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CVS Group PLC (GB:CVSG)
LSE:CVSG

CVS Group plc (CVSG) AI Stock Analysis

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GB

CVS Group plc

(LSE:CVSG)

Rating:73Outperform
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 (CVSG) vs. iShares MSCI United Kingdom ETF (EWC)

CVS Group plc Business Overview & Revenue Model

Company DescriptionCVS 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 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 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
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.
Breakdown
TTMJun 2024Jun 2023Jun 2022Jun 2021Jun 2020
Income StatementTotal Revenue
659.20M647.30M608.30M554.20M510.10M427.80M
Gross Profit
259.70M277.90M262.30M239.10M221.90M170.10M
EBIT
69.60M50.80M62.30M42.80M40.10M18.50M
EBITDA
112.50M108.40M118.80M90.40M88.20M64.90M
Net Income Common Stockholders
17.30M6.20M41.90M25.70M19.30M5.70M
Balance SheetCash, Cash Equivalents and Short-Term Investments
6.90M16.50M21.50M49.00M33.70M21.50M
Total Assets
473.30M690.00M572.30M518.20M484.50M464.30M
Total Debt
103.70M287.80M199.10M188.80M182.70M182.20M
Net Debt
96.80M271.30M177.60M139.80M149.00M160.70M
Total Liabilities
308.10M429.50M315.30M300.80M293.40M297.70M
Stockholders Equity
165.20M260.40M257.00M217.40M191.10M166.60M
Cash FlowFree Cash Flow
29.30M24.70M38.80M51.00M43.60M65.20M
Operating Cash Flow
66.70M67.80M84.50M75.50M60.20M77.60M
Investing Cash Flow
-100.40M-140.50M-99.90M-45.10M-35.40M-19.60M
Financing Cash Flow
13.50M68.30M-12.10M-15.10M-12.60M-49.00M

CVS Group plc Technical Analysis

Technical Analysis Sentiment
Positive
Last Price1292.00
Price Trends
50DMA
1130.20
Positive
100DMA
1065.28
Positive
200DMA
1011.41
Positive
Market Momentum
MACD
36.31
Positive
RSI
68.45
Neutral
STOCH
75.35
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 1258.30, above the 50-day MA of 1130.20, and above the 200-day MA of 1011.41, indicating a bullish trend. The MACD of 36.31 indicates Positive momentum. The RSI at 68.45 is Neutral, neither overbought nor oversold. The STOCH value of 75.35 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

Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
78
Outperform
£1.18B13.618.90%5.02%2.78%11.20%
73
Outperform
£926.88M53.578.64%0.62%2.70%-51.35%
62
Neutral
$6.88B11.322.90%3.87%2.70%-24.57%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
GB:CVSG
CVS Group plc
1,292.00
163.36
14.47%
GB:PETS
Pets at Home
259.00
-28.97
-10.06%

CVS Group plc Corporate Events

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.

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

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.

M&A TransactionsBusiness Operations and Strategy
CVS Group Sells Crematoria Operations to Focus on Core Veterinary Services
Positive
Apr 24, 2025

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.

Regulatory Filings and Compliance
CVS Group Announces Total Voting Rights Update
Neutral
Mar 31, 2025

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.

Regulatory Filings and Compliance
CVS Group Announces Share Transfer by Director’s Associate
Neutral
Mar 28, 2025

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.

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.