Strix Group (KETL) AI Stock Analysis

• Market Cap: £105.65M
• Dividend Yield: N/A
• Average Volume (3M): 1.76M
• Price to Earnings (P/E): 13.8
• Beta (1Y): 0.73
• Revenue Growth: -3.41%
• EPS Growth: 58.10%
• Country: UK
• Employees: 1,000
• Sector: Technology
• Sector Strength: 88
• Industry: Hardware, Equipment & Parts
• EPS (TTM): 0.02
• Shares Outstanding: 229,927,550
• 10 Day Avg. Volume: 4,241,139
• 30 Day Avg. Volume: 1,759,447
• PEG Ratio: 0.73
• Price to Book (P/B): 2.41
• Price to Sales (P/S): 0.76
• P/FCF Ratio: 4.54
• 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: £75.00
• Price Target Upside: 108.91% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 68 Neutral
• Price Target: 50.00p ▲(39.28% Upside)

The overall stock score of 68 reflects a mix of strong technical momentum and reasonable valuation, offset by financial performance challenges. The stock's bullish trend is a significant positive, but the company's financial health, particularly profitability and leverage, presents risks that need to be addressed to sustain long-term growth.

Positive Factors

Cash Generation Ability

Positive free cash flow indicates that Strix Group can sustain operations and invest in growth without relying heavily on external financing.

Market Position and Partnerships

Strong partnerships enhance market presence and credibility, potentially leading to increased sales and market share over the long term.

Equity Position Improvement

Improvement in the equity position suggests a better capitalization structure, which can enhance financial stability and investor confidence.

Negative Factors

Revenue Growth Challenges

Declining revenue growth and margins indicate potential difficulties in maintaining competitive pricing and cost management, impacting long-term profitability.

High Leverage

High leverage can limit financial flexibility and increase risk, potentially affecting the company's ability to invest in growth opportunities.

Negative Profit Margins

Negative profit margins highlight financial struggles, reducing the ability to reinvest in the business and potentially affecting long-term growth prospects.

Strix Group Business Overview & Revenue Model

Company Description

Strix Group (KETL) is a leading technology company specializing in the development and deployment of innovative water filtration solutions. Operating primarily in the environmental technology sector, Strix Group focuses on providing advanced filtration systems for both residential and commercial applications. Their core products include a range of water purification systems that utilize cutting-edge technologies to ensure safe and clean drinking water for consumers worldwide.

How the Company Makes Money

Strix Group generates revenue through multiple channels, primarily by selling its water filtration products directly to consumers and through partnerships with retailers and wholesalers. The company also benefits from recurring revenue streams through maintenance and service contracts for their filtration systems. In addition, Strix Group has established significant partnerships with various environmental organizations and governmental agencies, which enhance their market presence and credibility, thereby contributing to increased sales and market share. Their focus on innovation and sustainability further attracts investment and grants, providing additional financial support for their operations.

Strix Group Financial Statement Overview

Summary

Strix Group is facing financial challenges, particularly in profitability and revenue growth, with declining margins and a recent turn to net losses. While the balance sheet shows high leverage, there's some progress in improving equity ratios. Cash flow generation remains a relative strength, providing some operational stability. The company needs to address profitability issues to enhance its financial health and reduce reliance on debt.

Income Statement

Strix Group has experienced fluctuating revenue with a recent decline from 2023 to 2024. Gross profit margin has decreased from 39.5% in 2023 to 35.9% in 2024, reflecting pressures on cost management or pricing power. The net profit margin turned negative in 2024 (-0.97%), a significant drop from 11.2% in 2023, indicating financial challenges. EBIT and EBITDA margins also declined, showing reduced operational efficiency.

Balance Sheet

The debt-to-equity ratio increased to 1.86 in 2024 from 2.61 in 2023, indicating high leverage but some improvement in equity position. Return on Equity (ROE) turned negative in 2024, highlighting struggles to generate returns for shareholders. The equity ratio improved slightly to 26.1% in 2024, suggesting a better capitalization structure. Overall, the balance sheet shows high leverage and risks, but some positive movement towards strengthening equity.

