Keystone Law Group Plc (KEYS) AI Stock Analysis

• Market Cap: £196.33M
• Dividend Yield: 287.92%
• Average Volume (3M): 35.75K
• Price to Earnings (P/E): 22.8
• Beta (1Y): 0.19
• Revenue Growth: 13.00%
• EPS Growth: 11.16%
• Country: UK
• Employees: 69
• Sector: Industrials
• Sector Strength: 94
• Industry: Specialty Business Services
• EPS (TTM): 0.14
• Shares Outstanding: 31,717,258
• 10 Day Avg. Volume: 36,691
• 30 Day Avg. Volume: 35,751
• PEG Ratio: 2.90
• Price to Book (P/B): 9.75
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 35.82
• 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: £700.00
• Price Target Upside: 13.09% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 78 Outperform
• Price Target: 7.00p ▼(-98.87%Downside)

Keystone Law Group Plc's strong financial performance and recent corporate events are the most significant factors supporting its stock score. The company's consistent revenue growth, efficient cash flow management, and strategic shareholder alignment through corporate events reinforce its market position. While the P/E ratio suggests a high valuation, the solid dividend yield compensates for this, making the stock appealing. Technical indicators show a stable trend, supporting a balanced outlook.

Positive Factors

Financial Performance

Positive momentum across key metrics, supported by broad-based client demand and contributions from newly joined lawyers.

Recruitment

Recruitment trends were robust, with 50 new principals joining and a high calibre of lawyers attracted to the firm.

Valuation

The stock is trading at a lower price-to-earnings ratio compared to its post-IPO average, presenting an attractive entry point.

Negative Factors

Interest Rates

The slower than expected reduction in interest rates means more interest on client monies.

Keystone Law Group Plc Business Overview & Revenue Model

Company Description

Keystone Law Group Plc (KEYS) is a UK-based law firm that operates a dispersed model, employing experienced lawyers who work remotely. The firm offers a wide range of legal services across various sectors, including corporate, commercial, real estate, dispute resolution, employment, and private client law. Keystone Law is known for its innovative approach to legal services, leveraging technology to provide flexible and cost-effective solutions to its clients.

How the Company Makes Money

Keystone Law Group Plc generates revenue primarily through the provision of legal services. The firm's unique dispersed model allows it to reduce overhead costs associated with traditional law firms, such as office space and administrative staff, enabling it to offer competitive pricing to clients while maintaining profitability. Revenue is mainly derived from client fees for legal advice and representation across various sectors. The company benefits from a broad client base, which includes individuals, SMEs, and larger corporations. Additionally, Keystone Law's partnerships with experienced lawyers who bring their own client relationships contributes to the firm's revenue streams, enhancing its ability to attract and retain high-quality legal professionals and clients.

Keystone Law Group Plc Financial Statement Overview

Summary

Keystone Law Group Plc presents a strong financial position with consistent revenue and profit growth, efficient cost management, and prudent financial leverage. The company shows stability in its operations, with solid margins and robust cash flow generation. While the balance sheet is strong, further equity growth could enhance its financial flexibility.

Income Statement

Keystone Law Group Plc demonstrates robust revenue growth, with a consistent upward trajectory in total revenue over the past few years. The gross profit margin remains healthy, indicating efficient cost management and strong pricing power. Net profit margin improvements also suggest enhanced operational efficiency. The EBIT and EBITDA margins are solid, reflecting strong core earnings capacity. Overall, the income statement shows a trend of increasing profitability, positioning the company well in its industry.

Balance Sheet

The company maintains a strong balance sheet with a low debt-to-equity ratio, indicating conservative leverage and financial stability. The equity ratio is healthy, suggesting a robust capital structure with significant shareholder equity. Return on equity is commendable, reflecting effective use of equity to generate profits. However, the relatively small increase in stockholders' equity over the years could be a point of concern if growth ambitions are high.

