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Volution Group Plc (GB:FAN)
:FAN

Volution (FAN) AI Stock Analysis

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GB

Volution

(LSE:FAN)

Rating:76Outperform
Price Target:
702.00p
▲(18.38%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
European Market Growth
The European residential market is starting to pick up, indicating potential growth opportunities for Volution's European division.
Financial Health
The group was highly cash generative in the period, indicating strong financial health.
Regulatory Benefits
Regulatory tailwinds around building energy efficiency and indoor air quality benefit Volution.
Negative Factors
Market Consolidation Limits
Europe is likely to be the prime area of focus for Volution from an M&A perspective given market share levels in UK and Australasia limit further consolidation.

Volution (FAN) vs. iShares MSCI United Kingdom ETF (EWC)

Volution Business Overview & Revenue Model

Company DescriptionVolution 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 MoneyVolution 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
85
Very Positive
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
78
Positive
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
82
Very Positive
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.
BreakdownTTMSep 2024Sep 2023Sep 2022Sep 2021Sep 2020
Income Statement
Total Revenue362.96M347.61M328.01M307.70M272.59M216.64M
Gross Profit172.95M178.27M143.36M127.80M110.16M79.94M
EBITDA80.18M82.76M79.13M73.11M58.38M37.64M
Net Income39.70M42.80M37.37M35.61M20.84M9.66M
Balance Sheet
Total Assets589.37M430.31M440.65M411.37M383.98M326.47M
Cash, Cash Equivalents and Short-Term Investments10.68M18.24M21.24M14.63M19.96M18.49M
Total Debt196.40M85.99M120.46M108.03M108.32M92.20M
Total Liabilities339.38M184.39M214.40M203.06M198.69M150.91M
Stockholders Equity249.99M245.92M226.25M208.21M185.29M175.56M
Cash Flow
Free Cash Flow74.20M68.33M56.83M31.97M45.73M34.62M
Operating Cash Flow79.03M75.71M64.79M38.98M50.43M39.17M
Investing Cash Flow-117.20M-19.59M-37.48M-24.26M-46.69M-5.15M
Financing Cash Flow31.25M-58.83M-17.82M-19.63M-2.40M-27.00M

Volution Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price593.00
Price Trends
50DMA
594.30
Negative
100DMA
559.63
Positive
200DMA
559.43
Positive
Market Momentum
MACD
-1.61
Positive
RSI
47.45
Neutral
STOCH
60.00
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:FAN, the sentiment is Neutral. The current price of 593 is below the 20-day moving average (MA) of 599.85, below the 50-day MA of 594.30, and above the 200-day MA of 559.43, indicating a neutral trend. The MACD of -1.61 indicates Positive momentum. The RSI at 47.45 is Neutral, neither overbought nor oversold. The STOCH value of 60.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for GB:FAN.

Volution Peers Comparison

Overall Rating
UnderperformOutperform
Sector (65)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
78
Outperform
£144.82M9.1116.03%4.32%-6.20%83.31%
GBFAN
76
Outperform
£1.17B29.5616.36%1.62%7.32%-6.70%
GBNXR
76
Outperform
£248.80M70.841.63%5.04%-10.36%-41.41%
74
Outperform
£157.94M15.829.56%3.67%-1.81%15.19%
GBGEN
70
Outperform
£994.61M29.645.24%4.11%-4.30%-13.09%
GBTPK
69
Neutral
£1.32B-2.02%2.20%-5.23%-301.98%
65
Neutral
$10.65B15.495.57%1.97%2.71%-26.32%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
GB:FAN
Volution
593.00
138.89
30.59%
GB:EPWN
Epwin Group plc
107.00
28.30
35.96%
GB:ECEL
Eurocell
158.00
33.06
26.46%
GB:NXR
Norcros
273.00
51.87
23.46%
GB:GEN
Genuit Group
386.00
-43.35
-10.10%
GB:TPK
Travis Perkins
618.00
-151.40
-19.68%

Volution Corporate Events

Regulatory Filings and Compliance
Volution Group Announces Total Voting Rights Update
Neutral
Jul 1, 2025

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.

Regulatory Filings and Compliance
Volution Group Announces Total Voting Rights Update
Neutral
Jun 2, 2025

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.

Executive/Board Changes
Volution Group Announces New Director Appointment
Positive
May 22, 2025

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.

Regulatory Filings and Compliance
Volution Group Announces Total Voting Rights Update
Neutral
May 1, 2025

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.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: May 23, 2025