Keystone Law Group Plc (KEYS) AI Stock Analysis

• Market Cap: £199.82M
• Dividend Yield: 5.98%
• Average Volume (3M): 102.57K
• Price to Earnings (P/E): 20.5
• Beta (1Y): 0.16
• Revenue Growth: 16.29%
• EPS Growth: 22.80%
• Country: UK
• Employees: 69
• Sector: Industrials
• Sector Strength: 72
• Industry: Specialty Business Services
• EPS (TTM): 0.18
• Shares Outstanding: 31,717,258
• 10 Day Avg. Volume: 45,928
• 30 Day Avg. Volume: 102,572
• PEG Ratio: 1.61
• Price to Book (P/B): 8.44
• Price to Sales (P/S): 1.76
• P/FCF Ratio: 31.43
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 76 Outperform
• Price Target: 712.00p ▲(13.38% Upside)

Keystone Law Group Plc's strong financial performance and positive corporate events are significant strengths, supporting a solid overall score. The valuation is attractive, offering a good balance of growth and income. However, technical indicators suggest potential short-term weakness, which slightly tempers the overall score.

Positive Factors

Business Model Strength

The dispersed model reduces overhead costs and allows for competitive pricing, enhancing profitability and attracting high-quality professionals.

Revenue Growth

Consistent revenue growth indicates strong market demand and effective client acquisition strategies, supporting long-term business expansion.

Cash Generation Ability

Strong cash generation supports ongoing operations and potential growth initiatives, providing financial flexibility and stability.

Negative Factors

Equity Growth

Limited equity growth may restrict the company's ability to finance large-scale expansions or investments, potentially impacting long-term growth.

Growth Ambitions

Without significant equity growth, the company might face challenges in pursuing aggressive growth strategies, limiting its competitive edge.

Balance Sheet Concerns

A strong balance sheet is crucial, but limited equity growth might hinder financial agility, affecting strategic decisions and resilience.

Keystone Law Group Plc Business Overview & Revenue Model

Company Description

Keystone Law Group plc, together with its subsidiaries, provides conventional legal services in the United Kingdom. The company offers its legal services in the areas of banking and finance, capital market, commercial, commercial property, construction and projects, corporate, data protection, dispute resolution, employment, EU and competition law, family and matrimonial, fraud and financial crime, immigration, insurance, intellectual property, investment funds and management, licensing and gambling, mediation and ADR, pensions and incentives, planning and environment, probate and estate planning, residential property, restructuring and insolvency, tax, and technology. It serves various sectors, such as aviation, charities and not for profit, energy and natural resources, education, financial service, food and beverage, high-net worth family office, hotels, hospitality and leisure, in-house counsel, life sciences and healthcare, marine and shipping, media, music, property development, retail, sports, and technology and telecoms, as well as private clients and professional practices. The company was founded in 2002 and is based in London, the United Kingdom.

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 demonstrates robust revenue growth and strong profitability metrics. The company maintains a healthy balance sheet with low leverage and strong cash flow generation, indicating financial stability and operational efficiency. However, the relatively small increase in stockholders' equity could be a concern for future growth ambitions.

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	106.45M	97.70M	87.93M	75.26M	69.62M	55.03M
Gross Profit	28.25M	25.47M	22.83M	19.57M	18.40M	14.26M
EBITDA	11.60M	13.36M	11.89M	9.20M	9.34M	6.35M
Net Income	9.71M	8.55M	7.65M	6.73M	6.65M	4.33M
Balance Sheet
Total Assets	43.92M	45.70M	41.30M	37.88M	37.40M	33.26M
Cash, Cash Equivalents and Short-Term Investments	6.51M	9.69M	8.37M	9.15M	10.48M	7.37M
Total Debt	1.92M	2.16M	2.37M	648.03K	1.11M	1.55M
Total Liabilities	27.14M	25.33M	24.36M	20.02M	18.52M	16.67M
Stockholders Equity	16.78M	20.36M	16.94M	17.86M	18.88M	16.59M
Cash Flow
Free Cash Flow	7.17M	5.47M	7.46M	7.17M	8.27M	5.45M
Operating Cash Flow	7.97M	6.24M	7.53M	7.23M	8.31M	5.50M
Investing Cash Flow	241.67K	1.19M	1.46M	157.73K	-32.35K	-11.79K
Financing Cash Flow	-11.59M	-6.12M	-9.78M	-8.72M	-5.17M	-2.51M

Keystone Law Group Plc Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 628.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• 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 628 is above the 20-day moving average (MA) of 622.20, below the 50-day MA of 629.36, and above the 200-day MA of 598.83, indicating a bullish trend. The MACD of 1.63 indicates Negative momentum. The RSI at 52.61 is Neutral, neither overbought nor oversold. The STOCH value of 72.78 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	76 Outperform	£199.82M	20.52	56.75%	5.98%	16.29%	22.80%
BEG	69 Neutral	£191.51M	19.16	12.60%	3.91%	8.31%	305.88%
CPI	64 Neutral	£472.96M	27.52	9.00%	―	-4.87%	―
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
KGH	61 Neutral	£161.33M	135.25	7.40%	2.75%	8.01%	-23.02%
PPHC	61 Neutral	£253.07M	-39.68	-40.39%	1.11%	15.27%	-73.02%
SFT	57 Neutral	£92.84M	-33.33	-12.90%	―	16.13%	-700.00%

Keystone Law Group Plc Corporate Events

Keystone Law Director Increases Stake with Share Purchase

Keystone Law Group Plc announced that Isabel Napper, an Independent Non-Executive Director, purchased 1,580 ordinary shares at 637p each, representing 0.01% of the company’s ordinary shares. This transaction underscores the confidence of the company’s leadership in its market position and growth prospects, potentially influencing stakeholder perceptions positively.

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.