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GB Group plc (GB:GBG)
:GBG

GB Group plc (GBG) AI Stock Analysis

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GB Group plc

(LSE:GBG)

57Neutral
GB Group plc's overall stock score of 57 reflects a combination of mixed financial performance, bearish technical indicators, and high valuation concerns. The company's strong cash flow and balance sheet stability are key strengths, but challenges in profitability and technical market conditions weigh on the score. Recent corporate events signal strategic optimism, offering some positive outlook despite current market challenges.
Positive Factors
Growth
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.
Stock Valuation
Shares have come up c. 17% since the TU and now trade at 20.0x FY25E earnings, or a 13.8x FY25E EV/EBIT, which still looks attractive compared to peers and GB's long-term average.
Negative Factors
Financial Performance
GB Group has released a weak update, indicating a surprising slowdown in second-half trading.
Foreign Exchange Impact
The company is facing a foreign exchange headwind, impacting financial performance.
Growth Projections
A slowdown in exit momentum is expected to affect future growth projections.

GB Group plc (GBG) vs. S&P 500 (SPY)

GB Group plc Business Overview & Revenue Model

Company DescriptionGB 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 MoneyGBG 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
55
Neutral
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
68
Positive
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
72
Positive
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 2024Mar 2023Mar 2022Mar 2021Mar 2020
Income StatementTotal Revenue
277.32M278.81M242.48M217.66M199.10M
Gross Profit
194.52M197.82M171.93M152.56M125.18M
EBIT
18.43M-112.43M23.41M35.50M24.46M
EBITDA
953.00K-66.03M51.54M56.80M45.78M
Net Income Common Stockholders
-48.58M-119.79M15.26M26.88M17.06M
Balance SheetCash, Cash Equivalents and Short-Term Investments
21.32M21.55M22.30M21.14M27.50M
Total Assets
852.90M955.12M1.10B480.22M526.20M
Total Debt
102.83M128.18M131.60M3.94M67.86M
Net Debt
81.50M106.63M109.30M-17.20M40.37M
Total Liabilities
227.78M260.98M314.98M115.96M181.27M
Stockholders Equity
625.13M694.14M787.13M364.26M344.93M
Cash FlowFree Cash Flow
35.02M33.28M42.91M57.69M39.01M
Operating Cash Flow
35.48M34.31M44.65M58.43M40.34M
Investing Cash Flow
-351.00K-5.39M-462.20M1.83M-1.42M
Financing Cash Flow
-34.78M-30.01M415.68M-66.14M-32.23M

GB Group plc Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price282.50
Price Trends
50DMA
276.48
Positive
100DMA
309.19
Negative
200DMA
321.02
Negative
Market Momentum
MACD
3.49
Negative
RSI
56.51
Neutral
STOCH
83.97
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:GBG, the sentiment is Neutral. The current price of 282.5 is above the 20-day moving average (MA) of 261.08, above the 50-day MA of 276.48, and below the 200-day MA of 321.02, indicating a neutral trend. The MACD of 3.49 indicates Negative momentum. The RSI at 56.51 is Neutral, neither overbought nor oversold. The STOCH value of 83.97 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for GB:GBG.

GB Group plc Peers Comparison

Overall Rating
UnderperformOutperform
Sector (60)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
GBREL
77
Outperform
$75.34B39.5556.34%1.36%2.98%10.10%
GBFDM
73
Outperform
£260.73M12.7028.48%12.16%-22.84%-49.60%
GBSXS
62
Neutral
£2.03B8.8817.33%3.89%-11.09%65.87%
60
Neutral
$11.58B10.33-7.23%2.94%7.47%-10.84%
GBGBG
57
Neutral
£706.55M90.221.33%1.45%1.63%
GBSRT
47
Neutral
£162.49M
GBSYN
40
Underperform
£2.88M0.4556.96%-55.66%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
GB:GBG
GB Group plc
282.50
-59.33
-17.36%
GB:SYN
Oilex Ltd
0.02
-0.09
-81.82%
GB:SXS
Spectris
2,048.00
-1,084.94
-34.63%
GB:SRT
SRT Marine Systems
65.00
43.00
195.45%
GB:REL
RELX plc
4,106.00
695.03
20.38%
GB:FDM
FDM Group (Holdings)
249.00
-145.36
-36.86%

