Yu Group PLC (YU) AI Stock Analysis

• Market Cap: £283.18M
• Dividend Yield: 4.14%
• Average Volume (3M): 20.89K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.36
• Revenue Growth: 16.62%
• EPS Growth: -7.97%
• Country: UK
• Employees: 472
• Sector: Utilities
• Sector Strength: 65
• Industry: Diversified Utilities
• EPS (TTM): 1.15
• Shares Outstanding: 16,906,073
• 10 Day Avg. Volume: 10,340
• 30 Day Avg. Volume: 20,887
• PEG Ratio: 0.00
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 2.2
• Revenue Forecast (FY): £843.06M

• Rating: 73 Outperform
• Price Target: 1,918.00 p ▲(21.39% Upside)
• Action: Reiterated Date: 03/23/26
• Date: Action: Reiterated 03/23/26

The score is driven primarily by solid financial performance (strong growth, improved profitability, and low leverage), supported by favorable valuation (low P/E and a healthy dividend yield). The main offset is a mixed technical picture with weak near-term momentum and negative MACD.

Positive Factors

Multi-year revenue growth & improved profitability

Yu Group has moved from losses/weak earnings in 2020–2022 to sustained profitability and accelerating revenue by 2025. Durable top-line expansion and restored margins indicate successful scaling of the core supply business and should support steady earnings over the next 2–6 months.

Conservative balance sheet / low leverage

Low debt levels and meaningful equity/asset growth give Yu financial flexibility to withstand wholesale price swings and fund growth initiatives. Conservative financing reduces refinancing risk and supports capital allocation for contracts, working capital and selective service expansion.

Contracted B2B supply model and services

A B2B contractual supply model creates recurring, invoice-backed revenue and client stickiness. Complementary energy services increase customer relationships and cross-sell potential, supporting durable revenue streams and margin retention versus pure commodity sellers.

Negative Factors

Margin compression since 2023 peak

Eroding gross and net margins since 2023 imply a tougher pricing or cost environment for the supply business. If competitive or wholesale pressures persist, margin recovery may be limited, constraining long-run profitability despite higher revenues.

Volatile cash generation / weaker 2025 cash conversion

Material swings in operating and free cash flow, including a 15% FCF decline in 2025 and weaker cash conversion, signal working-capital and timing risk. That volatility can strain liquidity and limit reinvestment or dividend flexibility during stress periods.

Leverage rising from very low levels; returns may normalize

An uptick in leverage from historically minimal levels reduces the previous margin of safety and could amplify earnings volatility. Exceptionally high recent equity returns may revert, exposing investors to normalization risk if growth or margins decelerate.

Yu Group PLC Business Overview & Revenue Model

Company Description

Yü Group PLC, through its subsidiaries, supplies energy and utility solutions primarily in the United Kingdom. The company operates through Retail, Smart, and Metering Assets segments. It supplies electricity, gas, and water. The company also provides engineering and related services for the installation and maintenance of smart and other meters; owns and rents smart metering assets; owns properties; electric vehicle charge points; gas shipping services; and supplies green electricity and carbon neutral gas. It serves micro, small, and medium-sized enterprises; industrial and commercial companies; third party intermediaries; and other partners. The company was formerly known as Yoda Newco 1 Limited and changed its name to Yü Group PLC in February 2016. Yü Group PLC was incorporated in 2016 and is based in Nottingham, the United Kingdom.

How the Company Makes Money

YU makes money primarily by supplying energy (electricity and gas) to business customers under contracted arrangements. Revenue is generated from selling units of energy to customers and billing them for consumption (and/or contracted volumes) at agreed tariff rates; the company’s gross profit is driven by the margin between the price it charges customers and the cost it pays to procure energy in wholesale markets, adjusted for the costs of operating as a licensed supplier (e.g., balancing, network and industry charges, customer service, credit risk and compliance). In addition to commodity supply, YU also earns revenue from ancillary energy-related services offered to business customers; however, a detailed breakdown of service lines, materiality, or specific third-party partnerships cannot be confirmed from the information available here and is therefore null.

