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Young & Co'S Brewery PLC (GB:YNGA)
LSE:YNGA

Young & Co'S Brewery (YNGA) AI Stock Analysis

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Young & Co'S Brewery

(LSE:YNGA)

Rating:72Outperform
Price Target:
Young & Co's Brewery shows solid revenue growth and strategic expansion through acquisitions. However, challenges such as declining profit margins and increased leverage weigh on the financial outlook. Technical analysis indicates positive momentum, but valuation concerns due to a high P/E ratio and overbought conditions are present. The overall outlook is cautiously optimistic with a score of 72.

Young & Co'S Brewery (YNGA) vs. iShares MSCI United Kingdom ETF (EWC)

Young & Co'S Brewery Business Overview & Revenue Model

Company DescriptionYoung & Co.'s Brewery, P.L.C. operates and manages pubs and hotels in the United Kingdom. The company sells drinks and food, as well as provides accommodation services. As of March 28, 2022, it had 219 managed and 3 tenanted pubs primarily located in London, the South West, and the South East. The company was founded in 1831 and is based in London, the United Kingdom.
How the Company Makes MoneyYoung & Co.'s Brewery primarily generates revenue through the operation of its pubs, which includes food and beverage sales, accommodation services, and event hosting. A significant portion of its income comes from the sale of its own brewed beers, alongside a selection of other beverages. The company also earns from leasing its properties and from strategic partnerships with suppliers and distributors. Factors contributing to its earnings include the locations of its pubs, the quality of its offerings, and its ability to attract a diverse clientele looking for authentic pub experiences.

Young & Co'S Brewery Financial Statement Overview

Summary
Young & Co's Brewery demonstrates a stable financial position with strong equity and revenue growth. However, declining profit margins, increased leverage, and weakened cash flow metrics pose potential risks.
Income Statement
68
Positive
The company shows a mixed performance in its income statement. While revenue has grown from the previous year, the gross profit margin has declined from 46.87% to 34.47%, and the net profit margin has also decreased significantly from 8.05% to 2.85%. Additionally, EBIT and EBITDA margins have declined, indicating potential challenges in maintaining operational efficiency.
Balance Sheet
75
Positive
The balance sheet is relatively stable with a slight increase in stockholders' equity. The debt-to-equity ratio increased, suggesting higher leverage but still within a manageable range. The equity ratio remains strong at around 57%, reflecting solid financial stability despite the increase in total debt.
Cash Flow
65
Positive
Cash flow shows some concerns as free cash flow has significantly decreased from the previous year. The operating cash flow to net income ratio is strong, indicating effective conversion of profits into cash, but the free cash flow to net income ratio has weakened, reflecting higher capital expenditures.
Breakdown
TTMMar 2024Mar 2023Mar 2022Mar 2021Mar 2020
Income StatementTotal Revenue
442.30M388.80M368.90M309.00M90.60M311.60M
Gross Profit
64.40M181.50M172.80M140.90M-14.60M147.10M
EBIT
64.40M28.60M43.40M51.70M-35.10M37.90M
EBITDA
75.30M63.70M76.90M82.60M-2.90M70.80M
Net Income Common Stockholders
13.70M11.10M29.70M34.40M-38.30M19.30M
Balance SheetCash, Cash Equivalents and Short-Term Investments
6.60M16.90M10.70M34.00M4.70M1.10M
Total Assets
742.50M1.35B1.05B1.06B997.50M989.60M
Total Debt
133.20M376.50M175.90M207.80M253.40M281.50M
Net Debt
126.60M359.60M165.20M173.80M248.70M280.40M
Total Liabilities
249.50M578.00M329.70M362.20M352.10M398.80M
Stockholders Equity
493.00M771.60M724.20M699.70M645.40M590.80M
Cash FlowFree Cash Flow
28.80M24.90M42.70M65.00M-42.10M26.10M
Operating Cash Flow
74.80M73.40M82.90M101.90M-23.00M59.00M
Investing Cash Flow
-175.80M-199.60M-52.30M-14.10M-18.70M-67.20M
Financing Cash Flow
100.30M132.40M-53.90M-58.50M45.30M800.00K

