ZIGUP plc (ZIG) AI Stock Analysis

• Market Cap: £888.94M
• Dividend Yield: 6.97%
• Average Volume (3M): 467.40K
• Price to Earnings (P/E): 10.4
• Beta (1Y): 1.09
• Revenue Growth: 0.72%
• EPS Growth: -9.51%
• Country: UK
• Employees: 7,500
• Sector: Industrials
• Sector Strength: 72
• Industry: Rental & Leasing Services
• EPS (TTM): 0.28
• Shares Outstanding: 228,838,460
• 10 Day Avg. Volume: 476,181
• 30 Day Avg. Volume: 467,404
• PEG Ratio: -0.25
• Price to Book (P/B): 0.66
• Price to Sales (P/S): 0.39
• P/FCF Ratio: 311.75
• 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): 0.52
• Revenue Forecast (FY): £1.87B

• Rating: 68 Neutral
• Price Target: 430.00p ▲(5.13% Upside)
• Action: Reiterated Date: 12/07/25
• Date: Action: Reiterated 12/07/25

ZIGUP plc's overall stock score is driven by strong technical indicators and positive corporate events, suggesting potential for growth. However, financial performance challenges, including declining revenue and weak cash flow, weigh down the score. The attractive valuation with a low P/E ratio and high dividend yield provides some support.

Positive Factors

Diversified rental & service model

ZIGUP's combined vehicle rental, fleet solutions and replacement mobility offering creates multiple, related revenue streams and recurring service relationships. This diversification supports steady demand across business and consumer segments and enables cross-selling, reducing reliance on any single market over months.

Manageable leverage and stable capital structure

A debt-to-equity around 0.82 and a stable equity ratio indicate the group is not overlevered, preserving financial flexibility. Over a multi-month horizon this supports capacity to fund fleet renewal, absorb revenue volatility, and access financing without immediate distress, aiding operational continuity.

Active strategic transformation and value plans

Management's announced transformation and value-creation initiatives represent structural actions to improve operations, drive efficiencies and retain key personnel. If executed, these measures can raise margins and operational resilience over the medium term, altering the company's trajectory beyond short-term cycles.

Negative Factors

Sharp revenue decline

A ~70% year decline in reported revenue reflects substantial business stress that undermines scale economics. Over 2-6 months this weakens pricing leverage and contract negotiating power, pressures fixed-cost coverage in a capital-intensive rental model, and makes margin recovery more difficult without strategic reversal.

Weak cash generation and conversion

A collapse in free cash flow and poor cash conversion limit the company's ability to fund capex, renew fleets, service debt or return capital. Structurally weak cash generation increases reliance on external financing or asset sales and reduces resilience to shocks, constraining strategic options over months.

Declining profitability and ROE

Falling margins and ROE point to deteriorating operational efficiency and lower returns on invested capital. Over the medium term this depresses internal capital generation, reduces ability to reinvest profitably, and may force harder strategic choices to restore competitiveness and shareholder returns.

ZIGUP plc Business Overview & Revenue Model

Company Description

Zigup Plc provides mobility solutions and automotive services in the United Kingdom, Spain, and Ireland. The company offers contact center support, sales, claim processing, customer service, and general insurance products; provides fleet management, rapid response, and recovery management services; and supplies and installs electric vehicle charging equipment. In addition, it provides personal injury law and legal advice services; light commercial vehicle hire services; used vans and cars for business, and private individuals; and automotive crash repair and accident administration services. Further, the company operates a fleet of approximately 130,000 owned and leased vehicles, and approximately 700,000 managed vehicles. The company was formerly known as Redde Northgate plc and changed its name to Zigup Plc in May 2024. Zigup Plc was incorporated in 1897 and is headquartered in Darlington, the United Kingdom.

How the Company Makes Money

ZIGUP plc generates revenue primarily through a subscription-based model for its software services, providing clients with ongoing access to its platforms and continuous updates. Key revenue streams include licensing fees from software products, consulting services for implementation and customization, and maintenance contracts that ensure the software operates seamlessly over time. Additionally, ZIG has established strategic partnerships with major corporations in various industries, allowing it to expand its market reach and increase its sales through co-branded solutions and cross-promotional opportunities. The company also benefits from a growing demand for digital transformation, which drives higher adoption rates of its services.

