Heavitree Brewery (HVTA) AI Stock Analysis

• Market Cap: £8.34M
• Dividend Yield: 1.72%
• Average Volume (3M): 340.00
• Price to Earnings (P/E): 3.0
• Beta (1Y): 0.03
• 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: 3,182,478
• 10 Day Avg. Volume: 0
• 30 Day Avg. Volume: 340
• 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: 77 Outperform
• Price Target: 182.00 p ▲(13.75% Upside)
• Action: Upgraded Date: 02/25/26
• Date: Action: Upgraded 02/25/26

The score is driven primarily by strong financial strength (debt eliminated, higher equity) and very attractive valuation (low P/E with a dividend). Offsetting these positives are weaker cash flow consistency and an overextended technical setup (RSI near 100), which raises near-term risk despite the solid longer-term fundamentals.

Positive Factors

Balance sheet strength

Heavitree eliminated material debt by 2025 and accumulated equity and assets, materially de-risking the balance sheet. That durable solvency improvement increases financial flexibility for capex, dividends or M&A and lowers insolvency risk across economic cycles.

Revenue re-acceleration & margins

A sharp revenue re-acceleration in 2025 alongside a high net margin demonstrates sustainable demand and pricing power in the core business. Persistent mid-to-high 30s gross/net margins support long-term earnings power and funding for reinvestment or shareholder returns.

EPS momentum

Substantial EPS growth indicates improving profitability and operational leverage. Durable EPS improvements build retained earnings for reinvestment, strengthen dividend capacity and signal structural earnings recovery beyond one-off items.

Negative Factors

Weak cash conversion

Operating cash flow lags reported profits and free cash flow conversion is modest and recently declined. Persistent cash conversion shortfalls constrain the firm's ability to sustainably fund capex, dividends or rebuild reserves without external funding.

Operating margin volatility

Steep swings in EBITDA margin over recent years show the business is exposed to cost or mix variability. Such volatility weakens earnings predictability, complicates long-range planning and raises execution risk for maintaining consistent shareholder returns.

Limited scale

Modest revenue and a very small headcount suggest limited scale and diversification, which constrain operating leverage and competitive reach. Small scale increases vulnerability to local demand shocks and limits the ability to absorb cost inflation or invest in growth initiatives.

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 primarily through the sale of its brewed products, including a variety of cask and bottled beers. The company earns money by distributing its beverages to pubs, restaurants, and retailers across the UK, as well as through direct sales at its owned pubs. Key revenue streams include on-trade sales (sales made to licensed premises) and off-trade sales (sales made to retail outlets). Additionally, the operation of its own pubs contributes to its earnings through food and drink sales, as well as rental income from leased premises. Strategic partnerships with other businesses in the hospitality sector further enhance revenue opportunities, while seasonal events and promotions also play a role in driving sales.

Heavitree Brewery Financial Statement Overview

Summary

Strong solvency improvement with debt reduced to £0 and rising equity supports a high balance-sheet score (90). Income statement profitability is solid and revenue re-accelerated in 2025, but operating profitability has been volatile. Cash flow quality is the main drag: free cash flow has been inconsistent and cash conversion trails net income (cash flow score 56).

Income Statement

Revenue has stabilized at ~£7.3–£7.6m in recent years, with a sharp re-acceleration in 2025 (+30.1% annual). Profitability is strong for the sector, with 2025 net margin at ~34.4% and gross margin holding in the mid-to-high 30s. The key weakness is volatility in operating profitability over time (EBITDA margin stepping down from ~36.0% in 2022 to ~20.3% in 2025), suggesting earnings quality and cost structure can swing meaningfully year-to-year.

Balance Sheet

The balance sheet has materially de-risked: total debt declines steadily from ~£5.8m (2020) to £0 (2025), driving debt-to-equity down from ~0.46 to 0.00. Equity has grown consistently (to ~£19.8m in 2025) and assets have increased to ~£24.1m, indicating strengthening financial flexibility. The main limitation is that return on equity is not provided for 2025, so the current capital efficiency cannot be fully validated from the available data.

Cash Flow

Cash generation is positive but uneven. Operating cash flow improved substantially versus earlier years (2025 ~£1.37m; 2024 ~£1.31m), yet it still trails reported profit in 2025 (operating cash flow to net income ~0.83), and free cash flow conversion remains modest (free cash flow to net income ~0.39). Free cash flow also declined in 2025 (-19.9% annual) after prior volatility including a negative free cash flow year in 2023, indicating capital spending/working-capital swings can pressure shareholder cash returns.

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: 160.00
• 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:HVTA, the sentiment is Positive. The current price of 160 is above the 20-day moving average (MA) of 156.54, above the 50-day MA of 156.30, and above the 200-day MA of 154.27, indicating a bullish trend. The MACD of 0.54 indicates Negative momentum. The RSI at 100.00 is Negative, neither overbought nor oversold. The STOCH value of 30.29 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:HVTA.

Heavitree Brewery Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FSTA	79 Outperform	£362.00M	5.12	4.99%	2.81%	6.94%	9.99%
HVTA	77 Outperform	£8.34M	2.95	10.60%	1.72%	2.76%	40.57%
JDW	69 Neutral	£663.66M	13.44	18.03%	1.50%	4.52%	50.39%
YNGA	67 Neutral	£449.40M	5.72	1.48%	3.20%	12.91%	-13.62%
MARS	66 Neutral	£334.13M	1.13	9.91%	―	-0.08%	―
MAB	66 Neutral	£1.61B	8.30	6.46%	―	3.87%	18.31%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%