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Yougov plc (GB:YOU)
LSE:YOU

Yougov plc (YOU) AI Stock Analysis

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GB

Yougov plc

(LSE:YOU)

61Neutral
YouGov plc shows strong revenue growth and strategic initiatives, particularly in AI and data products, which are promising. However, the company faces profitability challenges and increased leverage, which are concerning. The technical analysis suggests a bearish trend, and the high P/E ratio points to potential overvaluation risks. Despite a positive dividend yield and strategic improvements, the overall score reflects the need for cautious optimism as the company navigates its market position and operational efficiency.

Yougov plc (YOU) vs. S&P 500 (SPY)

Yougov plc Business Overview & Revenue Model

Company DescriptionYouGov plc provides online market research services in the United Kingdom, the United States, Germany, the Nordic countries, the Middle East, Mainland Europe, and the Asia Pacific. It operates through three divisions: Data Products, Data Services, and Custom Research. The Data Products division offers syndicated data products, which are available to clients on a subscription basis. The Data Services division provides clients with fast-turnaround services. The Custom Research division offers a range of quantitative and qualitative research services. The company is also involved in the software development and media production businesses, as well as provision of operations services. YouGov plc was founded in 2000 and is headquartered in London, the United Kingdom.
How the Company Makes MoneyYouGov plc generates revenue primarily through the sale of its research and data analytics services. Key revenue streams include subscription-based access to its data products, such as YouGov BrandIndex and YouGov Profiles, which offer clients continuous tracking of brand perception and consumer profiling, respectively. Additionally, YouGov provides custom research services tailored to specific client needs, which involve conducting bespoke surveys and delivering tailored insights. The company also collaborates with media and other organizations to produce and license content, contributing to its revenue. Significant partnerships with media outlets and businesses enhance its data reach and application, further supporting its monetization strategies.

Yougov plc Financial Statement Overview

Summary
YouGov plc demonstrates a strong growth trajectory in revenue, though profitability has faced challenges recently. The balance sheet is stable, with manageable leverage levels but an increase in debt warrants caution. Cash flow performance is commendable, supporting ongoing operations and potential investments. Overall, the company is positioned well but should focus on improving profitability and managing leverage.
Income Statement
65
Positive
The company exhibits strong revenue growth, with a notable increase from 2023 to 2024. However, profitability margins have declined, indicated by the negative net income in 2024 and a significant drop in EBIT margin compared to the previous year. The gross profit margin remains robust, suggesting operational efficiency despite the profitability challenges.
Balance Sheet
70
Positive
The balance sheet shows a solid equity base, with a reasonable debt-to-equity ratio. However, recent increases in total debt have raised leverage, which could be a potential risk if not managed properly. The equity ratio is healthy, reflecting a good proportion of assets funded by equity capital.
Cash Flow
75
Positive
Cash flow generation remains strong, with consistent free cash flow over the years. Despite a decline in operating cash flow in 2024, the company maintains a solid ratio of operating cash flow to net income. The free cash flow to net income ratio is favorable, indicating efficient cash generation relative to earnings.
Breakdown
Sep 2024Sep 2023Sep 2022Sep 2021Sep 2020
Income StatementTotal Revenue
335.30M258.30M221.10M169.00M152.44M
Gross Profit
271.10M199.90M167.00M127.50M118.28M
EBIT
10.90M47.60M40.00M25.30M21.56M
EBITDA
49.40M70.50M51.50M39.70M30.77M
Net Income Common Stockholders
-2.40M34.50M17.10M12.50M9.60M
Balance SheetCash, Cash Equivalents and Short-Term Investments
73.60M107.20M37.40M35.50M35.31M
Total Assets
609.70M304.30M240.40M198.50M178.35M
Total Debt
238.80M11.20M12.20M13.20M9.35M
Net Debt
165.20M-96.00M-25.20M-22.30M-25.96M
Total Liabilities
426.40M108.10M115.40M86.50M69.01M
Stockholders Equity
183.20M196.40M125.30M112.70M110.06M
Cash FlowFree Cash Flow
37.70M42.10M44.40M16.60M16.76M
Operating Cash Flow
39.70M59.50M61.90M37.70M35.40M
Investing Cash Flow
-280.90M-17.40M-42.90M-23.90M-26.01M
Financing Cash Flow
208.30M29.10M-20.00M-11.50M-9.65M

Yougov plc Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price286.00
Price Trends
50DMA
311.65
Negative
100DMA
354.74
Negative
200DMA
403.40
Negative
Market Momentum
MACD
-7.73
Negative
RSI
48.89
Neutral
STOCH
87.53
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:YOU, the sentiment is Neutral. The current price of 286 is above the 20-day moving average (MA) of 276.92, below the 50-day MA of 311.65, and below the 200-day MA of 403.40, indicating a neutral trend. The MACD of -7.73 indicates Negative momentum. The RSI at 48.89 is Neutral, neither overbought nor oversold. The STOCH value of 87.53 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for GB:YOU.

