NWF Group plc (NWF) AI Stock Analysis

• Market Cap: £63.47M
• Dividend Yield: 6.59%
• Average Volume (3M): 80.77K
• Price to Earnings (P/E): 10.2
• Beta (1Y): 0.77
• Revenue Growth: -5.00%
• EPS Growth: -32.05%
• Country: UK
• Employees: 1,400
• Sector: Energy
• Sector Strength: 52
• Industry: Oil & Gas Refining & Marketing
• EPS (TTM): 0.09
• Shares Outstanding: 49,588,146
• 10 Day Avg. Volume: 115,322
• 30 Day Avg. Volume: 80,766
• PEG Ratio: -0.48
• Price to Book (P/B): 0.95
• Price to Sales (P/S): 0.09
• P/FCF Ratio: 4.17
• 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: £283.00
• Price Target Upside: 121.96% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): 11.88
• Revenue Forecast (FY): £79.66B

• Rating: 61 Neutral
• Price Target: 135.00p ▲(5.88% Upside)

NWF Group plc's stock score is primarily influenced by its strong financial performance, particularly in cash flow generation, and attractive valuation metrics, including a low P/E ratio and high dividend yield. However, the technical analysis indicates bearish momentum, which poses a risk to short-term price performance.

Positive Factors

Operational Efficiency

Operational efficiency allows NWF to maintain stable EBIT and EBITDA margins, supporting profitability even with revenue pressures.

Cash Flow Generation

Strong cash flow growth enhances NWF's ability to reinvest in its business, support operations, and manage debt, ensuring long-term stability.

Diversified Business Model

A diversified model mitigates risks from sector-specific downturns, providing resilience and potential for sustained growth across multiple markets.

Negative Factors

Revenue Decline

Declining revenue challenges NWF's ability to grow its market position and profitability, potentially impacting long-term financial health.

Increased Leverage

Rising leverage can limit financial flexibility and increase risk during economic downturns, affecting NWF's ability to invest and grow.

Profitability Pressure

Low profit margins suggest challenges in cost management or pricing power, potentially impacting long-term earnings and competitive position.

NWF Group plc Business Overview & Revenue Model

Company Description

NWF Group plc is a UK-based logistics company that operates primarily in three sectors: fuels, food, and logistics. The company provides a range of services including the distribution of fuel products, storage and distribution of ambient and chilled food products, and supply chain management solutions. NWF's core offerings include fuel distribution for residential and commercial customers, as well as logistics services that support the transportation and storage of food products across the UK.

How the Company Makes Money

NWF Group plc generates revenue through multiple key streams. The company's fuels segment earns income by distributing heating oil, road fuel, and other fuel products to various customer bases, including households, businesses, and agricultural sectors. The food segment contributes significantly through the storage, handling, and transport of food items, both ambient and chilled, for various retailers and food manufacturers. Additionally, NWF's logistics services encompass supply chain solutions, which further diversify its revenue sources. The company benefits from long-term contracts with clients in the food and fuel sectors, providing a stable income base. Strategic partnerships with suppliers and clients enhance its market position and contribute to consistent earnings.

NWF Group plc Financial Statement Overview

Summary

NWF Group plc demonstrates operational efficiency and strong cash flow generation despite revenue challenges. The balance sheet shows increased leverage, which could pose risks if not managed carefully. The company needs to focus on revenue growth to enhance profitability and maintain financial stability.

Income Statement

The income statement shows a declining revenue trend with a negative growth rate of -3.1% in the latest year. Gross profit margin and net profit margin are relatively low, indicating pressure on profitability. However, the company maintains a stable EBIT and EBITDA margin, suggesting operational efficiency despite revenue challenges.

Balance Sheet

The balance sheet reflects a moderate debt-to-equity ratio, which has increased over the years, indicating rising leverage. Return on equity has decreased, reflecting lower profitability. However, the equity ratio remains stable, suggesting a balanced capital structure.

Cash Flow

Cash flow analysis reveals strong free cash flow growth of 60.5%, indicating improved cash generation capabilities. The operating cash flow to net income ratio is healthy, suggesting efficient cash conversion. However, the free cash flow to net income ratio has decreased, indicating potential reinvestment or capital expenditure needs.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	903.10M	903.10M	950.60M	1.05B	878.60M	675.60M
Gross Profit	15.80M	50.30M	47.20M	54.10M	55.30M	37.90M
EBITDA	26.60M	31.90M	31.40M	35.90M	26.90M	25.00M
Net Income	6.20M	6.20M	9.10M	14.90M	8.40M	7.80M
Balance Sheet
Total Assets	260.20M	260.20M	237.70M	217.60M	213.90M	186.90M
Cash, Cash Equivalents and Short-Term Investments	10.90M	10.90M	10.00M	16.30M	9.10M	4.00M
Total Debt	64.80M	64.80M	46.30M	29.80M	28.30M	35.30M
Total Liabilities	173.00M	173.00M	152.30M	139.70M	145.80M	127.40M
Stockholders Equity	87.20M	87.20M	85.40M	77.90M	68.10M	59.50M
Cash Flow
Free Cash Flow	19.90M	19.90M	10.60M	29.30M	26.50M	18.00M
Operating Cash Flow	25.10M	25.10M	20.90M	32.50M	30.10M	21.00M
Investing Cash Flow	-14.20M	-14.20M	-13.40M	-11.70M	-3.20M	-4.10M
Financing Cash Flow	-16.40M	-16.40M	-13.80M	-13.60M	-21.80M	-18.20M

NWF Group plc Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 127.50
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:NWF, the sentiment is Negative. The current price of 127.5 is below the 20-day moving average (MA) of 155.10, below the 50-day MA of 166.25, and below the 200-day MA of 164.29, indicating a bearish trend. The MACD of -11.94 indicates Positive momentum. The RSI at 13.79 is Positive, neither overbought nor oversold. The STOCH value of 29.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GB:NWF.

NWF Group plc Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
DCC	66 Neutral	£4.73B	23.37	3.85%	4.20%	-17.89%	-122.62%
Sector *	65 Neutral	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%
NWF	61 Neutral	£63.47M	10.21	7.18%	6.59%	-5.00%	-32.05%
QED	51 Neutral	£56.17M	-16.47	-39.34%	―	―	5.56%
GENL	50 Neutral	$176.21M	-4.19	-11.54%	―	-0.20%	-25.68%
KIST	41 Neutral	£128.44M	―	-92.03%	―	-16.87%	21.18%

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.