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Midwich Group plc (GB:MIDW)
:MIDW

Midwich (MIDW) AI Stock Analysis

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GB

Midwich

(LSE:MIDW)

Rating:71Outperform
Price Target:
228.00p
▲(11.22%Upside)
Midwich's overall stock score reflects a combination of strong technical analysis and valuation metrics, despite challenges in profitability and liquidity noted in financial performance. The company's strategic resilience and shareholder support add positive sentiment.

Midwich (MIDW) vs. iShares MSCI United Kingdom ETF (EWC)

Midwich Business Overview & Revenue Model

Company DescriptionMidwich 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 MoneyMidwich generates revenue through the distribution of audio visual and related technology products. The company purchases AV equipment from manufacturers and sells them to a network of resellers, integrators, and end-users. A significant portion of its revenue is derived from the sale of large format displays, projectors, and professional audio systems. Additionally, Midwich offers value-added services such as technical support, training, and project design assistance, which further enhance its revenue streams. The company maintains strategic partnerships with leading AV manufacturers, enabling access to a broad range of products and competitive pricing, which are critical factors in its revenue generation model.

Midwich Financial Statement Overview

Summary
Midwich shows stable revenue growth and effective cost management. However, there is pressure on profitability with declining EBIT and net profit margins. The balance sheet remains strong with a balanced debt-to-equity ratio and a healthy equity position. Cash flow generation is robust despite a decrease in free cash flow, indicating good cash flow management.
Income Statement
68
Positive
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
63
Positive
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
70
Positive
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
Dec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
1.32B1.29B1.20B855.97M711.75M
Gross Profit
234.33M216.47M173.91M123.76M95.36M
EBIT
24.13M41.58M31.40M15.27M5.31M
EBITDA
43.55M67.47M47.08M34.32M13.81M
Net Income Common Stockholders
16.03M26.82M15.29M12.43M-3.75M
Balance SheetCash, Cash Equivalents and Short-Term Investments
49.16M56.13M25.86M15.48M25.48M
Total Assets
650.66M654.47M559.77M373.53M306.26M
Total Debt
202.59M162.33M145.28M94.45M64.76M
Net Debt
153.43M106.19M119.42M78.98M39.28M
Total Liabilities
461.51M458.32M425.64M259.13M199.77M
Stockholders Equity
181.22M173.25M120.74M105.12M100.34M
Cash FlowFree Cash Flow
20.38M47.82M9.98M3.56M34.27M
Operating Cash Flow
35.28M63.79M21.06M9.52M37.85M
Investing Cash Flow
-40.01M-67.41M-37.29M-24.60M-24.55M
Financing Cash Flow
-1.30M35.68M24.81M4.48M-2.76M

Midwich Technical Analysis

Technical Analysis Sentiment
Positive
Last Price205.00
Price Trends
50DMA
193.48
Positive
100DMA
217.31
Negative
200DMA
252.23
Negative
Market Momentum
MACD
2.87
Positive
RSI
61.87
Neutral
STOCH
53.85
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:MIDW, the sentiment is Positive. The current price of 205 is above the 20-day moving average (MA) of 204.89, above the 50-day MA of 193.48, and below the 200-day MA of 252.23, indicating a neutral trend. The MACD of 2.87 indicates Positive momentum. The RSI at 61.87 is Neutral, neither overbought nor oversold. The STOCH value of 53.85 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:MIDW.

Midwich Peers Comparison

Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
78
Outperform
£206.50M29.994.56%-0.90%15.22%
GBCNC
75
Outperform
£182.72M38.5212.72%0.47%27.38%10.24%
GBNET
72
Outperform
£180.95M34.7812.87%0.82%15.40%-6.59%
71
Outperform
£215.81M13.389.04%6.34%2.16%-43.48%
62
Neutral
$11.80B10.31-7.45%2.91%7.43%-7.78%
GBNAR
57
Neutral
£8.81M-6.68%1.85%-6.09%-161.61%
GBRCN
57
Neutral
£203.13M327.561.06%2.82%3.57%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
GB:MIDW
Midwich
210.00
-132.30
-38.65%
GB:NAR
Northamber
32.00
-9.09
-22.12%
GB:CNC
Concurrent Technologies
204.00
101.99
99.98%
GB:RCN
Redcentric
126.25
-8.39
-6.23%
GB:ACSO
accesso Technology
514.00
-200.00
-28.01%
GB:NET
Netcall
112.00
25.76
29.87%

Midwich Corporate Events

Other
Midwich Group PLC Announces Change in Voting Rights
Neutral
Jun 5, 2025

Midwich Group PLC has announced a change in the voting rights held by Octopus Investments Limited, which now holds 11.99% of the voting rights, down from a previous 12.99%. This change in holdings may affect the company’s shareholder dynamics and influence within the market, as voting rights are crucial for decision-making processes and strategic direction.

The most recent analyst rating on (GB:MIDW) stock is a Buy with a £5.00 price target. To see the full list of analyst forecasts on Midwich stock, see the GB:MIDW Stock Forecast page.

Regulatory Filings and Compliance
Midwich Group PLC Announces Change in Voting Rights
Neutral
May 28, 2025

Midwich Group PLC has announced a change in the voting rights held by Liontrust Investment Partners LLP, which now holds 14.1576% of the company’s voting rights. This adjustment in holdings reflects a slight decrease from the previous position and may influence the company’s governance and decision-making processes.

The most recent analyst rating on (GB:MIDW) stock is a Buy with a £5.00 price target. To see the full list of analyst forecasts on Midwich stock, see the GB:MIDW Stock Forecast page.