Yougov plc Peers Comparison

Overall Rating
UnderperformOutperform
Sector (59)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
GBWPP
73
Outperform
£6.05B11.1515.82%7.09%-0.70%388.07%
67
Neutral
£761.02M10.717.06%0.48%-0.09%-29.06%
GBITV
67
Neutral
£2.97B7.7222.70%6.31%-3.75%98.08%
GBRCH
66
Neutral
£239.72M4.478.15%9.39%-5.28%148.54%
GBYOU
61
Neutral
£328.82M248.670.70%3.19%42.19%-94.16%
59
Neutral
$13.48B6.85-2.77%3.84%2.37%-36.48%
* Communication Services Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
GB:YOU
Yougov plc
286.00
-578.36
-66.91%
GB:FUTR
Future plc
704.00
8.60
1.24%
GB:ITV
ITV plc
80.10
13.36
20.02%
RLXXF
RELX plc
54.80
13.38
32.30%
GB:WPP
WPP
576.20
-188.63
-24.66%
GB:RCH
Reach plc
76.00
1.33
1.78%

Yougov plc Earnings Call Summary

Earnings Call Date:Mar 31, 2025
(Q4-2024)
|
% Change Since: -7.74%|
Next Earnings Date:Oct 14, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted successful acquisitions and strong performance in the U.S. market, but also noted challenges in Data Product sales and leadership issues in the EU. The company remains optimistic about future growth, driven by strategic initiatives and market expansions.
Q4-2024 Updates
Positive Updates
Revenue and Operating Profit Exceed Expectations
Reported revenue of GBP 335.3 million and adjusted operating profit of GBP 49.6 million, slightly ahead of revised guidance.
Successful Acquisitions
Completed acquisitions of CPS and KnowledgeHound, and briefly integrated Yabble, enhancing technological offerings.
Strong U.S. Market Performance
Achieved an 8% growth rate in the U.S., outperforming competitors in a challenging market.
Robust Balance Sheet
Maintained a leverage ratio of 1.7 and stable cash conversion rate of 93%.
High Client Retention in CPS
Achieved greater than 70% client retention over seven years for CPS, with no clients moving to competitors post-acquisition.
Negative Updates
Challenges in Data Product Sales
Faced challenges in winning new clients and maintaining sales momentum, leading to a slowdown.
Leadership Challenges in EU
Experienced leadership challenges in the EU, affecting growth, and actions are being taken to remedy this.
Slowdown in Asia Pacific
Encountered a slowdown in government spending with a key client in Asia Pacific.
Unaudited Financials
Issued unaudited financials due to auditors requesting more time, although no material changes are expected.
Company Guidance
During the call, YouGov provided guidance indicating that its revenue for the fiscal year 2024 was £335.3 million, with an adjusted operating profit of £49.6 million and earnings per share (EPS) at 29.4p. The company reported these figures as slightly ahead of revised guidance, despite facing challenges throughout the year. Notably, YouGov achieved an 8% growth rate in the U.S. market, outperforming its competitors. The company's balance sheet remains robust, with a leverage ratio of 1.7 following a €280 million financing to fund the acquisition of CPS. YouGov also announced a cost optimization plan aiming for annualized savings of £20 million, expecting 70% of these to be realized in FY '25. The guidance for FY '25 aligns with market expectations, focusing on long-term growth, innovation in AI, and expansion in priority markets like the U.S.

Yougov plc Corporate Events

Executive/Board ChangesBusiness Operations and Strategy
YouGov Issues New Shares to Non-Executive Directors
Neutral
Apr 30, 2025

YouGov plc has announced the issuance of 21,350 new ordinary shares as part of its remuneration policy, allowing Non-Executive Directors to receive a portion of their annual fee in shares instead of cash. This move reflects the company’s strategy to align the interests of its directors with those of shareholders, potentially enhancing stakeholder value. The new shares will be admitted to trading on AIM, increasing the total number of shares with voting rights to 117,851,085, which may impact shareholder calculations under regulatory rules.

Spark’s Take on GB:YOU Stock

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

The overall stock score for YouGov plc is 65, driven by strong financial performance and positive earnings call sentiment. The company shows robust revenue growth, although profitability and leverage require attention. The technical outlook is weak, with bearish trends in place. Valuation concerns are present due to a high P/E ratio, but the dividend yield offers some compensation. The company’s strategic initiatives and growth in the U.S. market are significant positives.

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

Regulatory Filings and Compliance
YouGov PLC Updates Share Capital Structure
Neutral
Apr 1, 2025

YouGov PLC announced that as of March 31, 2025, its issued share capital consisted of 117,829,735 ordinary shares, with 811,517 shares held by the YouGov Employee Benefit Trust for employee share schemes. This update allows shareholders to calculate their interests in accordance with the Financial Conduct Authority’s rules. This announcement reflects YouGov’s commitment to transparency and may impact shareholder decisions regarding their stakes in the company.

