Dewhurst (DWHT) AI Stock Analysis

• Market Cap: £49.71M
• Dividend Yield: 287.5%
• Average Volume (3M): 618.00
• Price to Earnings (P/E): 11.3
• Beta (1Y): 0.39
• Revenue Growth: 11.13%
• EPS Growth: 11.68%
• Country: UK
• Employees: 350
• Sector: Industrials
• Sector Strength: 89
• Industry: Electrical Equipment & Parts
• EPS (TTM): 0.36
• Shares Outstanding: 3,309,200
• 10 Day Avg. Volume: 307
• 30 Day Avg. Volume: 618
• PEG Ratio: -0.55
• Price to Book (P/B): 1.39
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 33.23
• 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: £869.00
• Price Target Upside: 8.63% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 67 Neutral
• Price Target: 869.00p ▲(8.63%Upside)

Dewhurst's overall stock score is primarily driven by its strong financial performance, characterized by consistent revenue growth and a solid balance sheet. However, the technical analysis reveals bearish momentum, which negatively impacts the stock's attractiveness. The valuation is moderate, with a low P/E ratio and a reasonable dividend yield, suggesting the stock is fairly valued.

Dewhurst Business Overview & Revenue Model

Company Description

Dewhurst (DWHT) is a UK-based company specializing in the design and manufacture of quality components for the lift, transport, and keypad industries. With a focus on providing durable and reliable products, Dewhurst serves sectors such as elevators, rail transport, and ATM keypads. The company is recognized for its innovative solutions in pushbutton technology and is a trusted partner for businesses requiring high-quality components in these sectors.

How the Company Makes Money

Dewhurst makes money primarily through the sale of its specialized components for lifts, transportation systems, and keypads. The company's revenue model revolves around manufacturing and supplying products like pushbuttons, indicators, and control panels. Key revenue streams include contracts and orders from elevator manufacturers, public transport systems, and financial institutions requiring secure and durable keypad solutions. Additionally, Dewhurst benefits from long-standing partnerships and contracts with major industry players, contributing significantly to its earnings. The company's focus on innovation and quality helps maintain its competitive edge in these niche markets.

Dewhurst Financial Statement Overview

Summary

Dewhurst shows strong financial performance with consistent revenue growth, robust profitability, and a stable balance sheet with low leverage. However, cash flow metrics indicate some volatility, particularly in free cash flow.

Income Statement

Dewhurst has demonstrated strong and consistent growth in its income statement over the years. The company exhibits a healthy Gross Profit Margin of 56.6% and a Net Profit Margin of 8.1% for the recent fiscal year. The Revenue Growth Rate over the last year is 11.1%, indicating a positive trajectory. EBIT and EBITDA margins are solid, at 12.6% and 20.4%, respectively, showcasing operational efficiency.

Balance Sheet

The balance sheet of Dewhurst is robust, with a low Debt-to-Equity Ratio of 0.04, reflecting minimal leverage. The Return on Equity (ROE) stands at 8.6%, which is reasonable. The Equity Ratio is notably strong at 82.9%, indicating a highly stable financial structure with substantial equity backing.

Cash Flow

Cash flow analysis reveals a decrease in Free Cash Flow over the recent year, with a negative growth rate of -54.6%. However, the Operating Cash Flow to Net Income Ratio is 0.70, which remains healthy. The Free Cash Flow to Net Income Ratio is 0.45, suggesting efficient cash conversion but highlighting potential fluctuations.

Breakdown	Sep 2024	Sep 2023	Sep 2022	Sep 2021	Sep 2020
Income Statement
Total Revenue	64.40M	57.96M	57.56M	56.25M	55.62M
Gross Profit	36.46M	32.09M	31.14M	31.76M	30.03M
EBITDA	13.17M	9.89M	8.83M	12.31M	9.86M
Net Income	5.23M	5.04M	4.85M	7.03M	4.31M
Balance Sheet
Total Assets	73.14M	72.72M	74.16M	68.46M	67.62M
Cash, Cash Equivalents and Short-Term Investments	21.56M	24.37M	21.76M	20.46M	18.14M
Total Debt	2.39M	2.66M	2.70M	2.99M	3.48M
Total Liabilities	11.84M	12.40M	12.62M	15.73M	24.80M
Stockholders Equity	60.61M	58.94M	59.88M	51.17M	41.38M
Cash Flow
Free Cash Flow	2.34M	5.16M	2.50M	2.99M	5.00M
Operating Cash Flow	3.65M	6.37M	3.30M	5.50M	9.27M
Investing Cash Flow	-2.07M	-1.15M	-707.00K	-1.02M	-4.75M
Financing Cash Flow	-4.05M	-2.41M	-2.08M	-1.99M	-3.23M

Dewhurst Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 800.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Positive
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:DWHT, the sentiment is Negative. The current price of 800 is below the 20-day moving average (MA) of 815.75, below the 50-day MA of 896.50, and below the 200-day MA of 1035.68, indicating a bearish trend. The MACD of -28.97 indicates Negative momentum. The RSI at 10.02 is Positive, neither overbought nor oversold. The STOCH value of 48.98 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GB:DWHT.

Dewhurst Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TFW	78 Outperform	£389.48M	15.89	14.53%	52.54%	-0.29%	11.71%
LUCE	71 Outperform	£225.33M	15.34	15.40%	451.44%	16.03%	-11.84%
DWHT	67 Neutral	£49.71M	11.30	9.33%	287.50%	11.13%	11.68%
Sector *	65 Neutral	$10.75B	15.72	5.20%	1.90%	3.09%	-27.42%
LPA	61 Neutral	£7.07M	7.61	-1.39%	1.74%	-10.88%	-122.05%
XPP	61 Neutral	£250.93M	―	-6.40%	―	-21.84%	10.56%

Dewhurst Corporate Events

Dewhurst Group Reports Solid First Half Amid Market Challenges

Dewhurst Group PLC reported a solid performance for the first half of the financial year, with a 2% increase in revenue to £31.6 million and a 5% rise in operating profits to £3.8 million. The company’s non-UK businesses, particularly the Keypad division, contributed significantly to this growth, although UK Lift business revenues declined. Despite a strong balance sheet, challenges such as tariffs in North America and a softening UK lift market are expected to impact the second half. The company is reorganizing its Australian operations to enhance customer focus, aiming for improved future performance.