EKF Diagnostics Holdings (EKF) AI Stock Analysis

• Market Cap: £135.18M
• Dividend Yield: 4.8%
• Average Volume (3M): 309.59K
• Price to Earnings (P/E): 21.8
• Beta (1Y): 0.35
• Revenue Growth: -4.59%
• EPS Growth: 165.38%
• Country: UK
• Employees: 303
• Sector: Healthcare
• Sector Strength: 38
• Industry: Medical - Devices
• EPS (TTM): <0.01
• Shares Outstanding: 449,093,780
• 10 Day Avg. Volume: 389,769
• 30 Day Avg. Volume: 309,591
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: £31.00
• Price Target Upside: 2.99% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 66 Neutral
• Price Target: 33.00p ▲(9.63% Upside)

EKF Diagnostics Holdings' solid financial performance and strategic corporate actions stand out as key strengths, supporting a strong overall stock score. However, technical indicators suggest caution due to potential short-term corrections. Valuation is reasonable, but the lack of a dividend yield may limit immediate investor returns.

Positive Factors

Debt Management

The business is now debt-free, having fully repaid all bank borrowings.

Financial Performance

EKF reports a positive 1Q25 trading update with the business on track to meet current FY25 market expectations for revenues.

Financial Stability

The company completed a £1m share buyback, purchasing 4.6 million shares, which reflects confidence in its financial position.

Negative Factors

Revenue Decline

FY24 revenues declined 4.6%, which was lower than prior consensus.

EKF Diagnostics Holdings Business Overview & Revenue Model

Company Description

EKF Diagnostics Holdings (EKF) is a UK-based medical diagnostics company that specializes in the development, manufacture, and distribution of diagnostic products and services for the healthcare sector. The company operates primarily in the point-of-care testing market, focusing on areas such as diabetes management, anemia testing, and other critical care diagnostics. EKF's core products include handheld analyzers, reagents, and consumables that enable rapid and accurate diagnosis, facilitating timely clinical decision-making.

How the Company Makes Money

EKF generates revenue through the sale of its diagnostic products and services, which are targeted at hospitals, clinics, and laboratories. The company has a diversified revenue model that includes direct sales of its point-of-care testing devices, as well as recurring revenue from consumables and reagents used alongside its equipment. Key revenue streams include sales of glucose monitoring products, hemoglobin analyzers, and electrolyte analyzers. Additionally, EKF benefits from strategic partnerships with healthcare providers and distributors, enhancing its market reach and enabling it to tap into various geographic markets. The company also invests in research and development to innovate new products and improve existing offerings, which can lead to increased sales and market share over time.

EKF Diagnostics Holdings Financial Statement Overview

Summary

EKF Diagnostics Holdings demonstrates solid financial health with strong profit margins and low leverage. Although revenue declined, improved profitability and efficient cost management are positive indicators. Strong balance sheet with minimal debt reduces financial risk, and robust cash flows, despite historical volatility, highlight the company's financial stability.

Income Statement

EKF Diagnostics Holdings has shown a mixed performance in its income statement. The gross profit margin for the latest year is approximately 42.78%, which is solid, but lower revenue growth is concerning. The net profit margin improved significantly from the previous year to 12.43%, indicating a rebound in profitability. However, revenue declined over the years with a negative growth rate of -4.60% from 2023 to 2024. The EBIT and EBITDA margins are healthy at 12.87% and 22.23%, respectively, showing operational efficiency.

Balance Sheet

The balance sheet is quite robust, reflecting a strong equity base with a high equity ratio of 88.49%. The debt-to-equity ratio is very low at 0.02, indicating minimal leverage and reduced financial risk. Return on equity is relatively strong at 8.63%, suggesting effective use of equity to generate profits. However, a downward trend in total assets and stockholders' equity over the years could be a point of concern.

