NAHL Group Plc (NAH) AI Stock Analysis

• Market Cap: £17.26M
• Dividend Yield: N/A
• Average Volume (3M): 10.40K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.40
• Revenue Growth: -4.96%
• EPS Growth: -4798.26%
• Country: UK
• Employees: 282
• Sector: Communication Services
• Sector Strength: 97
• Industry: Advertising Agencies
• EPS (TTM): 0.03
• Shares Outstanding: 48,226,105
• 10 Day Avg. Volume: 4,779
• 30 Day Avg. Volume: 10,398
• PEG Ratio: <0.01
• Price to Book (P/B): 1.78
• Price to Sales (P/S): 0.88
• P/FCF Ratio: 6.96
• 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): 5.58
• Revenue Forecast (FY): £2.97B

• Rating: 53 Neutral
• Price Target: 41.00p ▲(20.59% Upside)

The overall stock score is primarily influenced by the company's financial challenges, including declining revenue and profitability. Technical indicators suggest a bearish trend, and valuation metrics are unattractive due to negative earnings. However, the recent earnings call provided some positive insights, with strong growth in profitability and cash generation, which slightly offsets the negative aspects.

Positive Factors

Profitability Growth

The significant increase in profit before tax indicates improved operational efficiency and cost management, enhancing long-term profitability.

Debt Reduction

Reducing net debt to a decade low strengthens the balance sheet, providing more financial flexibility and reducing interest expenses.

Cash Generation

Strong cash generation supports ongoing operations and potential investments, ensuring liquidity and financial health.

Negative Factors

Revenue Decline

A decline in revenue within a key division suggests challenges in maintaining market share and client acquisition, impacting growth potential.

Case Management Challenges

Decreased revenues in case management indicate market difficulties, potentially affecting the company's ability to sustain service levels.

Inquiry Volume Reduction

Reduced inquiry volumes reflect lower demand from law firms, which could hinder future revenue growth and client acquisition.

NAHL Group Plc Business Overview & Revenue Model

Company Description

NAHL Group Plc, together with its subsidiaries, provides products and services to individuals and businesses in the consumer legal services and catastrophic injury markets in the United Kingdom. The company operates through two divisions, Consumer Legal Services and Critical Care. It offers outsourced marketing services and products to law firms; and claims processing services to individuals. The company also provides specialist services in the catastrophic and serious injury market to claimants and defendants, such as expert witness quantum reports and nursing liability reports; immediate needs assessments; case management services for short or long term needs; vocational rehabilitation services; and behavior assessment and management services for children and young people. In addition, it offers property search services through SearchesUK. NAHL Group Plc was founded in 1993 and is based in Kettering, the United Kingdom.

How the Company Makes Money

NAHL Group generates revenue through multiple streams. In its Legal Services division, the company primarily earns through lead generation, where it connects potential clients with law firms, typically on a commission basis. This involves marketing efforts that attract individuals seeking legal assistance for personal injury claims. In the Care Services division, NAHL derives income from providing rehabilitation, care services, and support to individuals, often funded through insurance claims or public funding. Additionally, the Healthcare division contributes to revenue through various medical services and partnerships with healthcare providers. The company is also involved in strategic partnerships with law firms and healthcare organizations, which enhance its service offerings and expand its market reach, thereby driving further revenue growth.

NAHL Group Plc Financial Statement Overview

Summary

NAHL Group Plc faces significant financial challenges, with declining revenue and profitability impacting the income statement. The balance sheet shows a stable yet shrinking equity base, while cash flows are under pressure due to negative net income despite strong operational cash generation. The company needs to address its profitability issues to improve its financial standing and ensure long-term viability.

Income Statement

The company's revenue has been declining over the past few years, with a noticeable decrease from 2019 to 2024. The Net Profit Margin is negative in 2024, highlighting ongoing profitability issues. Gross Profit Margin has also decreased, indicating challenges in controlling costs. Overall, the income statement reflects financial instability with declining revenue and profitability.

