Keystone Law Group Plc (KEYS) AI Stock Analysis

• Market Cap: £192.72M
• Dividend Yield: 3.06%
• Average Volume (3M): 50.88K
• Price to Earnings (P/E): 22.5
• Beta (1Y): 0.22
• Revenue Growth: 12.22%
• EPS Growth: 7.48%
• Country: UK
• Employees: 69
• Sector: Industrials
• Sector Strength: 93
• Industry: Specialty Business Services
• EPS (TTM): 0.14
• Shares Outstanding: 31,592,878
• 10 Day Avg. Volume: 44,932
• 30 Day Avg. Volume: 50,885
• PEG Ratio: 5.13
• Price to Book (P/B): 9.64
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 31.85
• 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: 14.75% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 73 Outperform
• Price Target: ―

Keystone Law Group Plc demonstrates strong financial performance with stable growth and a robust balance sheet, contributing significantly to its overall stock score. However, technical analysis indicates potential short-term weakness due to bearish momentum and the stock trading below major moving averages. Valuation suggests a fairly valued position with a reasonable dividend yield providing investor returns. The company's recent corporate achievements further affirm its strategic strength, although these are not directly factored into the score calculation.

Positive Factors

Recruitment

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

Revenue Performance

Broad based client demand, together with the contribution of recently joined lawyers, has delivered better than expected revenue for the period.

Stock 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 in the legal services sector. The company provides a wide range of legal services to clients across various industries, including corporate, commercial, real estate, dispute resolution, employment, intellectual property, and private client services. Keystone Law is known for its innovative model that allows lawyers to work more flexibly and autonomously compared to traditional law firms, enabling efficient and tailored legal service delivery.

How the Company Makes Money

Keystone Law Group Plc primarily generates revenue through the provision of legal services to its clients. The firm's unique business model allows it to operate without the overhead costs typically associated with traditional law firms, as it employs a network of self-employed lawyers who work remotely. These lawyers bring their own client bases, and Keystone provides them with administrative support, technology, and a platform to deliver legal services. Revenue is earned through fees charged to clients for legal services, with a portion of these fees paid out to the self-employed lawyers, while Keystone retains a percentage as its profit. The company may also benefit from strategic partnerships with businesses and other law firms that can drive client referrals and expand its client base.

Keystone Law Group Plc Financial Statement Overview

Summary

Keystone Law Group Plc exhibits sound financial health with strong revenue growth, stable profitability, and a robust balance sheet. The company efficiently manages its cash flows, maintaining a positive trajectory in its financial performance. The low leverage and strong equity base provide financial stability, while consistent cash generation supports ongoing operations and growth.

Income Statement

Keystone Law Group Plc has demonstrated solid growth in revenue over the years, with a notable increase in total revenue from the previous year. The gross profit margin and net profit margin have remained stable, indicating strong operational efficiency. The EBIT and EBITDA margins are healthy, reflecting good profitability levels. The company shows consistent revenue growth, contributing to a strong income statement position.

Balance Sheet

The balance sheet of Keystone Law Group Plc is robust, with a solid equity ratio indicating a strong equity base relative to total assets. The debt-to-equity ratio is low, suggesting low financial leverage and potential stability. Return on Equity (ROE) remains strong, showing effective use of equity in generating profits. Overall, the company maintains a healthy balance sheet with manageable liabilities.

Cash Flow

The company has shown a stable cash flow position with consistent operating cash flow. The free cash flow growth rate indicates prudent management of cash resources. The operating cash flow to net income ratio is strong, showcasing efficient conversion of net income into cash. The company has a healthy free cash flow to net income ratio, highlighting its ability to generate cash from operations.

Breakdown
TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement		Total Revenue
93.36M	87.93M	75.26M	69.62M	55.03M	49.63M
	Gross Profit
25.09M	22.83M	19.57M	18.40M	14.26M	13.23M
	EBIT
9.61M	9.42M	8.31M	8.45M	5.48M	5.16M
	EBITDA
10.08M	11.89M	9.42M	9.34M	6.39M	6.11M
	Net Income Common Stockholders
7.87M	7.65M	6.73M	6.65M	4.33M	4.16M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
8.37M	8.37M	9.15M	10.48M	7.37M	4.39M
	Total Assets
41.30M	41.30M	37.88M	37.40M	33.26M	29.55M
	Total Debt
2.37M	2.37M	648.03K	1.11M	1.55M	2.00M
	Net Debt
-5.99M	-5.99M	-8.50M	-9.37M	-5.82M	-2.39M
	Total Liabilities
24.36M	24.36M	20.02M	18.52M	16.67M	15.44M
	Stockholders Equity
16.94M	16.94M	17.86M	18.88M	16.59M	14.11M
Cash Flow		Free Cash Flow
5.29M	7.46M	7.17M	8.27M	5.45M	3.63M
	Operating Cash Flow
5.32M	7.53M	7.23M	8.31M	5.50M	4.04M
	Investing Cash Flow
1.74M	1.46M	157.73K	-32.35K	-11.79K	-251.51K
	Financing Cash Flow
-10.09M	-9.78M	-8.72M	-5.17M	-2.51M	-5.74M

Keystone Law Group Plc Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 610.00
• 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 610 is above the 20-day moving average (MA) of 591.15, above the 50-day MA of 542.72, and above the 200-day MA of 567.82, indicating a bullish trend. The MACD of 20.53 indicates Positive momentum. The RSI at 67.98 is Neutral, neither overbought nor oversold. The STOCH value of 75.56 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
FRP	77 Outperform	£325.44M	11.94	34.33%	3.91%	29.83%	60.50%
KNOS	75 Outperform	£893.03M	25.70	24.12%	3.88%	-4.13%	23.09%
KEYS	73 Outperform	£192.72M	22.51	45.84%	3.06%	12.22%	7.48%
Sector *	66 Neutral	$4.49B	12.28	5.32%	248.53%	4.08%	-12.00%
GATC	65 Neutral	£25.06M	41.84	3.66%	4.40%	4.14%	-45.24%
BEG	64 Neutral	£166.12M	67.97	3.11%	3.94%	13.88%	512.00%
SYNT	51 Neutral	£178.28M	―	-6.25%	―	0.81%	15.63%