Strix Group (KETL) AI Stock Analysis

• Market Cap: £79.10M
• Dividend Yield: N/A
• Average Volume (3M): 704.54K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.50
• Revenue Growth: -1.95%
• EPS Growth: -110.12%
• 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: 523,744
• 30 Day Avg. Volume: 704,542
• 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: £85.00
• Price Target Upside: 136.77% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 46 Neutral
• Price Target: 33.00p ▼(-8.08% Downside)

The overall stock score of 46 reflects significant financial challenges, particularly in profitability and revenue growth, combined with bearish technical indicators and a negative P/E ratio. The stock is currently in a downtrend with oversold technical conditions, and the lack of a dividend yield further detracts from its valuation appeal. While cash flow generation offers some stability, the company needs to address its profitability issues to improve its financial health.

Strix Group Business Overview & Revenue Model

Company Description

Strix 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 Money

Strix 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 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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	141.77M	143.81M	106.92M	119.41M	95.31M
Gross Profit	50.95M	57.20M	40.68M	43.85M	38.91M
EBITDA	23.44M	37.05M	26.26M	30.66M	32.58M
Net Income	-1.38M	16.20M	16.79M	20.60M	24.05M
Balance Sheet
Total Assets	172.15M	192.25M	209.21M	138.48M	118.29M
Cash, Cash Equivalents and Short-Term Investments	15.12M	20.11M	30.44M	19.67M	15.45M
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: Negative
• Last Price: 35.90
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: 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 35.9 is above the 20-day moving average (MA) of 34.46, below the 50-day MA of 39.32, and below the 200-day MA of 43.87, indicating a bearish trend. The MACD of -1.60 indicates Negative momentum. The RSI at 37.12 is Neutral, neither overbought nor oversold. The STOCH value of 62.50 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
QTX	73 Outperform	£125.92M	23.92	27.08%	2.06%	8.19%	―
SDI	67 Neutral	£84.70M	21.26	8.38%	―	0.50%	-6.16%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
GHH	56 Neutral	£155.04M	28.39	4.79%	2.36%	1.74%	359.50%
SOLI	55 Neutral	£82.42M	161.11	0.81%	1.71%	-23.42%	-94.25%
TTG	55 Neutral	£265.59M	-3.81	-31.42%	―	-16.33%	-448.12%
KETL	46 Neutral	£79.10M	―	―	―	-1.95%	-110.12%

Strix Group Corporate Events

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.

The most recent analyst rating on (GB:KETL) stock is a Hold with a £43.00 price target. To see the full list of analyst forecasts on Strix Group stock, see the GB:KETL Stock Forecast page.

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.

The most recent analyst rating on (GB:KETL) stock is a Hold with a £43.00 price target. To see the full list of analyst forecasts on Strix Group stock, see the GB:KETL Stock Forecast page.

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.

The most recent analyst rating on (GB:KETL) stock is a Hold with a £43.00 price target. To see the full list of analyst forecasts on Strix Group stock, see the GB:KETL Stock Forecast page.

Strix Group Reports Mixed H1 2025 Performance Amid Macro Challenges

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.