nicholson Holdings Financial Statement Overview

Summary
Crest Nicholson Holdings faces notable financial headwinds, reflected in declining revenues, negative profitability, and cash flow challenges. While the balance sheet shows manageable leverage, the erosion of equity and assets is concerning. The company needs to address operational inefficiencies and improve cash generation to stabilize its financial position.
Income Statement
45
Neutral
The income statement reveals significant challenges with declining revenue and net income. The gross profit margin turned negative in the most recent year, indicating cost pressures. Revenue has decreased over the past few years, reflecting a contraction in business activity. The net profit margin is also negative, suggesting profitability issues.
Balance Sheet
55
Neutral
The balance sheet shows moderate financial stability. The debt-to-equity ratio is relatively low, indicating manageable leverage. However, the decline in stockholders' equity and total assets raises concerns about diminishing financial strength. The equity ratio remains reasonable, suggesting a stable capital structure.
Cash Flow
40
Negative
Cash flow analysis highlights significant strains, with negative free cash flow in the recent year. The operating cash flow to net income ratio is unfavorable, suggesting issues in converting earnings to cash. The free cash flow to net income ratio is also negative, reflecting cash generation challenges.
Breakdown
TTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
632.30M618.20M657.50M913.60M786.60M677.90M
Gross Profit
57.00M-71.60M100.60M194.30M166.70M107.70M
EBIT
-1.60M-128.70M29.90M140.90M117.10M47.00M
EBITDA
-18.70M-122.80M39.50M42.80M100.20M7.70M
Net Income Common Stockholders
-26.60M-103.50M17.90M26.40M70.90M-10.70M
Balance SheetCash, Cash Equivalents and Short-Term Investments
171.60M74.80M163.70M374.90M351.80M240.20M
Total Assets
1.58B1.44B1.53B1.58B1.61B1.47B
Total Debt
258.70M94.30M104.10M101.00M102.50M104.20M
Net Debt
88.10M20.50M-58.50M-272.60M-248.20M-135.20M
Total Liabilities
721.80M713.30M674.00M696.10M706.80M641.90M
Stockholders Equity
854.40M728.90M856.30M883.10M901.60M825.30M
Cash FlowFree Cash Flow
-49.30M-69.20M-167.40M54.10M126.40M114.20M
Operating Cash Flow
-48.40M-67.80M-165.60M54.20M126.60M114.50M
Investing Cash Flow
21.80M25.00M1.60M11.90M-700.00K-4.50M
Financing Cash Flow
-45.60M-46.00M-47.00M-43.20M-14.60M-41.20M

Crest Nicholson Holdings Technical Analysis

Technical Analysis Sentiment
Negative
Last Price142.50
Price Trends
50DMA
159.94
Negative
100DMA
162.86
Negative
200DMA
184.97
Negative
Market Momentum
MACD
3.13
Negative
RSI
52.18
Neutral
STOCH
56.42
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:CRST, the sentiment is Negative. The current price of 142.5 is below the 20-day moving average (MA) of 159.10, below the 50-day MA of 159.94, and below the 200-day MA of 184.97, indicating a bearish trend. The MACD of 3.13 indicates Negative momentum. The RSI at 52.18 is Neutral, neither overbought nor oversold. The STOCH value of 56.42 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GB:CRST.

Crest Nicholson Holdings Peers Comparison

Overall Rating
UnderperformOutperform
Sector (59)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
77
Outperform
£321.38M8.1635.97%5.09%22.39%179.53%
GBPSN
69
Neutral
£3.60B13.467.71%5.24%15.42%4.45%
59
Neutral
$11.74B10.16-1.06%4.15%1.27%-16.61%
54
Neutral
£365.85M-13.06%1.47%-5.98%-677.54%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
GB:CRST
Crest Nicholson Holdings
142.50
-42.43
-22.94%
GB:PSN
Persimmon
1,084.50
-129.63
-10.68%
GB:GFRD
Galliford Try
345.50
112.24
48.12%

Crest Nicholson Holdings Corporate Events

Business Operations and Strategy
BlackRock Increases Stake in Crest Nicholson Holdings
Neutral
Mar 28, 2025

Crest Nicholson Holdings PLC has announced a change in its major holdings, with BlackRock, Inc. increasing its voting rights to 5.02% as of March 27, 2025. This acquisition of voting rights by BlackRock, a major investment management corporation, could influence Crest Nicholson’s strategic decisions and impact its market positioning, potentially affecting stakeholders’ interests.

