NWF Group plc (NWF) AI Stock Analysis

• Market Cap: £85.30M
• Dividend Yield: 4.7%
• Average Volume (3M): 103.51K
• Price to Earnings (P/E): 10.7
• Beta (1Y): 0.55
• Revenue Growth: -5.38%
• EPS Growth: -38.50%
• Country: UK
• Employees: 1,400
• Sector: Energy
• Sector Strength: 47
• Industry: Oil & Gas Refining & Marketing
• EPS (TTM): 0.16
• Shares Outstanding: 49,450,350
• 10 Day Avg. Volume: 34,476
• 30 Day Avg. Volume: 103,513
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• P/FCF Ratio: 0.00
• 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

NWF Group plc exhibits solid financial stability, with strategic corporate actions enhancing its market position despite some challenges in revenue and profitability margins. Technical indicators show positive momentum, and the stock presents an attractive valuation with a strong dividend yield. These factors, combined with strategic acquisitions and insider confidence, underpin a strong overall performance outlook.

NWF Group plc Business Overview & Revenue Model

Company Description

NWF Group plc, together with its subsidiaries, primarily engages in the sale and distribution of fuel oils in the United Kingdom. It operates through Fuels, Food, and Feeds segments. The Fuels segment sells domestic heating, industrial, and road fuels. This segment owns and operates through a network of 25 depots. The Food segment is involved in the warehousing and distribution of grocery and other products to supermarkets and other retail distribution centers. The Feeds segment manufactures and sells animal feeds and other agricultural products. NWF Group plc was founded in 1871 and is headquartered in Nantwich, the United Kingdom.

How the Company Makes Money

NWF Group plc generates revenue through its three main business divisions: Fuels, Food, and Feeds. The Fuels division is a leading distributor of fuel oils to commercial, agricultural, and domestic customers, making money through sales of heating oil, diesel, and other related products. The Food division provides ambient groceries to a network of independent retailers and wholesalers, earning revenue from the distribution and sale of food products. The Feeds division supplies nutritional products to the agricultural sector, generating income by selling animal feed to farmers and agricultural businesses. The company's earnings are influenced by factors such as market demand, fuel prices, agricultural cycles, and its ability to maintain efficient supply chain operations.

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

NWF Group plc Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 172.50
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

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 172.5 is below the 20-day moving average (MA) of 173.00, above the 50-day MA of 171.77, and above the 200-day MA of 158.00, indicating a neutral trend. The MACD of 0.84 indicates Positive momentum. The RSI at 49.79 is Neutral, neither overbought nor oversold. The STOCH value of 33.77 is Neutral, 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	75 Outperform	£85.30M	10.66	9.64%	4.70%	-5.38%	-38.50%
GNC	74 Outperform	£802.09M	18.43	10.18%	1.08%	-5.57%	38.90%
Sector *	56 Neutral	$6.99B	3.76	-4.38%	5.90%	-0.24%	-48.46%
PZC	53 Neutral	£336.01M	―	-2.48%	4.49%	-16.16%	80.50%

NWF Group plc Corporate Events

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.

Spark’s Take on GB:NWF Stock

According to Spark, TipRanks’ AI Analyst, GB:NWF is a Outperform.

NWF Group plc’s stock is rated positively due to its stable financial performance despite some recent challenges, strong technical indicators, attractive valuation, and strategic corporate acquisition. The acquisition of Northern Energy Oil Limited is a key highlight, expected to drive earnings and strengthen their market position. While operational efficiency and cash flow generation need careful management, the overall outlook is optimistic.

To see Spark’s full report on GB:NWF stock, click here.

NWF Group Expands with Northern Energy Acquisition

NWF Group plc has acquired Northern Energy Oil Limited, a 42 million litre fuel distributor, to expand its presence in the North-East of England. The acquisition, valued at £8.3 million, is expected to increase NWF’s fuel volumes by 6% and be immediately earnings accretive, supporting the company’s strategy to consolidate the fragmented fuels distribution market.

NWF Group plc Announces Investor Presentation on Half Year Results

NWF Group plc has announced that its CEO, Chris Belsham, and CFO, Katie Shortland, will deliver a live presentation about the company’s Half Year Results through the Investor Meet Company platform. This event, scheduled for February 11, 2025, is accessible to both current and prospective shareholders, allowing them to submit questions prior to and during the presentation.

NWF Group Shows Strong Profit Growth Despite Revenue Dip

NWF Group plc announced its half-year results, showcasing a robust performance with a 25% increase in headline operating profit despite a 3.9% drop in revenue, primarily due to lower oil prices. The company’s fuels and feeds divisions performed strongly, offsetting a weaker performance in its food division due to startup costs at the new Lymedale warehouse. Looking forward, NWF Group remains confident in its growth potential, maintaining a strong cash position and a well-progressed acquisition pipeline in the fuels sector, while continuing to enhance operational efficiencies.

NWF Group Reports Mixed Half-Year Results with Strong Gains in Fuels and Feeds

NWF Group plc announced its half-year results, highlighting a mixed performance across its segments. The company reported growth in headline operating profit, driven by strong results in Fuels and Feeds, despite a decline in revenue due to lower oil prices. The Fuels segment saw improved margins and cost management, while the Feeds segment benefited from stable raw material prices and increased milk prices. However, the Food segment faced challenges with start-up costs at the new Lymedale warehouse, impacting profitability. NWF remains optimistic about its growth potential, supported by a solid financial position and a pipeline of acquisition opportunities in the Fuels market.