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

• Market Cap: £424.84M
• Dividend Yield: 3.98%
• Average Volume (3M): 61.43K
• Price to Earnings (P/E): 32.2
• Beta (1Y): 0.33
• Revenue Growth: 12.91%
• EPS Growth: -13.62%
• Country: UK
• Employees: 7,172
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Restaurants
• EPS (TTM): 0.36
• Shares Outstanding: 23,932,688
• 10 Day Avg. Volume: 73,244
• 30 Day Avg. Volume: 61,426
• PEG Ratio: -2.13
• Price to Book (P/B): 0.43
• Price to Sales (P/S): 0.68
• P/FCF Ratio: 6.44
• 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
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 66 Neutral
• Price Target: 648.00p ▲(9.46% Upside)

Young & Co's Brewery demonstrates strong financial performance with robust revenue growth and efficient operations, which are the most significant factors in the overall score. Technical analysis and valuation present a more moderate outlook, with the stock appearing slightly overvalued but offering a decent dividend yield. The absence of earnings call and corporate events data means these factors do not influence the score.

Positive Factors

Revenue Growth

The company reported a significant increase in revenue, reaching £485.8M, indicating robust market demand and effective sales strategies.

Cash Generation

Improved cash generation enhances financial flexibility, allowing for reinvestment in growth opportunities and potential debt reduction.

Balance Sheet Health

A balanced approach to leverage and strong equity financing provide a stable financial foundation, supporting long-term sustainability.

Negative Factors

Net Profit Margin

Challenges in converting revenue to profit may impact overall profitability, necessitating improvements in cost management and operational efficiency.

Return on Equity

A declining return on equity suggests inefficiencies in generating shareholder returns, potentially affecting investor confidence and capital allocation.

Operating Cash Flow Efficiency

Lower operating cash flow efficiency indicates potential areas for improvement in cash management, affecting liquidity and operational flexibility.

Young & Co'S Brewery Business Overview & Revenue Model

Company Description

Young & Co's Brewery, also known as YNGN, is a historic brewery and pub operator based in the United Kingdom. Established in the 19th century, the company operates in the hospitality and beverage sectors, primarily focusing on the production and sale of high-quality ales and lagers. In addition to brewing, YNGN owns and operates a chain of pubs and bars, creating a unique environment for customers to enjoy their drinks and food offerings. The brewery emphasizes traditional brewing methods while also experimenting with innovative flavors to cater to a diverse clientele.

How the Company Makes Money

Young & Co's Brewery generates revenue through multiple streams: primarily, it earns from the sale of its brewed products, including cask ales and bottled beers, which are distributed to various retailers, pubs, and restaurants. The company also profits from its pub operations, where it serves food and beverages directly to consumers. Additionally, YNGN engages in strategic partnerships with other brands and suppliers, enhancing its market presence and expanding its distribution network. Seasonal promotions and events held at their pubs further contribute to revenue, along with merchandise sales related to their brand. Overall, the combination of product sales, pub operations, and partnerships forms a robust revenue model for Young & Co's Brewery.

Young & Co'S Brewery Financial Statement Overview

Summary

Young & Co's Brewery shows strong revenue growth and efficient operations with a solid EBITDA margin. However, challenges in net profit conversion and declining return on equity slightly dampen the overall financial performance.

Income Statement

The company has demonstrated strong revenue growth with a significant increase from the previous year, reaching £485.8M in the latest annual report. The gross profit margin improved to 47.25%, and the EBIT margin is healthy at 7.8%. However, the net profit margin decreased to 2.02% indicating challenges in converting revenue to profit. Despite this, EBITDA margin remains strong at 16.52%, reflecting efficient operations.

Balance Sheet

Young & Co's Brewery maintains a reasonable debt-to-equity ratio of 0.45, suggesting a balanced approach to leverage. The equity ratio is healthy at 58.71%, showing a strong reliance on equity financing. However, the return on equity has declined to 1.27%, indicating a need for better profitability to generate returns for shareholders.

Cash Flow

There is a notable 105.97% increase in free cash flow, reaching £51.3M, suggesting improved cash generation capabilities. The free cash flow to net income ratio is at a robust 5.23, indicating efficient cash conversion. However, the operating cash flow to net income ratio is relatively lower at 10.03, pointing to potential areas for enhancing operating cash flow efficiency.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	499.40M	485.80M	388.80M	368.90M	309.00M	90.60M
Gross Profit	74.00M	229.50M	181.50M	172.80M	140.90M	-14.60M
EBITDA	86.00M	80.20M	63.70M	76.90M	82.60M	-2.70M
Net Income	11.50M	9.80M	11.10M	29.70M	34.40M	-38.30M
Balance Sheet
Total Assets	1.31B	1.31B	1.35B	1.05B	1.06B	997.50M
Cash, Cash Equivalents and Short-Term Investments	12.10M	7.50M	16.90M	10.70M	34.00M	4.70M
Total Debt	320.60M	343.80M	376.50M	175.90M	207.80M	253.40M
Total Liabilities	519.70M	539.90M	578.00M	329.70M	362.20M	352.10M
Stockholders Equity	786.50M	771.80M	771.60M	724.20M	699.70M	645.40M
Cash Flow
Free Cash Flow	51.80M	51.30M	24.90M	42.70M	65.00M	-42.10M
Operating Cash Flow	89.70M	98.30M	73.40M	82.90M	101.90M	-23.00M
Investing Cash Flow	-35.90M	-37.90M	-199.60M	-52.30M	-14.10M	-18.70M
Financing Cash Flow	-41.80M	-73.10M	132.40M	-53.90M	-58.50M	45.30M

Young & Co'S Brewery Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 592.00
• 50DMA: Negative
• 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:YNGN, the sentiment is Positive. The current price of 592 is below the 20-day moving average (MA) of 596.40, below the 50-day MA of 596.15, and above the 200-day MA of 586.21, indicating a neutral trend. The MACD of -3.99 indicates Positive momentum. The RSI at 48.28 is Neutral, neither overbought nor oversold. The STOCH value of 28.30 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:YNGN.

Young & Co'S Brewery Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FSTA	79 Outperform	£364.32M	17.89	4.82%	2.98%	6.94%	9.99%
MARS	71 Outperform	£364.96M	5.20	9.91%	―	-0.08%	―
HVTA	69 Neutral	£8.34M	4.14	10.60%	1.72%	2.76%	40.57%
JDW	69 Neutral	£769.96M	12.17	17.81%	1.50%	4.52%	50.39%
YNGN	66 Neutral	£424.84M	32.18	1.46%	3.98%	12.91%	-13.62%
MAB	66 Neutral	£1.56B	8.95	6.58%	―	3.87%	18.31%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%

Young & Co'S Brewery Corporate Events

Young & Co’s Brewery Executes Share Buyback Program

Young & Co’s Brewery has executed a share buyback program, purchasing 7,626 non-voting ordinary shares at a volume-weighted average price of 595.50 pence per share. This transaction, conducted through Peel Hunt LLP on the London Stock Exchange, will result in the cancellation of the purchased shares, impacting the company’s share structure by reducing the number of non-voting shares in circulation.

Young & Co’s Brewery Executes Share Buyback

Young & Co’s Brewery, P.L.C. has executed a share buyback, purchasing 7,100 non-voting ordinary shares at a volume-weighted average price of 594 pence per share through Peel Hunt LLP on the London Stock Exchange. This transaction is part of a previously announced share buyback programme, and the purchased shares will be cancelled, impacting the company’s share structure by reducing the number of non-voting shares in circulation.