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Trafalgar New Homes PLC (GB:TRAF)
LSE:TRAF
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Trafalgar New Homes
(LSE:TRAF)
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Rating:31Underperform
Price Target:―
Trafalgar New Homes presents a high-risk investment profile primarily due to its concerning financial position characterized by significant losses, negative equity, and poor cash flow. Despite stable price trends, technical indicators suggest the stock is overbought, and the negative P/E ratio signals a lack of earnings. Collectively, these factors underscore substantial challenges and risks, leading to a low overall stock score.
Trafalgar New Homes (TRAF) vs. iShares MSCI United Kingdom ETF (EWC)
Market Cap
£305.55K
Dividend YieldN/A
Average Volume (3M)6.46M
Price to Earnings (P/E)―
Beta (1Y)0.27
Revenue GrowthN/A
EPS GrowthN/A
CountryUK
Employees5
SectorReal Estate
Sector Strength53
IndustryReal Estate - Development
Share Statistics
EPS (TTM)0.00
Shares Outstanding1,746,019,000
10 Day Avg. Volume0
30 Day Avg. Volume6,459,983
Financial Highlights & Ratios
PEG Ratio<0.01
Price to Book (P/B)-0.06
Price to Sales (P/S)0.00
P/FCF Ratio-0.18
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
Trafalgar New Homes Business Overview & Revenue Model
Company DescriptionTrafalgar Property Group plc, through its subsidiaries, engages in home building and property development businesses in the United Kingdom. The company undertakes residential property and assisted living projects. It is also involved in the renting of residential properties. The company was formerly known as Trafalgar New Homes Plc and changed its name to Trafalgar Property Group plc in March 2018. Trafalgar Property Group plc was incorporated in 2001 and is based in Edenbridge, the United Kingdom.
How the Company Makes MoneyTrafalgar New Homes makes money primarily through the development and sale of residential properties. The company acquires land, often with planning permission, then designs and constructs homes tailored to market needs. Revenue is generated when these properties are sold, either directly to buyers or through real estate agents. Additionally, the company may generate income from rental properties or partnerships with other real estate entities, though its core revenue stream remains the sale of developed residential units. Key factors contributing to its earnings include strategic land acquisition, efficient project management, and the ability to respond to market demand in desirable locations.
Trafalgar New Homes Financial Statement Overview
Summary
Trafalgar New Homes is in a concerning financial position. The company has been unable to generate revenue or profits, suffers from severe balance sheet weaknesses with negative equity, and struggles to maintain positive cash flows. These factors collectively suggest a high-risk profile, with substantial challenges in achieving financial recovery or stability in the near term.Income Statement
Trafalgar New Homes exhibits significant weaknesses in its income statement. The company has experienced a consistent decline in total revenue over the past years, with the most recent year showing zero revenue. Gross profit has been negative for several years, indicating issues with cost management. The net profit margin and EBIT margin are both negative, reflecting substantial losses and operational inefficiencies. This trend indicates poor financial health and inability to generate profits.15
Very Negative
Balance Sheet
The balance sheet reveals severe financial instability. The company has negative stockholders' equity, indicating that liabilities exceed assets significantly. The debt-to-equity ratio cannot be calculated due to negative equity, but high total debt suggests leverage is a critical concern. The negative equity ratio further highlights the company's precarious financial position, making it highly risky for investors and creditors.10
Very Negative
Cash Flow
Trafalgar New Homes faces challenges in generating positive cash flows. The company has consistently negative operating and free cash flows, indicating that it is unable to cover its operating expenses and investments with cash generated from its core business activities. The negative free cash flow to net income ratio and operating cash flow to net income ratio further emphasize cash flow difficulties, posing significant risks to sustainability.20
Very Negative
| Breakdown | TTM | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 | Dec 2019 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.00K | 0.00 | 18.18K | 64.84K | 2.29M | 1.97M |
| Gross Profit | -213.00 | -213.00 | -12.72K | 61.68K | 322.01K | 154.07K |
| EBITDA | -301.17K | -387.17K | -719.49K | -314.25K | -114.43K | -981.88K |
| Net Income | -385.72K | -516.72K | -843.63K | -486.34K | -329.19K | -1.02M |
Balance Sheet | ||||||
| Total Assets | 1.59M | 864.50K | 1.32M | 1.79M | 2.33M | 3.26M |
| Cash, Cash Equivalents and Short-Term Investments | 53.00K | 8.91K | 17.15K | 12.75K | 246.19K | 27.97K |
| Total Debt | 4.28M | 3.42M | 4.45M | 4.69M | 4.82M | 6.13M |
| Total Liabilities | 4.52M | 3.70M | 4.67M | 5.06M | 5.30M | 6.68M |
| Stockholders Equity | -2.92M | -2.84M | -3.35M | -3.27M | -2.96M | -3.42M |
Cash Flow | ||||||
| Free Cash Flow | -1.43M | -909.75K | -642.97K | -352.84K | 939.92K | 555.22K |
| Operating Cash Flow | -1.43M | -909.75K | -617.97K | -352.84K | 940.52K | 556.21K |
| Investing Cash Flow | 0.00 | 927.25K | 624.62K | 352.50K | -599.00 | -986.00 |
| Financing Cash Flow | 1.24M | -25.74K | -2.26K | -233.10K | -721.70K | -560.06K |
Trafalgar New Homes Technical Analysis
Negative
0.02
Price Trends
0.02
Negative
0.03
Negative
0.04
Negative
Market Momentum
>-0.01
Negative
31.34
Neutral
200.00
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:TRAF, the sentiment is Negative. The current price of 0.02 is below the 20-day moving average (MA) of 0.02, below the 50-day MA of 0.02, and below the 200-day MA of 0.04, indicating a bearish trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 31.34 is Neutral, neither overbought nor oversold. The STOCH value of 200.00 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GB:TRAF.
Trafalgar New Homes Peers Comparison
UnderperformOutperform
Sector (65)
GB:TRAF
Trafalgar New Homes
0.02
>-0.01
-33.33%
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10.25
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20.59%
GB:ALNA
Alina Holdings PLC
8.45
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5.62%
GB:INLZ
Inland ZDP
54.10
0.00
0.00%
GB:ZNT
One Heritage Group Plc
2.75
-0.25
-8.33%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.