Heavitree Brewery (HVTA) AI Stock Analysis

• Market Cap: £8.11M
• Dividend Yield: 1.77%
• Average Volume (3M): 229.00
• Price to Earnings (P/E): 4.0
• Beta (1Y): 0.04
• Revenue Growth: 2.76%
• EPS Growth: N/A
• Country: UK
• Employees: 15
• Sector: Consumer Cyclical
• Sector Strength: 78
• Industry: Restaurants
• EPS (TTM): 0.23
• Shares Outstanding: 3,182,478
• 10 Day Avg. Volume: 0
• 30 Day Avg. Volume: 229
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: £170.00
• Price Target Upside: 9.68% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 69 Neutral
• Price Target: 170.00p ▲(9.68% Upside)

Heavitree Brewery's overall stock score reflects a blend of strong financial performance and attractive valuation, offset by technical indicators suggesting overbought conditions. The stock appears undervalued with a strong dividend yield, making it potentially appealing for value and income investors. However, the high RSI indicates caution is warranted due to potential short-term price corrections.

Heavitree Brewery Business Overview & Revenue Model

Company Description

Heavitree Brewery (HVTA) is a well-established brewery based in Exeter, England, known for producing a diverse range of traditional and contemporary beers. The company operates primarily within the brewing and hospitality sectors, offering a selection of ales, lagers, and stouts, alongside operating pubs and inns that serve its products. Heavitree Brewery emphasizes quality ingredients and brewing techniques, contributing to its reputation in both local and broader markets.

How the Company Makes Money

Heavitree Brewery generates revenue through multiple streams, primarily from the sale of its alcoholic beverages, including its craft beers and traditional ales. The company sells its products directly to consumers through its owned pubs and inns, as well as to wholesalers and retailers across the region. Additionally, Heavitree Brewery benefits from hospitality revenue generated by its establishments, which includes food and beverage sales. Strategic partnerships with local distributors enhance its market reach, while seasonal promotions and events at its venues help increase foot traffic and sales. Overall, the combination of product sales and hospitality operations forms the foundation of the company’s revenue model.

Heavitree Brewery Financial Statement Overview

Summary

Heavitree Brewery has demonstrated strong revenue growth and healthy profit margins, though net income has slightly declined. The balance sheet is robust with low leverage, but ROE has room for improvement. Cash flow is improving, particularly in free cash flow, yet there are inefficiencies to address.

Income Statement

Heavitree Brewery has demonstrated a solid recovery in revenue growth, with a 2.06% increase in 2024 compared to the previous year. The gross profit margin is healthy at 37.19%, and the net profit margin stands robust at 17.57%, reflecting strong profitability. EBIT and EBITDA margins are also commendable at 15.07% and 26.44%, respectively, indicating efficient operations. However, there is a slight decline in net income from the previous year, which is a point of concern.

Balance Sheet

The company's balance sheet is strong with a debt-to-equity ratio of 0.14, suggesting low leverage and financial stability. The equity ratio is high at 77.69%, indicating a solid capital base. Return on equity is 7.52%, which is moderate and could be improved. Overall, the balance sheet reflects a stable financial position with room for improvement in ROE.

Cash Flow

Heavitree Brewery shows a significant improvement in free cash flow, turning positive in 2024 at 172,000, which marks a notable turnaround from the previous year's negative figure. The operating cash flow to net income ratio is reasonably strong at 0.99, indicating effective cash conversion from earnings. However, free cash flow to net income ratio remains low at 0.13, pointing to potential inefficiencies in cash utilization.

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: 155.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• 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 155 is above the 20-day moving average (MA) of 155.00, above the 50-day MA of 154.23, and below the 200-day MA of 160.02, indicating a neutral trend. The MACD of 0.16 indicates Positive momentum. The RSI at 96.08 is Negative, neither overbought nor oversold. The STOCH value of 34.26 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	70 Outperform	£315.25M	12.21	6.45%	3.41%	4.79%	223.72%
HVTA	69 Neutral	£8.11M	4.01	10.60%	1.77%	2.76%	―
MAB	69 Neutral	£1.53B	9.11	6.90%	―	1.95%	275.56%
MARS	67 Neutral	£243.57M	5.51	10.69%	―	0.50%	―
JDW	64 Neutral	£740.70M	13.32	16.38%	2.16%	3.70%	57.10%
YNGA	63 Neutral	£459.05M	52.98	1.27%	2.76%	24.95%	-16.86%
Sector *	61 Neutral	$17.60B	14.14	-5.40%	3.04%	1.40%	-15.06%