Kitwave Group PLC (KITW) AI Stock Analysis

• Market Cap: £172.50M
• Dividend Yield: 5.7%
• Average Volume (3M): 302.84K
• Price to Earnings (P/E): 9.6
• Beta (1Y): 1.00
• Revenue Growth: 19.01%
• EPS Growth: -15.21%
• Country: UK
• Employees: 2,100
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Food Distribution
• EPS (TTM): 0.08
• Shares Outstanding: 83,736,540
• 10 Day Avg. Volume: 252,259
• 30 Day Avg. Volume: 302,840
• PEG Ratio: -1.21
• Price to Book (P/B): 1.81
• Price to Sales (P/S): 0.34
• P/FCF Ratio: 9.35
• 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: 65 Neutral
• Price Target: 223.00p ▲(2.29% Upside)

Kitwave Group PLC's stock score is primarily influenced by its strong financial performance and attractive valuation. However, bearish technical indicators suggest caution. The absence of recent earnings call data and corporate events limits additional insights.

Positive Factors

Revenue Growth

The company's robust revenue growth highlights its ability to expand market presence and meet customer demand, supporting long-term business sustainability.

Operational Efficiency

Efficient cost management and healthy margins indicate strong operational efficiency, which can enhance profitability and competitive positioning over time.

Cash Flow Generation

Consistent cash flow generation supports financial flexibility, enabling the company to invest in growth opportunities and manage debt effectively.

Negative Factors

Declining Net Income

The decline in net income suggests challenges in managing operating expenses or interest costs, which could impact profitability if not addressed.

Rising Debt Levels

Rising debt levels may strain financial resources, limiting the company's ability to invest in growth and potentially increasing financial risk.

Decreasing Free Cash Flow

A decrease in free cash flow could hinder the company's ability to maintain financial flexibility and support long-term investments.

Kitwave Group PLC Business Overview & Revenue Model

Company Description

Kitwave Group PLC (KITW) is a leading UK-based wholesaler, primarily engaged in the distribution of a wide range of products across various sectors including food and drink, confectionery, tobacco, and grocery items. The company operates through multiple divisions, providing services to convenience stores, retailers, and foodservice businesses. Kitwave's core offerings include a diverse portfolio of branded and private label products, catering to the evolving demands of its customers in the retail and hospitality sectors.

How the Company Makes Money

Kitwave Group PLC generates revenue primarily through the wholesale distribution of its product range to retailers and foodservice operators. The company employs a multi-channel approach, leveraging both direct sales and an extensive network of independent distributors to reach its customer base. Key revenue streams include sales of food and beverage products, non-food items, and seasonal goods. Additionally, the company benefits from strategic partnerships with major manufacturers and brands, allowing it to enhance its product offerings and maintain competitive pricing. The scale of its operations and the breadth of its distribution network also contribute to economies of scale, improving profit margins.

Kitwave Group PLC Financial Statement Overview

Summary

Kitwave Group PLC shows strong revenue growth and operational efficiency. However, declining net income and increasing debt levels require attention. Sustaining cash flow is crucial for maintaining financial health and supporting future growth.

Income Statement

Kitwave Group PLC has demonstrated strong revenue growth, with a significant increase from the previous year. The gross profit and EBIT margins are healthy, indicating efficient cost management. However, the decline in net income and its margin suggests potential challenges in managing operating expenses or interest costs.

Balance Sheet

The company's balance sheet shows a moderate debt-to-equity ratio, indicating a reasonable level of leverage. The equity ratio is satisfactory, suggesting a stable asset base supported by equity. However, the increasing total debt over the years could pose potential financial risks if not managed properly.

Cash Flow

Kitwave's cash flow statement indicates solid operating cash flow relative to net income, supporting its operational efficiency. The consistent free cash flow generation is a positive sign, although the decrease in free cash flow compared to the previous year is a concern. The company must maintain its cash flow to ensure financial flexibility.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	742.90M	663.65M	602.22M	503.09M	380.69M	592.02M
Gross Profit	169.21M	147.82M	132.13M	102.63M	68.58M	96.02M
EBITDA	46.34M	41.40M	39.33M	28.37M	19.77M	24.63M
Net Income	15.81M	16.72M	18.96M	14.34M	1.10M	-500.00K
Balance Sheet
Total Assets	379.02M	359.29M	209.59M	179.66M	148.82M	129.86M
Cash, Cash Equivalents and Short-Term Investments	4.34M	4.14M	673.00K	5.51M	4.97M	342.00K
Total Debt	126.82M	121.39M	59.07M	49.10M	39.26M	82.16M
Total Liabilities	255.86M	234.74M	125.14M	107.77M	87.23M	129.92M
Stockholders Equity	123.16M	124.55M	84.44M	71.89M	61.58M	-53.00K
Cash Flow
Free Cash Flow	30.12M	24.13M	26.38M	23.92M	4.96M	26.76M
Operating Cash Flow	34.94M	31.40M	30.30M	26.52M	7.92M	29.89M
Investing Cash Flow	-59.83M	-77.09M	-23.04M	-19.21M	-2.71M	-16.30M
Financing Cash Flow	28.82M	49.15M	-12.10M	-6.77M	-577.00K	-14.45M

Kitwave Group PLC Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 218.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:KITW, the sentiment is Negative. The current price of 218 is above the 20-day moving average (MA) of 211.80, below the 50-day MA of 221.26, and below the 200-day MA of 256.65, indicating a bearish trend. The MACD of -4.59 indicates Positive momentum. The RSI at 43.61 is Neutral, neither overbought nor oversold. The STOCH value of 19.05 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GB:KITW.

Kitwave Group PLC Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BNZL	70 Outperform	£7.28B	15.48	17.98%	3.40%	1.92%	0.50%
MCB	66 Neutral	£198.64M	5.82	42.11%	2.67%	-0.89%	1.30%
KITW	65 Neutral	£172.50M	9.62	15.19%	5.70%	19.01%	-15.21%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
NICL	62 Neutral	£367.45M	20.99	18.67%	3.12%	3.04%	-6.67%
54GW	58 Neutral	£331.52M	―	―	3.77%	―	―
PZC	49 Neutral	£286.09M	-49.42	-2.51%	5.28%	-2.67%	89.86%

Kitwave Group PLC Corporate Events

Kitwave Group PLC Adjusts Financial Year-End to Align with Calendar Year

Kitwave Group PLC has announced a change in its accounting reference date from 31 October to 31 December, aligning its financial year with the calendar year. This adjustment aims to provide a more balanced financial statement presentation, reflecting the company’s revenue patterns more accurately. The change will affect the reporting timetable, with new dates set for the publication of unaudited and audited accounts. Additionally, the company plans to distribute a single dividend for the eight-month period ending 31 December 2025, in conjunction with the interim dividend previously announced.

The most recent analyst rating on (GB:KITW) stock is a Buy with a £495.00 price target. To see the full list of analyst forecasts on Kitwave Group PLC stock, see the GB:KITW Stock Forecast page.