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CVS Group PLC (GB:CVSG)
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CVS Group plc (CVSG) AI Stock Analysis

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GB:CVSG

CVS Group plc

(LSE:CVSG)

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Neutral 69 (OpenAI - 4o)
Rating:69Neutral
Price Target:
1,318.00p
▲(3.62% Upside)
CVS Group plc's overall stock score reflects a mixed outlook. Financial performance is strong in revenue growth but challenged by profitability issues. Technical indicators show short-term bearish trends, and valuation suggests overvaluation. However, positive corporate events and strategic moves support long-term growth prospects.
Positive Factors
Revenue Growth
Consistent revenue growth indicates strong market demand and effective business strategies, supporting long-term financial stability and expansion potential.
Strategic Expansion
International expansion through acquisitions in Australia enhances CVS's market position and diversifies its revenue streams, reducing reliance on the UK market.
Management Alignment
Aligning management incentives with shareholder interests through long-term plans can drive better operational performance and strategic focus, benefiting stakeholders.
Negative Factors
Declining Profit Margins
A significant drop in net profit margins indicates challenges in cost management and profitability, potentially affecting long-term financial health and investor confidence.
Increased Debt Levels
Rising debt levels can strain cash flow and limit financial flexibility, posing risks to long-term stability and ability to invest in growth opportunities.
Regulatory Uncertainty
Ongoing regulatory investigations create uncertainty, potentially impacting CVS's operations and strategic decisions in the UK, affecting future growth prospects.

CVS Group plc (CVSG) vs. iShares MSCI United Kingdom ETF (EWC)

CVS Group plc Business Overview & Revenue Model

Company DescriptionCVS Group plc (CVSG) is a leading provider of integrated veterinary services in the United Kingdom. The company operates across several sectors including veterinary practices, diagnostic laboratories, pet crematoria, and online retail of pet medications and products. CVS Group focuses on delivering comprehensive veterinary care through its network of clinics and hospitals, alongside offering diagnostic services and pet-related products to both professional and consumer markets.
How the Company Makes MoneyCVS Group plc generates revenue primarily through its veterinary practices, which offer a range of services including consultations, surgeries, and preventive care for pets. A significant portion of income is derived from its network of veterinary clinics and hospitals across the UK. In addition, the company operates diagnostic laboratories that provide testing services to veterinary practices. CVS Group also earns revenue through its pet crematorium services, offering end-of-life care. Another revenue stream is its online retail segment, selling pet medications and products directly to consumers. The company benefits from strategic partnerships with pet insurance providers and pharmaceutical companies, enhancing its service offerings and expanding its reach in the veterinary market.

CVS Group plc Earnings Call Summary

Earnings Call Date:Oct 07, 2025
(Q4-2025)
|
% Change Since: |
Next Earnings Date:Mar 19, 2026
Earnings Call Sentiment Positive
The earnings call highlighted strong financial performance and successful expansions, particularly in Australia, bolstering confidence in future growth. However, challenges such as softer UK market conditions, a past cyber incident, and ongoing CMA investigation delays posed concerns.
Q4-2025 Updates
Positive Updates
Revenue and EBITDA Growth
Revenue increased by 5.4% to GBP 673.2 million, with adjusted EBITDA rising by 9.4% to GBP 134.6 million, demonstrating strong financial performance.
Successful Acquisitions in Australia
Completed 7 practice acquisitions in Australia, expanding the footprint to 51 sites, with a strong pipeline for further growth.
Improved Cash Flow and Leverage
Adjusted operating cash conversion was 76.9%, surpassing the target of 70%. The year ended with leverage at 1.18x.
Positive Outlook for Future Growth
Confidence in achieving 4% to 8% like-for-like growth in the medium term, supported by improved consumer confidence, pricing strategies, and demographic trends.
Negative Updates
Soft Market Conditions in the UK
Faced challenges with softer market conditions in the UK during the first half of the year, affecting overall performance.
Cyber Incident Impact
A cyber event in the final quarter of the previous year caused disruptions, although recovery and improvement have been noted.
CMA Investigation Delays
Continued delays in the Competition and Markets Authority (CMA) market investigation announcement, causing uncertainty.
Company Guidance
During the call, CVS Group provided a comprehensive overview of its financial performance for the fiscal year ending 2025, highlighting several key metrics. The company reported a revenue increase of 5.4% to GBP 673.2 million, with like-for-like growth of 0.2% across the group and 1% in the core practice division. Adjusted EBITDA rose by 9.4% to GBP 134.6 million, while the adjusted EBITDA margin improved by 70 basis points to 20%. The group also achieved an adjusted operating cash conversion rate of 76.9%, surpassing their target of approximately 70%. The company's leverage at year-end was 1.18x, aided by proceeds from the sale of their Crematoria business. CVS Group expanded its footprint in Australia by completing seven practice acquisitions, increasing its total sites to 51, and continued its acquisition strategy into the new fiscal year with two additional acquisitions. The management expressed confidence in the company's future growth prospects, buoyed by strong market fundamentals and a strategic focus on high-quality acquisitions.