Cash Flow

Cash flow analysis shows a positive trend with operating cash flow comfortably exceeding net income, resulting in a strong operating cash flow to net income ratio of 2.19. Free cash flow has turned positive and grew significantly from the previous year, with a free cash flow to net income ratio of 1.83, reflecting improved cash generation capabilities. However, fluctuations in free cash flow in prior years highlight some volatility.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	50.19M	52.61M	66.64M	81.84M	65.26M
Gross Profit	21.48M	23.86M	24.04M	39.37M	37.42M
EBITDA	11.16M	7.68M	-2.18M	27.39M	20.04M
Net Income	6.24M	2.35M	-9.58M	15.85M	11.11M
Balance Sheet
Total Assets	81.75M	80.85M	89.29M	115.12M	101.27M
Cash, Cash Equivalents and Short-Term Investments	13.01M	6.02M	11.58M	20.34M	21.91M
Total Debt	1.32M	4.10M	1.55M	2.63M	1.58M
Total Liabilities	8.53M	12.63M	14.77M	20.38M	23.07M
Stockholders Equity	72.33M	67.12M	73.35M	94.12M	77.65M
Cash Flow
Free Cash Flow	11.41M	-664.00K	3.86M	4.59M	11.16M
Operating Cash Flow	13.66M	6.31M	9.69M	10.24M	13.81M
Investing Cash Flow	-2.66M	-5.64M	-8.93M	-5.48M	1.34M
Financing Cash Flow	-4.08M	-3.65M	-11.04M	-6.16M	-5.21M

EKF Diagnostics Holdings Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 30.10
• 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:EKF, the sentiment is Positive. The current price of 30.1 is above the 20-day moving average (MA) of 28.20, above the 50-day MA of 27.15, and above the 200-day MA of 24.90, indicating a bullish trend. The MACD of 0.91 indicates Negative momentum. The RSI at 55.91 is Neutral, neither overbought nor oversold. The STOCH value of 61.57 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:EKF.

EKF Diagnostics Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
EKF	66 Neutral	£135.18M	21.81	8.95%	4.80%	-4.59%	165.38%
RUA	55 Neutral	£7.52M	1,212.50	0.08%	―	87.72%	―
CREO	52 Neutral	£54.14M	―	-38.49%	―	―	―
Sector *	51 Neutral	$7.35B	-0.20	-44.86%	2.33%	28.96%	-1.05%
IHC	50 Neutral	£18.83M	―	-65.64%	―	1.65%	-102.83%
SBTX	40 Underperform	£42.05M	―	-63.28%	―	1557.07%	24.70%

EKF Diagnostics Holdings Corporate Events

EKF Diagnostics Reports Steady Revenue and Growth in Key Sectors for H1 2025

EKF Diagnostics Holdings plc reported a stable revenue of £25.2 million for the first half of 2025, with improvements in gross margins and cash generation, aligning with management expectations. The company saw significant growth in its hematology and β-HB sectors, with revenues increasing by 8% and 12% respectively, and is optimistic about future contract manufacturing and fermentation opportunities, indicating a positive trajectory in its strategic development plan.

The most recent analyst rating on (GB:EKF) stock is a Buy with a £0.29 price target. To see the full list of analyst forecasts on EKF Diagnostics Holdings stock, see the GB:EKF Stock Forecast page.

EKF Diagnostics Completes Share Cancellation and Continues Buyback Efforts

EKF Diagnostics Holdings plc has completed the cancellation of 5,836,774 ordinary shares, including those previously held in treasury, as part of its share buyback program. This action reduces the company’s total issued share capital to 449,093,790 ordinary shares, which will now serve as the basis for shareholder voting rights calculations. The company continues to pursue additional share buybacks up to approximately £1.0 million, reflecting its strategic focus on optimizing capital structure and enhancing shareholder value.

The most recent analyst rating on (GB:EKF) stock is a Buy with a £0.29 price target. To see the full list of analyst forecasts on EKF Diagnostics Holdings stock, see the GB:EKF Stock Forecast page.