Balance Sheet

The balance sheet shows a stable equity position, with a Debt-to-Equity Ratio of 0.55 in 2024, which is reasonable for the industry. However, the Total Assets and Stockholders' Equity have decreased significantly from 2019 to 2024, reflecting a shrinking asset base. The company maintains a moderate Equity Ratio, suggesting a decent level of financial stability, but the declining asset and equity trends are concerning.

Cash Flow

The cash flow statement reveals fluctuating Free Cash Flow with a decline in 2024 compared to previous years. The Operating Cash Flow to Net Income ratio is strong, indicating good cash generation relative to net earnings. However, the Free Cash Flow to Net Income ratio is volatile due to negative net income in 2024, suggesting potential liquidity pressures. Overall, while operational cash generation is solid, the negative net income poses risks to cash flow sustainability.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	38.62M	38.80M	42.19M	41.42M	38.95M	40.88M
Gross Profit	18.13M	18.37M	18.71M	16.19M	15.92M	17.33M
EBITDA	-34.10M	-36.71M	3.32M	6.48M	5.91M	6.42M
Net Income	-38.20M	-39.29M	384.00K	385.00K	156.00K	-225.00K
Balance Sheet
Total Assets	47.16M	47.90M	91.91M	96.21M	97.87M	101.08M
Cash, Cash Equivalents and Short-Term Investments	1.61M	1.85M	2.01M	2.65M	2.46M	3.61M
Total Debt	8.58M	10.44M	13.44M	17.93M	20.11M	22.34M
Total Liabilities	26.47M	28.77M	33.85M	38.89M	41.25M	45.02M
Stockholders Equity	20.69M	19.13M	58.06M	57.32M	56.62M	56.06M
Cash Flow
Free Cash Flow	5.79M	4.89M	7.20M	5.74M	4.52M	9.95M
Operating Cash Flow	5.82M	5.08M	7.51M	6.02M	5.14M	11.04M
Investing Cash Flow	-2.15M	-130.00K	-339.00K	-3.56M	-4.04M	-5.56M
Financing Cash Flow	-4.26M	-5.11M	-7.82M	-2.26M	-2.25M	-4.43M

NAHL Group Plc Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 34.00
• 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:NAH, the sentiment is Negative. The current price of 34 is below the 20-day moving average (MA) of 36.22, below the 50-day MA of 39.13, and below the 200-day MA of 49.58, indicating a bearish trend. The MACD of -1.37 indicates Negative momentum. The RSI at 40.73 is Neutral, neither overbought nor oversold. The STOCH value of 50.66 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GB:NAH.

NAHL Group Plc Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SYS1	69 Neutral	£27.66M	9.77	21.43%	2.29%	3.32%	-10.58%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
DNM	59 Neutral	£4.95M	11.79	4.93%	―	―	―
CAU	56 Neutral	£62.31M	-5.84	-32.35%	4.09%	-13.72%	-361.92%
NAH	53 Neutral	£17.26M	-0.44	-96.35%	―	-4.96%	-4798.26%
TMG	49 Neutral	£16.31M	-6.21	-3.81%	―	-25.20%	78.55%
EBQ	48 Neutral	£17.93M	-1.43	-37.24%	―	-0.79%	-100.22%

NAHL Group Plc Corporate Events

NAHL Group Grants 900,000 Employee Share Options Under Incentive Plan

NAHL Group has granted 900,000 new share options to certain employees under its Group Share Option Plan, with no directors or persons discharging managerial responsibilities included in the award. The nominal-cost options, which vest in two tranches in April 2027 and April 2028 subject to continued employment and potential adjustment by the remuneration committee based on overall business performance, bring the total outstanding options to 2,428,570, representing 5.04% of the company’s current issued share capital, underscoring the group’s continued use of equity-based incentives to align staff interests with long-term shareholder value.

The most recent analyst rating on (GB:NAH) stock is a Hold with a £41.00 price target. To see the full list of analyst forecasts on NAHL Group Plc stock, see the GB:NAH Stock Forecast page.