Business Operations and StrategyRegulatory Filings and Compliance
Crest Nicholson Announces Change in Voting Rights Structure
Neutral
Mar 28, 2025

Crest Nicholson Holdings PLC has announced a change in its voting rights structure due to an acquisition or disposal of voting rights by Ameriprise Financial, Inc., a US-based financial services company. The change involves a reduction in the percentage of voting rights held by Ameriprise Financial, from 5.773% to 4.863%, indicating a transfer out of temporary proxy voting shares. This adjustment in voting rights could impact the company’s governance and decision-making processes, potentially affecting stakeholders and the company’s strategic direction.

Executive/Board ChangesShareholder MeetingsDividends
Crest Nicholson AGM Results: All Resolutions Passed
Positive
Mar 26, 2025

Crest Nicholson Holdings PLC announced the results of its Annual General Meeting, where all proposed resolutions were passed by shareholders. Key decisions included the approval of the Director’s Remuneration Report, the declaration of a final dividend, and the re-election of several board members. The resolutions reflect strong shareholder support and are expected to reinforce the company’s strategic direction and governance structure.

Business Operations and Strategy
Crest Nicholson Unveils Strategic Plans for Sustainable Growth
Positive
Mar 20, 2025

Crest Nicholson Holdings PLC has initiated a strategic shift to enhance its operational performance and market positioning, as outlined during its Capital Markets Day. The company aims to achieve sustainable growth through improved home completions, enhanced customer satisfaction, and optimized land value, despite challenges in the housing sector due to economic uncertainties.

Other
Crest Nicholson Announces Share Acquisitions by Key Executives
Neutral
Mar 3, 2025

Crest Nicholson Holdings plc announced transactions involving the acquisition of ordinary shares by key company figures, including the Chief Financial Officer and the Group Company Secretary, under the Deferred Share Award scheme. These transactions, which are subject to a three-year holding period, reflect the company’s ongoing efforts to align management interests with shareholder value, potentially impacting stakeholder confidence and market perception.

Business Operations and StrategyRegulatory Filings and Compliance
Crest Nicholson Sees Change in Voting Rights with Wellcome Trust Acquisition
Neutral
Feb 27, 2025

Crest Nicholson Holdings PLC has announced a change in its voting rights structure, with The Wellcome Trust Limited acquiring a 3.0699% stake in the company. This acquisition could potentially influence the company’s strategic decisions and impact its market positioning, as significant stakeholders like The Wellcome Trust may seek to leverage their voting power in future corporate governance matters.

Regulatory Filings and Compliance
Crest Nicholson Sees Shift in Voting Rights with Ameriprise Financial
Neutral
Feb 26, 2025

Crest Nicholson Holdings PLC has announced a change in the voting rights held by Ameriprise Financial, Inc., which now holds 5.773% of the voting rights in the company. This change, resulting from an acquisition or disposal of voting rights, reflects a significant increase from the previous 4.925% and may impact the company’s governance and decision-making processes.

Business Operations and StrategyRegulatory Filings and Compliance
Crest Nicholson Sees Increase in Major Shareholder Voting Rights
Neutral
Feb 25, 2025

Crest Nicholson Holdings PLC has announced a change in its major holdings, with Shanlis Investments Unlimited increasing its voting rights from 6.03% to 7.11%. This acquisition of additional voting rights signifies a strengthened position for Shanlis Investments in the company, potentially impacting Crest Nicholson’s strategic decisions and stakeholder dynamics.

