CVS Group plc (CVSG) AI Stock Analysis

• Market Cap: £892.45M
• Dividend Yield: 0.64%
• Average Volume (3M): 201.56K
• Price to Earnings (P/E): 51.6
• Beta (1Y): 0.90
• Revenue Growth: 2.70%
• EPS Growth: -51.35%
• Country: UK
• Employees: 9,000
• Sector: Consumer Cyclical
• Sector Strength: 57
• Industry: Personal Products & Services
• EPS (TTM): 0.40
• Shares Outstanding: 71,740,180
• 10 Day Avg. Volume: 272,177
• 30 Day Avg. Volume: 201,558
• PEG Ratio: 0.53
• Price to Book (P/B): 5.49
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 36.35
• 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: £1,562.50
• Price Target Upside: 25.60% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4

• Rating: 73 Outperform
• Price Target: 1,400.00p ▲(12.54%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 (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 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
EBITDA	112.50M	108.40M	118.80M	90.40M	88.20M	64.90M
Net Income	17.30M	6.20M	41.90M	25.70M	19.30M	5.70M
Balance Sheet
Total Assets	696.20M	690.00M	572.30M	518.20M	484.50M	464.30M
Cash, Cash Equivalents and Short-Term Investments	11.60M	16.50M	21.50M	49.00M	33.70M	21.50M
Total Debt	295.50M	287.80M	199.10M	188.80M	182.70M	182.20M
Total Liabilities	434.80M	429.50M	315.30M	300.80M	293.40M	297.70M
Stockholders Equity	261.30M	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: Neutral
• Last Price: 1244.00
• 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 Neutral. The current price of 1244 is below the 20-day moving average (MA) of 1264.60, above the 50-day MA of 1228.88, and above the 200-day MA of 1024.80, indicating a neutral trend. The MACD of 4.34 indicates Positive momentum. The RSI at 44.52 is Neutral, neither overbought nor oversold. The STOCH value of 33.05 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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	£1.19B	13.78	8.90%	4.67%	2.78%	11.20%
CVSG	73 Outperform	£892.45M	51.58	8.64%	0.64%	2.70%	-51.35%
Sector *	56 Neutral	HK$23.68B	3.88	-1.57%	6.91%	0.06%	-64.88%

CVS Group plc Corporate Events

CVS Group plc Announces Change in Shareholder Voting Rights

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.

CVS Group Announces Total Voting Rights Update

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.

CVS Group Engages with CMA on Veterinary Services Market Investigation

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.

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.