Motorpoint (MOTR) AI Stock Analysis

• Market Cap: £107.10M
• Dividend Yield: 1.48%
• Average Volume (3M): 21.14K
• Price to Earnings (P/E): 25.8
• Beta (1Y): 0.35
• Revenue Growth: 20.64%
• EPS Growth: N/A
• Country: UK
• Employees: 746
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Auto - Dealerships
• EPS (TTM): 0.03
• Shares Outstanding: 83,619,820
• 10 Day Avg. Volume: 16,563
• 30 Day Avg. Volume: 21,145
• PEG Ratio: -0.25
• Price to Book (P/B): 4.14
• Price to Sales (P/S): 0.09
• P/FCF Ratio: 9.44
• 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: £190.00
• Price Target Upside: 40.74% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 55 Neutral
• Price Target: 142.00p ▲(5.19% Upside)

Motorpoint's overall stock score is driven by its financial performance and recent corporate events. While the company shows strong revenue growth and strategic advancements, high leverage and weak technical indicators pose risks. The valuation suggests potential overvaluation, but strategic initiatives and market outperformance provide a positive outlook.

Positive Factors

Revenue Growth

The consistent revenue growth indicates strong market demand and effective sales strategies, which can enhance long-term business sustainability.

Operational Efficiency

Improved operational efficiency suggests better cost management and resource utilization, which can lead to sustained profitability over time.

Cash Flow Improvement

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

Negative Factors

High Leverage

High leverage can increase financial risk, limiting the company's ability to withstand economic downturns and invest in future growth.

Low Net Profit Margin

A low net profit margin indicates difficulties in achieving profitability, which can hinder long-term financial health and shareholder returns.

Equity Ratio Concerns

A low equity ratio may limit financial stability and increase vulnerability to market fluctuations, affecting long-term growth potential.

Motorpoint Business Overview & Revenue Model

Company Description

Motorpoint Group Plc operates as an independent vehicle retailer in the United Kingdom. It primarily sells nearly-new vehicles and accessories; and commercial vehicles under the Motorpoint brand. The company operates 17 retail sites across the United Kingdom. It also operates Auction4Cars.com, a business-to-business online auction marketplace platform for selling part-exchange vehicles. In addition, the company sells motor related services comprising commission on finance introductions, extended guarantees, and vehicle asset protection, as well as sells paint protection products and gap insurance. Motorpoint Group Plc was founded in 1998 and is headquartered in Derby, the United Kingdom.

How the Company Makes Money

Motorpoint generates revenue primarily through the sale of nearly new cars, which includes a range of makes and models. The company earns a significant portion of its income from the markup on the vehicles it sells, purchasing them at wholesale prices and selling them to consumers at retail prices. Additionally, Motorpoint makes money through its finance offerings, where it partners with financial institutions to provide car loans to customers, earning commissions on these arrangements. The company also benefits from ancillary services such as extended warranties and vehicle delivery fees. Significant partnerships with automotive manufacturers and financial institutions further bolster its revenue streams, allowing for competitive pricing and financing options that attract a larger customer base.

Motorpoint Financial Statement Overview

Summary

Motorpoint's financial performance shows resilience with revenue growth and improved operational margins. However, high leverage and low net profit margins highlight financial risks. Cash flow metrics indicate improving cash generation, but further strengthening of profitability and balance sheet stability is needed for long-term sustainability.

Income Statement

Motorpoint's revenue has shown a positive growth trajectory with a 12.53% increase in the latest year, recovering from previous declines. Gross profit margin improved to 7.74%, indicating better cost management. However, the net profit margin remains low at 0.27%, suggesting challenges in converting revenue into profit. The EBIT and EBITDA margins have improved, reflecting operational efficiency gains.

Balance Sheet

The company has a high debt-to-equity ratio of 6.68, indicating significant leverage, which could pose financial risk. Return on equity improved to 11.90%, showing better utilization of equity. However, the equity ratio remains low, suggesting limited equity financing relative to total assets.