Young & Co'S Brewery Technical Analysis

Technical Analysis Sentiment
Positive
Last Price986.00
Price Trends
50DMA
868.18
Positive
100DMA
839.45
Positive
200DMA
871.99
Positive
Market Momentum
MACD
28.45
Positive
RSI
71.68
Negative
STOCH
85.58
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:YNGA, the sentiment is Positive. The current price of 986 is above the 20-day moving average (MA) of 956.50, above the 50-day MA of 868.18, and above the 200-day MA of 871.99, indicating a bullish trend. The MACD of 28.45 indicates Positive momentum. The RSI at 71.68 is Negative, neither overbought nor oversold. The STOCH value of 85.58 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:YNGA.

Young & Co'S Brewery Peers Comparison

Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
GBMAB
80
Outperform
£1.70B10.156.90%1.95%275.56%
74
Outperform
£343.23M18.174.58%2.90%2.22%98.79%
GBJDW
73
Outperform
£804.30M14.1816.38%2.16%3.70%57.10%
72
Outperform
£525.75M45.711.81%2.29%16.73%-55.22%
67
Neutral
£261.59M5.7710.69%0.50%
66
Neutral
£8.11M5.697.73%3.94%2.07%
62
Neutral
$6.93B11.252.95%3.88%2.69%-24.71%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
GB:YNGA
Young & Co'S Brewery
986.00
26.51
2.76%
GB:FSTA
Fuller Smith & Turner
634.00
-56.64
-8.20%
GB:HVTA
Heavitree Brewery
155.00
0.93
0.60%
GB:MARS
Marston's
40.75
6.40
18.63%
GB:MAB
Mitchells & Butlers
285.00
-23.00
-7.47%
GB:JDW
J D Wetherspoon
732.00
-12.94
-1.74%

Young & Co'S Brewery Corporate Events

Business Operations and StrategyFinancial Disclosures
Young & Co.’s Brewery Reports Strong FY25 Results, Eyes Continued Growth
Positive
Apr 30, 2025

Young & Co.’s Brewery reported a strong financial performance for the fiscal year ending March 31, 2025, with a 25.4% increase in total managed revenue and a 5.7% rise in like-for-like sales. Despite challenges such as unpredictable weather and economic uncertainty, the company maintained positive momentum into the new fiscal year, supported by its strategic investments and resilient business model. This performance underscores Young’s confidence in achieving profitable growth moving forward.

Spark’s Take on GB:YNGA Stock

According to Spark, TipRanks’ AI Analyst, GB:YNGA is a Neutral.

Young & Co’s Brewery has a stable financial base with solid revenue growth. However, challenges include declining profit margins and increased leverage. Technical indicators show positive momentum, but the stock appears overvalued by its P/E ratio. The recent acquisition of The City Pub Group Plc is a strategic positive, strengthening future prospects.

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

M&A TransactionsBusiness Operations and StrategyRegulatory Filings and Compliance
Young & Co’s Brewery Confirms Compliance Post-City Pub Group Acquisition
Positive
Mar 4, 2025

Young & Co’s Brewery has confirmed compliance with its post-offer intentions following the acquisition of The City Pub Group Plc. The acquisition, completed via a scheme of arrangement, signifies Young’s strategic expansion in the pub sector, reinforcing its market position and potentially impacting stakeholders by enhancing its operational capabilities and market reach.

Business Operations and Strategy
Octopus Investments Increases Stake in Young & Co’s Brewery
Neutral
Feb 21, 2025

Young & Co’s Brewery PLC announced a change in its shareholder structure with Octopus Investments Limited now holding 12.01% of the company’s voting rights, a slight increase from their previous position. This acquisition of voting rights could potentially enhance Octopus Investments’ influence over the company’s strategic decisions, impacting both operational directions and stakeholder interests.

Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

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.