Heavitree Brewery (HVT) AI Stock Analysis

• Market Cap: £8.34M
• Dividend Yield: 1.25%
• Average Volume (3M): 71.00
• Price to Earnings (P/E): 3.0
• Beta (1Y): 0.10
• Revenue Growth: 2.76%
• EPS Growth: 40.57%
• Country: UK
• Employees: 15
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Restaurants
• EPS (TTM): 0.31
• Shares Outstanding: 1,844,699
• 10 Day Avg. Volume: 10
• 30 Day Avg. Volume: 71
• PEG Ratio: 0.03
• Price to Book (P/B): 0.39
• Price to Sales (P/S): 1.01
• P/FCF Ratio: 14.36
• 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
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 76 Outperform
• Price Target: 249.00p ▲(13.18% Upside)
• Action: Reiterated Date: 02/25/26
• Date: Action: Reiterated 02/25/26

The score is driven primarily by strong financial performance (notably improved 2025 profitability and a debt-free balance sheet) and attractive valuation (low P/E plus dividend). These positives are tempered by weaker technical conditions—an extremely overbought RSI and otherwise flat price trend—and by uneven cash flow conversion relative to earnings.

Positive Factors

Debt-free balance sheet

Eliminating debt materially reduces interest and refinancing risk and preserves financial flexibility. A debt-free structure supports capital allocation choices—investment, dividends or buybacks—and improves resilience to demand shocks, a durable advantage for multi-quarter planning.

Revenue and margin improvement

A meaningful step-up in revenue paired with steady high-30% gross margins and mid-30% net margins indicates durable pricing power and cost control. If sustained, this combination supports stronger free cash generation and reinvestment capacity over the coming quarters.

Positive recent cash generation

Improving operating cash flow and consecutive positive free cash flow show the business can convert earnings into spendable cash. That supports operational reinvestment and shareholder returns, and provides a more durable funding source than relying on external capital.

Negative Factors

Uneven cash conversion

Inconsistent conversion of accounting earnings into operating cash reduces confidence that reported profits will fund investment or payouts. Volatile free cash flow increases funding unpredictability and raises risk if margins or revenues revert, limiting strategic flexibility.

Historic profitability volatility

A prior operating loss and swings in net margin signal that current margin levels may be cyclical or event-driven. This historic volatility means the 2025 profit step-up may be harder to sustain absent structural changes, increasing execution risk over the medium term.

Small scale and limited diversification

A very small operating scale limits economies of scale, bargaining power and geographic diversification. That makes revenue and margin less resilient to local demand swings or operational disruptions and can slow organic growth versus larger peers.

Heavitree Brewery Business Overview & Revenue Model

Company Description

The Heavitree Brewery PLC engages in the development and operation of a leased and tenanted estate in England. The company operates 65 leased and tenanted public houses. It also owns freehold land in the United States. The company was founded in 1790 and is based in Exeter, the United Kingdom.

How the Company Makes Money

Heavitree Brewery generates revenue through multiple key streams. The primary source is the sale of its brewed products, including a variety of ales and beers, which are distributed to pubs, restaurants, and retail outlets. The company also earns income from its owned and managed public houses, where it serves food and beverages to patrons. Significant partnerships with local distributors and wholesalers help expand its reach in the market. Additionally, Heavitree Brewery capitalizes on events and promotions at its hospitality venues to boost foot traffic and sales, further contributing to its overall profitability.

Heavitree Brewery Financial Statement Overview

Summary

Strong fundamentals overall: revenue accelerated sharply in 2025 and profitability improved materially, supported by a very conservative, debt-free balance sheet. The main offset is cash flow quality—cash conversion has been uneven and free cash flow has been volatile, which reduces confidence in the sustainability of the earnings step-up.

Income Statement

Revenue has expanded strongly over the period, with a notable step-up in 2025 (annual revenue growth ~30%). Profitability is a clear strength: gross margin is steady in the high-30% range and net margin improved materially in 2025 (mid-30%), indicating strong pricing and/or cost control. Offsetting this, profitability has been somewhat volatile year-to-year (earlier periods show much lower net margin and an operating loss in 2021), which lowers the consistency score.

Balance Sheet

The balance sheet is very conservatively positioned. Debt has been reduced from moderate levels earlier in the period to effectively zero in 2025, while equity has grown, supporting financial resilience. Total assets have also increased steadily, suggesting balance-sheet expansion without relying on leverage. The main drawback is that returns on equity were modest-to-mid in the earlier years (where provided), though the current low leverage meaningfully reduces financial risk.

