Genuit Group (GEN) AI Stock Analysis

• Market Cap: £806.64M
• Dividend Yield: 3.21%
• Average Volume (3M): 678.36K
• Price to Earnings (P/E): 16.4
• Beta (1Y): 1.68
• Revenue Growth: 5.88%
• EPS Growth: 107.36%
• Country: UK
• Employees: 3,200
• Sector: Industrials
• Sector Strength: 72
• Industry: Construction
• EPS (TTM): 0.12
• Shares Outstanding: 249,169,880
• 10 Day Avg. Volume: 408,709
• 30 Day Avg. Volume: 678,359
• PEG Ratio: -1.54
• Price to Book (P/B): 1.51
• Price to Sales (P/S): 1.72
• P/FCF Ratio: 12.17
• 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: £464.75
• Price Target Upside: 43.44% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 71 Outperform
• Price Target: 362.00p ▲(11.73% Upside)

Genuit Group's strong financial fundamentals and positive corporate events are offset by weak technical indicators and moderate valuation. The company's solid cash flow and strategic acquisitions provide resilience, but bearish technical trends suggest caution.

Positive Factors

Cash Flow Strength

Strong cash flow growth indicates efficient capital management and enhances financial flexibility, supporting long-term investments and stability.

Balance Sheet Stability

A strong equity base and favorable debt-to-equity ratio reflect prudent financial management, providing resilience against economic fluctuations.

Operational Efficiency

Consistent production efficiency, as indicated by stable gross margins, supports long-term profitability and competitive positioning.

Negative Factors

Revenue Decline

Declining revenue trends may indicate challenges in market demand or competitive pressures, potentially impacting future growth prospects.

Asset Decline

A reduction in total assets may limit the company's ability to invest in growth opportunities or respond to market changes, affecting long-term strategy.

Profit Margin Pressure

Modest profit margins suggest limited pricing power or cost pressures, which could constrain profitability and strategic flexibility over time.

Genuit Group Business Overview & Revenue Model

Company Description

Genuit Group plc develops, manufactures, and sells water, climate, and ventilation management solutions in the United Kingdom, rest of the Europe, and internationally. The company operates through two segments, Residential Systems, and Commercial and Infrastructure Systems. It offers above and below ground drainage systems, rainwater solutions, and various plastic hot and cold plumbing products, as well as commercial ventilation, underfloor heating, hydronic filters, and plastic plumbing systems. The company also provides floor heating systems, air and ground source heat pumps, and other renewable heating systems. In addition, it offers rainwater store and re-use, engineered water management, and stormwater solutions; chambers, platform accessories, magnetic filters, and chemicals and related products, as well as surface water retention, infiltration, surface water treatment, and flow control devices. Further, the company provides terrain and surface water drainage systems; sewer systems; and cable protection products. It offers its products for use in the residential, commercial, civil, infrastructure, and public non-housing sectors. The company was formerly known as Polypipe Group plc and changed its name to Genuit Group plc in April 2021. Genuit Group plc was founded in 1980 and is headquartered in Leeds, the United Kingdom.

How the Company Makes Money

Genuit Group generates revenue primarily through the sale of its diverse range of water management and energy-efficient products. Key revenue streams include product sales from its various divisions, such as drainage, water treatment, and energy-efficient heating solutions. Additionally, the company may earn revenue through service contracts, maintenance agreements, and consulting services related to environmental sustainability. Strategic partnerships with construction firms, local governments, and environmental agencies also enhance Genuit's market reach and contribute to its earnings by enabling the company to participate in larger, publicly funded projects aimed at improving water and climate resilience.

Genuit Group Financial Statement Overview

Summary

Genuit Group demonstrates a solid financial position with strong cash flows and stable balance sheet metrics. While revenue and profitability margins face challenges, the company's effective cash management and controlled leverage provide resilience.

Income Statement

The company shows a stable gross profit margin around 44% over the years, indicating consistent production efficiency. However, revenue has seen a decline from 2022 to 2024, with a 4.9% drop in 2023 and a 4.3% decrease in 2024. The net profit margin remains modest, averaging around 6% in 2024, reflecting moderate profitability. The EBIT and EBITDA margins suggest solid operational efficiency but have shown slight volatility, primarily due to fluctuating revenues.

Balance Sheet

Genuit Group maintains a strong equity base with an equity ratio consistently above 60%, showcasing financial stability. The debt-to-equity ratio is favorable, around 0.27 in 2024, indicating prudent financial leverage. However, a declining trend in total assets since 2022 could pose challenges. Return on Equity (ROE) is reasonable, though it slightly decreased in recent years, reflecting stable but cautious financial performance.

Cash Flow

The company enjoys robust operating cash flow, with a positive growth trend from 2022 to 2024. Free cash flow has improved significantly in 2024, suggesting efficient capital management. The operating cash flow to net income ratio indicates strong cash generation relative to profits. Despite fluctuations in investing and financing cash flows, the overall cash flow position remains strong, enhancing financial flexibility.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	586.70M	561.30M	586.50M	622.20M	594.30M	398.60M
Gross Profit	258.50M	249.70M	245.80M	247.60M	239.00M	156.10M
EBITDA	115.10M	107.20M	102.00M	92.00M	104.20M	57.90M
Net Income	49.00M	33.50M	38.50M	36.50M	41.00M	18.50M
Balance Sheet
Total Assets	992.80M	993.00M	978.80M	1.03B	1.03B	699.80M
Cash, Cash Equivalents and Short-Term Investments	34.90M	43.60M	17.00M	50.00M	52.30M	44.10M
Total Debt	174.70M	172.80M	166.30M	216.20M	218.00M	71.80M
Total Liabilities	344.20M	350.00M	342.20M	401.10M	408.30M	198.90M
Stockholders Equity	648.60M	643.00M	636.60M	627.10M	617.70M	500.90M
Cash Flow
Free Cash Flow	63.40M	79.50M	63.10M	43.10M	40.30M	28.20M
Operating Cash Flow	88.50M	105.10M	97.60M	86.90M	74.90M	53.30M
Investing Cash Flow	-29.40M	-27.90M	-28.50M	-44.00M	-270.50M	-26.30M
Financing Cash Flow	-40.50M	-50.60M	-102.10M	-45.20M	203.90M	-30.60M

