Fletcher King (FLK) AI Stock Analysis

• Market Cap: £3.74M
• Dividend Yield: 6.43%
• Average Volume (3M): 4.08K
• Price to Earnings (P/E): 37.2
• Beta (1Y): 0.37
• Revenue Growth: -6.18%
• EPS Growth: -66.67%
• Country: UK
• Employees: 18
• Sector: Real Estate
• Sector Strength: 53
• Industry: Real Estate - Services
• EPS (TTM): 0.00
• 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: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 66 Neutral
• Price Target: 39.00p ▲(11.43% Upside)
• Action: Reiterated Date: 12/07/25
• Date: Action: Reiterated 12/07/25

Fletcher King's overall stock score is driven by its solid financial structure and attractive dividend yield, which are offset by declining profitability and mixed technical indicators. The positive corporate event regarding the dividend proposal adds to the stock's appeal, but challenges in revenue growth and operational efficiency remain significant concerns.

Positive Factors

Low Leverage

A debt-to-equity ratio of ~0.05 indicates a conservatively financed balance sheet, giving Fletcher King durable financial flexibility. Low leverage reduces solvency risk in property cycles, supports continued dividend policy or selective investment, and cushions earnings volatility over months.

Very High Gross Margin

A reported 100% gross profit margin reflects a fee/commission business with minimal direct COGS, implying strong pricing power and operating leverage. This structural margin profile supports profitability resilience if volumes dip and enables fixed-cost absorption over the medium term.

Shareholder Payout Commitment

The board's proposed final dividend is a structural signal of capital allocation priorities and confidence in cash generation. Consistent payout intent can attract income-focused investors and disciplines management on cash conversion and balance-sheet strength over the next several months.

Negative Factors

Declining Revenue

Revenue contraction of roughly 6% points to weakening transaction volumes or client activity in commercial real estate. For a commission-led firm, sustained revenue declines erode the fee base, reduce operating leverage benefits, and constrain investment in client acquisition and service capability over the medium term.

Falling Profitability

Net margin halving signals pressure on after-cost profitability, likely from lower revenues and compressed transactional fees. Reduced margins hinder return on equity and limit retained earnings for reinvestment, making it harder to improve scale or absorb future market shocks in the next several months.

Weak Cash Flow Growth

A near-40% drop in free cash flow growth and a low operating cash-to-net-income ratio indicate strained cash generation. Even with low leverage, deteriorating cash flow restricts discretionary spending, dividend sustainability, and ability to pursue strategic hires or partnerships over 2-6 months.

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	Apr 2024	Apr 2023	Apr 2022	Apr 2021	Apr 2020
Income Statement
Total Revenue	3.94M	3.84M	3.83M	3.08M	2.97M	2.26M
Gross Profit	3.75M	3.84M	3.83M	3.08M	2.97M	2.26M
EBITDA	201.00K	479.00K	660.00K	408.00K	370.00K	-539.00K
Net Income	101.00K	153.00K	282.00K	233.00K	152.00K	-688.00K
Balance Sheet
Total Assets	5.16M	6.13M	6.26M	5.51M	6.19M	4.96M
Cash, Cash Equivalents and Short-Term Investments	3.48M	4.21M	3.83M	2.75M	3.37M	2.89M
Total Debt	130.00K	231.00K	312.00K	427.00K	1.01M	577.00K
Total Liabilities	919.00K	1.67M	1.82M	1.33M	2.16M	1.58M
Stockholders Equity	4.24M	4.46M	4.44M	4.18M	4.03M	3.38M
Cash Flow
Free Cash Flow	-20.00K	576.00K	684.00K	45.00K	-30.00K	-688.00K
Operating Cash Flow	-5.00K	580.00K	698.00K	50.00K	322.00K	-688.00K
Investing Cash Flow	2.94M	2.62M	-434.00K	-5.00K	-334.00K	2.00K
Financing Cash Flow	-334.00K	-321.00K	-205.00K	-655.00K	485.00K	-46.00K

Fletcher King Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 35.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• 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 Positive. The current price of 35 is below the 20-day moving average (MA) of 37.25, below the 50-day MA of 36.30, and below the 200-day MA of 35.51, indicating a neutral trend. The MACD of 0.06 indicates Positive momentum. The RSI at 35.23 is Neutral, neither overbought nor oversold. The STOCH value of 50.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:FLK.

Fletcher King Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FOXT	78 Outperform	£144.40M	9.57	11.42%	2.05%	10.84%	113.75%
TPFG	76 Outperform	£284.33M	18.06	10.87%	3.66%	97.27%	25.80%
WINK	75 Outperform	£22.27M	13.68	24.60%	7.10%	7.02%	-12.85%
SVS	74 Outperform	£1.37B	25.24	7.57%	2.20%	7.81%	22.76%
LSL	71 Outperform	£251.69M	15.13	―	3.59%	20.46%	―
FLK	66 Neutral	£3.74M	37.24	2.37%	6.43%	-6.18%	-66.67%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%

Fletcher King Corporate Events

Fletcher King Holds Revenue but Profits Flatten as It Bets on Non-Transactional Growth

Fletcher King reported interim turnover of £1.63m for the six months to 31 October 2025, broadly flat year-on-year, but earnings before tax slipped to break-even as the firm absorbed around £100,000 of investment in additional staff in its facilities management and valuation teams. With commercial property transaction volumes and rating appeal work remaining weak, especially outside London, the group offset reduced transactional income by growing non-transactional revenue and insourcing its facilities management operations, which it expects to add roughly £270,000 of annualised revenue; the board maintained its cautious stance by withholding an interim dividend but highlighted the company’s strong balance sheet, healthy cash position and a more encouraging outlook for completing pipeline transactions in the second half.

The most recent analyst rating on (GB:FLK) stock is a Hold with a £35.00 price target. To see the full list of analyst forecasts on Fletcher King stock, see the GB:FLK Stock Forecast page.