CVS Group plc Financial Statement Overview

Summary
CVS Group plc demonstrates solid revenue growth and operational efficiency but faces challenges with declining net income and increased debt levels. The healthy gross profit margin and strong cash generation are positives, yet the drop in net profit margin and free cash flow are concerning.
Income Statement
75
Positive
The company has shown consistent revenue growth, with the latest annual revenue increasing by approximately 6.4% from the previous year. Gross profit margin remains healthy at 42.9%, although net profit margin has declined sharply to 1% due to decreased net income. EBIT and EBITDA margins indicate operational efficiency, but the drop in net income is a concern.
Balance Sheet
68
Positive
The debt-to-equity ratio has increased, indicating a higher reliance on debt financing. The equity ratio stands at 37.7%, reflecting a moderate level of equity financing. Return on equity has significantly decreased to 2.4%, suggesting lower profitability relative to shareholder equity.
Cash Flow
70
Positive
Operating cash flow to net income ratio is robust, indicating strong cash generation relative to net income. However, free cash flow has declined, and the free cash flow to net income ratio has weakened, reflecting lower cash available for expansion or debt repayment.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue647.30M588.90M554.20M510.10M427.80M
Gross Profit277.90M262.30M239.10M221.90M170.10M
EBITDA108.40M118.80M90.40M88.20M64.90M
Net Income6.20M41.90M25.70M19.30M5.70M
Balance Sheet
Total Assets690.00M572.30M518.20M484.50M464.30M
Cash, Cash Equivalents and Short-Term Investments16.50M21.50M49.00M33.70M21.50M
Total Debt287.80M199.10M188.80M182.70M182.20M
Total Liabilities429.50M315.30M300.80M293.40M297.70M
Stockholders Equity260.40M257.00M217.40M191.10M166.60M
Cash Flow
Free Cash Flow24.70M38.80M51.00M43.60M65.20M
Operating Cash Flow67.80M84.50M75.50M60.20M77.60M
Investing Cash Flow-140.50M-99.90M-45.10M-35.40M-19.60M
Financing Cash Flow68.30M-12.10M-15.10M-12.60M-49.00M

CVS Group plc Technical Analysis

Technical Analysis Sentiment
Negative
Last Price1272.00
Price Trends
50DMA
1283.44
Negative
100DMA
1258.16
Negative
200DMA
1170.08
Positive
Market Momentum
MACD
0.84
Positive
RSI
38.09
Neutral
STOCH
0.37
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:CVSG, the sentiment is Negative. The current price of 1272 is below the 20-day moving average (MA) of 1352.90, below the 50-day MA of 1283.44, and above the 200-day MA of 1170.08, indicating a neutral trend. The MACD of 0.84 indicates Positive momentum. The RSI at 38.09 is Neutral, neither overbought nor oversold. The STOCH value of 0.37 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GB:CVSG.