Shareholder MeetingsFinancial Disclosures
Crest Nicholson Releases 2024 Annual Report and 2025 AGM Notice
Neutral
Feb 21, 2025

Crest Nicholson Holdings has published its 2024 Annual Report and Accounts, along with the 2025 Notice of Annual General Meeting, providing stakeholders with updated insights into its operations and performance for the year ended October 31, 2024. These documents, crucial for investors and stakeholders for planning and decision-making, are available on the company’s website and at the National Storage Mechanism, with hard copies sent to those who opted for paper format.

Business Operations and StrategyRegulatory Filings and Compliance
Crest Nicholson’s Voting Rights See Major Shift with Ameriprise Disposal
Neutral
Feb 18, 2025

Crest Nicholson Holdings PLC has announced a change in the voting rights ownership, with Ameriprise Financial, Inc. reducing its stake from 9.929% to 4.925%. This shift indicates a significant disposal of voting rights, which could impact Crest Nicholson’s shareholder dynamics and influence corporate decisions. The update reflects a strategic move by Ameriprise Financial, which may have implications for the company’s governance and future decision-making processes.

Executive/Board ChangesBusiness Operations and Strategy
Crest Nicholson Awards Shares to Key Executives Under LTIP
Neutral
Feb 18, 2025

Crest Nicholson Holdings plc announced that its CEO, CFO, and Group Company Secretary have been granted share awards under the company’s Long-Term Incentive Plan (LTIP). These transactions, which involve a significant volume of shares, underline Crest Nicholson’s strategy to align its leadership’s interests with long-term company performance, potentially impacting shareholder value and company growth.

Business Operations and StrategyRegulatory Filings and Compliance
Crest Nicholson Sees Increase in FIL Limited’s Voting Rights
Neutral
Feb 14, 2025

Crest Nicholson Holdings PLC has announced a change in its major holdings, with FIL Limited increasing its total voting rights in the company to 12.01%, up from 11.01%. This change indicates a strategic move by FIL Limited to strengthen its influence within Crest Nicholson, potentially impacting the company’s future decisions and operations.

Business Operations and StrategyFinancial Disclosures
Crest Nicholson Meets FY24 Guidance Amid Strategic Overhaul
Neutral
Feb 4, 2025

Crest Nicholson Holdings reported its full-year 2024 results, meeting initial guidance despite challenging conditions and a disappointing year. The company has made significant strides in operational progress, including improved governance and customer satisfaction, and is addressing legacy issues with a comprehensive fire remediation provision. CEO Martyn Clark outlined new strategic priorities aimed at sustainable growth, profitability, and shareholder value. Despite economic and political challenges, there is optimism due to pent-up demand for high-quality homes, with encouraging early indicators of customer interest. The company’s financials showed a significant statutory loss due to exceptional charges, though it remains cautiously optimistic about future prospects with a strong land bank and brand positioning.

Regulatory Filings and Compliance
Crest Nicholson Sees Shift in Major Shareholder Voting Rights
Neutral
Jan 21, 2025

Crest Nicholson Holdings PLC has announced a change in the voting rights held within the company, with FIL Limited now holding an increased total of 11.0104% voting rights as of January 17, 2025. This adjustment reflects an increase from a previous 10.05%, indicating a significant acquisition of both direct and financial instrument-based voting rights, which could enhance FIL Limited’s influence in the company’s strategic decisions.

Crest Nicholson Announces Revised Date for 2024 Results Amid Increased Fire Remediation Costs
Jan 14, 2025

Crest Nicholson Holdings PLC has postponed its preliminary financial results announcement for the fiscal year ending October 31, 2024, to February 4, 2025, due to auditors requiring more time to review fire remediation provisions. The expected provision for fire remediation costs has increased significantly to approximately £245m-£255m, from £145m at half-year, as the company prepares for the completion of its remediation program by FY29. This adjustment and the clear provision for costs are intended to provide a stable foundation for its new management team to focus on strategic priorities.

Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.