Northamber (NAR) AI Stock Analysis

• Market Cap: £8.54M
• Dividend Yield: 285.71%
• Average Volume (3M): 1.48K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.03
• Revenue Growth: -6.09%
• EPS Growth: -161.61%
• Country: UK
• Employees: 92
• Sector: Technology
• Sector Strength: 91
• Industry: Technology Distributors
• EPS (TTM): -0.02
• Shares Outstanding: 27,113,403
• 10 Day Avg. Volume: 272
• 30 Day Avg. Volume: 1,484
• PEG Ratio: 0.42
• Price to Book (P/B): 0.39
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 7.83
• 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

• Rating: 57 Neutral
• Price Target: ―

Northamber's score reflects significant operational challenges with declining revenue and profitability. However, strategic shifts and acquisitions provide growth potential. Strong financial stability with no debt and positive corporate events partially offset the weak financial performance and unfavorable valuation.

Northamber Business Overview & Revenue Model

Company Description

Northamber (NAR) is a UK-based distributor specializing in IT equipment, technology solutions, and audiovisual products. The company serves a wide range of sectors including education, healthcare, and corporate environments, providing a comprehensive portfolio of products and services that include computing hardware, networking solutions, software, and professional services.

How the Company Makes Money

Northamber primarily makes money through the distribution and sale of IT and technology products to a variety of sectors. Its revenue streams include the wholesale of computing and networking hardware, software licensing, and provision of audiovisual solutions. The company partners with numerous technology manufacturers and suppliers to offer a broad range of products, leveraging these partnerships to negotiate competitive pricing and exclusive distribution rights. Additionally, Northamber generates income from value-added services such as technical support, installation, and consultancy, which enhance its product offerings and customer relationships.

Northamber Financial Statement Overview

Summary

Northamber faces significant challenges with declining revenue, negative profitability, and weak cash flow generation. However, the strong equity position and lack of debt provide some financial stability.

Income Statement

The company has experienced a significant decline in revenue over the past year, with a revenue decrease of 16.6% in 2024 compared to 2023. The gross profit margin remains modest at 14.35%, but both EBIT and net profit margins are negative, indicating operational and net losses. Despite some past revenue growth, the recent downturn and negative profitability metrics indicate challenges in income performance.

Balance Sheet

Northamber maintains a solid equity position with an equity ratio of 58.54%, reflecting good financial stability. The debt-to-equity ratio is favorable at 0, indicating no reliance on debt financing. However, the return on equity is negative due to losses, which undermines overall balance sheet strength.

Cash Flow

The company has struggled with negative free cash flow and operating cash flow, although the free cash flow has improved slightly from 2023 to 2024. The operating cash flow to net income ratio is negative, which is concerning for cash generation. Despite some improvement in free cash flow, overall cash flow performance remains weak.

Breakdown	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement
Total Revenue	56.01M	67.15M	66.26M	60.01M	52.84M
Gross Profit	8.04M	8.91M	8.47M	7.81M	5.48M
EBITDA	-1.02M	4.00K	-54.00K	791.00K	10.17M
Net Income	-1.33M	-411.00K	-442.00K	337.00K	8.51M
Balance Sheet
Total Assets	38.40M	35.83M	34.82M	35.11M	33.27M
Cash, Cash Equivalents and Short-Term Investments	4.69M	5.51M	4.70M	7.45M	10.97M
Total Debt	0.00	0.00	0.00	0.00	0.00
Total Liabilities	15.91M	11.95M	10.37M	10.03M	8.36M
Stockholders Equity	22.48M	23.88M	24.45M	25.09M	24.91M
Cash Flow
Free Cash Flow	-704.00K	-577.00K	-2.63M	-3.38M	-6.59M
Operating Cash Flow	-269.00K	-219.00K	-2.40M	-3.13M	-1.22M
Investing Cash Flow	-3.21M	1.20M	-157.00K	-224.00K	8.97M
Financing Cash Flow	2.66M	-163.00K	-191.00K	-163.00K	-232.00K

Northamber Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 31.50
• 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:NAR, the sentiment is Neutral. The current price of 31.5 is below the 20-day moving average (MA) of 31.72, below the 50-day MA of 32.06, and above the 200-day MA of 29.05, indicating a neutral trend. The MACD of -0.10 indicates Positive momentum. The RSI at 25.12 is Positive, neither overbought nor oversold. The STOCH value of 77.78 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for GB:NAR.

Northamber Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HWDN	71 Outperform	£4.53B	18.29	23.66%	186.51%	0.48%	-1.96%
STAF	71 Outperform	£58.43M	―	8.52%	―	5.83%	19.29%
CVSG	66 Neutral	£859.45M	49.67	8.64%	66.78%	2.70%	-51.35%
SDY	64 Neutral	£134.39M	―	-0.65%	879.86%	-4.08%	29.90%
Sector *	63 Neutral	£506.53M	23.52	-8.45%	172.52%	4.53%	-18.72%
NAR	57 Neutral	£8.54M	―	-6.68%	285.71%	-6.09%	-161.61%
RWA	55 Neutral	£116.40M	29.69	-3.96%	1018.95%	-16.16%	-145.46%

Northamber Corporate Events

Northamber PLC Appoints Matthew Light as Executive Director

Northamber PLC has appointed Matthew Light as an Executive Director, effective March 27, 2025. With 30 years of experience in the AV and IT sectors, Light will focus on the UK AV businesses, leveraging his expertise to enhance Northamber’s operations and capitalize on synergies within its technical Audio Visual distribution. This strategic move is expected to strengthen Northamber’s industry positioning and benefit stakeholders by doubling down on its AV business interests.

Northamber PLC Reports Strategic Shift and Revenue Growth

Northamber PLC has reported a significant strategic shift towards high-margin, technical distribution, with over 80% of sales now coming from Audio Visual, Cyber Security, or Network Infrastructure. The company’s recent acquisitions, including Tempura Communications and Renaissance Contingency Services, have contributed to a 9.9% increase in revenue and a 27.5% rise in gross margin. Despite challenging market conditions in the UK, Northamber remains optimistic about future growth, supported by its strong balance sheet and continued investments in strategic areas.

Northamber PLC Expands European Presence with Epatra Acquisition

Northamber PLC has acquired Epatra B.V., a distributor of professional audio-visual solutions in the Netherlands and Belgium, to bolster its European expansion. The acquisition supports Northamber’s strategy to grow its market presence outside the UK and leverage synergies with Epatra’s extensive distribution network and client base, which is expected to enhance the company’s growth and profitability in the European market.