CVS Group plc Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
£958.96M11.268.90%6.07%0.37%14.78%
£911.53M47.816.75%0.64%4.00%-6.98%
$18.38B12.79-2.54%3.03%1.52%-15.83%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
GB:CVSG
CVS Group plc
1,242.00
308.00
32.98%
GB:PETS
Pets at Home
214.20
-73.20
-25.47%

CVS Group plc Corporate Events

Executive/Board ChangesBusiness Operations and Strategy
CVS Group Announces Long Term Incentive Plan Awards
Positive
Aug 1, 2025

CVS Group plc has announced the granting of option awards over 276,364 ordinary shares under its Long Term Incentive Plan 2025. These options, which include awards to key executives such as the CEO, CFO, and Chief Veterinary Officer, will vest in three years, contingent on meeting performance criteria related to earnings per share growth and total shareholder return. This move is likely to align the interests of the management with those of the shareholders, potentially enhancing the company’s operational performance and market positioning.

The most recent analyst rating on (GB:CVSG) stock is a Buy with a £1500.00 price target. To see the full list of analyst forecasts on CVS Group plc stock, see the GB:CVSG Stock Forecast page.

Regulatory Filings and Compliance
CVS Group Announces Updated Share Capital and Voting Rights
Neutral
Jul 31, 2025

CVS Group plc, a leading UK veterinary services provider, announced that its total issued share capital as of 31 July 2025 consists of 71,740,229 ordinary shares, each carrying one voting right. This update is significant for shareholders as it affects the calculations required under the FCA’s Disclosure Guidance and Transparency Rules, impacting how they notify or change their interest in the company.

The most recent analyst rating on (GB:CVSG) stock is a Hold with a £9.40 price target. To see the full list of analyst forecasts on CVS Group plc stock, see the GB:CVSG Stock Forecast page.

M&A TransactionsBusiness Operations and StrategyFinancial Disclosures
CVS Group Reports Revenue Growth and Expands Australian Operations Amid UK Market Challenges
Positive
Jul 24, 2025

CVS Group plc announced a trading update for the financial year ending June 30, 2025, highlighting a 5.4% revenue growth to £673.2 million and an expected adjusted EBITDA of approximately £134 million, aligning with market consensus. The company continues to expand in Australia with several acquisitions, while its UK acquisition activities are on hold pending a CMA investigation. The divestment of its Crematoria operations has reduced net bank borrowings and provided capital for further investments. Despite softer market conditions in the UK, CVS remains optimistic about its long-term growth prospects, supported by a strong balance sheet and a growing pet population.

The most recent analyst rating on (GB:CVSG) stock is a Buy with a £1500.00 price target. To see the full list of analyst forecasts on CVS Group plc stock, see the GB:CVSG Stock Forecast page.

Regulatory Filings and Compliance
CVS Group plc Announces Change in Major Shareholder Voting Rights
Neutral
Jul 15, 2025

CVS Group plc, a UK-based company, has announced a change in the voting rights held by Octopus Investments Limited. The notification indicates that Octopus Investments Limited’s voting rights in CVS Group plc have decreased from 6.98% to 5.99%, which could impact the company’s governance and decision-making processes.

The most recent analyst rating on (GB:CVSG) stock is a Buy with a £1500.00 price target. To see the full list of analyst forecasts on CVS Group plc stock, see the GB:CVSG Stock Forecast page.

Other
CVS Group CEO Increases Stake in Company
Positive
Jul 11, 2025

CVS Group plc announced that its CEO, Richard Fairman, has purchased 1,644 ordinary shares of the company, increasing his total shareholding to 79,751 shares, which accounts for 0.111% of the company’s total voting rights. This transaction, conducted on the London Stock Exchange, reflects Fairman’s confidence in the company’s future prospects and may positively influence stakeholder perception.

The most recent analyst rating on (GB:CVSG) stock is a Buy with a £1500.00 price target. To see the full list of analyst forecasts on CVS Group plc stock, see the GB:CVSG Stock Forecast page.

Business Operations and Strategy
CVS Group plc Announces Change in Shareholder Voting Rights
Neutral
Jun 30, 2025

CVS Group plc has announced a change in the voting rights held by Grandeur Peak Global Advisors, LLC, which has reduced its stake from 4.93% to 3.87%. This adjustment in holdings could influence the company’s shareholder dynamics and potentially impact its strategic decisions, reflecting a shift in investment focus by a significant shareholder.

