Fletcher King (FLK) AI Stock Analysis

• Market Cap: £3.69M
• Dividend Yield: 6.25%
• Average Volume (3M): 1.08K
• Price to Earnings (P/E): 12.2
• Beta (1Y): 0.40
• Revenue Growth: 34.03%
• EPS Growth: 24.05%
• Country: UK
• Employees: 18
• Sector: Real Estate
• Sector Strength: 69
• Industry: Real Estate - Services
• EPS (TTM): 0.03
• Shares Outstanding: 10,252,209
• 10 Day Avg. Volume: 87
• 30 Day Avg. Volume: 1,078
• PEG Ratio: 0.41
• Price to Book (P/B): 0.92
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 85.44
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 76 Outperform
• Price Target: 36.00p ▲(0.00%Upside)

Fletcher King demonstrates strong financial performance with robust revenue growth and a solid balance sheet, supporting its high financial performance score. The stock's valuation is attractive due to a low P/E ratio and a high dividend yield, contributing positively to the overall score. However, technical analysis reveals potential overbought conditions, which could pose short-term risks. Overall, the company is fundamentally solid, but investors should be cautious of potential technical corrections.

Fletcher King Business Overview & Revenue Model

Company Description

Fletcher King Plc provides a range of property and advisory services in the United Kingdom. It offers services in the areas of property fund management, property asset management, investment broking, valuations, and ratings. Fletcher King Plc was incorporated in 1986 and is based in London, the United Kingdom.

How the Company Makes Money

Fletcher King makes money through multiple revenue streams within the real estate industry. The company earns fees from property management services, where they oversee the day-to-day operations and maintenance of commercial properties on behalf of owners. They also generate income from fund management services by managing property investment funds, earning management fees based on the assets under management. Additionally, valuation services provide another revenue stream, as Fletcher King offers professional property valuation services for various purposes, including sales, purchases, and financial reporting. Furthermore, the company may earn commission and advisory fees related to property transactions and investment consultancy services. Key partnerships with institutional investors and property owners contribute to Fletcher King's earnings by securing ongoing business and expanding their client base.

Fletcher King Financial Statement Overview

Summary

Fletcher King shows strong financial health with robust revenue growth, efficient cost management, and improving profitability. The balance sheet is solid with minimal leverage and strong equity backing. Cash flow has improved significantly, although historical volatility in free cash flow warrants attention. Overall, the company is well-positioned financially with a solid foundation for future growth, though careful cash management will be key.

Income Statement

The income statement reflects a strong revenue growth trajectory with a 24.25% increase from 2023 to 2024. Gross profit margins are excellent at 99.24%, indicating efficient cost management. Net profit margin has improved to 7.37%, showcasing profitability improvements. EBIT and EBITDA margins are solid, at 41.11% and 17.25%, respectively, showing operational efficiency. However, the company had negative EBIT and EBITDA in 2021, indicating past volatility.

Balance Sheet

The balance sheet is robust, with a low debt-to-equity ratio of 0.07, indicating minimal leverage. The equity ratio stands at 70.93%, reflecting a strong asset base backed by equity. Return on equity (ROE) is at 6.35%, demonstrating decent profitability relative to shareholder equity. The company's financial stability is bolstered by a healthy cash position and declining total liabilities over the years.

Cash Flow

The cash flow statement reveals significant improvement in operating cash flow, turning positive in 2024. Free cash flow has grown substantially from a negative position in previous years to a positive $684,000 in 2024. The operating cash flow to net income ratio is 2.48, indicating strong cash generation relative to net income. However, fluctuations in free cash flow in prior years suggest some volatility in cash management.

Breakdown
TTM	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement		Total Revenue
4.10M	3.83M	3.08M	2.97M	2.26M	2.62M
	Gross Profit
4.01M	3.83M	2.88M	2.62M	1.98M	2.90M
	EBIT
1.63M	1.57M	148.00K	6.00K	-820.00K	-24.00K
	EBITDA
1.13M	660.00K	408.00K	370.00K	-539.00K	254.00K
	Net Income Common Stockholders
301.00K	282.00K	233.00K	152.00K	-688.00K	36.00K
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
3.77M	3.83M	2.75M	3.37M	2.89M	3.62M
	Total Assets
5.36M	6.26M	5.51M	6.19M	4.96M	5.50M
	Total Debt
227.00K	312.00K	427.00K	1.01M	577.00K	561.00K
	Net Debt
-597.00K	-1.01M	-2.33M	-2.35M	-2.31M	-3.06M
	Total Liabilities
1.07M	1.82M	1.33M	2.16M	1.58M	1.28M
	Stockholders Equity
4.29M	4.44M	4.18M	4.03M	3.38M	4.21M
Cash Flow		Free Cash Flow
934.00K	684.00K	45.00K	-30.00K	-688.00K	899.00K
	Operating Cash Flow
948.00K	698.00K	50.00K	322.00K	-688.00K	917.00K
	Investing Cash Flow
-858.00K	-434.00K	-5.00K	-334.00K	2.00K	1.18M
	Financing Cash Flow
-385.00K	-205.00K	-655.00K	485.00K	-46.00K	-475.00K

Fletcher King Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 36.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:FLK, the sentiment is Neutral. The current price of 36 is above the 20-day moving average (MA) of 35.48, above the 50-day MA of 31.44, and below the 200-day MA of 36.02, indicating a neutral trend. The MACD of 1.49 indicates Positive momentum. The RSI at 61.38 is Neutral, neither overbought nor oversold. The STOCH value of 32.21 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for GB:FLK.

Fletcher King Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FLK	76 Outperform	£3.69M	12.24	7.14%	6.25%	34.03%	24.05%
CDFF	69 Neutral	£26.31M	25.49	3.49%	0.94%	-1.79%	-10.25%
Sector *	61 Neutral	$2.83B	10.72	0.40%	6.10%	5.80%	-21.26%
LAS	61 Neutral	£8.32M	―	-1.32%	―	3.26%	90.27%
FPO	50 Neutral	£18.85M	―	-5.74%	―	11.29%	-80.81%
WINK		£26.08M	14.71	26.28%	6.53%	―	―
SPDI		£4.52M	0.71	60.45%	―	―	―

Fletcher King Corporate Events

Fletcher King PLC Shows Resilience Amid Market Challenges

Fletcher King PLC reported improved earnings before tax in the six months ending October 31, 2024, despite challenging market conditions. The company maintained profitability, with revenues from non-transactional services showing growth. While the capital markets remain sluggish, the company is positioned to benefit from potential future improvements due to its strong balance sheet, although no interim dividend was declared. The broader commercial property market faced mixed results, with industrial sectors performing well and office sectors struggling.

Fletcher King PLC Reports Increased Earnings Despite Market Challenges

Fletcher King PLC reported improved earnings before tax for the first half of 2024 despite a challenging capital market environment. Revenues from non-transactional services have grown, helping the company to maintain profitability, though no interim dividend has been declared due to market uncertainties. The company remains optimistic about future opportunities, supported by a strong balance sheet.