ZIGUP plc Financial Statement Overview

Summary

ZIGUP plc faces challenges across its financial statements, with declining revenue and profitability, moderate leverage, and weak cash flow generation. The company needs to address its revenue growth and profitability issues while managing its cash flow more effectively to improve its financial health.

Income Statement

ZIGUP plc's income statement shows a declining revenue growth rate, with a significant drop of 70.3% in the latest year. Gross profit margin has decreased slightly from previous years, and net profit margin has also declined, indicating reduced profitability. The EBIT and EBITDA margins have also decreased, reflecting operational challenges. Overall, the income statement suggests a need for strategic improvements to reverse the negative growth trend.

Balance Sheet

The balance sheet of ZIGUP plc shows a moderate debt-to-equity ratio of 0.82, indicating manageable leverage. However, the return on equity has decreased to 7.51%, suggesting reduced efficiency in generating returns from equity. The equity ratio remains stable, indicating a solid capital structure. While the company maintains a stable balance sheet, the declining ROE is a concern for future profitability.

Cash Flow

ZIGUP plc's cash flow statement reveals a concerning decline in free cash flow growth, with a significant drop of over 100%. The operating cash flow to net income ratio is low, indicating challenges in converting income into cash. The free cash flow to net income ratio is positive but low, suggesting limited cash generation relative to net income. Overall, the cash flow position is weak, highlighting potential liquidity issues.

Breakdown	TTM	Apr 2024	Apr 2023	Apr 2022	Apr 2021	Apr 2020
Income Statement
Total Revenue	1.84B	1.81B	1.83B	1.49B	1.24B	1.11B
Gross Profit	395.68M	397.90M	414.33M	415.37M	326.43M	233.03M
EBITDA	464.91M	443.49M	445.06M	396.09M	365.28M	294.08M
Net Income	86.01M	79.84M	125.02M	139.24M	101.55M	65.57M
Balance Sheet
Total Assets	2.50B	2.34B	2.23B	2.11B	1.85B	1.72B
Cash, Cash Equivalents and Short-Term Investments	39.58M	33.74M	39.80M	14.12M	24.56M	11.17M
Total Debt	978.83M	869.93M	782.03M	708.56M	607.11M	541.51M
Total Liabilities	1.42B	1.27B	1.18B	1.11B	900.15M	807.06M
Stockholders Equity	1.08B	1.06B	1.04B	994.60M	946.76M	908.13M
Cash Flow
Free Cash Flow	-229.49M	2.25M	-192.90M	-49.97M	-50.77M	-59.84M
Operating Cash Flow	460.27M	16.45M	378.41M	357.34M	295.91M	252.99M
Investing Cash Flow	-466.93M	-11.27M	-285.95M	-288.23M	-215.70M	-94.82M
Financing Cash Flow	11.44M	-2.63M	-110.20M	-72.99M	-71.41M	-167.85M

ZIGUP plc Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 409.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:ZIG, the sentiment is Neutral. The current price of 409 is above the 20-day moving average (MA) of 396.07, above the 50-day MA of 386.56, and above the 200-day MA of 341.11, indicating a neutral trend. The MACD of 5.76 indicates Negative momentum. The RSI at 49.57 is Neutral, neither overbought nor oversold. The STOCH value of 64.05 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for GB:ZIG.

ZIGUP plc Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
GEN	71 Outperform	£903.81M	18.26	7.68%	3.19%	5.88%	107.36%
ZIG	68 Neutral	£888.94M	10.39	8.10%	6.97%	0.72%	-9.51%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
DATA	56 Neutral	£545.02M	17.51	3.76%	1.19%	9.25%	-51.82%
SDY	56 Neutral	£110.45M	-9.46	-7.62%	8.43%	0.38%	-273.53%
67GX	50 Neutral	£888.94M	―	―	714.29%	―	―
PRO	42 Neutral	£57.50M	―	―	―	―	―

ZIGUP plc Corporate Events

ZIGUP plc Awards Shares to Employees Under Incentive Plan

ZIGUP plc has announced the awarding of 127 ordinary shares to over 7,500 eligible employees, including Executive Directors and PDMRs, under the Company’s Share Incentive Plan. This move, effective from December 5, 2025, is part of a strategy to align the interests of its management and employees with the company’s long-term goals, potentially enhancing employee engagement and retention.

The most recent analyst rating on (GB:ZIG) stock is a Hold with a £430.00 price target. To see the full list of analyst forecasts on ZIGUP plc stock, see the GB:ZIG Stock Forecast page.