Midwich (MIDW) AI Stock Analysis

• Market Cap: £175.73M
• Dividend Yield: 5.36%
• Average Volume (3M): 319.00K
• Price to Earnings (P/E): 25.3
• Beta (1Y): 0.84
• Revenue Growth: -2.54%
• EPS Growth: -69.38%
• Country: UK
• Employees: 1,800
• Sector: Technology
• Sector Strength: 88
• Industry: Technology Distributors
• EPS (TTM): 0.07
• Shares Outstanding: 104,545,130
• 10 Day Avg. Volume: 183,829
• 30 Day Avg. Volume: 319,002
• PEG Ratio: -0.45
• Price to Book (P/B): 1.70
• Price to Sales (P/S): 0.23
• P/FCF Ratio: 15.13
• 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: £350.00
• Price Target Upside: 102.90% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 54 Neutral
• Price Target: 160.00p ▼(-7.25% Downside)

The overall stock score is primarily influenced by stable financial performance, though with some pressure on profitability and liquidity. Technical analysis indicates a bearish trend with oversold conditions, which is a significant risk factor. Valuation is mixed, with a high P/E ratio suggesting potential overvaluation, but a strong dividend yield offers some compensation.

Positive Factors

Business Model Strength

Midwich's business model of distributing AV and UC equipment ensures a steady revenue stream, supported by strong partnerships with top brands, enhancing its competitive edge and market responsiveness.

Cash Generation Ability

Strong operating cash flow indicates effective cash management and the ability to sustain operations and invest in growth, despite a decrease in free cash flow.

Market Position

As a leading distributor in the AV and UC sectors, Midwich benefits from a strong market position, enabling it to leverage economies of scale and maintain competitive pricing.

Negative Factors

Profitability Decline

The decline in profitability margins suggests challenges in maintaining cost efficiency and pricing power, which could impact long-term financial health if not addressed.

Revenue Growth Challenges

Limited revenue growth indicates potential market saturation or competitive pressures, which could hinder the company's ability to expand and capture new market opportunities.

Liquidity Pressures

A significant drop in free cash flow highlights liquidity challenges, potentially restricting the company's ability to fund new projects or manage unexpected expenses effectively.

Midwich Business Overview & Revenue Model

Company Description

Midwich Group plc, together with its subsidiaries, engages in the distribution of audio visual (AV) solutions to the trade customers in the United Kingdom, Ireland, Europe, the Middle East, Africa, Asia Pacific, and North America. Its products support various AV categories, such as displays, projectors, broadcast, audio, video, and digital signage, as well as lighting and unified communications. The company also provides logistics services. It serves professional AV integrators and IT resellers in corporate, education, retail, residential, and hospitality sectors. The company was formerly known as Jade 320 Limited and changed its name to Midwich Group Plc in April 2016. Midwich Group plc was founded in 1976 and is based in Diss, the United Kingdom.

How the Company Makes Money

Midwich generates revenue primarily through the distribution of AV and UC equipment from a wide array of leading manufacturers. The company's revenue model is based on wholesale distribution, where it purchases products at a discounted rate and sells them to resellers and integrators, often adding a margin. Key revenue streams include product sales, which are bolstered by the company's extensive inventory and logistics capabilities, and service offerings such as installation, support, and training. Significant partnerships with top brands in the AV industry enhance Midwich's product portfolio, allowing it to remain competitive and responsive to market demand. Additionally, the company benefits from recurring revenue through ongoing service contracts and support agreements with clients.

Midwich Financial Statement Overview

Summary

Midwich demonstrates stable revenue growth and effective cost management, though profitability margins have seen a decline. The balance sheet shows a healthy equity position and manageable leverage. Despite a reduction in free cash flow, cash generation relative to net income remains strong, indicating good cash flow management. Overall, Midwich maintains a stable financial position with some pressure on profitability and liquidity.

Income Statement

Midwich shows a stable revenue growth with a 2.16% increase from 2023 to 2024. However, profitability has declined, as indicated by a decrease in EBIT margin from 3.23% in 2023 to 1.83% in 2024 and a net profit margin drop from 2.08% to 1.22%. The gross profit margin is relatively healthy at 17.8% in 2024, demonstrating effective cost management despite the dip in net income.

Balance Sheet

The company has a moderate debt-to-equity ratio of 1.12 in 2024, indicating a balanced approach to leverage. The equity ratio is 27.85%, suggesting a sound equity position. Return on equity has reduced to 8.84% in 2024 from previous years, indicating a decrease in return efficiency. The overall balance sheet remains stable with manageable liabilities.

