Fletcher King (FLK) AI Stock Analysis

• Market Cap: £3.74M
• Dividend Yield: 7.14%
• Average Volume (3M): 4.08K
• Price to Earnings (P/E): 24.5
• Beta (1Y): 0.50
• Revenue Growth: 0.55%
• EPS Growth: -45.82%
• Country: UK
• Employees: 18
• Sector: Real Estate
• Sector Strength: 53
• Industry: Real Estate - Services
• EPS (TTM): 0.01
• Shares Outstanding: 10,252,209
• 10 Day Avg. Volume: 1,230
• 30 Day Avg. Volume: 4,085
• PEG Ratio: -0.42
• Price to Book (P/B): 0.66
• Price to Sales (P/S): 0.76
• P/FCF Ratio: 5.07
• 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: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 59 Neutral
• Price Target: 32.00p ▲(1.59% Upside)

Fletcher King's stock score is primarily influenced by its strong dividend yield and reasonable valuation, which are offset by declining profitability and bearish technical indicators. The company's solid capital structure is a positive, but the negative revenue growth and operational inefficiencies pose risks. The absence of recent earnings call insights or notable corporate events leaves the financial and technical aspects as the primary drivers of the score.

Positive Factors

Solid Capital Structure

A low debt-to-equity ratio indicates conservative leverage, providing financial stability and flexibility for future investments and operations.

Effective Cost Management

A strong gross profit margin reflects effective cost management, allowing the company to maintain profitability despite revenue challenges.

Cash Conversion Efficiency

Efficient conversion of net income into free cash flow highlights the company's ability to generate cash, supporting operations and potential growth initiatives.

Negative Factors

Declining Profitability

A declining net profit margin indicates reduced profitability, which can impact the company's ability to reinvest in growth and reward shareholders.

Negative Revenue Growth

Negative revenue growth suggests a contraction in sales, which could hinder the company's market position and long-term growth prospects.

Decline in Free Cash Flow Growth

A decline in free cash flow growth can limit the company's ability to fund new projects, pay down debt, or return capital to shareholders, affecting future financial health.

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 generates revenue through multiple streams, primarily by charging fees for its consultancy and advisory services. These fees are typically based on a percentage of the transaction value or a fixed fee for specific services rendered. Key revenue streams include property valuations, investment brokerage, and project management. The company also earns income from long-term contracts with clients for ongoing property management and consultancy services. Significant partnerships with real estate developers and financial institutions further enhance its earnings potential, allowing FLK to tap into lucrative investment opportunities and provide tailored solutions that meet client needs.

Fletcher King Financial Statement Overview

Summary

Fletcher King demonstrates strong cost management and a solid capital structure, but faces challenges with declining profitability and revenue growth. The company's low leverage is a positive, but reduced cash flow growth and profitability metrics indicate potential risks. Continued focus on improving revenue and operational efficiency is essential for future growth.

Income Statement

Fletcher King shows a mixed performance in its income statement. The company maintains a strong gross profit margin consistently at 100%, indicating effective cost management. However, the net profit margin has decreased to 3.98% from 7.37% in the previous year, reflecting declining profitability. The revenue growth rate is negative at -6.39%, suggesting a contraction in sales. EBIT and EBITDA margins have also decreased, indicating reduced operational efficiency.

Balance Sheet

The balance sheet reflects a stable financial position with a low debt-to-equity ratio of 0.052, indicating conservative leverage. The return on equity has decreased to 3.43%, showing reduced profitability for shareholders. The equity ratio is strong, suggesting a solid capital structure. However, the declining ROE is a concern for future profitability.

Cash Flow

Cash flow analysis reveals challenges with a significant decline in free cash flow growth at -38.33%. The operating cash flow to net income ratio is 0.35, indicating moderate cash generation from operations. The free cash flow to net income ratio is nearly 1, suggesting that the company is converting its net income into free cash flow effectively. However, the negative growth in free cash flow is a concern.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	3.84M	3.84M	3.83M	3.08M	2.97M	2.26M
Gross Profit	3.84M	3.84M	3.83M	3.08M	2.97M	2.26M
EBITDA	217.00K	479.00K	660.00K	408.00K	370.00K	-539.00K
Net Income	153.00K	153.00K	282.00K	233.00K	152.00K	-688.00K
Balance Sheet
Total Assets	6.13M	6.13M	6.26M	5.51M	6.19M	4.96M
Cash, Cash Equivalents and Short-Term Investments	4.21M	4.21M	3.83M	2.75M	3.37M	2.89M
Total Debt	231.00K	231.00K	312.00K	427.00K	1.01M	577.00K
Total Liabilities	1.67M	1.67M	1.82M	1.33M	2.16M	1.58M
Stockholders Equity	4.46M	4.46M	4.44M	4.18M	4.03M	3.38M
Cash Flow
Free Cash Flow	576.00K	576.00K	684.00K	45.00K	-30.00K	-688.00K
Operating Cash Flow	580.00K	580.00K	698.00K	50.00K	322.00K	-688.00K
Investing Cash Flow	2.50M	2.62M	-434.00K	-5.00K	-334.00K	2.00K
Financing Cash Flow	-321.00K	-321.00K	-205.00K	-655.00K	485.00K	-46.00K

Fletcher King Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 31.50
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:FLK, the sentiment is Negative. The current price of 31.5 is below the 20-day moving average (MA) of 32.07, below the 50-day MA of 35.55, and below the 200-day MA of 33.63, indicating a bearish trend. The MACD of -1.29 indicates Negative momentum. The RSI at 40.33 is Neutral, neither overbought nor oversold. The STOCH value of 83.33 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GB:FLK.

Fletcher King Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CDFF	69 Neutral	£26.09M	25.49	4.45%	0.94%	-2.80%	30.05%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
WINK	64 Neutral	£24.53M	15.07	24.60%	7.00%	7.02%	-12.85%
FPO	61 Neutral	£22.92M	9.28	5.05%	―	-7.14%	―
FLK	59 Neutral	£3.74M	24.50	3.44%	7.14%	0.55%	-45.82%
LAS	45 Neutral	£3.41M	-2.00	-6.18%	―	13.51%	-112.77%
SPDI	43 Neutral	£2.26M	-2.22	-2.41%	―	-55.33%	-115.99%

Fletcher King Corporate Events

Fletcher King Announces AGM and Dividend Proposal

Fletcher King PLC has released its annual report and accounts, along with a notice for the upcoming Annual General Meeting (AGM). The company has proposed a final dividend of 2.25p per share, pending shareholder approval at the AGM. This announcement highlights Fletcher King’s commitment to shareholder returns and provides insights into its financial health and strategic focus.

The most recent analyst rating on (GB:FLK) stock is a Buy with a £36.00 price target. To see the full list of analyst forecasts on Fletcher King stock, see the GB:FLK Stock Forecast page.