Cash Flow

Operating cash flow has improved, with a positive operating cash flow to net income ratio of 0.12, indicating better cash generation relative to net income. Free cash flow growth is positive at 11.32%, but the free cash flow to net income ratio of 0.61 suggests moderate cash conversion efficiency.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	1.17B	1.17B	1.09B	1.44B	1.32B	721.40M
Gross Profit	90.80M	90.80M	73.10M	76.30M	99.00M	56.80M
EBITDA	17.60M	17.60M	9.30M	16.20M	32.30M	18.30M
Net Income	3.20M	3.20M	-8.40M	-600.00K	16.90M	7.60M
Balance Sheet
Total Assets	242.10M	242.10M	197.80M	249.10M	318.20M	204.70M
Cash, Cash Equivalents and Short-Term Investments	6.60M	6.60M	9.20M	5.60M	7.80M	6.00M
Total Debt	179.80M	179.80M	131.50M	166.10M	81.80M	49.30M
Total Liabilities	215.20M	215.20M	166.70M	210.20M	278.80M	177.10M
Stockholders Equity	26.90M	26.90M	31.10M	38.90M	39.40M	27.60M
Cash Flow
Free Cash Flow	11.80M	11.80M	8.50M	23.70M	-18.20M	3.10M
Operating Cash Flow	19.40M	19.40M	11.10M	33.10M	-11.30M	6.70M
Investing Cash Flow	-7.30M	-7.30M	-2.60M	300.00K	-6.90M	2.50M
Financing Cash Flow	-14.70M	-14.70M	-4.90M	-35.60M	20.00M	-14.00M

Motorpoint Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 135.00
• 50DMA: Negative
• 100DMA: Negative
• 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:MOTR, the sentiment is Negative. The current price of 135 is below the 20-day moving average (MA) of 138.23, below the 50-day MA of 146.26, and below the 200-day MA of 153.16, indicating a bearish trend. The MACD of -2.85 indicates Negative momentum. The RSI at 36.97 is Neutral, neither overbought nor oversold. The STOCH value of 29.50 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GB:MOTR.

Motorpoint Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
INCH	80 Outperform	£2.81B	7.32	23.07%	3.43%	-15.99%	69.97%
MACF	72 Outperform	£113.94M	9.64	10.01%	5.04%	6.97%	-18.59%
GLE	72 Outperform	£236.42M	14.94	5.23%	2.46%	5.93%	-18.20%
VTU	71 Outperform	£194.45M	12.25	4.51%	3.27%	-0.17%	-10.96%
PINE	68 Neutral	£391.03M	―	―	―	―	―
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
MOTR	55 Neutral	£107.10M	25.76	16.70%	1.48%	20.64%	―

Motorpoint Corporate Events

Motorpoint CEO Sells Shares, Retains Significant Stake

Motorpoint Group PLC announced that its CEO, Mark Carpenter, has sold 100,000 shares of the company, while still maintaining a significant stake of over 10% in the business. This transaction, conducted on the London Stock Exchange, reflects ongoing managerial dealings and could have implications for investor perceptions and market dynamics, although Carpenter remains a major shareholder.

Motorpoint Reports Robust Growth Amid Strategic Investments

Motorpoint Group PLC announced strong interim results for H1 FY26, with a 15% increase in revenue to £647.7m and an 80% rise in profit before tax to £3.6m. This growth is attributed to strategic investments in data and technology, which have enhanced vehicle buying and selling processes, leading to improved margins and increased sales volumes. The company has outperformed the wider used car market, expanding its market share and improving its Return on Capital Employed to 58.8%. Despite high interest rates affecting finance commission income, Motorpoint has maintained strong metal margins and stable used car prices. The company continues to focus on strategic growth initiatives, including new store openings and supply channel expansion, while maintaining a strong customer experience as evidenced by an improved Net Promoter Score.

Motorpoint Reports Strong H1 FY26 Performance with Robust Growth

Motorpoint Group PLC reported an 8.9% increase in retail volume for the first half of FY26, significantly outperforming the wider used car market and achieving a 15% rise in total revenue to £648 million. The company expects an 80% growth in profit before tax, reaching approximately £3.6 million, and has successfully completed a share buyback program, reducing shares in issue by over 7%. Despite economic uncertainties, Motorpoint remains optimistic about future growth, driven by its data-led approach and omnichannel business model, which have enhanced customer experience and operational efficiency.