Malvern International (MLVN) AI Stock Analysis

• Market Cap: £6.23M
• Dividend Yield: N/A
• Average Volume (3M): 59.60K
• Price to Earnings (P/E): 72.9
• Beta (1Y): 0.44
• Revenue Growth: 31.39%
• EPS Growth: N/A
• Country: UK
• Employees: 153
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Education & Training Services
• EPS (TTM): 0.01
• Shares Outstanding: 24,442,400
• 10 Day Avg. Volume: 54,812
• 30 Day Avg. Volume: 59,604
• PEG Ratio: 7.18
• Price to Book (P/B): -1.28
• Price to Sales (P/S): 0.30
• P/FCF Ratio: -345.85
• 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: 61 Neutral
• Price Target: 27.00p ▲(5.88% Upside)

Malvern International's strong revenue growth and strategic partnerships are positive, but high leverage, negative equity, and overvaluation present significant risks. The technical indicators show positive momentum, but the overbought condition suggests caution.

Positive Factors

Revenue Growth

Strong revenue growth indicates successful expansion in market reach and demand for Malvern's educational services, supporting long-term business sustainability.

Operational Efficiency

Positive EBIT and EBITDA margins reflect improved operational efficiency, which can enhance profitability and competitive positioning over time.

Market Position

A focus on high-quality education services positions Malvern well in the growing education sector, potentially driving future growth and market leadership.

Negative Factors

Financial Stability

Negative equity and high leverage pose risks to financial stability, potentially limiting the company's ability to invest in growth and manage economic downturns.

Profitability Challenges

Ongoing net losses and negative profit margins indicate challenges in achieving profitability, which could hinder long-term financial health and shareholder returns.

Cash Flow Management

Fluctuating and decreasing cash flow highlights challenges in generating sufficient cash to support operations and growth, impacting financial flexibility.

Malvern International Business Overview & Revenue Model

Company Description

Malvern International Plc, an investment holding company, provides educational consultancy services in the United Kingdom. The company operates Malvern House London; Malvern House Brighton; Language in Action; Communicate School in Manchester; and Malvern Online Academy. Its colleges offer English language courses, professional teacher training programs, juniors and summer camps, and bespoke group courses; and university pathway programs, such as foundation year, year one, graduate diploma, pre-master's program, and academic and pre-sessional English programs. The company was formerly known as AEC Education plc and changed its name to Malvern International plc in September 2016. Malvern International Plc was incorporated in 2004 and is headquartered in London, the United Kingdom.

How the Company Makes Money

Malvern International generates revenue through several key streams. The primary source of income comes from tuition fees paid by students enrolling in their English language courses and vocational training programs. Additionally, the company offers online learning modules which create another revenue stream as users subscribe to access these resources. Corporate training programs for businesses seeking to enhance their employees' language skills and professional development also contribute to the company's earnings. Strategic partnerships with educational institutions and organizations further enhance Malvern's reach and revenue potential. These collaborations often involve joint program offerings and shared marketing efforts, resulting in increased student enrollment and broader market access.

Malvern International Financial Statement Overview

Summary

Malvern International shows strong revenue growth and improving operational efficiency, but faces challenges in profitability and financial stability due to high leverage and negative equity. Cash flow management needs improvement.

Income Statement

Malvern International has shown impressive revenue growth, particularly in the recent year with a 35.7% increase. The gross profit margin is healthy at 42.7% for 2024. However, net profit margin remains negative due to persistent net losses, indicating ongoing challenges in achieving profitability. The EBIT and EBITDA margins are positive, showing some improvement in operational efficiency.

Balance Sheet

The company's balance sheet shows a concerning negative stockholders' equity, which could indicate financial instability. With a high debt-to-equity ratio due to negative equity and significant total liabilities, Malvern International is heavily leveraged, posing a risk to financial health. However, the equity ratio remains negative, highlighting the need for better capital management.

Cash Flow

The cash flow statements show fluctuating free cash flow, with a significant decrease in 2024 compared to prior years. The operating cash flow has also decreased, impacting the operating cash flow to net income ratio. Although free cash flow to net income ratio is negative, indicating challenges in generating sufficient cash flow relative to net losses, the company has managed its capital expenditures well.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	17.79M	16.63M	12.26M	6.51M	2.42M	1.90M
Gross Profit	7.82M	7.10M	5.72M	2.95M	1.35M	884.91K
EBITDA	751.33K	537.86K	750.42K	-405.12K	-914.93K	-914.04K
Net Income	85.87K	-151.13K	-160.04K	-1.04M	-1.43M	-1.66M
Balance Sheet
Total Assets	9.77M	6.68M	6.76M	6.39M	5.40M	5.41M
Cash, Cash Equivalents and Short-Term Investments	2.48M	1.39M	2.20M	1.18M	377.17K	103.61K
Total Debt	3.35M	3.79M	4.63M	5.56M	6.23M	5.76M
Total Liabilities	13.30M	10.59M	10.52M	10.02M	8.22M	8.54M
Stockholders Equity	-3.53M	-3.90M	-3.76M	-3.63M	-2.83M	-3.12M
Cash Flow
Free Cash Flow	2.01M	-14.49K	1.90M	1.12M	-1.21M	-1.04M
Operating Cash Flow	2.06M	29.19K	1.96M	1.13M	-1.19M	-1.04M
Investing Cash Flow	-84.68K	-43.68K	-58.18K	-14.54K	-11.28K	0.00
Financing Cash Flow	-798.41K	-790.41K	-887.07K	-313.13K	1.48M	1.06M

Malvern International Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 25.50
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Positive
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:MLVN, the sentiment is Neutral. The current price of 25.5 is below the 20-day moving average (MA) of 25.77, below the 50-day MA of 25.91, and above the 200-day MA of 20.68, indicating a neutral trend. The MACD of -0.08 indicates Positive momentum. The RSI at 23.06 is Positive, neither overbought nor oversold. The STOCH value of 51.59 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for GB:MLVN.

Malvern International Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CODE	74 Outperform	£2.56M	7.31	6.74%	―	1.64%	―
WIL	70 Outperform	£264.19M	22.92	10.14%	3.78%	3.22%	-71.97%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
MLVN	61 Neutral	£6.23M	72.86	―	―	31.39%	―