DSW Capital Plc (DSW) AI Stock Analysis

• Market Cap: £16.34M
• Dividend Yield: 4.92%
• Average Volume (3M): 33.51K
• Price to Earnings (P/E): 14.2
• Beta (1Y): -0.31
• Revenue Growth: 186.12%
• EPS Growth: 294.83%
• Country: UK
• Employees: 15
• Sector: Industrials
• Sector Strength: 72
• Industry: Specialty Business Services
• EPS (TTM): 0.02
• Shares Outstanding: 25,131,107
• 10 Day Avg. Volume: 31,238
• 30 Day Avg. Volume: 33,509
• PEG Ratio: 0.01
• Price to Book (P/B): 1.12
• Price to Sales (P/S): 2.31
• P/FCF Ratio: 8.31
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 76 Outperform
• Price Target: 68.00p ▲(4.62% Upside)

DSW Capital Plc's strong financial performance, characterized by robust revenue growth and high profitability margins, is the most significant factor driving the stock score. The technical analysis shows bullish momentum, though caution is advised due to overbought signals. The valuation is attractive with a low P/E ratio and high dividend yield, further supporting the stock's positive outlook.

Positive Factors

Revenue Growth

The significant revenue growth indicates successful expansion and increased market penetration, supporting long-term business sustainability.

Cash Flow Generation

Strong cash flow generation enhances financial flexibility, enabling the company to invest in growth opportunities and manage debt effectively.

Profitability Margins

Improved profitability margins indicate efficient cost management and operational effectiveness, contributing to long-term financial health.

Negative Factors

Historical Revenue Volatility

Revenue volatility can pose risks to predictable cash flows and financial planning, potentially impacting long-term strategic initiatives.

ROE Fluctuations

Inconsistent ROE may reflect challenges in maintaining steady profitability, affecting investor confidence and long-term growth prospects.

Past Negative Cash Flows

Historical negative cash flows highlight past financial instability, which could affect the company's ability to withstand future economic downturns.

DSW Capital Plc Business Overview & Revenue Model

Company Description

DSW Capital Plc (DSW) is a UK-based investment company that focuses on providing capital to small and medium-sized enterprises (SMEs) across various sectors, including technology, healthcare, and consumer goods. The company aims to generate long-term value through strategic investments and partnerships, leveraging its expertise and market knowledge to support the growth and development of its portfolio companies.

How the Company Makes Money

DSW Capital Plc generates revenue primarily through capital appreciation and income derived from its investments in SMEs. The company's revenue model includes equity investments, where it takes ownership stakes in growing businesses, and debt financing, providing loans to companies in exchange for interest payments. Key revenue streams include dividends from profitable portfolio companies, capital gains from the sale of investments, and management fees from any funds or investment vehicles managed by the company. DSW also benefits from strategic partnerships with other financial institutions and investment firms, allowing for co-investment opportunities and access to a broader market of potential investments, which further enhances its earnings potential.

DSW Capital Plc Financial Statement Overview

Summary

DSW Capital Plc exhibits strong financial health with robust revenue growth, high profitability margins, and a solid balance sheet. The company has effectively managed its leverage and improved cash flow generation. While historical fluctuations in growth and profitability metrics present some risks, the current trajectory indicates a positive outlook for sustained financial performance.

Income Statement

DSW Capital Plc has demonstrated strong revenue growth with a remarkable 111.92% increase in the latest period. The company maintains high gross profit margins, consistently above 88%, indicating efficient cost management. Net profit margin has improved significantly to 20.27%, reflecting enhanced profitability. EBIT and EBITDA margins are robust, showcasing operational efficiency. However, historical fluctuations in revenue growth rates suggest potential volatility.

Balance Sheet

The balance sheet reflects a solid financial position with a low debt-to-equity ratio of 0.30, indicating prudent leverage management. Return on equity has improved to 9.83%, suggesting effective use of shareholder funds. The equity ratio stands at 64.72%, highlighting a strong equity base. However, the company has experienced fluctuations in ROE, which could indicate varying profitability over time.