Business Operations and StrategyRegulatory Filings and Compliance
Aberdeen Group Increases Stake in Midwich Group PLC
Neutral
May 21, 2025

Midwich Group PLC has announced a significant change in its shareholder structure, with Aberdeen Group plc increasing its voting rights to 5.365333%. This acquisition of voting rights marks a notable shift, as Aberdeen Group’s holdings have crossed the 5% threshold, potentially impacting Midwich’s governance and strategic decisions. The change reflects Aberdeen’s growing influence within the company, which could have implications for Midwich’s future operations and stakeholder interests.

The most recent analyst rating on (GB:MIDW) stock is a Hold with a £4.25 price target. To see the full list of analyst forecasts on Midwich stock, see the GB:MIDW Stock Forecast page.

Shareholder MeetingsDividends
Midwich Group PLC Secures Shareholder Support at AGM
Positive
May 13, 2025

Midwich Group PLC announced that all resolutions were passed at its recent Annual General Meeting, reflecting strong shareholder support. The resolutions included re-electing directors, appointing auditors, and declaring a final dividend, which indicates stability and confidence in the company’s leadership and financial strategy. This outcome is likely to reinforce Midwich’s position in the audiovisual distribution industry and assure stakeholders of its continued growth and operational resilience.

The most recent analyst rating on (GB:MIDW) stock is a Hold with a £4.25 price target. To see the full list of analyst forecasts on Midwich stock, see the GB:MIDW Stock Forecast page.

Business Operations and StrategyFinancial Disclosures
Midwich Group Faces Revenue Decline Amid Challenging Market Conditions
Negative
May 13, 2025

Midwich Group, a leading global Pro AV distributor, reported resilience in 2024 with record revenue and strategic progress despite challenging market conditions. However, 2025 has seen a mid-single digit decline in organic revenue due to increased tariffs and macro-economic uncertainty. While the UK&I showed revenue growth, declines in EMEA and North America were noted. The company is focusing on increasing market share and reducing costs, but expects adjusted operating profit for the year to be below prior expectations. Midwich remains optimistic about long-term growth opportunities.

The most recent analyst rating on (GB:MIDW) stock is a Hold with a £4.25 price target. To see the full list of analyst forecasts on Midwich stock, see the GB:MIDW Stock Forecast page.

Business Operations and StrategyRegulatory Filings and Compliance
Midwich Group PLC Announces Change in Major Shareholding
Neutral
Apr 8, 2025

Midwich Group PLC has announced a change in the voting rights held by Rorema Beheer B.V., which now holds 5.036% of the company’s voting rights, up from a previous position of 4.9882%. This change, facilitated through its subsidiary Gran Fondo Capital B.V., indicates a slight increase in influence over Midwich’s decision-making processes, potentially impacting future strategic directions and stakeholder interests.

Shareholder MeetingsFinancial Disclosures
Midwich Group Announces AGM and Annual Report Release
Positive
Apr 7, 2025

Midwich Group PLC has announced the posting of its Annual Report and Accounts along with the Notice of its Annual General Meeting (AGM) to shareholders. The AGM is scheduled for May 13, 2025, and will be accessible remotely via a conference call, allowing shareholders to participate and ask questions. This announcement underscores Midwich’s commitment to transparency and shareholder engagement, potentially strengthening its position within the industry.

Regulatory Filings and Compliance
Midwich Group PLC Announces Change in Voting Rights Structure
Neutral
Apr 4, 2025

Midwich Group PLC has announced a change in the breakdown of its voting rights, with Rorema Beheer B.V., a fund manager of Gran Fondo Capital, now holding 4.9882% of the voting rights, down from a previous 5.0025%. This adjustment in shareholding could influence the company’s governance dynamics and reflects a minor shift in stakeholder influence.

Delistings and Listing Changes
Midwich Group Expands Share Capital with New AIM Listing
Neutral
Mar 31, 2025

Midwich Group has announced the issuance of 300,000 additional ordinary shares to be listed on the London Stock Exchange’s AIM, aimed at satisfying awards under its 2016 Share Incentive and Long Term Incentive Plans. This move will increase the total number of shares to 104,545,126, providing shareholders with a new denominator for interest calculations, potentially impacting shareholder notifications and interests.

Business Operations and StrategyFinancial Disclosures
Midwich Group Achieves Record Revenue and Margins in 2024 Amidst Market Challenges
Positive
Mar 18, 2025

Midwich Group reported record revenue and gross margins for 2024, despite challenging market conditions, reflecting its strategic focus on high-margin product areas and strong performance in North America. While the company faced subdued investment in certain markets and price erosion in mainstream products, it achieved a 1.7% revenue increase and a gross margin of 17.8%. The Group’s strategy of focusing on technical solutions and cost mitigation actions resulted in resilient performance, although adjusted operating profit decreased. Looking forward, Midwich aims to leverage its global scale and digital solutions to improve operating leverage and margins as market conditions normalize.

M&A TransactionsBusiness Operations and StrategyFinancial Disclosures
Midwich Group Achieves Record Revenue Amid Market Challenges
Neutral
Mar 18, 2025

Midwich Group PLC reported record revenue and gross margins for the fiscal year 2024, despite challenging market conditions. The company’s strategic focus on higher-margin product areas and strong performance in North America contributed to this success. However, operating profit and profit before tax saw declines due to subdued investment in key markets and price erosion in mainstream products. The Group completed four small acquisitions and achieved significant cost savings, reflecting resilience and strategic adaptability. Looking forward, Midwich anticipates challenges from continued price deflation but remains optimistic about leveraging its global scale for future growth.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.