Volution (FAN) AI Stock Analysis

• Market Cap: £1.27B
• Dividend Yield: 1.5%
• Average Volume (3M): 450.09K
• Price to Earnings (P/E): 32.0
• Beta (1Y): 1.40
• Revenue Growth: 7.32%
• EPS Growth: -6.70%
• Country: UK
• Employees: 2,200
• Sector: Industrials
• Sector Strength: 87
• Industry: Construction
• EPS (TTM): 0.15
• Shares Outstanding: 197,975,140
• 10 Day Avg. Volume: 557,394
• 30 Day Avg. Volume: 450,091
• PEG Ratio: -3.42
• Price to Book (P/B): 4.93
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 16.41
• 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: £720.00
• Price Target Upside: 12.32% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 76 Outperform
• Price Target: 702.00p ▲(9.52%Upside)

Volution Group plc demonstrates strong financial performance, supported by robust profitability and cash flow generation. Technical analysis indicates a bullish trend, though caution is advised due to near overbought technical indicators. Valuation reflects high growth expectations, while positive corporate events signal strategic positioning for future growth.

Positive Factors

Financial Performance

The group was highly cash generative in the period, indicating strong financial health.

Market Opportunities

Energy efficiency and health regulations are driving increased revenue opportunities for Volution.

Regulatory Impact

Regulatory tailwinds around building energy efficiency and indoor air quality are driving strong demand growth for Volution.

Negative Factors

Cost Challenges

Volution sees rising costs in ventilation solutions under new building regulations as an opportunity.

Market Competition

A re-rating in peers such as Systemair and Zehnder has not been mirrored by Volution.

Volution Business Overview & Revenue Model

Company Description

Volution Group plc, together with its subsidiaries, manufactures and supplies ventilation products to residential and commercial construction markets in the United Kingdom, Continental Europe, Australasia, and internationally. The company offers unitary extractor fans for use in bathrooms and kitchens; MVHR and MEV systems; rigid, semi-rigid, and flexible ducting products and accessories; mechanical heat recovery units; air handling units, fan coils, and hybrid ventilation products; underfloor heating, heated towel rails, radiators, and storage and panel heaters; wall, box, and tower fans, as well as portable air conditioners; hand dryers and insect killers; and sensors, controllers, and ducting products. It also manufactures blowers and motors for the heating and ventilation industry, such as direct and belt-drive fans, fandecks, double inlet centrifugal blowers, motorized impellers, and combustion blowers. The company sells its products principally under the Vent-Axia, Manrose, Diffusion, Airtech, National Ventilation, Breathing Buildings, Torin-Sifan, Fresh, PAX, VoltAir, Kair, Air Connection, inVENTer, Ventilair, ClimaRad, ERI, Rtek, Simx, and Ventair brands. Volution Group plc was incorporated in 2014 and is based in Crawley, the United Kingdom.

How the Company Makes Money

Volution generates revenue primarily through the sale of its ventilation products and systems. The company's revenue model is based on manufacturing and distributing a wide range of ventilation solutions to various sectors, including residential, commercial, and industrial markets. Key revenue streams include sales to new construction projects, retrofitting and refurbishment contracts, and distribution through wholesalers and retailers. Significant partnerships with construction firms and distribution networks in Europe bolster Volution's market presence. The demand for energy-efficient and regulatory-compliant ventilation solutions, driven by environmental standards and building regulations, contributes significantly to the company's earnings.

Volution Financial Statement Overview

Summary

Volution displays strong financial performance with robust revenue growth, solid profitability, and healthy cash flow generation. The income statement shows strong margins, while the balance sheet indicates financial stability with moderate leverage and high return on equity. The cash flow statement highlights effective cash generation, supporting overall financial health.

Income Statement

Volution has demonstrated strong revenue growth of approximately 6% in the latest period, with a solid gross profit margin of 51.3% and a net profit margin of 12.3%. EBIT and EBITDA margins are healthy at 20.2% and 24.0% respectively, indicating a robust operating performance. These metrics suggest solid profitability and operational efficiency, though continued focus on maintaining cost efficiencies will be important.

Balance Sheet

The company's balance sheet shows a debt-to-equity ratio of 0.35, indicating moderate leverage which is manageable. The return on equity is a respectable 17.4%, reflecting effective utilization of shareholder equity. The equity ratio stands at 57.1%, suggesting a strong capital structure. The balance sheet reflects financial stability, though any increase in leverage should be monitored.

Cash Flow

Volution's cash flow statement highlights a significant free cash flow growth rate of 20.2% year-over-year, and a strong operating cash flow to net income ratio of 1.77, which indicates effective cash generation capabilities. Additionally, the free cash flow to net income ratio is 1.60, showing strong cash conversion. Overall, the company exhibits a strong cash flow position, supporting its financial health.

