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

• Market Cap: £459.05M
• Dividend Yield: 3.92%
• Average Volume (3M): 21.11K
• Price to Earnings (P/E): 37.3
• Beta (1Y): 0.22
• Revenue Growth: 24.95%
• EPS Growth: -16.86%
• Country: UK
• Employees: 7,172
• Sector: Consumer Cyclical
• Sector Strength: 79
• Industry: Restaurants
• EPS (TTM): -0.16
• Shares Outstanding: 24,070,755
• 10 Day Avg. Volume: 13,066
• 30 Day Avg. Volume: 21,106
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: £668.00
• Price Target Upside: 13.61% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 64 Neutral
• Price Target: 668.00p ▲(13.61% Upside)

Young & Co's Brewery shows strong financial performance with significant revenue growth and cash generation. However, technical indicators signal bearish trends and valuation concerns due to high P/E ratio and unsustainable dividend yield. These factors lead to a moderate overall stock score.

Young & Co'S Brewery Business Overview & Revenue Model

Company Description

Young & 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 Money

Young & Co's Brewery generates revenue through several key streams. The primary source of income is from the sale of its brewed products, including a range of ales, lagers, and seasonal beers, which are distributed both in-house at its pubs and externally through wholesale and retail channels. Additionally, the company earns significant revenue from its managed pubs and hotels, where it provides food and drink services to customers. This includes a variety of dining options, from casual pub fare to more upscale dining experiences. Young's also engages in strategic partnerships, including collaborations with local suppliers and participation in beer festivals, which enhance brand visibility and drive sales. Furthermore, the brewery benefits from seasonal promotions and events that attract foot traffic to its establishments, contributing to overall profitability.

Young & Co'S Brewery Financial Statement Overview

Summary

The company shows strong revenue growth with improved gross profit margin. However, the net profit margin decrease and low return on equity suggest challenges in profit conversion. Strong cash flow generation and a balanced debt approach support financial stability.

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	485.80M	485.80M	388.80M	368.90M	309.00M	90.60M
Gross Profit	71.40M	229.50M	181.50M	172.80M	140.90M	-14.60M
EBITDA	80.30M	80.20M	63.70M	76.90M	82.60M	-2.90M
Net Income	9.80M	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	7.50M	7.50M	16.90M	10.70M	34.00M	4.70M
Total Debt	343.80M	343.80M	376.50M	175.90M	207.80M	253.40M
Total Liabilities	539.90M	539.90M	578.00M	329.70M	362.20M	352.10M
Stockholders Equity	771.80M	771.80M	771.60M	724.20M	699.70M	645.40M
Cash Flow
Free Cash Flow	32.20M	51.30M	24.90M	42.70M	65.00M	-42.10M
Operating Cash Flow	79.20M	98.30M	73.40M	82.90M	101.90M	-23.00M
Investing Cash Flow	-37.90M	-37.90M	-199.60M	-52.30M	-14.10M	-18.70M
Financing Cash Flow	-54.00M	-73.10M	132.40M	-53.90M	-58.50M	45.30M

Young & Co'S Brewery Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 588.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• 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 Negative. The current price of 588 is below the 20-day moving average (MA) of 593.90, below the 50-day MA of 618.12, and below the 200-day MA of 595.77, indicating a bearish trend. The MACD of -9.43 indicates Negative momentum. The RSI at 41.98 is Neutral, neither overbought nor oversold. The STOCH value of 56.96 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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	70 Outperform	£315.25M	12.21	6.45%	3.41%	4.79%	223.72%
HVTA	69 Neutral	£8.11M	4.01	10.60%	1.77%	2.76%	―
MAB	69 Neutral	£1.53B	9.11	6.90%	―	1.95%	275.56%
MARS	67 Neutral	£243.57M	5.51	10.69%	―	0.50%	―
YNGN	64 Neutral	£459.05M	37.26	1.27%	3.92%	24.95%	-16.86%
JDW	64 Neutral	£740.70M	13.32	16.38%	2.16%	3.70%	57.10%
Sector *	61 Neutral	$17.64B	14.17	-5.23%	3.04%	1.43%	-15.11%