FRP Advisory Group Plc (FRP) AI Stock Analysis

• Market Cap: £305.92M
• Dividend Yield: 4.11%
• Average Volume (3M): 486.52K
• Price to Earnings (P/E): 11.3
• Beta (1Y): 0.03
• Revenue Growth: 29.83%
• EPS Growth: 60.50%
• Country: UK
• Employees: 777
• Sector: Financial
• Sector Strength: 84
• Industry: Financial - Capital Markets
• EPS (TTM): 0.11
• Shares Outstanding: 256,609,100
• 10 Day Avg. Volume: 466,877
• 30 Day Avg. Volume: 486,523
• PEG Ratio: 0.19
• Price to Book (P/B): N/A
• Price to Sales (P/S): 2.70
• Price to Cash Flow (P/CF): 157.40
• P/FCF Ratio: 0.00
• 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: 205.00p
• Price Target Upside: 65.32% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

FRP Advisory Group Plc's overall score reflects its robust financial performance and positive corporate developments, particularly its strong revenue growth and low leverage. The technical analysis indicates some bearish signals, which slightly offset the positive outlook. Valuation metrics suggest the stock may be undervalued, with a healthy dividend yield providing additional investment appeal.

Positive Factors

Acquisitions

FRP has acquired Globalview Advisors, which is expected to increase market share and broaden its valuation service offering.

Financial Performance

FRP's recent trading update indicates that its FY25 adjusted EBITDA is expected to surpass market expectations, showcasing strong performance across its service pillars.

Valuation

The current valuation of FRP is considered attractive with a one-year forward P/E of approximately 12x, which is a discount to its post-IPO average, making it an appealing investment.

Negative Factors

Economic Conditions

The increase in employers' National Insurance Contributions is likely to put further pressure on businesses with large workforces and lower margins.

Market Share

UK administration volumes fell 11% YoY, with FRP's market share falling to 12%.

FRP Advisory Group Plc Business Overview & Revenue Model

Company Description

FRP Advisory Group Plc (FRP) is a leading UK-based professional services firm that specializes in offering advisory services in the areas of corporate restructuring, debt advisory, forensic services, corporate finance, and pensions restructuring. The company operates across multiple sectors, providing tailored solutions to help businesses navigate complex financial challenges and achieve sustainable growth.

How the Company Makes Money

FRP Advisory Group Plc generates revenue primarily through the provision of professional advisory services. Its key revenue streams include fees charged for corporate restructuring and insolvency services, where the company assists businesses in financial distress by providing strategic advice and implementing turnaround solutions. Additionally, FRP earns income from its forensic services, which involve investigative and dispute resolution support, and from its corporate finance division, which provides mergers and acquisitions advisory and capital raising services. The company also benefits from its pensions restructuring services, helping clients manage pension scheme challenges. FRP's earnings are further supported by its strong relationships with financial institutions, legal firms, and corporate clients, which facilitate repeat business and referrals.

FRP Advisory Group Plc Financial Statement Overview

Summary

FRP Advisory Group Plc exhibits strong financial performance with impressive revenue growth, high profitability margins, a robust balance sheet with low leverage, and strong free cash flow growth. The company is well-positioned for continued stability and growth in the capital markets industry.

Income Statement

FRP Advisory Group Plc has shown impressive revenue growth, with a 23.27% increase in the most recent year. The gross profit margin stands at 45.71%, indicating strong profitability. The net profit margin of 17.16% and EBIT margin of 23.79% further highlight effective cost management and profitability. Overall, the company demonstrates robust growth and profitability.

Balance Sheet

The company's balance sheet reflects a healthy equity position with a debt-to-equity ratio of 0.15, suggesting low leverage and financial stability. The equity ratio of 59.77% indicates a strong equity base relative to total assets. Return on equity is strong at 28.24%, showcasing effective use of shareholder funds. Overall, the balance sheet is solid, with low risk due to minimal debt.