Breakdown	TTM	Sep 2024	Sep 2023	Sep 2022	Sep 2021	Sep 2020
Income Statement
Total Revenue	362.96M	347.61M	328.01M	307.70M	272.59M	216.64M
Gross Profit	172.95M	178.27M	143.36M	127.80M	110.16M	79.94M
EBITDA	80.18M	82.76M	79.13M	73.11M	58.38M	37.64M
Net Income	39.70M	42.80M	37.37M	35.61M	20.84M	9.66M
Balance Sheet
Total Assets	589.37M	430.31M	440.65M	411.37M	383.98M	326.47M
Cash, Cash Equivalents and Short-Term Investments	10.68M	18.24M	21.24M	14.63M	19.96M	18.49M
Total Debt	196.40M	85.99M	120.46M	108.03M	108.32M	92.20M
Total Liabilities	339.38M	184.39M	214.40M	203.06M	198.69M	150.91M
Stockholders Equity	249.99M	245.92M	226.25M	208.21M	185.29M	175.56M
Cash Flow
Free Cash Flow	74.20M	68.33M	56.83M	31.97M	45.73M	34.62M
Operating Cash Flow	79.03M	75.71M	64.79M	38.98M	50.43M	39.17M
Investing Cash Flow	-117.20M	-19.59M	-37.48M	-24.26M	-46.69M	-5.15M
Financing Cash Flow	31.25M	-58.83M	-17.82M	-19.63M	-2.40M	-27.00M

Volution Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 641.00
• 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:FAN, the sentiment is Positive. The current price of 641 is above the 20-day moving average (MA) of 614.40, above the 50-day MA of 610.80, and above the 200-day MA of 562.60, indicating a bullish trend. The MACD of 10.06 indicates Negative momentum. The RSI at 60.00 is Neutral, neither overbought nor oversold. The STOCH value of 73.46 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:FAN.

Volution Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FAN	76 Outperform	£1.27B	31.95	16.36%	1.50%	7.32%	-6.70%
EPWN	74 Outperform	£136.28M	8.55	16.03%	507.46%	-6.20%	83.31%
GEN	72 Outperform	£995.85M	29.67	5.24%	406.97%	-4.30%	-13.09%
NXR	70 Outperform	£258.15M	73.40	1.63%	362.37%	-6.12%	-86.98%
TPK	69 Neutral	£1.21B	―	-2.02%	188.31%	-5.23%	-301.98%
ECEL	67 Neutral	£153.07M	15.37	9.56%	297.25%	-1.81%	15.19%
Sector *	65 Neutral	$10.91B	15.53	5.25%	2.19%	3.15%	-27.00%

Volution Corporate Events

Volution Group to Release Pre-Close Trading Update

Volution Group plc announced its intention to release a pre-close trading update for the financial year ending 31 July 2025. This announcement is significant as it provides stakeholders with insights into the company’s financial performance and strategic positioning in the market for energy-efficient indoor air quality solutions.

The most recent analyst rating on (GB:FAN) stock is a Buy with a £7.00 price target. To see the full list of analyst forecasts on Volution stock, see the GB:FAN Stock Forecast page.

Volution Group Announces Key Board and Committee Changes

Volution Group plc announced changes to its Board and Committees, appointing Celia Baxter as the new Remuneration Committee Chair and Designated Non-Executive Director for workforce engagement. Claire Tiney will retire from the Board and various committees after nine years of service, with the company expressing gratitude for her significant contributions.

The most recent analyst rating on (GB:FAN) stock is a Buy with a £690.00 price target. To see the full list of analyst forecasts on Volution stock, see the GB:FAN Stock Forecast page.

Volution Group Announces Total Voting Rights Update

Volution Group plc has announced its total voting rights, with an issued share capital of 200,000,000 ordinary shares, of which 197,975,141 carry voting rights. This information is crucial for shareholders to determine their interest in the company, in compliance with the Financial Conduct Authority’s Disclosure Guidance and Transparency Rules.

The most recent analyst rating on (GB:FAN) stock is a Buy with a £7.00 price target. To see the full list of analyst forecasts on Volution stock, see the GB:FAN Stock Forecast page.

Volution Group Announces Total Voting Rights Update

Volution Group plc has announced its total voting rights, with the company’s issued share capital consisting of 200,000,000 ordinary shares, of which 197,970,539 carry voting rights. This information is crucial for shareholders to determine their interests in the company under the FCA’s Disclosure Guidance and Transparency Rules.

The most recent analyst rating on (GB:FAN) stock is a Buy with a £7.00 price target. To see the full list of analyst forecasts on Volution stock, see the GB:FAN Stock Forecast page.

Volution Group Announces New Director Appointment

Volution Group plc has announced the appointment of Emmanuelle Dubu as a non-executive director of Bodycote plc, effective from June 23, 2025. This strategic move may enhance Volution’s industry positioning by fostering stronger leadership connections and potentially influencing future collaborations or market strategies.

The most recent analyst rating on (GB:FAN) stock is a Buy with a £7.00 price target. To see the full list of analyst forecasts on Volution stock, see the GB:FAN Stock Forecast page.

Volution Group Announces Total Voting Rights Update

Volution Group plc announced its total voting rights as of May 1, 2025, with an issued share capital consisting of 200,000,000 ordinary shares, of which 197,920,189 carry voting rights. This information is crucial for shareholders to determine their interest in the company under the FCA’s Disclosure Guidance and Transparency Rules.