GB Group plc Corporate Events

Regulatory Filings and Compliance
GB Group PLC Announces Total Voting Rights and Share Capital
Neutral
Apr 30, 2025

GB Group PLC, a company listed on the stock exchange, has announced its total voting rights and share capital. As of the date of the notice, the company has 252,186,075 ordinary shares with voting rights, and no shares are held in treasury. This information is crucial for shareholders to determine their interest in the company according to the Disclosure Guidance and Transparency Rules.

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 57 reflects a combination of mixed financial performance, bearish technical indicators, and high valuation concerns. The company’s strong cash flow and balance sheet stability are key strengths, but challenges in profitability and technical market conditions weigh on the score. Recent corporate events signal strategic optimism, offering some positive outlook despite current market challenges.

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

Stock Buyback
GB Group plc Executes Share Buyback, Cancelling 150,000 Shares
Neutral
Apr 30, 2025

GB Group plc, a company involved in a share buyback program, announced the purchase and cancellation of 150,000 of its ordinary shares. This transaction, executed through Deutsche Numis, was part of a previously announced buyback program. The shares were bought at prices ranging from 233.50 GBp to 239.50 GBp, with a volume-weighted average price of 236.0146 GBp. Following this transaction, the total number of ordinary shares in issue is 252,185,775, which will be used as the denominator for shareholder voting rights calculations. This move is likely to impact the company’s share value and investor relations by reducing the number of shares in circulation.

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 57 reflects a combination of mixed financial performance, bearish technical indicators, and high valuation concerns. The company’s strong cash flow and balance sheet stability are key strengths, but challenges in profitability and technical market conditions weigh on the score. Recent corporate events signal strategic optimism, offering some positive outlook despite current market challenges.

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

Stock BuybackBusiness Operations and Strategy
GB Group plc Executes Share Buyback Program
Positive
Apr 29, 2025

GB Group plc has executed a share buyback program, purchasing 150,000 of its ordinary shares at prices ranging from 229.00 GBp to 235.00 GBp. The acquired shares will be canceled, reducing the total number of shares in issue to 252,335,775, which will also be the new total voting rights in the company. This move is part of the company’s strategic financial management to optimize its capital structure and potentially enhance shareholder value.

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 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.

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

Stock Buyback
GB Group plc Executes Share Buyback Program
Neutral
Apr 28, 2025

GB Group plc has executed a share buyback program, purchasing 150,000 of its Ordinary Shares at prices ranging from 229.50 GBp to 241.50 GBp, with an average price of 234.7442 GBp per share. The cancellation of these shares reduces the total number of shares in circulation to 252,485,775, impacting the company’s capital structure and potentially influencing shareholder value by increasing earnings per share.

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 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.

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

Other
GB Group plc’s Employee Trust Acquires Additional Shares
Neutral
Apr 25, 2025

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.

Stock BuybackBusiness Operations and Strategy
GB Group plc Initiates £10 Million Share Buyback Program
Positive
Apr 25, 2025

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.

Business Operations and StrategyFinancial Disclosures
GB Group plc Reports Revenue Growth and Strategic Advancements
Positive
Apr 24, 2025

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.

Regulatory Filings and Compliance
GB Group Announces Total Voting Rights
Neutral
Mar 31, 2025

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.

Other
GB Group plc’s Employee Benefit Trust Acquires Shares
Positive
Mar 12, 2025

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.

Other
GB Group CFO Exercises Share Options and Sells Portion
Neutral
Mar 6, 2025

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.

Regulatory Filings and Compliance
GB Group PLC Announces Total Voting Rights
Neutral
Mar 3, 2025

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.

Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.