Cash Flow

Operating cash flow decreased from 2023 to 2024, but free cash flow remains positive, showing some ability to generate cash despite revenue challenges. The free cash flow to net income ratio is not meaningful due to negative net income. The company's ability to generate cash is stable, but the negative net income presents a risk to sustaining operations without external financing.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	140.57M	141.77M	143.81M	106.92M	119.41M	95.31M
Gross Profit	51.74M	50.95M	57.20M	40.68M	43.85M	38.91M
EBITDA	31.47M	23.44M	37.05M	26.26M	30.66M	32.58M
Net Income	7.62M	-1.38M	16.20M	16.79M	20.60M	24.05M
Balance Sheet
Total Assets	178.18M	172.15M	192.25M	209.21M	138.48M	118.29M
Cash, Cash Equivalents and Short-Term Investments	12.70M	15.12M	20.11M	30.44M	19.67M	15.45M
Total Debt	88.70M	83.71M	110.61M	121.71M	74.22M	56.75M
Total Liabilities	131.53M	126.55M	151.05M	171.96M	112.47M	96.24M
Stockholders Equity	46.04M	44.93M	42.38M	36.54M	25.32M	21.33M
Cash Flow
Free Cash Flow	11.36M	23.88M	29.58M	14.80M	5.14M	13.76M
Operating Cash Flow	16.61M	32.13M	37.60M	23.36M	22.29M	31.21M
Investing Cash Flow	-7.85M	-8.49M	-14.30M	-47.83M	-16.99M	-24.17M
Financing Cash Flow	-11.85M	-28.13M	-33.44M	35.81M	-1.32M	-5.13M

Strix Group Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 35.90
• 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:KETL, the sentiment is Positive. The current price of 35.9 is below the 20-day moving average (MA) of 38.09, below the 50-day MA of 36.01, and below the 200-day MA of 41.80, indicating a bullish trend. The MACD of 2.67 indicates Negative momentum. The RSI at 77.58 is Negative, neither overbought nor oversold. The STOCH value of 68.61 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:KETL.

Strix Group Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
QTX	74 Outperform	£133.18M	25.30	27.08%	2.00%	8.19%	―
SDI	70 Neutral	£87.32M	19.06	9.34%	―	7.36%	31.93%
KETL	68 Neutral	£105.65M	13.84	18.63%	―	-3.41%	58.10%
SOLI	68 Neutral	£90.93M	37.56	3.88%	1.56%	8.75%	-54.73%
GHH	67 Neutral	£165.37M	44.54	3.13%	2.19%	10.66%	21.19%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
TTG	54 Neutral	£200.25M	-2.87	-31.42%	―	-16.33%	-448.12%

Strix Group Corporate Events

Strix Group Announces Trading Update and CEO Transition

Strix Group PLC announced a trading update and management change, highlighting a revenue of £64.6m and a net debt of £70.3m for the six-month period ending 30 September 2025. Despite macroeconomic challenges, the company sees early signs of improvement in its Controls division and strong performance in its Billi and Consumer Goods divisions. Strix is focusing on debt reduction, having implemented measures to enhance working capital efficiency and canceling the final dividend for FY24. The company aims to reduce net debt leverage to approximately 1.5x within the next 12-18 months. Additionally, CEO Mark Bartlett will step down in May 2026, with a search for his successor underway.

Strix Group Issues New Shares Under Long Term Incentive Plan

Strix Group PLC has announced the issuance of 67,612 new ordinary shares following the exercise of options under its Long Term Incentive Plan. These shares, which are not allocated to board directors but to employees, will be admitted to trading on AIM effective October 1, 2025. This move increases the company’s total issued share capital to 229,927,550 ordinary shares, impacting shareholder calculations under the FCA’s Disclosure Guidance and Transparency Rules.

Strix Group Faces Mixed Results Amid Macro Challenges

Strix Group reported mixed interim results for the first half of 2025, with strong performances in its Billi and Consumer Goods divisions, but challenges in the Controls segment due to macroeconomic and geopolitical headwinds. Revenue decreased by 6.4% at constant exchange rates, and the company faced increased net debt and reduced profit margins. Despite these challenges, Strix is focusing on strategic initiatives, including geographic expansion and new product launches, while managing debt and navigating market volatility. The company remains confident in its medium-term outlook, with plans to enhance its resilience and capitalize on market recovery opportunities.

Strix Group to Host Investor Presentation on Interim Results

Strix Group PLC announced an upcoming investor presentation with Equity Development to discuss its interim results for the first half of 2025. The event, hosted by CEO Mark Bartlett and CFO Clare Foster, is scheduled for October 2, 2025, and is open to all existing and potential shareholders. This presentation aims to engage shareholders and gather feedback, potentially impacting the company’s stakeholder relations and market perception.