Cash Flow

DSW Capital Plc has shown impressive free cash flow growth, with a significant increase of 12181.82% in the latest period. The operating cash flow to net income ratio is healthy at 0.74, indicating good cash generation relative to earnings. The free cash flow to net income ratio is strong at 0.96, reflecting efficient cash conversion. Despite past negative cash flows, recent improvements suggest enhanced cash flow stability.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	6.55M	4.86M	2.31M	2.71M	2.68M	2.35M
Gross Profit	5.37M	4.27M	2.31M	2.53M	2.68M	2.35M
EBITDA	1.97M	1.82M	428.00K	919.00K	-256.00K	1.72M
Net Income	1.06M	984.00K	84.00K	485.00K	-334.00K	1.26M
Balance Sheet
Total Assets	14.11M	15.47M	8.59M	8.96M	9.02M	4.44M
Cash, Cash Equivalents and Short-Term Investments	2.24M	2.68M	2.63M	4.58M	4.72M	609.00K
Total Debt	1.97M	2.99M	371.00K	311.00K	385.00K	1.49M
Total Liabilities	3.87M	5.46M	1.00M	1.06M	1.03M	2.22M
Stockholders Equity	10.24M	10.02M	7.59M	7.89M	7.99M	2.21M
Cash Flow
Free Cash Flow	1.20M	1.35M	-206.00K	1.10M	897.00K	795.00K
Operating Cash Flow	1.25M	1.41M	-156.00K	1.15M	934.00K	811.00K
Investing Cash Flow	-3.57M	-3.58M	-1.23M	-43.00K	-37.00K	-16.00K
Financing Cash Flow	2.29M	2.22M	-566.00K	-1.24M	3.22M	-528.00K

DSW Capital Plc Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 65.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:DSW, the sentiment is Positive. The current price of 65 is above the 20-day moving average (MA) of 52.53, above the 50-day MA of 50.46, and above the 200-day MA of 52.40, indicating a bullish trend. The MACD of 3.41 indicates Negative momentum. The RSI at 83.30 is Negative, neither overbought nor oversold. The STOCH value of 75.91 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:DSW.

DSW Capital Plc Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
DSW	76 Outperform	£16.34M	14.19	11.90%	4.92%	186.12%	294.83%
KEYS	76 Outperform	£193.48M	19.87	56.75%	5.98%	16.29%	22.80%
BEG	69 Neutral	£178.63M	17.87	12.60%	3.91%	8.31%	305.88%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
KGH	61 Neutral	£136.44M	18.01	7.40%	3.03%	8.01%	-23.02%
PPHC	61 Neutral	£275.70M	-43.23	-40.39%	1.09%	15.27%	-73.02%
MIND	44 Neutral	£11.54M	-1.17	-168.28%	―	-27.82%	-3083.87%

DSW Capital Plc Corporate Events

DSW Capital Reports Strong Half-Year Results with 32% Revenue Growth

DSW Capital reported a strong performance for the first half of FY26, with a 32% increase in network revenue to £10.3m and a significant rise in adjusted EBITDA to £0.7m. This growth was driven by the acquisition of DR Solicitors and expansion within existing businesses, highlighting the company’s scalable platform model and long-term growth strategy. The company also saw a 29% increase in fee earners, reflecting its focus on sustainable growth and diversification. Despite geopolitical and economic uncertainties, DSW Capital remains confident in its strategy to drive shareholder value and expand its network.

DSW Capital Reports Strong H1 FY26 Performance with 32% Revenue Growth

DSW Capital reported a strong performance in the first half of FY26, with a 32% increase in network revenue to £10.3m, driven by the acquisition of DR Solicitors and growth within existing licensee businesses. Adjusted EBITDA rose significantly to £0.7m, and the number of fee earners increased to 144. The company maintained strong cash conversion and repaid a £1m loan. Despite geopolitical and economic uncertainties, DSW Capital remains confident in its strategy to drive sustainable growth and expand its network, with a focus on building shareholder value over the long term.

DSW Capital to Present at Mello Investor Webinar

DSW Capital announced its participation in the Mello Monday Zoom Webinar on October 13, 2025, where CEO Shru Morris and CFOO Pete Fendall will present and engage with attendees. This event highlights DSW Capital’s ongoing efforts to connect with investors and stakeholders, reinforcing its position as a challenger in the professional services sector with a focus on growth and expansion.

DSW Capital Executive Increases Stake, Signaling Confidence in Growth

DSW Capital announced that James Dow, Executive Director, purchased 120,000 ordinary shares, increasing his total beneficial interest to 16.95% of the company’s issued share capital. This transaction underscores the confidence of the executive leadership in the company’s growth potential and may positively influence stakeholder sentiment regarding DSW Capital’s market positioning and future prospects.

DSW Capital Secures Shareholder Approval at AGM, Eyes Expansion

DSW Capital announced that all resolutions at its recent AGM were approved, reflecting strong shareholder support. The company’s focus on expanding its agile model through organic growth, geographical expansion, and acquisitions positions it well for future growth, benefiting stakeholders and enhancing its market presence.