Midwich (MIDW) AI Stock Analysis

• Market Cap: £219.92M
• Dividend Yield: 3.5%
• Average Volume (3M): 152.55K
• Price to Earnings (P/E): 13.6
• Beta (1Y): 0.78
• Revenue Growth: 2.16%
• EPS Growth: -43.48%
• Country: UK
• Employees: 1,800
• Sector: Technology
• Sector Strength: 84
• Industry: Technology Distributors
• EPS (TTM): 0.09
• Shares Outstanding: 104,545,130
• 10 Day Avg. Volume: 85,898
• 30 Day Avg. Volume: 152,550
• PEG Ratio: 1.14
• Price to Book (P/B): 3.09
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 37.35
• 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: £350.00
• Price Target Upside: 54.87% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 69 Neutral
• Price Target: 230.00p ▲(1.77%Upside)

Midwich Group maintains a stable financial position with strong cash flow management and positive market momentum. However, declining profitability margins and revenue challenges amid tough market conditions weigh on the overall score. The stock's fair valuation and shareholder confidence provide some balance against these risks.

Midwich Business Overview & Revenue Model

Company Description

Midwich Group PLC is a specialist audio visual (AV) distributor that operates primarily in the UK and Ireland, Continental Europe, and Asia-Pacific regions. The company focuses on the distribution of AV equipment such as large format displays, projectors, digital signage, and professional audio systems. Midwich serves a range of sectors including education, corporate, retail, and hospitality, providing value-added services alongside its product offerings.

How the Company Makes Money

Midwich 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

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.32B	1.29B	1.20B	855.97M	711.75M
Gross Profit	234.33M	216.47M	173.91M	123.76M	95.36M
EBITDA	43.55M	67.47M	47.08M	34.32M	13.81M
Net Income	16.03M	26.82M	15.29M	12.43M	-3.75M
Balance Sheet
Total Assets	650.66M	654.47M	559.77M	373.53M	306.26M
Cash, Cash Equivalents and Short-Term Investments	49.16M	56.13M	25.86M	15.48M	25.48M
Total Debt	202.59M	162.33M	145.28M	94.45M	64.76M
Total Liabilities	461.51M	458.32M	425.64M	259.13M	199.77M
Stockholders Equity	181.22M	173.25M	120.74M	105.12M	100.34M
Cash Flow
Free Cash Flow	20.38M	47.82M	9.98M	3.56M	34.27M
Operating Cash Flow	35.28M	63.79M	21.06M	9.52M	37.85M
Investing Cash Flow	-40.01M	-67.41M	-37.29M	-24.60M	-24.55M
Financing Cash Flow	-1.30M	35.68M	24.81M	4.48M	-2.76M

Midwich Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 226.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: 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 226 is above the 20-day moving average (MA) of 208.90, above the 50-day MA of 202.11, and below the 200-day MA of 244.01, indicating a neutral trend. The MACD of 4.03 indicates Negative momentum. The RSI at 61.54 is Neutral, neither overbought nor oversold. The STOCH value of 73.95 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ACSO	78 Outperform	£209.32M	30.33	4.56%	―	-0.90%	15.22%
CNC	75 Outperform	£169.40M	35.70	12.72%	0.41%	27.38%	10.24%
NET	72 Outperform	£191.79M	36.86	12.87%	0.77%	15.40%	-6.59%
MIDW	69 Neutral	£219.92M	13.64	9.04%	3.50%	2.16%	-43.48%
Sector *	63 Neutral	£569.62M	24.58	-6.00%	2.45%	3.52%	-29.29%
NAR	57 Neutral	£8.68M	―	-6.68%	3.75%	-6.09%	-161.61%
RCN	57 Neutral	£198.76M	320.51	1.06%	3.84%	3.57%	―

Midwich Corporate Events

Midwich Group PLC Announces Change in Voting Rights

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.

Midwich Group PLC Announces Change in Voting Rights

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.

Aberdeen Group Increases Stake in Midwich Group PLC

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.

Midwich Group PLC Secures Shareholder Support at AGM

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.

Midwich Group Faces Revenue Decline Amid Challenging Market Conditions

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.

Midwich Group PLC Announces Change in Major Shareholding

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.

Midwich Group Announces AGM and Annual Report Release

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.

Midwich Group PLC Announces Change in Voting Rights Structure

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.