Executive/Board ChangesBusiness Operations and StrategyFinancial Disclosures
YouGov Reports Resilient H1 FY25 Performance Amid Strategic Shifts
Positive
Mar 31, 2025

YouGov reported a resilient performance for the first half of FY25, with a 34% revenue increase to £191.7 million, largely due to the inclusion of the CPS business. Despite challenges such as higher staff and data collection costs, the company maintained a stable balance sheet and continued to invest in growth areas like Data Products and AI capabilities. The company also implemented a cost optimization plan expected to save £20 million annually. Leadership changes were announced, with Stephan Shakespeare appointed as interim CEO, and the company remains focused on executing its SP3 vision to become the universal infrastructure for data sharing.

Executive/Board Changes
YouGov Announces Board Changes as Nick Prettejohn Steps Down
Neutral
Mar 31, 2025

YouGov plc announced the resignation of Nick Prettejohn from its Board of Directors and as Senior Independent Director, effective immediately, as he seeks to rebalance his responsibilities. Prettejohn, who joined the board in June 2022, has been a significant contributor to the company, serving on various committees. The company is currently searching for a new Non-Executive Director to fill the vacancy. This change in the board is not expected to impact YouGov’s position as a leading provider of insights and data, as the company continues to maintain its strong reputation in the industry.

Regulatory Filings and Compliance
YouGov PLC Announces Total Voting Rights Update
Neutral
Mar 3, 2025

YouGov PLC has announced its total voting rights as of 28 February 2025, with an issued share capital consisting of 117,829,735 ordinary shares. This announcement is crucial for shareholders to determine their notification requirements under the Financial Conduct Authority’s Disclosure and Transparency Rules. The company’s operations and market positioning remain strong, with no shares held in treasury, and a significant portion allocated to the YouGov Employee Benefit Trust for employee share schemes.

Business Operations and Strategy
YouGov PLC Shareholding Update: Increased Stake by Octopus Investments
Neutral
Feb 17, 2025

YouGov PLC has announced a change in its shareholder structure, with Octopus Investments Limited acquiring more voting rights, increasing from 5.98% to 6.06%. This change signifies a slight shift in control dynamics within the company, potentially impacting its strategic decisions and signaling confidence from investors in YouGov’s market position.

Business Operations and StrategyRegulatory Filings and Compliance
YouGov PLC Announces Change in Voting Rights
Neutral
Feb 4, 2025

YouGov PLC has announced a change in voting rights as Octopus Investments Limited has adjusted its stake, now holding 5.98% of the company’s voting rights. This adjustment reflects a slight decrease from a previous position of 6.00%, potentially impacting the company’s decision-making dynamics and shareholder influence.

Executive/Board ChangesBusiness Operations and StrategyFinancial Disclosures
YouGov Reports Stable Half-Year Performance and Leadership Change
Neutral
Feb 4, 2025

YouGov, an international data analytics group, reported stable performance for the half-year ending January 2025, with modest growth in both its Data Products and Research divisions. Despite challenges such as reduced government spending and ongoing weaknesses in the gaming sector, the company has seen growth in media agencies and academic sectors. The company is on track with its cost optimization plan, expecting significant savings in FY25. Notably, there has been a leadership change with Stephan Shakespeare stepping in as interim CEO. YouGov continues to invest in growth areas, particularly in Data Products and AI capabilities, anticipating further revenue growth despite challenging market conditions.

Executive/Board ChangesBusiness Operations and Strategy
YouGov Announces Leadership Changes Amid Strategic Transition
Neutral
Feb 4, 2025

YouGov announced a change in its leadership structure, with Steve Hatch stepping down as CEO and co-founder Stephan Shakespeare assuming the role on an interim basis. This transition is part of a strategic move to maintain continuity and focus on growth, while the Board seeks a permanent CEO. Deborah Davis is appointed as interim Chair of the Board to uphold corporate governance and strategic alignment, while planning to introduce a new independent Non-Executive Director is underway. These changes aim to ensure ongoing strategic execution and create lasting value for stakeholders.

Regulatory Filings and Compliance
YouGov Announces Share Capital Details and Transparency Measures
Neutral
Feb 3, 2025

YouGov PLC’s announcement details its issued share capital as of January 31, 2025, totaling 117,829,735 ordinary shares, with none held in treasury. The report also specifies that 1,010,126 shares are held by the YouGov Employee Benefit Trust for employee share schemes, affecting the denominator used by shareholders for interest calculations under the Financial Conduct Authority’s rules. This update reflects YouGov’s transparency in its shareholding structure, which is crucial for maintaining trust among investors and stakeholders, particularly in the competitive market research industry.

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.