Cash Flow

Operating cash flow is strong at £35.28 million in 2024, although it decreased from the previous year. Free cash flow decreased significantly by 57.39% compared to 2023, which could indicate challenges in liquidity management. However, the operating cash flow to net income ratio is robust at 2.20, reflecting strong cash generation relative to net income.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	981.04M	1.32B	1.29B	1.20B	855.97M	711.75M
Gross Profit	170.61M	234.33M	216.47M	173.91M	123.76M	95.36M
EBITDA	39.47M	51.95M	67.47M	52.45M	34.32M	17.24M
Net Income	8.16M	16.03M	26.82M	15.29M	12.43M	-3.75M
Balance Sheet
Total Assets	650.96M	650.66M	654.47M	559.77M	373.53M	306.26M
Cash, Cash Equivalents and Short-Term Investments	39.31M	49.16M	56.13M	25.86M	15.48M	25.48M
Total Debt	207.97M	202.59M	166.94M	149.33M	94.45M	64.76M
Total Liabilities	474.55M	461.51M	458.32M	425.64M	259.13M	199.77M
Stockholders Equity	176.41M	181.22M	173.25M	120.74M	105.12M	100.34M
Cash Flow
Free Cash Flow	32.45M	20.38M	47.82M	9.98M	3.56M	34.27M
Operating Cash Flow	37.03M	35.28M	63.79M	21.06M	9.52M	37.85M
Investing Cash Flow	-39.44M	-40.01M	-67.41M	-33.42M	-22.43M	-21.50M
Financing Cash Flow	16.52M	-1.30M	35.68M	15.82M	338.00K	-8.07M

Midwich Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 172.50
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:MIDW, the sentiment is Neutral. The current price of 172.5 is above the 20-day moving average (MA) of 163.05, below the 50-day MA of 174.89, and below the 200-day MA of 199.18, indicating a neutral trend. The MACD of -2.42 indicates Negative momentum. The RSI at 56.41 is Neutral, neither overbought nor oversold. The STOCH value of 80.32 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for GB:MIDW.

Midwich Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NET	73 Outperform	£210.13M	51.43	9.59%	0.77%	22.80%	-32.13%
ACSO	69 Neutral	£134.99M	18.12	5.30%	―	-3.95%	16.87%
CNC	69 Neutral	£205.80M	42.65	12.29%	0.86%	22.72%	-8.82%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
NAR	57 Neutral	£7.73M	―	―	2.11%	-6.09%	-161.61%
MIDW	54 Neutral	£175.73M	25.26	3.93%	5.36%	-2.54%	-69.38%
RCN	47 Neutral	£191.12M	54.55	4.99%	2.94%	-17.17%	―

Midwich Corporate Events

Midwich Group Announces CFO Resignation and Leadership Transition

Midwich Group plc announced the resignation of Stephen Lamb, the Group Finance Director, who will be joining RWS Holdings plc as CFO. Lamb will remain with Midwich to support the year-end process and ensure a smooth transition while the company initiates a formal search for his successor. His departure marks the end of a significant tenure during which he contributed to Midwich’s international growth. The announcement reflects a pivotal change in the company’s leadership, potentially impacting its operational continuity and strategic direction.

The most recent analyst rating on (GB:MIDW) stock is a Buy with a £350.00 price target. To see the full list of analyst forecasts on Midwich stock, see the GB:MIDW Stock Forecast page.

Midwich Group Finance Director Exercises Share Options

Midwich Group announced that Stephen Lamb, the Group Finance Director, has exercised 91,046 nominal cost options over ordinary shares under the company’s 2016 Long Term Incentive Plan. Following this, he sold 45,523 shares mainly to cover tax and related charges. This transaction was conducted in compliance with EU Market Abuse Regulation, reflecting the company’s adherence to regulatory standards.

The most recent analyst rating on (GB:MIDW) stock is a Buy with a £350.00 price target. To see the full list of analyst forecasts on Midwich stock, see the GB:MIDW Stock Forecast page.

Midwich Group Reports Resilient H1 2025 Performance Amid Market Challenges

Midwich Group reported a robust performance in the first half of 2025 despite challenging market conditions, with revenue declining by 4.3% primarily due to softness in the German market. The company maintained strong gross margins and cash flow conversion, and it plans to focus on overhead reduction and digital investments to improve future performance. Despite a decrease in profits, Midwich continues to gain market share and remains optimistic about future growth, particularly in high-margin technical product categories. The company is also poised to resume acquisitions from 2026, with a strong pipeline of opportunities and productivity initiatives in place.

The most recent analyst rating on (GB:MIDW) stock is a Hold with a £235.00 price target. To see the full list of analyst forecasts on Midwich stock, see the GB:MIDW Stock Forecast page.