Heavitree Brewery (HVT) AI Stock Analysis

• Market Cap: £8.34M
• Dividend Yield: 1.25%
• Average Volume (3M): 71.00
• Price to Earnings (P/E): 5.7
• Beta (1Y): 0.09
• Revenue Growth: 2.76%
• EPS Growth: 40.57%
• Country: UK
• Employees: 15
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Restaurants
• EPS (TTM): 0.23
• Shares Outstanding: 1,844,699
• 10 Day Avg. Volume: 10
• 30 Day Avg. Volume: 71
• PEG Ratio: -0.50
• Price to Book (P/B): 0.48
• Price to Sales (P/S): 1.13
• P/FCF Ratio: 49.24
• 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
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 72 Outperform
• Price Target: 239.00p ▲(8.64% 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.

Positive Factors

Strong Balance Sheet

A strong balance sheet with low debt enhances financial stability, providing the company with flexibility to invest in growth opportunities and withstand economic fluctuations.

Operational Margin Strength

Strong operational margins indicate efficient cost management and profitability, which can support sustainable growth and competitive positioning in the market.

Dividend Increase

A significant dividend increase signals management's confidence in future earnings and financial health, which can enhance shareholder value and attract long-term investors.

Negative Factors

Decline in Operating Profit

The decline in operating profit suggests challenges in managing operational costs, which could impact future profitability if not addressed effectively.

Net Profit Margin Decrease

A decrease in net profit margin highlights potential inefficiencies or rising costs, which could erode profitability and require strategic adjustments to maintain financial health.

Free Cash Flow Efficiency

Low free cash flow efficiency suggests potential liquidity constraints, limiting the company's ability to reinvest in growth or manage unexpected expenses effectively.

Heavitree Brewery Business Overview & Revenue Model

Company Description

Heavitree Brewery (HVT) is a historic brewing company based in Exeter, England, with a rich heritage dating back to the 19th century. The company operates primarily in the brewing and hospitality sectors, producing a range of traditional ales and beers that cater to both local and national markets. In addition to its brewing operations, Heavitree Brewery also manages a portfolio of public houses and hospitality venues, enhancing its service offerings and customer engagement through food and drink experiences.

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

Heavitree Brewery's financials are solid, with strong operational margins and a healthy balance sheet. Revenue growth is present but modest, with room to improve net profit margins. The low debt levels provide a stable financial foundation, though cash flow efficiency could be enhanced. The company is in a strong position to weather industry fluctuations and capitalize on new opportunities.

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	5.86M	7.50M	7.35M	7.28M	4.62M	5.02M
Gross Profit	2.19M	2.79M	2.64M	2.82M	1.36M	1.64M
EBITDA	1.30M	1.98M	2.28M	2.62M	1.44M	732.00K
Net Income	1.31M	1.32M	1.50M	1.97M	801.00K	114.00K
Balance Sheet
Total Assets	23.66M	22.57M	21.33M	20.52M	20.93M	20.35M
Cash, Cash Equivalents and Short-Term Investments	1.11M	754.00K	373.00K	788.00K	52.00K	49.00K
Total Debt	1.69M	2.44M	2.20M	2.41M	5.22M	5.83M
Total Liabilities	5.16M	5.04M	4.75M	5.10M	7.46M	7.65M
Stockholders Equity	18.50M	17.54M	16.58M	15.43M	13.46M	12.70M
Cash Flow
Free Cash Flow	672.50K	172.00K	-993.00K	1.50M	-716.00K	56.00K
Operating Cash Flow	1.03M	1.31M	781.00K	1.93M	-243.00K	371.00K
Investing Cash Flow	742.00K	-740.00K	-572.00K	1.61M	938.00K	-127.00K
Financing Cash Flow	-619.00K	-161.00K	-624.00K	-2.00M	-218.00K	-1.47M

Heavitree Brewery Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 220.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• 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 220 is above the 20-day moving average (MA) of 218.50, above the 50-day MA of 216.40, and above the 200-day MA of 217.45, indicating a bullish trend. The MACD of 1.22 indicates Negative momentum. The RSI at 100.00 is Negative, neither overbought nor oversold. The STOCH value of 50.00 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	75 Outperform	£1.43B	8.52	6.58%	―	3.87%	18.31%
MARS	73 Outperform	£381.10M	5.50	9.91%	―	-0.08%	―
HVT	72 Outperform	£8.34M	5.69	10.60%	1.25%	2.76%	40.57%
FSTA	69 Neutral	£331.52M	12.93	4.82%	2.93%	6.94%	9.99%
JDW	64 Neutral	£683.68M	10.69	17.81%	1.59%	4.52%	50.39%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
YNGA	58 Neutral	£425.60M	39.90	1.46%	3.21%	12.91%	-13.62%

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.