Heavitree Brewery (HVT) AI Stock Analysis

• Market Cap: £8.11M
• Dividend Yield: 2.63%
• Average Volume (3M): 90.00
• Price to Earnings (P/E): 5.6
• Beta (1Y): 0.09
• Revenue Growth: 2.76%
• EPS Growth: N/A
• Country: UK
• Employees: 15
• Sector: Consumer Cyclical
• Sector Strength: 66
• Industry: Restaurants
• EPS (TTM): 0.23
• Shares Outstanding: 1,844,699
• 10 Day Avg. Volume: 0
• 30 Day Avg. Volume: 90
• PEG Ratio: -1.81
• Price to Book (P/B): 0.49
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 53.24
• 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

• Rating: 72 Outperform
• Price Target: 239.00p ▲(11.16%Upside)

Heavitree Brewery's overall stock score is driven by its strong valuation and solid financial performance. The company exhibits low leverage, good operational margins, and a healthy balance sheet, which positions it well for future growth. Despite high technical indicators suggesting potential overbought conditions, the attractive P/E ratio and dividend yield improve its investment appeal.

Heavitree Brewery Business Overview & Revenue Model

Company Description

Heavitree Brewery PLC is a historic company based in the United Kingdom, primarily engaged in the operation and management of public houses. Established in the late 18th century, the company focuses on the leasing and management of a network of pubs across the South West of England, particularly in Devon and Exeter. With a rich heritage, Heavitree Brewery aims to maintain traditional pub experiences while adapting to modern consumer preferences.

How the Company Makes Money

Heavitree Brewery generates revenue primarily through its extensive portfolio of leased and tenanted pubs. The company earns income by leasing its properties to independent publicans who operate the pubs, from whom it receives rent and, in some cases, a share of sales. Additionally, Heavitree may benefit from any appreciation in property values. The company's strategy heavily relies on maintaining long-term relationships with its tenants and ensuring its properties are well-maintained and attractive to patrons. Although it no longer brews its own beer, Heavitree’s focus on property management within the hospitality sector remains its core revenue stream.

Heavitree Brewery Financial Statement Overview

Summary

Heavitree Brewery's financials are strong, with stable revenue growth and robust operational margins. The balance sheet is healthy with low debt levels, providing financial stability. Cash flow is positive but could improve in efficiency.

Income Statement

Heavitree Brewery exhibits stable revenue with a slight growth from last year. The gross profit margin stands at 37.2%, suggesting efficient cost management. However, the net profit margin decreased compared to the previous year, indicating increased expenses or other income pressures. The EBIT margin improved to 15.1%, and the EBITDA margin is robust at 26.4%, reflecting strong operational performance.

Balance Sheet

The company's balance sheet shows a healthy equity position, with an equity ratio of 77.7%, indicating low reliance on debt. The debt-to-equity ratio is low at 0.14, suggesting financial stability and low leverage risks. The return on equity is strong at 7.5%, demonstrating effective use of shareholder equity to generate profits.

Cash Flow

The cash flow statement reveals a positive free cash flow of 172,000, a significant recovery from last year's negative position. Operating cash flow to net income ratio is 0.99, reflecting solid cash conversion. However, free cash flow to net income ratio is only 0.13, indicating room for improvement in cash efficiency.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	7.50M	7.35M	7.28M	4.62M	5.02M
Gross Profit	2.79M	3.15M	2.82M	1.36M	1.64M
EBITDA	1.98M	2.28M	2.62M	1.44M	732.00K
Net Income	1.32M	1.50M	1.97M	801.00K	114.00K
Balance Sheet
Total Assets	22.57M	21.33M	20.52M	20.93M	20.35M
Cash, Cash Equivalents and Short-Term Investments	754.00K	373.00K	788.00K	52.00K	49.00K
Total Debt	2.38M	2.19M	2.41M	5.22M	5.83M
Total Liabilities	5.04M	4.75M	5.10M	7.46M	7.65M
Stockholders Equity	17.54M	16.58M	15.43M	13.46M	12.70M
Cash Flow
Free Cash Flow	172.00K	-993.00K	1.50M	-716.00K	56.00K
Operating Cash Flow	1.31M	781.00K	1.93M	-243.00K	371.00K
Investing Cash Flow	-768.00K	-572.00K	1.61M	938.00K	-127.00K
Financing Cash Flow	-161.00K	-624.00K	-2.00M	-218.00K	-1.47M

Heavitree Brewery Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 215.00
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Negative
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:HVT, the sentiment is Positive. The current price of 215 is above the 20-day moving average (MA) of 212.52, above the 50-day MA of 212.36, and below the 200-day MA of 247.33, indicating a neutral trend. The MACD of 0.31 indicates Negative momentum. The RSI at 94.68 is Negative, neither overbought nor oversold. The STOCH value of 27.08 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:HVT.

Heavitree Brewery Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MAB	80 Outperform	£1.70B	10.11	6.90%	―	1.95%	275.56%
MARS	73 Outperform	£274.25M	6.20	10.69%	―	0.50%	―
HVT	72 Outperform	£8.11M	5.56	10.60%	2.63%	2.76%	―
FSTA	71 Outperform	£309.23M	11.92	6.45%	4.36%	4.79%	223.72%
JDW	67 Neutral	£831.82M	14.89	16.38%	0.38%	3.70%	57.10%
Sector *	64 Neutral	£1.70B	10.29	6.12%	3.20%	0.58%	-32.48%
YNGA	61 Neutral	£511.07M	58.94	1.27%	2.48%	24.95%	-153.58%

Heavitree Brewery Corporate Events

Heavitree Brewery Reports Strong Turnover and Increased Dividend Amidst Strategic Changes

Heavitree Brewery PLC reported a 3.62% increase in turnover to £3,519,000 for the six months ending April 2025, despite a 4.02% decline in operating profit due to increased costs from a transition in directors. The company saw a significant profit before taxation increase of 96.47%, largely due to the sale of non-core property assets, including the Locomotive Inn in Exeter. The directors have recommended a 22.22% increase in the interim dividend, reflecting confidence in the company’s performance. The company is also expanding with a new American diner in Exmouth, while managing challenges such as increased living wage costs and reduced business rates support.

Heavitree Brewery Announces Executive Shareholding Transaction

Heavitree Brewery PLC announced a shareholding transaction involving Executive Director Nicola Jane McLean, who transferred 4,740 A Ordinary Shares to her spouse, William McLean, at no cost. This transaction, conducted outside a trading venue, reflects internal shareholding adjustments and may have implications for the company’s governance and stakeholder interests.

Heavitree Brewery Announces Executive Share Transactions

Heavitree Brewery PLC announced recent transactions involving its executive directors and their associates, who were awarded and purchased shares under the company’s Share Incentive Plan. These transactions, involving key figures such as Graham John Crocker, Jane Crocker, Terry Wheatley, and Nicola Jane McLean, reflect internal movements in share ownership, potentially impacting the company’s governance and stakeholder interests.

Heavitree Brewery PLC Successfully Passes AGM Resolutions

Heavitree Brewery PLC announced that all resolutions were passed at its Annual General Meeting, reflecting shareholder support for the company’s current direction. This outcome suggests stability in the company’s governance and operations, potentially reinforcing its position in the brewing industry.