Cash Flow

Keystone Law Group Plc shows a positive trend in free cash flow growth, indicating strong cash generation capabilities. The operating cash flow to net income ratio is favorable, demonstrating good cash earnings quality. Free cash flow consistently exceeds net income, highlighting efficient capital expenditure management. The company effectively converts its earnings into cash, supporting ongoing operations and potential growth initiatives.

Breakdown	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	97.70M	87.93M	75.26M	69.62M	55.03M
Gross Profit	25.47M	22.83M	19.57M	18.40M	14.26M
EBITDA	13.36M	11.89M	9.42M	9.34M	6.39M
Net Income	8.55M	7.65M	6.73M	6.65M	4.33M
Balance Sheet
Total Assets	45.70M	41.30M	37.88M	37.40M	33.26M
Cash, Cash Equivalents and Short-Term Investments	9.69M	8.37M	9.15M	10.48M	7.37M
Total Debt	2.16M	2.37M	648.03K	1.11M	1.55M
Total Liabilities	25.33M	24.36M	20.02M	18.52M	16.67M
Stockholders Equity	20.36M	16.94M	17.86M	18.88M	16.59M
Cash Flow
Free Cash Flow	5.47M	7.46M	7.17M	8.27M	5.45M
Operating Cash Flow	6.24M	7.53M	7.23M	8.31M	5.50M
Investing Cash Flow	1.19M	1.46M	157.73K	-32.35K	-11.79K
Financing Cash Flow	-6.12M	-9.78M	-8.72M	-5.17M	-2.51M

Keystone Law Group Plc Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 619.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:KEYS, the sentiment is Positive. The current price of 619 is above the 20-day moving average (MA) of 615.15, above the 50-day MA of 599.81, and above the 200-day MA of 542.49, indicating a bullish trend. The MACD of 6.98 indicates Positive momentum. The RSI at 62.00 is Neutral, neither overbought nor oversold. The STOCH value of 52.32 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:KEYS.

Keystone Law Group Plc Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
KEYS	78 Outperform	£196.33M	22.84	45.84%	287.92%	13.00%	11.16%
KGH	77 Outperform	£145.88M	12.81	11.37%	267.65%	5.40%	19.01%
PPHC	71 Outperform	£214.20M	―	-28.97%	5.01%	7.76%	-60.70%
CPI	69 Neutral	£345.80M	4.47	49.03%	―	-10.33%	―
Sector *	67 Neutral	£2.85B	10.42	4.69%	215.06%	2.73%	-20.56%
BEG	64 Neutral	£194.32M	30.56	7.85%	336.07%	13.88%	512.00%

Keystone Law Group Plc Corporate Events

Keystone Law Group PLC Announces Change in Voting Rights

Keystone Law Group PLC has announced a change in voting rights following an acquisition or disposal by Liontrust Investment Partners LLP. The notification indicates that Liontrust’s voting rights in Keystone Law have decreased from 10.9522% to 9.8935%, reflecting a reduction in their stake. This adjustment in holdings could impact the company’s shareholder dynamics and influence future decision-making processes.

The most recent analyst rating on (GB:KEYS) stock is a Buy with a £725.00 price target. To see the full list of analyst forecasts on Keystone Law Group Plc stock, see the GB:KEYS Stock Forecast page.

Keystone Law Group’s AGM Resolutions Unanimously Passed

Keystone Law Group Plc announced that all resolutions at its Annual General Meeting on 3 July 2025 were passed unanimously. This outcome reflects strong shareholder support and may positively impact the company’s operations and industry positioning by reinforcing confidence in its unique platform model and strategic direction.

The most recent analyst rating on (GB:KEYS) stock is a Buy with a £725.00 price target. To see the full list of analyst forecasts on Keystone Law Group Plc stock, see the GB:KEYS Stock Forecast page.

Keystone Law Group Plc Announces Share Issuance Following LTIP Vesting

Keystone Law Group Plc has issued 124,381 ordinary shares following the vesting of 85% of share awards under its Long Term Incentive Plan 2018. This issuance increases the total number of shares to 31,717,259 and is expected to be admitted to trading on AIM on 18 June 2025. The allotment includes shares to key personnel, with Ashley Miller and William Robins receiving 16,251 shares each. The issuance reflects the company’s commitment to rewarding performance and may enhance its market position by aligning management interests with shareholder value.