Cash Flow

FRP Advisory Group Plc has demonstrated significant free cash flow growth of 144.55% over the past year. The operating cash flow to net income ratio of 1.16 indicates a good conversion of income into cash. The free cash flow to net income ratio of 1.12 shows effective cash management. Overall, the cash flow position is strong, supporting ongoing operations and potential investments.

Breakdown
Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement		Total Revenue
128.20M	104.00M	95.16M	78.99M	63.19M
	Gross Profit
58.60M	39.70M	36.36M	32.41M	20.50M
	EBIT
30.50M	16.10M	15.61M	16.84M	4.87M
	EBITDA
33.30M	18.60M	17.74M	18.39M	6.23M
	Net Income Common Stockholders
22.00M	12.70M	11.90M	13.61M	2.08M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
32.90M	27.70M	24.92M	24.38M	21.31M
	Total Assets
130.30M	108.90M	93.47M	83.84M	61.63M
	Total Debt
11.30M	11.30M	13.08M	11.64M	4.20M
	Net Debt
-21.60M	-16.40M	-11.85M	-12.74M	-17.11M
	Total Liabilities
52.40M	45.80M	48.95M	51.85M	41.12M
	Stockholders Equity
77.90M	63.10M	44.52M	31.99M	20.50M
Cash Flow		Free Cash Flow
24.70M	10.10M	16.46M	9.42M	1.75M
	Operating Cash Flow
25.60M	10.70M	17.86M	10.54M	2.46M
	Investing Cash Flow
-5.10M	-2.20M	-5.78M	-13.32M	-707.00K
	Financing Cash Flow
-15.30M	-5.70M	-11.54M	5.86M	14.61M

FRP Advisory Group Plc Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 124.00
• 50DMA: Negative
• 100DMA: Negative
• 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:FRP, the sentiment is Negative. The current price of 124 is below the 20-day moving average (MA) of 131.15, below the 50-day MA of 134.95, and below the 200-day MA of 138.06, indicating a bearish trend. The MACD of -4.25 indicates Positive momentum. The RSI at 36.13 is Neutral, neither overbought nor oversold. The STOCH value of 49.42 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GB:FRP.

FRP Advisory Group Plc Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FRP	76 Outperform	£305.92M	11.34	34.33%	4.11%	29.83%	60.50%
GTLY	74 Outperform	£168.90M	28.75	7.13%	7.51%	4.95%	-53.49%
BEG	70 Outperform	£150.74M	61.70	3.11%	4.24%	13.88%	512.00%
KNOS	70 Neutral	£783.72M	15.34	35.07%	4.47%	-4.13%	23.09%
Sector *	64 Neutral	$13.34B	9.25	9.42%	4.85%	16.07%	-8.44%
GATC	54 Neutral	£24.43M	40.79	3.66%	3.23%	4.14%	-45.24%
LIT	47 Neutral	£54.28M	10.02	-1.54%	2.63%	-60.87%	-106.15%

FRP Advisory Group Plc Corporate Events

FRP Advisory Group Director Increases Shareholding

FRP Advisory Group plc announced that David Chubb, a Non-Executive Director, has purchased 22,871 ordinary shares in the company, increasing his total holdings to 56,621 shares. This transaction reflects a minor increase in shareholding, representing approximately 0.02% of the company’s issued share capital, and is part of routine director dealings, with no immediate impact on the company’s operations or market position.

FRP Advisory Group Reports Strong Q3 Performance and Declares Dividend

FRP Advisory Group plc has released a trading update for the nine months ended 31 January 2025, reporting that trading across its five service pillars exceeded the Board’s expectations. The company remains confident in delivering results for the fiscal year ending April 2025 ahead of current market expectations, supported by a strong pipeline and activity levels. Additionally, FRP declared an interim dividend of 0.95p per share for the third quarter, reflecting its strong balance sheet and adherence to its quarterly dividend policy.

FRP Advisory Group Enhances Brokerage Team with Berenberg Appointment

FRP Advisory Group plc has announced the appointment of Berenberg as a joint corporate broker, alongside Cavendish Capital Markets Limited. This strategic move is expected to enhance FRP’s positioning within its industry and potentially impact stakeholders by strengthening its corporate brokerage capabilities.