Yu Group PLC Financial Statement Overview

Summary

Strong multi-year revenue growth and improved profitability versus 2020–2022, supported by a low-leverage balance sheet. Offsets include margin compression since the 2023 peak and notably volatile operating/free cash flow, including weaker cash conversion in 2025 versus 2024.

Income Statement

Yu Group has delivered strong top-line expansion over the period, with revenue rising from 2020 to 2025 and accelerating again in 2025. Profitability has improved materially versus 2020–2022 (moving from losses/low earnings to solid profitability), and 2024–2025 show steady net margins around ~5%. The main drawback is margin compression versus the 2023 peak (gross and net margins have trended lower since 2023), suggesting a tougher pricing/cost backdrop even as earnings remain healthy.

Balance Sheet

The balance sheet looks conservatively financed, with low leverage throughout the period (debt-to-equity staying around ~0.01–0.11). Equity and total assets have grown meaningfully over time, supporting a stronger capital base as the business scaled. A watch item is that leverage has increased from very low levels in earlier years, and equity returns were exceptionally high in 2023–2024 (which can be volatile and may normalize), but overall financial risk appears well contained.

Cash Flow

Cash generation is positive in most years, and free cash flow has generally tracked net income well (free cash flow running at roughly ~80–99% of net income in 2022–2025). However, cash flow has been noticeably volatile: operating and free cash flow were negative in 2021, surged in 2024, and then declined in 2025 (with free cash flow down ~15% year over year). The 2025 cash conversion also looks weaker than 2024, indicating working-capital or timing swings that can pressure near-term cash consistency.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	673.82M	700.40M	645.46M	460.00M	278.59M	155.42M
Gross Profit	97.27M	100.10M	93.89M	83.04M	44.13M	15.24M
EBITDA	44.85M	52.20M	47.66M	38.48M	6.47M	4.73M
Net Income	35.34M	35.90M	33.50M	30.86M	4.77M	4.45M
Balance Sheet
Total Assets	245.41M	274.90M	214.47M	176.29M	88.86M	59.57M
Cash, Cash Equivalents and Short-Term Investments	118.23M	105.90M	85.20M	32.48M	18.97M	7.05M
Total Debt	9.47M	11.20M	6.77M	1.99M	160.00K	267.00K
Total Liabilities	164.45M	177.10M	144.15M	129.50M	74.07M	50.28M
Stockholders Equity	80.96M	97.80M	70.32M	46.80M	14.80M	9.29M
Cash Flow
Free Cash Flow	35.13M	29.70M	62.38M	14.63M	14.52M	-3.40M
Operating Cash Flow	43.45M	36.30M	72.08M	16.13M	14.74M	-774.00K
Investing Cash Flow	-8.98M	-8.80M	-9.69M	-1.50M	-2.64M	-3.71M
Financing Cash Flow	-5.66M	-6.80M	-9.66M	-1.12M	-175.00K	-209.00K

Yu Group PLC Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 1580.00
• 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:YU, the sentiment is Neutral. The current price of 1580 is below the 20-day moving average (MA) of 1736.50, below the 50-day MA of 1758.30, and below the 200-day MA of 1598.92, indicating a neutral trend. The MACD of -17.78 indicates Positive momentum. The RSI at 46.29 is Neutral, neither overbought nor oversold. The STOCH value of 71.30 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for GB:YU.

Yu Group PLC Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SSE	74 Outperform	£30.09B	16.49	7.09%	2.98%	1.78%	-50.72%
YU	73 Outperform	£283.18M	―	46.72%	4.14%	16.62%	-7.97%
JEL	70 Outperform	£131.75M	12.63	4.35%	4.38%	7.70%	-5.33%
Sector *	66 Neutral	$17.65B	18.10	5.60%	3.62%	6.62%	11.55%
TEP	63 Neutral	£1.01B	21.07	27.40%	7.01%	1.71%	-12.49%
CNA	59 Neutral	£8.88B	-112.68	1.68%	2.86%	-4.82%	-123.58%