ZIGUP plc (ZIG) AI Stock Analysis

• Market Cap: £900.24M
• Dividend Yield: 6.97%
• Average Volume (3M): 467.40K
• Price to Earnings (P/E): 4.0
• Beta (1Y): 1.05
• 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: 430.00 p ▲(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 mobility business

ZIGUP's portfolio of fleet solutions, replacement mobility and related services supports recurring contract revenue and multiple B2B/B2C end markets. That diversification helps stabilize demand across economic cycles and enables cross-selling of services, supporting steadier revenue streams over months.

Manageable leverage and capital structure

A debt-to-equity of ~0.82 and a stable equity ratio indicate the company maintains moderate leverage. This balance sheet structure preserves financial flexibility to fund fleet capex and working capital needs, reduces short-term solvency risk, and supports investment capacity during a multi-month strategic recovery.

Strategic transformation initiatives

Management's strategic transformation and value-creation plans signal a structural attempt to improve operations and governance. If executed, these initiatives can lift revenue mix, tighten cost control, and align incentives, producing durable improvements in margins and growth over a 2–6 month horizon and beyond.

Negative Factors

Weak cash generation

A severe decline in free cash flow and weak conversion of income into cash constrains the company's ability to fund fleet renewal, capex and working capital internally. This creates ongoing liquidity pressure, increases reliance on external financing, and limits strategic flexibility for several months.

Declining revenue and margins

A pronounced revenue decline and shrinking gross and net margins point to structural demand, pricing or utilization challenges. Persistent top-line shrinkage erodes operating leverage and profitability, making margin recovery and sustainable growth harder without meaningful operational or market-share improvements.

Reduced return on equity

A falling ROE to 7.51% signals the business is generating lower returns on shareholder capital, reflecting weaker profitability or suboptimal asset deployment. Sustained low ROE can limit reinvestment capacity and raise pressure on management to improve capital allocation or restructure operations over the medium term.

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: Positive
• Last Price: 409.00
• 50DMA: Positive
• 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:ZIG, the sentiment is Positive. The current price of 409 is above the 20-day moving average (MA) of 398.92, above the 50-day MA of 389.17, and above the 200-day MA of 344.00, indicating a neutral trend. The MACD of 2.51 indicates Positive momentum. The RSI at 53.08 is Neutral, neither overbought nor oversold. The STOCH value of 60.87 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:ZIG.

ZIGUP plc Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ZIG	68 Neutral	£900.24M	4.00	8.01%	6.97%	0.72%	-9.51%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
GEN	60 Neutral	£754.43M	18.00	7.59%	3.19%	5.88%	107.36%
DATA	56 Neutral	£490.10M	24.99	9.94%	1.19%	9.25%	-51.82%
SDY	56 Neutral	£102.17M	-2.27	-7.68%	8.43%	0.38%	-273.53%
67GX	50 Neutral	£900.24M	―	―	714.29%	―	―
PRO	42 Neutral	£55.90M	-1.79	-89.16%	―	―	―