Heavitree Brewery (HVTA) AI Stock Analysis

• Market Cap: £8.26M
• Dividend Yield: 1.72%
• Average Volume (3M): 47.00
• Price to Earnings (P/E): 4.1
• Beta (1Y): 0.04
• 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: 3,182,478
• 10 Day Avg. Volume: 28
• 30 Day Avg. Volume: 47
• 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: £170.00
• Price Target Upside: 6.25% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 69 Neutral
• Price Target: 170.00p ▲(6.25% 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

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 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's financial performance shows a strong recovery in revenue and profitability with healthy gross and net profit margins. The balance sheet is robust with low leverage, though ROE could be improved. Cash flow improvement is notable but cash utilization efficiency needs enhancement.

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	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	2.38M	2.19M	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: 160.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• 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 160 is above the 20-day moving average (MA) of 160.00, above the 50-day MA of 157.80, and above the 200-day MA of 158.85, indicating a bullish trend. The MACD of 0.55 indicates Positive momentum. The RSI at 99.86 is Negative, neither overbought nor oversold. The STOCH value of 46.47 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
MAB	74 Outperform	£1.44B	8.89	6.90%	―	1.95%	275.56%
FSTA	70 Neutral	£322.77M	12.55	6.45%	3.32%	4.79%	223.72%
HVTA	69 Neutral	£8.26M	4.14	10.60%	1.72%	2.76%	40.57%
MARS	68 Neutral	£266.48M	6.18	10.69%	―	0.50%	―
JDW	64 Neutral	£665.03M	10.40	17.81%	2.37%	4.52%	50.39%
YNGA	63 Neutral	£444.17M	49.87	1.27%	2.92%	24.95%	-16.86%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%