NWF Group plc (NWF) AI Stock Analysis

• Market Cap: £84.05M
• Dividend Yield: 1.18%
• Average Volume (3M): 49.04K
• Price to Earnings (P/E): 10.5
• Beta (1Y): 0.53
• Revenue Growth: -5.38%
• EPS Growth: -38.50%
• Country: UK
• Employees: 1,400
• Sector: Energy
• Sector Strength: 73
• Industry: Oil & Gas Refining & Marketing
• EPS (TTM): 0.06
• Shares Outstanding: 49,588,146
• 10 Day Avg. Volume: 45,748
• 30 Day Avg. Volume: 49,038
• PEG Ratio: 0.11
• Price to Book (P/B): 1.64
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 4.37
• 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: Hold
• Number of Analyst Covering: 0

• Rating: 77 Outperform
• Price Target: 197.00p ▲(16.22%Upside)

NWF Group plc's stable financial position and strategic acquisition drive a solid overall score. Positive technical indicators and a strong valuation further enhance the outlook. The company's proactive growth strategy and director confidence signal potential for future success, despite some operational challenges.

NWF Group plc Business Overview & Revenue Model

Company Description

NWF Group plc is a specialist distributor delivering a range of essential services across the UK. The company operates through three main divisions: Fuels, Food, and Feeds. The Fuels division distributes a wide range of fuel products, including heating oil, diesel, and petrol. The Food division focuses on the storage and distribution of ambient grocery products to supermarkets and other retail outlets. The Feeds division is involved in the manufacture and distribution of animal feed for the agricultural sector.

How the Company Makes Money

NWF Group plc generates revenue primarily through its three business divisions. The Fuels division is a significant revenue driver, earning money by distributing various fuel products directly to consumers and businesses across the UK. This division benefits from long-standing customer relationships and an extensive distribution network. The Food division earns income through contracts for the storage and distribution of ambient groceries, leveraging its strategically located warehouses to serve major supermarkets. The Feeds division contributes to revenue by producing and selling animal feed to farmers and agricultural businesses, capitalizing on its expertise in nutrition and efficient distribution channels. The company also benefits from economies of scale and strategic partnerships with suppliers and customers, enhancing its revenue potential.

NWF Group plc Financial Statement Overview

Summary

NWF Group plc demonstrates a stable financial footing with moderate leverage and decent equity returns. However, recent declines in revenue and profitability margins suggest potential challenges in maintaining growth and operational efficiency. Cash flow generation remains robust but shows signs of weakening, necessitating careful management to sustain financial health.

Income Statement

The company has experienced fluctuating revenue with a decrease of 9.9% in the latest year. Gross profit margin decreased slightly, while net profit margin also reduced. EBIT and EBITDA margins showed a decline, indicating potential pressure on operational efficiency.

Balance Sheet

The balance sheet indicates a stable financial position with a healthy equity ratio of 35.9%. The debt-to-equity ratio is reasonable at 0.54, suggesting moderate leverage. Return on equity stands at 10.65%, reflecting decent profitability against equity.

Cash Flow

Operating cash flow has declined, and free cash flow also decreased by 63.8%. The operating cash flow to net income ratio is 2.3, indicating strong cash generation relative to net income, though it has weakened compared to the prior year.

Breakdown
TTM	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement		Total Revenue
932.00M	950.60M	1.05B	878.60M	675.60M	687.50M
	Gross Profit
49.50M	47.20M	54.10M	55.30M	37.90M	41.30M
	EBIT
12.70M	14.30M	20.60M	13.20M	12.10M	13.50M
	EBITDA
26.30M	31.00M	35.90M	26.90M	25.00M	24.00M
	Net Income Common Stockholders
8.00M	9.10M	14.90M	8.40M	7.80M	8.90M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
11.40M	10.00M	16.30M	9.10M	4.00M	5.30M
	Total Assets
251.10M	237.70M	217.60M	213.90M	186.90M	178.40M
	Total Debt
50.50M	46.30M	29.80M	28.30M	35.30M	43.90M
	Net Debt
39.10M	36.30M	13.50M	19.20M	31.30M	38.60M
	Total Liabilities
164.70M	152.30M	139.70M	145.80M	127.40M	127.30M
	Stockholders Equity
86.40M	85.40M	77.90M	68.10M	59.50M	51.10M
Cash Flow		Free Cash Flow
12.40M	10.60M	29.30M	26.50M	18.00M	15.60M
	Operating Cash Flow
24.10M	20.90M	32.50M	30.10M	21.00M	21.70M
	Investing Cash Flow
-12.20M	-13.40M	-11.70M	-3.20M	-4.10M	-12.00M
	Financing Cash Flow
-13.80M	-13.80M	-13.60M	-21.80M	-18.20M	-7.20M

NWF Group plc Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 169.50
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:NWF, the sentiment is Neutral. The current price of 169.5 is above the 20-day moving average (MA) of 168.57, below the 50-day MA of 170.08, and above the 200-day MA of 159.24, indicating a neutral trend. The MACD of 0.66 indicates Negative momentum. The RSI at 49.61 is Neutral, neither overbought nor oversold. The STOCH value of 12.04 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for GB:NWF.

NWF Group plc Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NWF	77 Outperform	£84.05M	10.48	9.64%	1.18%	-5.38%	-38.50%
DCC	70 Outperform	£4.58B	22.26	6.75%	6.03%	-6.75%	-0.02%
GENL	61 Neutral	$146.75M	―	-15.72%	―	-14.44%	-22.34%
KIST	61 Neutral	£157.44M	―	-80.82%	―	-5.92%	-91.89%
Sector *	58 Neutral	$7.56B	3.29	-4.46%	10.00%	0.84%	-49.61%
QED	51 Neutral	£83.79M	―	-59.79%	―	―	19.05%

NWF Group plc Corporate Events

NWF Group Reports Strong Performance and Strategic Acquisition

NWF Group plc has reported a trading update for the financial year ending May 2025, indicating a performance slightly ahead of market expectations, despite challenges such as increased national insurance and living wage costs. The company announced the acquisition of Pinnock Brothers, enhancing its presence in the South-East of England and contributing to an 8% increase in domestic fuel volumes. The Fuels and Feeds divisions performed strongly, offsetting weaker results in the Food division, where management changes and restructuring are expected to improve future performance. The company’s robust financial position supports its strategy of growth through acquisitions.

NWF Group plc Issues New Shares Under Performance Plan

NWF Group plc has issued and allotted 137,795 ordinary shares following the satisfaction of performance criteria under its Performance Share Plan. This issuance is part of the company’s strategy to reward its directors and senior management, with the new shares expected to begin trading on AIM on 6 June 2025. The move is likely to impact the company’s share capital structure, increasing the total issued share capital to 49,588,145 ordinary shares, which stakeholders can use for calculating their interests in the company.

NWF Group Director Purchases Shares, Signaling Confidence

NWF Group plc announced that Timothy Cooper, a Non-Executive Director, has purchased 8,500 shares of the company, representing a 0.01% stake in its issued share capital. This transaction may indicate confidence in the company’s future performance and could have implications for investor perceptions and market positioning.