Schroders PLC Increases Stake in EKF Diagnostics Holdings

EKF Diagnostics Holdings PLC has announced a significant change in its shareholding structure, with Schroders PLC increasing its stake in the company. This acquisition of shares by Schroders PLC, a major investment firm based in London, raises its total shareholding to over 6%, indicating a vote of confidence in EKF Diagnostics’ market position and future prospects. This development is likely to impact EKF’s market dynamics and could influence investor perceptions positively.

The most recent analyst rating on (GB:EKF) stock is a Buy with a £0.29 price target. To see the full list of analyst forecasts on EKF Diagnostics Holdings stock, see the GB:EKF Stock Forecast page.

EKF Diagnostics Announces Total Voting Rights and Share Capital Details

EKF Diagnostics Holdings plc has announced its total issued share capital, consisting of 454,930,564 Ordinary Shares, with 5,836,774 held in treasury, resulting in 449,093,790 shares carrying voting rights. This figure is crucial for shareholders to determine their notification requirements under the FCA’s Disclosure and Transparency Rules, impacting how they manage their investments and compliance obligations.

The most recent analyst rating on (GB:EKF) stock is a Buy with a £0.29 price target. To see the full list of analyst forecasts on EKF Diagnostics Holdings stock, see the GB:EKF Stock Forecast page.

EKF Diagnostics Announces Additional Share Buyback Program

EKF Diagnostics Holdings plc has announced an additional share buyback program following the successful completion of an initial program. The company plans to repurchase up to £1.0 million worth of ordinary shares, which will be held in treasury. This move is facilitated by Harwood Capital Management, ensuring that the aggregate indirect beneficial interest of Christopher Mills, a non-executive director, remains stable. The buyback is structured to avoid triggering a mandatory offer under the City Code on Takeovers and Mergers, thus maintaining the current shareholder structure.

The most recent analyst rating on (GB:EKF) stock is a Buy with a £0.29 price target. To see the full list of analyst forecasts on EKF Diagnostics Holdings stock, see the GB:EKF Stock Forecast page.

EKF Diagnostics Secures Unanimous Approval at AGM

EKF Diagnostics Holdings plc announced that all resolutions were passed at its recent Annual General Meeting, indicating strong shareholder support. This outcome reflects positively on the company’s governance and strategic direction, potentially reinforcing its market position and stakeholder confidence.

The most recent analyst rating on (GB:EKF) stock is a Buy with a £0.29 price target. To see the full list of analyst forecasts on EKF Diagnostics Holdings stock, see the GB:EKF Stock Forecast page.

EKF Diagnostics Reports Strong Q1 2025 Performance and Strategic Growth

EKF Diagnostics Holdings plc announced positive trading results for the first quarter of 2025, aligning with management expectations. The company has benefited from a streamlined business model focusing on higher-margin products, particularly in Hematology, and has a strong order book for analyzers in Latin America. The Life Sciences division continues to perform well, with robust sales of β-HB and an improved pipeline for contract manufacturing. Cash generation remains strong, supporting growth investments and a successful £1m share buyback program, with expectations for cash levels to exceed those of FY 2024.

The most recent analyst rating on (GB:EKF) stock is a Buy with a £0.29 price target. To see the full list of analyst forecasts on EKF Diagnostics Holdings stock, see the GB:EKF Stock Forecast page.

EKF Diagnostics Concludes Share Buyback Program

EKF Diagnostics Holdings plc has successfully completed its share buyback program, purchasing a total of 4,636,774 ordinary shares at an average price of 21.48 pence per share, with the final transaction involving 367,000 shares. This buyback is part of a strategic financial maneuver to manage the company’s capital structure and enhance shareholder value. The completion of this program also involved transactions with Harwood, acting as an investment manager for Oryx International Growth Fund Limited and North Atlantic Smaller Companies Investment Trust PLC, ensuring that Mr. Mills’ aggregate indirect beneficial interest remains stable. The buyback reduces the number of shares in circulation, potentially increasing the value of remaining shares and impacting shareholder voting rights.

The most recent analyst rating on (GB:EKF) stock is a Buy with a £0.29 price target. To see the full list of analyst forecasts on EKF Diagnostics Holdings stock, see the GB:EKF Stock Forecast page.