DSW Capital Plc (DSW) AI Stock Analysis

• Market Cap: £14.32M
• Dividend Yield: 5.08%
• Average Volume (3M): 15.40K
• Price to Earnings (P/E): 13.1
• Beta (1Y): -0.21
• Revenue Growth: 110.08%
• EPS Growth: 1105.56%
• Country: UK
• Employees: 15
• Sector: Industrials
• Sector Strength: 71
• Industry: Specialty Business Services
• EPS (TTM): 0.04
• Shares Outstanding: 25,131,107
• 10 Day Avg. Volume: 17,188
• 30 Day Avg. Volume: 15,404
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: £63.00
• Price Target Upside: 6.78% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 70 Outperform
• Price Target: 63.00p ▲(6.78% Upside)

DSW Capital Plc's strong financial performance is the primary driver of its stock score, supported by robust revenue growth and high profitability margins. The technical analysis indicates a neutral market sentiment, while the valuation suggests the stock is reasonably priced with an attractive dividend yield. The absence of earnings call data and corporate events did not impact the score.

Positive Factors

Revenue Growth

The significant revenue growth indicates strong market demand and effective business strategies, supporting long-term expansion and competitiveness.

Profitability Margins

Improved profit margins suggest efficient cost management and pricing strategies, enhancing the company's ability to generate sustainable profits.

Cash Flow Generation

Strong cash flow growth enhances financial flexibility, enabling the company to invest in growth opportunities and weather economic fluctuations.

Negative Factors

Revenue Growth Volatility

Volatile revenue growth can lead to unpredictable financial performance, challenging long-term planning and investor confidence.

ROE Fluctuations

Inconsistent ROE may reflect challenges in maintaining stable profitability, potentially impacting shareholder returns and investment attractiveness.

Past Negative Cash Flows

Previous negative cash flows highlight historical financial instability, which could pose risks if similar patterns re-emerge.

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 through several key streams. The company earns management fees from its investment funds, which are typically a percentage of assets under management (AUM). Additionally, DSW receives performance fees based on the returns generated by its investments, aligning its interests with those of its clients. The firm also engages in advisory services, charging fees for providing strategic financial advice and investment opportunities. Significant partnerships with institutional investors and corporations bolster its capital base and enhance its investment capabilities, further contributing to its earnings. The combination of management fees, performance fees, and advisory service charges creates a robust revenue model that supports DSW's financial growth.

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	2.29M	4.86M	2.31M	2.71M	2.68M	2.35M
Gross Profit	2.19M	4.27M	2.31M	2.53M	2.68M	2.35M
EBITDA	592.00K	1.82M	256.00K	615.00K	-256.00K	1.70M
Net Income	253.00K	984.00K	84.00K	485.00K	-334.00K	1.26M
Balance Sheet
Total Assets	8.32M	15.47M	8.59M	8.96M	9.02M	4.44M
Cash, Cash Equivalents and Short-Term Investments	2.33M	2.68M	2.63M	4.58M	4.72M	609.00K
Total Debt	294.00K	2.99M	371.00K	311.00K	385.00K	1.49M
Total Liabilities	778.00K	5.46M	1.00M	1.06M	1.03M	2.22M
Stockholders Equity	7.54M	10.02M	7.59M	7.89M	7.99M	2.21M
Cash Flow
Free Cash Flow	11.00K	1.35M	-206.00K	1.10M	897.00K	795.00K
Operating Cash Flow	70.00K	1.41M	-156.00K	1.15M	934.00K	811.00K
Investing Cash Flow	-488.00K	-3.58M	-1.23M	-43.00K	-37.00K	-16.00K
Financing Cash Flow	-416.00K	2.22M	-566.00K	-1.24M	3.22M	-528.00K

DSW Capital Plc Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 59.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• 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 59 is above the 20-day moving average (MA) of 57.70, above the 50-day MA of 58.12, and above the 200-day MA of 58.48, indicating a bullish trend. The MACD of -0.02 indicates Negative momentum. The RSI at 62.32 is Neutral, neither overbought nor oversold. The STOCH value of 50.00 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
KGH	77 Outperform	£150.60M	13.23	11.37%	2.69%	5.40%	19.01%
DSW	70 Outperform	£14.32M	13.13	11.18%	5.08%	110.08%	1105.56%
KEYS	64 Neutral	£185.23M	21.55	45.84%	3.05%	13.00%	11.16%
BEG	64 Neutral	£186.27M	29.55	7.85%	3.47%	12.41%	330.43%
Sector *	63 Neutral	$10.70B	15.26	7.37%	2.02%	2.87%	-14.59%
PPHC	63 Neutral	£218.67M	―	-28.97%	3.46%	7.76%	-60.70%
MIND	42 Neutral	£15.54M	―	-106.45%	―	-14.04%	24.84%

DSW Capital Plc Corporate Events

DSW Capital Grants Share Options to Executive Directors

DSW Capital PLC has granted nominal cost options over 738,596 ordinary shares to certain executive directors under its Performance Share Plan. This move underscores the company’s commitment to incentivizing its leadership team, potentially enhancing its operational effectiveness and market positioning in the professional services industry.

DSW Capital Achieves Record Financial Results Amid Strategic Growth

DSW Capital reported record financial results for the year ending March 2025, driven by the acquisition of DR Solicitors and high M&A activity. Revenue increased by 62% to £25.8 million, and adjusted EBITDA nearly tripled to £1.787 million. The integration of DR Solicitors has diversified the company’s income, reducing its dependency on M&A. The company remains optimistic about future growth, supported by a strong recruitment pipeline and strategic focus on expanding its mid-market presence.

DSW Capital to Host FY25 Results Presentation

DSW Capital PLC is set to hold an online presentation for investors and analysts on 10 July 2025, as part of its FY25 Results roadshow. The presentation, led by key executives, will cover the Group’s trading and performance for the year ending 31 March 2025, followed by a Q&A session. This event underscores DSW Capital’s commitment to transparency and engagement with stakeholders, highlighting its strategic focus on growth and market positioning.