The most recent analyst rating on (GB:KEYS) stock is a Buy with a £725.00 price target. To see the full list of analyst forecasts on Keystone Law Group Plc stock, see the GB:KEYS Stock Forecast page.

Keystone Law Grants Performance-Based LTIP Awards to Key Executives

Keystone Law Group Plc has announced the granting of Long Term Incentive Plan (LTIP) awards to key personnel, including Executive Director Ashley Miller and PDMR William Robins, each receiving 26,093 shares. These awards are performance-based, with vesting contingent upon meeting specific earnings and shareholder return conditions over a three-year period. This move is likely to incentivize continued high performance and align the interests of management with those of shareholders, potentially enhancing the company’s competitive position in the legal services market.

The most recent analyst rating on (GB:KEYS) stock is a Buy with a £725.00 price target. To see the full list of analyst forecasts on Keystone Law Group Plc stock, see the GB:KEYS Stock Forecast page.

Liontrust Adjusts Stake in Keystone Law Group

Liontrust Investment Partners LLP has adjusted its voting rights in Keystone Law Group PLC, reducing its stake from 11.0314% to 10.9522%. This change in voting rights indicates a slight shift in the investment strategy of Liontrust Asset Management Plc, potentially impacting the decision-making process within Keystone Law Group PLC.

The most recent analyst rating on (GB:KEYS) stock is a Buy with a £725.00 price target. To see the full list of analyst forecasts on Keystone Law Group Plc stock, see the GB:KEYS Stock Forecast page.

Keystone Law Group Announces 2025 AGM and Annual Report Release

Keystone Law Group Plc has announced the posting of its Annual Report and Accounts for the year ending January 31, 2025, along with the Notice of its Annual General Meeting (AGM) scheduled for July 3, 2025. The AGM will take place at Keystone Law’s offices in London, where voting results and proxy figures for the resolutions will be shared post-meeting. This announcement underscores Keystone’s commitment to transparency and stakeholder engagement, potentially impacting its operational strategies and market positioning.

The most recent analyst rating on (GB:KEYS) stock is a Buy with a £725.00 price target. To see the full list of analyst forecasts on Keystone Law Group Plc stock, see the GB:KEYS Stock Forecast page.

Liontrust Increases Stake in Keystone Law Group

Keystone Law Group PLC has announced a change in its major holdings, with Liontrust Investment Partners LLP acquiring additional voting rights. This acquisition increases Liontrust’s total voting rights in Keystone Law Group to 11.0314%, potentially strengthening their influence in the company’s strategic decisions.

The most recent analyst rating on (GB:KEYS) stock is a Buy with a £7.00 price target. To see the full list of analyst forecasts on Keystone Law Group Plc stock, see the GB:KEYS Stock Forecast page.

Keystone Law Group PLC Announces Change in Major Holdings

Keystone Law Group PLC has announced a change in its major holdings, with Canaccord Genuity Group Inc., based in Vancouver, Canada, increasing its voting rights to 12.0421% as of May 1, 2025. This acquisition signifies a slight increase from the previous position of 11.9139%, potentially impacting the company’s shareholder dynamics and influencing its strategic decisions.

Keystone Law Group Reports Strong Financial Growth and Positive Outlook for 2026

Keystone Law Group Plc announced its full-year results for the year ended 31 January 2025, reporting a revenue growth of 11.1% to £97.7 million and an adjusted profit before tax increase of 12.8% to £12.7 million. The firm added 50 new Principals, reflecting positive recruitment conditions, and proposed a special dividend of 15p per share, indicating confidence in its financial outlook. Keystone’s focus on quality recruitment and investment in IT infrastructure has reinforced its position as a premier platform law firm, with strong client demand and ongoing organic growth. The company has started 2026 positively, with continued client demand and recruitment activity, and expects to meet current market expectations for the year.