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Strix Group PLC (GB:KETL)
LSE:KETL
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Strix Group (KETL) AI Stock Analysis

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GB:KETL

Strix Group

(LSE:KETL)

Rating:57Neutral
Price Target:
44.00p
▲(3.17% Upside)
Strix Group's overall stock score is primarily impacted by its financial performance challenges, including declining profitability and high leverage. While technical indicators show some short-term bullish momentum, the negative P/E ratio and lack of dividend yield suggest valuation concerns. The company's ability to generate cash provides some stability, but addressing profitability issues is crucial for improving its financial health.

Strix Group (KETL) vs. iShares MSCI United Kingdom ETF (EWC)

Strix Group Business Overview & Revenue Model

Company DescriptionStrix Group (KETL) is a leading technology company specializing in innovative water treatment and filtration solutions. Operating primarily in the environmental sector, Strix Group develops advanced filtration products for residential and commercial markets, focusing on sustainability and efficiency. Their core offerings include water filtration systems, purification technologies, and smart water management solutions, designed to enhance water quality and accessibility across various applications.
How the Company Makes MoneyStrix Group generates revenue through a diversified business model that includes the sale of proprietary water filtration products, licensing agreements, and strategic partnerships with key distributors and retailers in the water treatment industry. The primary revenue streams come from direct sales of their filtration systems and replacement filters, which are marketed to both B2B and B2C segments. Additionally, the company benefits from recurring revenue through maintenance contracts and filter subscription services. Significant partnerships with major retailers and online platforms further amplify their market reach and contribute to consistent sales growth.

Strix Group Financial Statement Overview

Summary
Strix Group is experiencing financial challenges with declining profitability and revenue growth. Margins have decreased, and the net profit margin turned negative in 2024. Despite high leverage, there is some improvement in equity ratios, and cash flow generation remains stable, providing operational stability.
Income Statement
58
Neutral
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
65
Positive
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
62
Positive
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.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue141.77M143.81M106.92M119.41M95.31M
Gross Profit50.95M57.20M40.68M43.85M38.91M
EBITDA23.44M37.05M26.26M30.66M32.58M
Net Income-1.38M16.20M16.79M20.60M24.05M
Balance Sheet
Total Assets172.15M192.25M209.21M138.48M118.29M
Cash, Cash Equivalents and Short-Term Investments15.12M20.11M30.44M19.67M15.45M
Total Debt83.71M110.61M121.71M74.22M56.75M
Total Liabilities126.55M151.05M171.96M112.47M96.24M
Stockholders Equity44.93M42.38M36.54M25.32M21.33M
Cash Flow
Free Cash Flow23.88M29.58M14.80M5.14M13.76M
Operating Cash Flow32.13M37.60M23.36M22.29M31.21M
Investing Cash Flow-8.49M-14.30M-47.83M-16.99M-24.17M
Financing Cash Flow-28.13M-33.44M35.81M-1.32M-5.13M

Strix Group Technical Analysis

Technical Analysis Sentiment
Negative
Last Price42.65
Price Trends
50DMA
42.20
Positive
100DMA
43.45
Negative
200DMA
46.43
Negative
Market Momentum
MACD
0.43
Negative
RSI
50.90
Neutral
STOCH
54.73
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:KETL, the sentiment is Negative. The current price of 42.65 is above the 20-day moving average (MA) of 41.79, above the 50-day MA of 42.20, and below the 200-day MA of 46.43, indicating a neutral trend. The MACD of 0.43 indicates Negative momentum. The RSI at 50.90 is Neutral, neither overbought nor oversold. The STOCH value of 54.73 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GB:KETL.

Strix Group Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
76
Outperform
£96.71M24.288.38%0.50%-6.16%
73
Outperform
£140.45M26.6827.08%1.90%8.19%
61
Neutral
$35.51B8.11-10.49%1.89%8.55%-8.72%
57
Neutral
£99.07M22.364.44%9.43%-1.95%-110.12%
52
Neutral
£143.71M26.394.79%2.49%1.74%359.50%
52
Neutral
£170.36M-22.95%5.13%-15.12%-690.29%
51
Neutral
£87.83M169.440.81%2.45%-23.42%-94.25%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
GB:KETL
Strix Group
42.00
-40.50
-49.09%
GB:GHH
Gooch & Housego
540.00
106.18
24.48%
GB:QTX
Quartix Holdings
284.00
115.74
68.79%
GB:SDI
SDI Group
95.00
34.40
56.77%
GB:SOLI
Solid State
152.50
-104.59
-40.68%
GB:TTG
TT Electronics
100.00
-44.66
-30.87%

Strix Group Corporate Events

Private Placements and FinancingBusiness Operations and StrategyFinancial Disclosures
Strix Group Reports Mixed H1 2025 Performance Amid Macro Challenges
Neutral
Jul 30, 2025

Strix Group Plc reported a mixed trading update for the first half of 2025, with strong performances from its Billi and Consumer Goods divisions, while the Controls division faced challenges due to geopolitical and macroeconomic uncertainties. Despite these challenges, Strix has maintained its market-leading position and expects trading volumes to return to normal in the second half of the year. The company has successfully launched its Next Generation control production line in China and is focusing on expanding its market segments and defending against copyist manufacturers. Strix is also managing its net debt and has initiated a refinancing process to support its medium-term growth strategy.

Other
Strix Group Announces Major Shareholding Change
Neutral
Jul 17, 2025

Strix Group PLC, a non-UK issuer, has announced a change in its major holdings, with Kambiz Nourbakhsh crossing a threshold of 3.395554% in voting rights. This acquisition or disposal of voting rights indicates a significant shift in shareholder dynamics, potentially impacting the company’s governance and strategic decisions.

Executive/Board ChangesShareholder Meetings
Strix Group Plc Passes All Resolutions at AGM
Positive
Jul 10, 2025

Strix Group Plc announced that all resolutions were passed at their recent annual general meeting. This includes the re-election of several directors and the appointment of PricewaterhouseCoopers LLC as auditors. The successful passing of these resolutions reflects strong shareholder support and positions Strix to continue its strategic initiatives in the water heating and filtration industry.

Executive/Board ChangesPrivate Placements and FinancingShareholder MeetingsBusiness Operations and StrategyFinancial Disclosures
Strix Group Announces Financial Growth and New Board Appointment
Positive
Jul 10, 2025

Strix Group Plc announced during its Annual General Meeting that it achieved an increase in adjusted revenues to £145.7 million and adjusted profit before tax to £18.7 million for the year ended 31 December 2024, while reducing net debt to £63.7 million. The company plans to initiate a competitive refinancing process to support its medium-term growth aspirations. Additionally, Rachel Pallett has been appointed to the Board as Chief Commercial Officer, bringing over 30 years of international business experience, which is expected to significantly benefit Strix’s strategic direction.

Business Operations and StrategyRegulatory Filings and Compliance
Strix Group Voting Rights Update
Neutral
May 22, 2025

Strix Group PLC, a non-UK issuer, has announced a change in its voting rights structure following an acquisition or disposal by Octopus Investments Limited. The notification indicates that Octopus Investments Limited now holds 7.99% of the voting rights in Strix Group, down from a previous position of 8.99%. This change in holdings may impact the company’s governance and influence within the market.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Sep 05, 2025