CVS Group plc (CVSG) AI Stock Analysis

• Market Cap: £926.88M
• Dividend Yield: 0.62%
• Average Volume (3M): 335.76K
• Price to Earnings (P/E): 53.6
• Beta (1Y): 0.95
• Revenue Growth: 2.70%
• EPS Growth: -51.35%
• Country: UK
• Employees: 9,000
• Sector: Consumer Cyclical
• Sector Strength: 62
• Industry: Personal Products & Services
• EPS (TTM): 0.40
• Shares Outstanding: 71,740,180
• 10 Day Avg. Volume: 144,870
• 30 Day Avg. Volume: 335,764
• PEG Ratio: -3.88
• Price to Book (P/B): 3.55
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 31.63
• 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: £1,507.00
• Price Target Upside: 16.64% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4

• Rating: 73 Outperform
• Price Target: 1,400.00p ▲(8.36%Upside)

CVS Group plc's overall score is driven by strong corporate events and technical analysis. The strategic disposal and acquisitions are positive for future growth. However, high valuation and profitability challenges pose risks to potential investors.

CVS Group plc Business Overview & Revenue Model

Company Description

CVS Group plc engages in veterinary, pet crematoria, online pharmacy, and retail businesses. The company operates through four segments: Veterinary Practices, Laboratories, Crematoria, and Online Retail. It operates animal veterinary practices and complementary veterinary diagnostic businesses. The company also provides pet cremation and clinical waste services for veterinary practices. In addition, it operates Animed Direct, an online pharmacy and retail business that sells prescription and non-prescription medicines, premium pet foods, and other pet care products; and an online dispensary. Further, the company provides burial grounds; and veterinary instrumentation supply and referral services. It owns 506 veterinary practices, 3 laboratories, 7 crematoria, and an online pharmacy. CVS Group plc was founded in 1999 and is based in Diss, the United Kingdom.

How the Company Makes Money

CVS 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 Financial Statement Overview

Summary

CVS Group plc shows solid revenue growth and operational margins, yet faces profitability and leverage challenges. The increase in debt levels and lower net income highlight potential risks. Cash flow remains relatively strong, but the decrease in free cash flow necessitates careful financial management to sustain growth.

Income Statement

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

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

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.

Breakdown
TTM	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement		Total Revenue
659.20M	647.30M	608.30M	554.20M	510.10M	427.80M
	Gross Profit
259.70M	277.90M	262.30M	239.10M	221.90M	170.10M
	EBIT
69.60M	50.80M	62.30M	42.80M	40.10M	18.50M
	EBITDA
112.50M	108.40M	118.80M	90.40M	88.20M	64.90M
	Net Income Common Stockholders
17.30M	6.20M	41.90M	25.70M	19.30M	5.70M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
6.90M	16.50M	21.50M	49.00M	33.70M	21.50M
	Total Assets
473.30M	690.00M	572.30M	518.20M	484.50M	464.30M
	Total Debt
103.70M	287.80M	199.10M	188.80M	182.70M	182.20M
	Net Debt
96.80M	271.30M	177.60M	139.80M	149.00M	160.70M
	Total Liabilities
308.10M	429.50M	315.30M	300.80M	293.40M	297.70M
	Stockholders Equity
165.20M	260.40M	257.00M	217.40M	191.10M	166.60M
Cash Flow		Free Cash Flow
29.30M	24.70M	38.80M	51.00M	43.60M	65.20M
	Operating Cash Flow
66.70M	67.80M	84.50M	75.50M	60.20M	77.60M
	Investing Cash Flow
-100.40M	-140.50M	-99.90M	-45.10M	-35.40M	-19.60M
	Financing Cash Flow
13.50M	68.30M	-12.10M	-15.10M	-12.60M	-49.00M

CVS Group plc Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1292.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:CVSG, the sentiment is Positive. The current price of 1292 is above the 20-day moving average (MA) of 1257.80, above the 50-day MA of 1136.00, and above the 200-day MA of 1012.37, indicating a bullish trend. The MACD of 35.96 indicates Positive momentum. The RSI at 67.74 is Neutral, neither overbought nor oversold. The STOCH value of 73.24 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:CVSG.

CVS Group plc Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PETS	78 Outperform	£1.18B	13.61	8.90%	5.02%	2.78%	11.20%
CVSG	73 Outperform	£926.88M	53.57	8.64%	0.62%	2.70%	-51.35%
Sector *	62 Neutral	$6.88B	11.32	2.90%	3.87%	2.70%	-24.57%

CVS Group plc Corporate Events

CVS Group Chairman Increases Shareholding

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.

CVS Group Announces Total Voting Rights Update

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.

CVS Group Sells Crematoria Operations and Expands in Australia

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.

BlackRock Increases Stake in CVS Group plc

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.

CVS Group Announces Total Voting Rights Update

CVS Group plc, a leading UK veterinary services provider, announced that its total issued share capital consists of 71,740,184 ordinary shares, each carrying one voting right. This information is essential for shareholders to calculate their interests under the FCA’s Disclosure Guidance and Transparency Rules, indicating the company’s commitment to transparency and regulatory compliance.

CVS Group Sells Crematoria Operations to Focus on Core Veterinary Services

CVS Group plc has announced the disposal of its Crematoria operations to Anima Care UK Limited for £42.4 million, aligning with its strategy to focus on core veterinary and diagnostic services. The divestment, representing a 10x multiple of adjusted EBITDA, will enable CVS to reinvest in its UK and Australian operations, enhancing its growth potential while maintaining a leverage ratio below 2.0x. This strategic move is expected to be value accretive, allowing CVS to concentrate on its primary services while still providing comprehensive client care.

CVS Group Announces Total Voting Rights Update

CVS Group plc, a leading UK veterinary services provider, announced its total issued share capital as of 31 March 2025, consisting of 71,740,184 Ordinary Shares, each carrying one voting right. This update is significant for shareholders as it affects the calculations for notifying changes in their interests under the FCA’s rules, impacting the company’s transparency and governance.

CVS Group Announces Share Transfer by Director’s Associate

CVS Group plc announced a transaction involving a ‘Bed and ISA’ transfer of 305 ordinary shares by a person closely associated with Richard Gray, a Non-executive Director. This transaction does not alter Richard Gray’s total interest in the company, which remains at 7,600 shares, representing 0.011% of the total voting rights. The announcement highlights compliance with UK Market Abuse Regulation, ensuring transparency in managerial dealings.