Cash Flow

Cash generation is positive in the most recent years, with operating cash flow improving versus 2023 and free cash flow positive in 2024–2025. However, cash conversion is uneven: operating cash flow has not consistently covered reported earnings (below 1x in 2023–2025), and free cash flow has been volatile—including a large cash outflow in 2023 and a decline in 2025 versus 2024. Overall, cash flow quality is acceptable but less consistent than earnings.

Breakdown	Oct 2025	Oct 2024	Oct 2023	Oct 2022	Oct 2021
Income Statement
Total Revenue	7.63M	7.50M	7.35M	7.28M	4.62M
Gross Profit	2.80M	2.79M	2.64M	2.82M	1.36M
EBITDA	1.55M	1.98M	2.28M	2.62M	1.44M
Net Income	2.62M	1.32M	1.50M	1.97M	801.00K
Balance Sheet
Total Assets	24.06M	22.57M	21.33M	20.52M	20.93M
Cash, Cash Equivalents and Short-Term Investments	2.31M	754.00K	373.00K	788.00K	52.00K
Total Debt	0.00	2.44M	2.20M	2.41M	5.22M
Total Liabilities	4.31M	5.04M	4.75M	5.10M	7.46M
Stockholders Equity	19.75M	17.54M	16.58M	15.43M	13.46M
Cash Flow
Free Cash Flow	539.00K	172.00K	-993.00K	1.50M	-716.00K
Operating Cash Flow	1.37M	1.31M	781.00K	1.93M	-243.00K
Investing Cash Flow	1.34M	-740.00K	-572.00K	1.61M	938.00K
Financing Cash Flow	-1.16M	-161.00K	-624.00K	-2.00M	-218.00K

Heavitree Brewery Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 220.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Negative
• STOCH: Positive

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 220 is below the 20-day moving average (MA) of 220.00, above the 50-day MA of 220.00, and above the 200-day MA of 216.43, indicating a neutral trend. The MACD of 0.01 indicates Positive momentum. The RSI at 99.99 is Negative, neither overbought nor oversold. The STOCH value of 16.67 is Positive, 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
FSTA	79 Outperform	£376.52M	5.12	4.82%	2.81%	6.94%	9.99%
HVT	76 Outperform	£8.34M	2.95	10.60%	1.25%	2.76%	40.57%
JDW	69 Neutral	£717.41M	13.44	17.81%	1.50%	4.52%	50.39%
YNGA	67 Neutral	£479.25M	5.72	1.46%	3.20%	12.91%	-13.62%
MARS	66 Neutral	£370.20M	3.47	9.91%	―	-0.08%	―
MAB	66 Neutral	£1.73B	8.30	6.58%	―	3.87%	18.31%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%

Heavitree Brewery Corporate Events

Heavitree Brewery lifts annual profit on property gains amid pub sector pressures

Heavitree Brewery reported a 1.7% rise in turnover to £7.63m for the year to 31 October 2025, while operating profit dipped 3.3% to £1.38m, reflecting higher payroll costs linked to senior management transition. Overall profit for the year more than doubled to £2.62m, driven largely by a £1.06m profit on property disposals and an £877,000 insurance receipt, as the group also cut repair spending and held net assets at nearly £19.8m.

The board is recommending an unchanged final dividend of 3.85p, resulting in an 8.1% increase in the total annual payout after a higher interim dividend, signalling cautious confidence despite intense cost pressures on tenants from wages, energy, tax and regulatory changes. The company advanced plans around fire-damaged sites, completed several tenancies and a lease assignment, and moved closer to winding up its final salary pension scheme, underscoring steady estate management amid a challenging trading and policy environment for U.K. pubs.

The most recent analyst rating on (GB:HVT) stock is a Hold with a £228.00 price target. To see the full list of analyst forecasts on Heavitree Brewery stock, see the GB:HVT Stock Forecast page.

Heavitree Brewery Discloses Executive Spouse Share Sale to Employee Trust

Heavitree Brewery PLC has disclosed a director-related share transaction involving William McLean, the spouse of an executive director, following an earlier nil-cost transfer of shares between N McLean and their spouse in May 2025. On 15 May 2025, William McLean sold 1,940 A Ordinary Shares in Heavitree Brewery PLC at £1.50 per share to the Heavitree Employees Trust in an off-market transaction, a move that underscores ongoing internal reallocation of equity into the company’s employee trust and provides additional transparency around management-related share dealings for investors and other stakeholders.

The most recent analyst rating on (GB:HVT) stock is a Buy with a £239.00 price target. To see the full list of analyst forecasts on Heavitree Brewery stock, see the GB:HVT Stock Forecast page.