Caffyns (78GL) AI Stock Analysis

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Caffyns

(LSE:78GL)

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Rating:44Neutral

Price Target:GBX 95.00▼(-3.06% Downside)

Action:initiatedcoverage

Date:10/16/25

Caffyns' overall score is driven by strained financial performance—weak profitability, high debt, and negative cash flows pose major risks. Technical indicators reinforce caution, pointing to overbought conditions despite a slight uptrend. Valuation appears superficially attractive due to a very high dividend yield, but missing P/E data and payout sustainability concerns limit confidence. The most significant risk is persistent weak financial health, which substantially outweighs modest technical or yield positives.

Positive Factors

Revenue growth trendSustained revenue growth across 2023–2025 indicates the core sales platform and market demand remain intact. This provides a foundation for margin recovery if cost control or mix improves, and supports longer-term recovery versus one-off revenue spikes.

Negative Factors

Elevated leverageDebt materially above equity reduces financial flexibility and raises refinancing and interest risks. With thin profits, higher leverage constrains investment, limits ability to absorb shocks, and increases vulnerability if earnings or cash flow remain pressured.

Caffyns (78GL) vs. iShares MSCI United Kingdom ETF (EWC)

Market Cap: GBP 2.67M
Dividend Yield: 714.29%
Average Volume (3M): ―
Price to Earnings (P/E): 15.2
Beta (1Y): 0.04
Revenue Growth: ―
EPS Growth: ―
Country: UK
Employees: 414
Sector: General
Sector Strength: 55
Industry: Auto - Dealerships

Caffyns Business Overview & Revenue Model

Company Description

Caffyns PLC functions as an automotive retailer, specializing in the sale of both brand-new and pre-owned vehicles. Its operations extend beyond merely selling cars to providing comprehensive maintenance services and supplying associated automotive p...

How the Company Makes Money

Caffyns generates revenue primarily through the sale of new and used vehicles, acting as an authorized dealer for several automotive brands. The company also earns income from its aftersales services, which include servicing, repairs, and the sale of...

Caffyns Financial Statement Overview

Summary

Caffyns demonstrates modest revenue growth but faces weak and volatile profitability, high financial leverage, and significant liquidity risk due to negative operating cash flow. The balance sheet shows adequate asset backing but ongoing risk from sustained borrowing.

Income Statement

44Neutral

Balance Sheet

52Neutral

Cash Flow

28Negative

Financial statement breakdown
Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	262.08M	275.46M	262.08M	251.43M	223.93M	165.09M
Gross Profit	31.70M	34.69M	31.70M	33.58M	31.95M	22.78M
EBITDA	3.06M	5.11M	3.06M	6.75M	7.32M	4.48M
Net Income	-1.20M	176.00K	-1.20M	2.52M	3.00M	1.41M
Balance Sheet
Total Assets	99.54M	101.71M	99.54M	100.03M	84.49M	94.82M
Cash, Cash Equivalents and Short-Term Investments	438.00K	3.76M	438.00K	4.23M	2.76M	5.74M
Total Debt	34.99M	37.09M	34.99M	32.77M	26.41M	38.44M
Total Liabilities	70.81M	71.79M	70.81M	68.37M	49.76M	67.23M
Stockholders Equity	28.74M	29.92M	28.74M	31.66M	34.73M	27.59M
Cash Flow
Free Cash Flow	-2.46M	-1.37M	-2.46M	3.33M	553.00K	6.33M
Operating Cash Flow	119.00K	-303.00K	119.00K	4.24M	3.39M	6.72M
Investing Cash Flow	-2.33M	3.83M	-2.33M	-716.00K	-2.65M	-209.00K
Financing Cash Flow	-1.57M	-208.00K	-1.57M	-2.05M	-3.71M	-2.26M

Caffyns Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

GB:78GL against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
GB:INCH	70Outperform	GBP 2.16B	10.02	19.59%	5.16%	7.27%	-39.82%
GB:VTU	58Neutral	GBP 259.34M	14.53	5.00%	2.39%	2.90%	15.43%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
GB:MOTR	53Neutral	GBP 116.23M	15.70	29.00%	1.50%	3.97%	92.37%
GB:78GL	44Neutral	GBP 12.95M	15.19	0.60%	714.29%	―	―

* General Sector Average

Performance Comparison

GB:78GL and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
GB:78GL	Caffyns plc	98.00	0.00	0.00%
GB:INCH	Inchcape Plc (UK)	651.00	-55.86	-7.90%
GB:MOTR	Motorpoint Group plc	146.50	8.89	6.46%
GB:VTU	Vertu Motors	85.90	24.26	39.35%

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

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.

Date of analysis: Mar 24, 2026

Caffyns AI Stock Analysis