GB Group plc (GBG) AI Stock Analysis

• Market Cap: £577.44M
• Dividend Yield: 1.83%
• Average Volume (3M): 902.32K
• Price to Earnings (P/E): 70.5
• Beta (1Y): 1.41
• Revenue Growth: 1.63%
• EPS Growth: N/A
• Country: UK
• Employees: 1,127
• Sector: Technology
• Sector Strength: 62
• Industry: Software - Application
• EPS (TTM): 0.03
• Shares Outstanding: 252,635,470
• 10 Day Avg. Volume: 1,170,764
• 30 Day Avg. Volume: 902,321
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 2.74
• Price to Cash Flow (P/CF): N/A
• 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: £325.00
• Price Target Upside: 41.92% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

GB Group plc's overall stock score of 55 reflects its mixed financial performance and challenging technical indicators. The company benefits from strong cash flow generation and a stable balance sheet, but faces profitability challenges. The technical analysis suggests a bearish outlook, and the high valuation indicates potential overvaluation. Recent corporate events signal positive strategic direction but have a limited immediate impact on the stock.

Positive Factors

Analyst Recommendation

Analyst raises the price target to 425p and stays at Buy.

Growth Reinvestment

Reinvestment should help the company sustain growth re-acceleration.

Profitability

Strong profitability: Gross profit margins rose 40bps due to a focus on pricing and management of data and cloud hosting costs.

Negative Factors

Share-Based Payments

Attention is drawn to the inclusion of an extra approximately £2m of share-based payments in the adjusted EBIT.

Transaction Volumes

Identity is back on track with 6% cc. growth in H1, and this comes despite continued headwinds in transaction volumes and the Americas.

GB Group plc Business Overview & Revenue Model

Company Description

GB Group plc (GBG) is a leading global technology company specializing in identity data intelligence. It operates across several sectors, including finance, retail, and telecommunications, providing solutions for identity verification, location intelligence, and fraud prevention. GBG's core products and services are designed to help organizations validate and verify the identity and location of their customers, ensuring compliance and reducing the risk of fraud.

How the Company Makes Money

GBG makes money primarily through the sale of its identity data intelligence solutions, which are offered as software-as-a-service (SaaS) products. These solutions are used by businesses to verify customer identities, manage digital fraud risks, and ensure regulatory compliance. Key revenue streams include subscription fees for access to GBG's software platforms and APIs, as well as one-time implementation and integration fees. The company also benefits from partnerships with global data providers, enabling it to offer comprehensive and up-to-date identity verification services. Additionally, GBG's geographic expansion into new markets and industries contributes to its revenue growth.

GB Group plc Financial Statement Overview

Summary

GB Group plc displays a mixed financial performance. While the income statement shows challenges in achieving profitability, the balance sheet and cash flows indicate financial stability and strong cash generation, which can be leveraged for future growth. Continued focus on improving net margins and managing expenses will be key to enhancing overall financial health.

Income Statement

The company has shown a decline in revenue over the last year, with a negative net profit margin, indicating challenges in cost management or revenue generation. However, the gross profit margin remains strong, suggesting a potential for profitability if expenses are managed effectively.

Balance Sheet

GB Group plc has a strong equity position with a relatively low debt-to-equity ratio, indicating lower financial risk. The company’s equity ratio is healthy, signifying a stable asset structure, but there is a need to monitor any potential liabilities as they have increased over recent years.

Cash Flow

The company demonstrates positive operating cash flow and free cash flow, reflecting strong cash generation capabilities. This provides a buffer against net income fluctuations and supports operational liquidity and investment potential.

Breakdown
Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement		Total Revenue
277.32M	278.81M	242.48M	217.66M	199.10M
	Gross Profit
194.52M	197.82M	171.93M	152.56M	125.18M
	EBIT
18.43M	-112.43M	23.41M	35.50M	24.46M
	EBITDA
953.00K	-66.03M	51.54M	56.80M	45.78M
	Net Income Common Stockholders
-48.58M	-119.79M	15.26M	26.88M	17.06M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
21.32M	21.55M	22.30M	21.14M	27.50M
	Total Assets
852.90M	955.12M	1.10B	480.22M	526.20M
	Total Debt
102.83M	128.18M	131.60M	3.94M	67.86M
	Net Debt
81.50M	106.63M	109.30M	-17.20M	40.37M
	Total Liabilities
227.78M	260.98M	314.98M	115.96M	181.27M
	Stockholders Equity
625.13M	694.14M	787.13M	364.26M	344.93M
Cash Flow		Free Cash Flow
35.02M	33.28M	42.91M	57.69M	39.01M
	Operating Cash Flow
35.48M	34.31M	44.65M	58.43M	40.34M
	Investing Cash Flow
-351.00K	-5.39M	-462.20M	1.83M	-1.42M
	Financing Cash Flow
-34.78M	-30.01M	415.68M	-66.14M	-32.23M

GB Group plc Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 229.00
• 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:GBG, the sentiment is Negative. The current price of 229 is below the 20-day moving average (MA) of 265.39, below the 50-day MA of 298.21, and below the 200-day MA of 326.97, indicating a bearish trend. The MACD of -16.16 indicates Positive momentum. The RSI at 31.15 is Neutral, neither overbought nor oversold. The STOCH value of 44.70 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GB:GBG.

