DSW Capital Plc (DSW) AI Stock Analysis

• Market Cap: £16.34M
• Dividend Yield: 5.12%
• Average Volume (3M): 33.51K
• Price to Earnings (P/E): 14.2
• Beta (1Y): -0.18
• 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: 79.00p ▲(12.86% 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

High Revenue Growth

Sustained double‑digit revenue expansion signals effective deal sourcing and portfolio appreciation. Over a 2–6 month horizon this supports reinvestment capacity, enhances ability to realize capital gains and dividends, and underpins longer term growth of the investment platform.

Strong Cash Generation

Very large improvement in free cash flow and near 1:1 FCF-to-net income shows robust cash conversion. Durable cash generation enhances flexibility to fund new investments, service obligations, return capital to shareholders, and weather funding stress over multiple months.

Prudent Capital Structure

Low leverage and a high equity base reduce refinancing and solvency risk, enabling patient capital deployment into SMEs. A solid balance sheet supports operational resilience and the ability to support portfolio companies through downturns, aiding durable value creation.

Negative Factors

Limited Operating Scale

A very small headcount constrains internal sourcing, due diligence and hands‑on portfolio support. Over months this can limit scalable deal flow, increase dependence on external partners, and slow execution or monitoring as investment activity increases.

SME Concentration & Illiquidity

Concentration in SME investments creates structural illiquidity and longer hold periods to realize gains. This raises valuation uncertainty and sensitivity to SME credit cycles, potentially delaying cash returns and elevating execution risk over a 2–6 month horizon.

Historic Performance Volatility

Documented historical swings in revenue growth and profitability indicate returns may be uneven across investment cycles. Structurally, this can produce inconsistent income and capital realization timing, complicating planning and predictability for investors over ensuing months.

DSW Capital Plc Business Overview & Revenue Model

Company Description

DSW Capital plc provides professional services in the United Kingdom. The company offers corporate finance advice, financial due diligence, business recovery, equity finance, DSW venture, wealth advisory, forensic and valuation, business planning, and debt and tax advisory services; industrial property solutions; and funding and advice services in the tech and media sectors. DSW Capital plc was founded in 2002 and is headquartered in Warrington, the United Kingdom.

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: 70.00
• 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:DSW, the sentiment is Positive. The current price of 70 is above the 20-day moving average (MA) of 65.85, above the 50-day MA of 56.58, and above the 200-day MA of 53.50, indicating a neutral trend. The MACD of 2.85 indicates Positive momentum. The RSI at 55.66 is Neutral, neither overbought nor oversold. The STOCH value of 21.91 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%	5.12%	186.12%	294.83%
KEYS	76 Outperform	£199.82M	20.52	56.75%	5.98%	16.29%	22.80%
BEG	69 Neutral	£191.51M	19.16	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	£161.33M	135.25	7.40%	2.75%	8.01%	-23.02%
PPHC	61 Neutral	£253.07M	-39.68	-40.39%	1.11%	15.27%	-73.02%
MIND	44 Neutral	£12.04M	-1.22	-168.28%	―	-27.82%	-3083.87%

DSW Capital Plc Corporate Events

DSW Capital Announces Changes in Significant Shareholdings

DSW Capital Plc has reported changes in significant shareholdings, with investor James Tipping increasing his stake to 1,782,464 ordinary shares, representing approximately 7.09% of the company’s voting rights. In contrast, Andrew Dodd has reduced his holding to 707,180 ordinary shares, equating to about 2.81% of voting rights, signalling a shift in the ownership profile that may be closely watched by stakeholders given the company’s growth-focused, challenger model in the professional services sector.

The most recent analyst rating on (GB:DSW) stock is a Buy with a £68.00 price target. To see the full list of analyst forecasts on DSW Capital Plc stock, see the GB:DSW Stock Forecast page.

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.

The most recent analyst rating on (GB:DSW) stock is a Hold with a £48.00 price target. To see the full list of analyst forecasts on DSW Capital Plc stock, see the GB:DSW Stock Forecast page.

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.

The most recent analyst rating on (GB:DSW) stock is a Hold with a £54.00 price target. To see the full list of analyst forecasts on DSW Capital Plc stock, see the GB:DSW Stock Forecast page.