Genuit Group Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 324.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:GEN, the sentiment is Negative. The current price of 324 is below the 20-day moving average (MA) of 325.62, below the 50-day MA of 343.95, and below the 200-day MA of 361.64, indicating a bearish trend. The MACD of -3.69 indicates Negative momentum. The RSI at 43.32 is Neutral, neither overbought nor oversold. The STOCH value of 54.17 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GB:GEN.

Genuit Group Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FAN	77 Outperform	£1.26B	30.55	16.10%	1.68%	20.57%	-3.18%
NXR	74 Outperform	£274.34M	21.68	10.01%	3.48%	-3.93%	41.83%
GEN	71 Outperform	£806.64M	16.43	7.68%	3.21%	5.88%	107.36%
ECEL	70 Neutral	£128.83M	17.43	7.23%	3.97%	5.51%	-33.75%
JHD	70 Neutral	£579.59M	14.17	22.36%	5.84%	-4.70%	-2.21%
SRAD	65 Neutral	£192.30M	38.13	9.50%	4.39%	-3.51%	-67.38%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

Genuit Group Corporate Events

Genuit Group Announces Managerial Share Acquisitions Under Incentive Plan

Genuit Group plc has announced the acquisition of ordinary shares by key managerial personnel, including Martin Gisbourne, Emma Versluys, and Steve Currier, as part of the vesting of a conditional share award under the company’s 2014 Long-Term Incentive Plan. This transaction, conducted outside a trading venue, reflects the company’s commitment to aligning its leadership’s interests with long-term strategic goals, potentially strengthening its market position and enhancing stakeholder confidence.

Genuit Group’s Strategic Officer Acquires Shares, Signaling Confidence

Genuit Group plc announced a transaction involving Martin Gisbourne, the Chief Strategy and Sustainability Officer, who acquired 8,144 ordinary shares following the exercise of options granted under the company’s 2014 Sharesave Plan. This transaction, valued at £17,998.24, reflects the company’s ongoing commitment to aligning management interests with shareholder value and could potentially impact its market positioning by demonstrating confidence in its strategic direction.

Genuit Group Announces Block Listing Application for New Shares

Genuit Group plc has applied to the London Stock Exchange and FCA for the admission of 2,500,000 ordinary shares to satisfy awards under its various incentive and share plans. This move is part of the company’s strategy to manage employee compensation and align interests with shareholders, with the shares expected to start trading on 21 November 2025.

Genuit Group Executives Increase Stake with Share Purchases

Genuit Group plc has announced the purchase of ordinary shares by several key executives, including the Chair, CEO, CFO, and other directors, as part of their investment in the company. These transactions, conducted on the London Stock Exchange, reflect a significant vote of confidence in the company’s future prospects and strategic direction, potentially impacting stakeholder perceptions positively.

Genuit Group Shows Resilience Amid Market Challenges

Genuit Group plc reports resilient trading and market share gains despite a subdued market, with revenue growth of 7.1% for the four months ended October 2025. The company expects full-year underlying operating profit to be between £92 million and £95 million, reflecting market volume moderation due to economic uncertainties. Strategic progress includes acquisitions of Monodraught and Davidson Holdings, expected to generate significant revenue in 2026. Genuit continues to focus on productivity improvements and operational efficiencies to counteract market challenges, positioning itself well for future market recovery.

Genuit Group Grants Sharesave Options to Key Executives

Genuit Group plc has announced the grant of three-year options under its 2024 Sharesave Plan to key personnel, including Edel Conway, Chief People Officer, and Steve Currier, interim Managing Director of Water Management Solutions and Sustainable Building Solutions. This move is part of the company’s strategy to align managerial interests with shareholder value and enhance employee engagement, potentially impacting its operational efficiency and market positioning.

Genuit Group Expands Sustainable Building Solutions with Davidson Acquisition

Genuit Group plc has acquired Davidson Holdings Limited for £49.0 million to enhance its portfolio in sustainable building solutions. This acquisition, funded through existing debt facilities, is expected to increase Genuit’s market reach and unlock productivity and cost synergies from 2026. Davidson’s brands, which focus on water conservation, align with Genuit’s strategy and are anticipated to drive growth in the UK Repair, Maintenance, and Improvement sectors.

Genuit Group Strengthens Board with New Non-Executive Director Appointment

Genuit Group plc has appointed Dr. Britta Giesen as a Non-Executive Director, effective 27 October 2025. Dr. Giesen brings extensive international experience in industrial management and ESG expertise, enhancing the board’s diversity and skill set. Her previous roles include CEO of Pfeiffer Vacuum Technology AG and board positions in various European companies. This appointment is expected to strengthen Genuit’s strategic direction in sustainable solutions for the built environment.