GB Group plc Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
REL	75 Outperform	$73.69B	38.27	56.34%	1.42%	2.98%	10.10%
FDM	66 Neutral	£239.64M	11.77	28.48%	13.21%	-22.84%	-49.60%
SXS	62 Neutral	£2.02B	8.76	17.33%	3.94%	-11.09%	65.87%
Sector *	59 Neutral	$10.72B	10.22	-6.67%	3.02%	7.42%	-11.38%
GBG	55 Neutral	£577.44M	70.50	1.33%	1.83%	1.63%	―
SRT	47 Neutral	£146.24M	―		―	―	―
SYN	40 Underperform	£3.04M	0.48	56.96%	―	-55.66%	―

GB Group plc Corporate Events

GB Group plc’s Employee Trust Acquires Additional Shares

GB Group plc announced that its Employee Benefit Trust has acquired 400,000 ordinary shares at an average price of £2.36 per share. This purchase, which benefits the company’s employees and executive directors, increases the total shares held by the trust to 869,886, representing 0.34% of the company’s total voting rights.

Spark’s Take on GB:GBG Stock

According to Spark, TipRanks’ AI Analyst, GB:GBG is a Neutral.

GB Group plc’s overall stock score reflects its mixed financial performance, with strong cash flows and balance sheet stability offset by challenges in revenue growth and profitability. The bearish technical indicators and high valuation weigh down the score, suggesting a cautious outlook. Recent corporate events show positive signs but have a limited effect on the stock’s current performance.

To see Spark’s full report on GB:GBG stock, click here.

GB Group plc Initiates £10 Million Share Buyback Program

GB Group plc has announced the initiation of a share repurchase program managed by Numis Securities Limited, aiming to buy back up to £10 million worth of ordinary shares. This strategic move reflects the board’s confidence in the company’s long-term prospects and is intended to reduce the company’s share capital. The buyback will be conducted under specific regulatory parameters and may continue during closed periods, depending on market conditions. The company will make further announcements upon the completion of repurchases, as required by UK regulations.

Spark’s Take on GB:GBG Stock

According to Spark, TipRanks’ AI Analyst, GB:GBG is a Neutral.

GB Group plc’s overall stock score reflects its mixed financial performance, with strong cash flows and balance sheet stability offset by challenges in revenue growth and profitability. The bearish technical indicators and high valuation weigh down the score, suggesting a cautious outlook. Recent corporate events show positive signs but have a limited effect on the stock’s current performance.

To see Spark’s full report on GB:GBG stock, click here.

GB Group plc Reports Revenue Growth and Strategic Advancements

GB Group plc reported a 3% increase in group revenue to approximately £283 million for the year ending 31 March 2025, with growth driven by its Identity and Location segments, despite a decline in the Fraud segment. The company achieved a 10% rise in adjusted operating profit to £67 million, supported by cost control and efficiency improvements. GBG’s strong cash generation enabled a reduction in net debt and the company remains well-positioned for future growth with a focus on sustainable, profitable expansion. The introduction of the unified identity platform, GBG Go, marks a strategic advancement, positioning the company to capitalize on long-term growth opportunities despite potential macroeconomic challenges.

Spark’s Take on GB:GBG Stock

According to Spark, TipRanks’ AI Analyst, GB:GBG is a Neutral.

GB Group plc’s overall stock score of 53 reflects its mixed financial performance, with strong cash flows and balance sheet stability offset by challenges in revenue growth and profitability. The bearish technical indicators and high valuation further weigh down the score, suggesting a cautious outlook. The impact of recent corporate events is positive but limited in effect.

To see Spark’s full report on GB:GBG stock, click here.

GB Group Announces Total Voting Rights

GB Group plc has announced the total number of voting rights in its ordinary shares, which stands at 252,635,475 as of the date of the notice. This figure is significant for shareholders as it serves as the denominator for calculating their interest in the company under the Disclosure Guidance and Transparency Rules, impacting how they notify changes in their holdings.

GB Group plc’s Employee Benefit Trust Acquires Shares

GB Group plc has announced that its Employee Benefit Trust (EBT) has acquired 240,000 ordinary shares at an average price of £2.97 per share. This purchase underscores the company’s commitment to its employees, as the shares will benefit employees and executive directors, representing 0.19% of the company’s total voting rights.

GB Group CFO Exercises Share Options and Sells Portion

GB Group plc announced that its CFO, David Ward, exercised options over 50,000 ordinary shares and sold 27,574 of these shares to cover associated costs and taxes. This transaction, conducted on the London Stock Exchange, leaves Mr. Ward with a beneficial holding of 119,426 shares, representing 0.05% of the company’s issued share capital, and options over a maximum of 576,365 shares.

GB Group PLC Announces Total Voting Rights

GB Group PLC (GBG) has announced the total number of voting rights in its ordinary shares, which stands at 252,629,419 as of the date of the notice. This figure is crucial for shareholders to determine their notification requirements under the Financial Conduct Authority’s Disclosure Guidance and Transparency Rules. The announcement highlights the company’s commitment to transparency and regulatory compliance, which may impact shareholder engagement and market perception.

GB Group plc Announces Total Voting Rights Update

GB Group plc has announced that the total number of voting rights in their ordinary shares is 252,627,119 as of January 31, 2025. This update allows shareholders to assess their interests in the company according to the Disclosure Guidance and Transparency Rules, which could impact their ownership decisions and compliance with regulatory requirements.