The most recent analyst rating on (GB:CVSG) stock is a Buy with a £1500.00 price target. To see the full list of analyst forecasts on CVS Group plc stock, see the GB:CVSG Stock Forecast page.

Regulatory Filings and Compliance
CVS Group Announces Total Voting Rights Update
Neutral
Jun 30, 2025

CVS Group plc, a leading UK veterinary services provider, announced that as of 30 June 2025, its total issued share capital consists of 71,740,184 Ordinary Shares, each carrying one voting right. This update is crucial for shareholders to determine their interest in the company under the FCA’s Disclosure Guidance and Transparency Rules, impacting the company’s transparency and stakeholder engagement.

The most recent analyst rating on (GB:CVSG) stock is a Hold with a £1200.00 price target. To see the full list of analyst forecasts on CVS Group plc stock, see the GB:CVSG Stock Forecast page.

Legal ProceedingsRegulatory Filings and Compliance
CVS Group Engages with CMA on Veterinary Services Market Investigation
Neutral
Jun 10, 2025

CVS Group plc has responded to the Competition and Markets Authority’s (CMA) decision to extend the deadline for its market investigation into the supply of veterinary services for household pets in the UK. CVS is actively engaging with the CMA, providing feedback on transparency measures and expressing concerns over potential constraints on clinical freedom. The company supports the CMA’s focus on transparency but cautions against remedies that could inadvertently affect animal welfare and consumer choice. CVS remains optimistic that the extension will lead to a more proportionate remedy package, while acknowledging the uncertainty it brings to stakeholders.

The most recent analyst rating on (GB:CVSG) stock is a Buy with a £1500.00 price target. To see the full list of analyst forecasts on CVS Group plc stock, see the GB:CVSG Stock Forecast page.

Other
CVS Group Chairman Increases Shareholding
Positive
Jun 2, 2025

CVS Group plc announced that David Wilton, the Non-executive Chairman, has purchased 1,000 ordinary shares in the company, increasing his total shareholding to 10,000 shares, which represents 0.014% of the company’s total voting rights. This transaction, conducted on the London Stock Exchange, signifies a potential vote of confidence in the company’s future prospects by its leadership.

The most recent analyst rating on (GB:CVSG) stock is a Buy with a £1500.00 price target. To see the full list of analyst forecasts on CVS Group plc stock, see the GB:CVSG Stock Forecast page.

Regulatory Filings and Compliance
CVS Group Announces Total Voting Rights Update
Neutral
May 30, 2025

CVS Group plc, a leading veterinary services provider, announced that its total issued share capital consists of 71,740,184 Ordinary Shares, each carrying one voting right, as of May 30, 2025. This update is crucial for shareholders to determine their interests in accordance with the FCA’s Disclosure Guidance and Transparency Rules.

The most recent analyst rating on (GB:CVSG) stock is a Buy with a £1500.00 price target. To see the full list of analyst forecasts on CVS Group plc stock, see the GB:CVSG Stock Forecast page.

M&A TransactionsBusiness Operations and Strategy
CVS Group Sells Crematoria Operations and Expands in Australia
Positive
May 19, 2025

CVS Group plc has finalized the sale of its Crematoria operations to Anima Care UK Limited for £42.4 million, marking a strategic move to streamline its operations. This disposal is expected to result in a one-off profit of £32.0 million in its FY2025 accounts. Concurrently, CVS has expanded its presence in Australia by acquiring VPP Group PTY Ltd, adding six practice sites in Victoria, and now operates 28 practices across 42 sites in the country. These strategic decisions are likely to enhance CVS’s market positioning and operational focus.

The most recent analyst rating on (GB:CVSG) stock is a Buy with a £1500.00 price target. To see the full list of analyst forecasts on CVS Group plc stock, see the GB:CVSG Stock Forecast page.

Regulatory Filings and Compliance
BlackRock Increases Stake in CVS Group plc
Neutral
May 8, 2025

CVS Group plc has announced a change in its voting rights structure, with BlackRock, Inc. acquiring a significant stake. The notification indicates that BlackRock’s voting rights in CVS Group have increased to 5.02%, crossing the 5% threshold, which is a notable development for the company’s shareholder composition.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

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.Date of analysis: Aug 02, 2025