Strix Group (KETL) AI Stock Analysis

• Market Cap: £101.37M
• Dividend Yield: 9.43%
• Average Volume (3M): 528.61K
• Price to Earnings (P/E): 22.4
• Beta (1Y): 0.70
• Revenue Growth: -1.95%
• EPS Growth: -110.12%
• Country: UK
• Employees: 1,000
• Sector: Technology
• Sector Strength: 86
• Industry: Hardware, Equipment & Parts
• EPS (TTM): 0.04
• Shares Outstanding: 229,859,940
• 10 Day Avg. Volume: 744,811
• 30 Day Avg. Volume: 528,612
• PEG Ratio: -0.01
• Price to Book (P/B): 3.01
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 3.95
• 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: £48.00
• Price Target Upside: 8.84% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 55 Neutral
• Price Target: 45.00p ▲(2.04%Upside)

Strix Group's overall stock score of 55 reflects significant financial challenges, particularly in profitability and valuation, which are weighing down the score. Although corporate events and some technical indicators provide a cautiously optimistic outlook, the primary financial metrics highlight the need for improvement in profitability and leverage management. The absence of an earnings call leaves some uncertainty, but recent positive strategic moves could support future performance.

Strix Group Business Overview & Revenue Model

Company Description

Strix Group Plc designs, manufactures, and supplies kettle safety controls, and other components and devices worldwide. The company offers thermostatic controls, cordless interfaces, water jugs, and filters. It also provides water heating and temperature control, steam management, and water filtration devices. The company offers its products primarily under the Aqua Optima, astrea, and HaloPure brands. It serves original equipment manufacturers, brands, and retailers. The company was formerly known as Steam Plc and changed its name to Strix Group Plc in July 2017. Strix Group Plc was incorporated in 2017 and is headquartered in Isle of Man, the United Kingdom.

How the Company Makes Money

Strix Group generates revenue primarily through the sale of kettle controls and water heating components to major appliance manufacturers. The company leverages its extensive patent portfolio and industry expertise to produce high-quality, reliable products that meet stringent safety standards. Strix Group's revenue model is heavily reliant on its strong relationships with key OEM partners, who integrate Strix's technology into their consumer products. Additionally, the company may engage in licensing agreements and provide ancillary services related to product design and development. Strategic partnerships and a focus on innovation further enhance their earnings potential, allowing Strix to maintain a competitive edge in the global market.

Strix Group Financial Statement Overview

Summary

Strix Group faces financial challenges with declining margins and a recent turn to net losses. While leverage is high, there's some improvement in equity ratios. Cash flow generation remains a relative strength, providing operational stability.

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	141.77M	144.59M	106.92M	119.41M	95.31M
Gross Profit	50.95M	57.19M	40.68M	43.85M	38.91M
EBITDA	23.44M	36.71M	26.26M	30.66M	32.58M
Net Income	-1.38M	16.20M	16.79M	20.60M	24.05M
Balance Sheet
Total Assets	172.15M	194.08M	209.21M	138.48M	118.29M
Cash, Cash Equivalents and Short-Term Investments	15.12M	20.11M	30.44M	19.67M	15.04M
Total Debt	83.71M	110.61M	121.71M	74.22M	56.75M
Total Liabilities	126.55M	151.05M	171.96M	112.47M	96.24M
Stockholders Equity	44.93M	42.38M	36.54M	25.32M	21.33M
Cash Flow
Free Cash Flow	23.88M	29.58M	14.80M	5.14M	13.76M
Operating Cash Flow	32.13M	37.60M	23.36M	22.29M	31.21M
Investing Cash Flow	-8.49M	-14.30M	-47.83M	-16.99M	-24.17M
Financing Cash Flow	-28.13M	-33.44M	35.81M	-1.32M	-5.13M

Strix Group Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 44.10
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:KETL, the sentiment is Neutral. The current price of 44.1 is above the 20-day moving average (MA) of 42.11, above the 50-day MA of 43.83, and below the 200-day MA of 49.49, indicating a neutral trend. The MACD of -0.31 indicates Negative momentum. The RSI at 54.46 is Neutral, neither overbought nor oversold. The STOCH value of 90.81 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for GB:KETL.

Strix Group Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SOLI	78 Outperform	£101.99M	198.33	0.81%	207.22%	-11.80%	-32.11%
QTX	73 Outperform	£128.34M	22.54	27.08%	169.81%	8.19%	―
SDI	72 Outperform	£90.12M	25.96	7.69%	―	-5.19%	115.58%
GHH	65 Neutral	£163.23M	30.18	4.79%	219.27%	1.74%	359.50%
Sector *	63 Neutral	$34.70B	4.89	-11.39%	1.66%	5.53%	-19.00%
KETL	55 Neutral	£101.37M	22.36	4.44%	9.43%	-1.95%	-110.12%
TTG	49 Neutral	£176.75M	―	-22.95%	515.19%	-15.12%	-690.29%

Strix Group Corporate Events

Strix Group Announces Major Shareholding Change

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.

Strix Group Plc Passes All Resolutions at AGM

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.

Strix Group Announces Financial Growth and New Board Appointment

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.

Strix Group Voting Rights Update

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.

Strix Group to Showcase New Products at Investor Event

Strix Group Plc is hosting an investor event at its Billi showroom during Clerkenwell Design Week, providing an opportunity for investors to meet the Billi UK management team and explore the newly launched Multifunction Mixer Tap alongside other products. This event aims to engage both existing shareholders and potential investors, potentially strengthening investor relations and showcasing Strix’s innovative product offerings.

Strix Group Reports FY24 Results with Revenue Growth and Debt Reduction

Strix Group PLC reported its final results for FY24, highlighting a modest increase in adjusted revenues by 1.3% to £145.7 million despite challenging macroeconomic conditions. The company achieved a significant reduction in net debt by £20 million to £63.7 million, aligning with its strategic focus on cash generation and debt management. The restructuring efforts, including the disposal of HaloSource and partial relocation of manufacturing to China, have strengthened the company’s position for medium-term growth. The successful launch of new products, particularly in the Billi division, contributed to double-digit growth, reinforcing Strix’s approach to acquisitions and market expansion. The company remains optimistic about its future prospects, maintaining its full-year expectations amid ongoing macroeconomic uncertainties.