Caffyns (79GL) AI Stock Analysis

Caffyns

(LSE:79GL)

Select Model

Rating:43Neutral

Price Target:GBX 124.00▼(-3.88% Downside)

Action:reiterated

Date:10/01/26

The overall score is primarily constrained by deteriorating earnings, margin compression, higher leverage, and fragile cash generation, which together materially increase risk. Technicals add further caution, as the price looks stretched with very overbought momentum indicators, raising the probability of a pullback. Valuation provides some offset via a high dividend yield, but the combination of negative earnings and cash-flow volatility limits confidence that this income level is sustainable.

Positive Factors

Diversified dealership revenue with recurring aftersalesThe combination of vehicle retailing and aftersales services gives Caffyns multiple revenue streams, with servicing and repairs providing potentially steadier income than vehicle sales. This mix can support customer retention and reduce reliance on one part of the dealership cycle.

Negative Factors

Sharp revenue decline and compressed profitabilityThe sharp revenue contraction and very thin operating margins leave little cushion if demand or pricing weakens further. Negative net profitability also reduces retained earnings and limits the company’s ability to fund growth or absorb another period of lower dealership throughput.

Caffyns (79GL) vs. iShares MSCI United Kingdom ETF (EWC)

Market Cap: GBP 13.58M
Dividend Yield: 8.80%
Average Volume (3M): 2,600
Price to Earnings (P/E): -2.7
Beta (1Y): -0.10
Revenue Growth: ―
EPS Growth: ―
Country: UK
Employees: 439
Sector: General
Sector Strength: 55
Industry: Auto - Dealerships

Caffyns Business Overview & Revenue Model

Company Description

Caffyns PLC operates primarily in the automotive sector, specializing in the retail of both new and pre-owned vehicles. Beyond sales, the company delivers extensive motor vehicle maintenance services and supplies a variety of related products, includ...

How the Company Makes Money

Caffyns makes money primarily through its dealership operations across three main revenue streams. (1) New vehicle sales: it earns revenue from selling new cars, with gross profit typically driven by the margin between the purchase cost from manufact...

Caffyns Financial Statement Overview

Summary

Financial performance is weak, with a sharp revenue decline in 2026, a swing from profit to loss, compressing margins, rising leverage, and increasingly fragile cash generation, leaving the business in a vulnerable phase despite a solid historical franchise and asset base.

Income Statement

34Negative

Balance Sheet

42Neutral

Cash Flow

29Negative

Financial statement breakdown
Breakdown	TTM	Mar 2026	Mar 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	270.66M	270.66M	275.46M	262.08M	251.43M	223.93M
Gross Profit	31.63M	31.63M	34.69M	28.99M	33.58M	31.95M
EBITDA	3.21M	3.01M	5.11M	3.25M	6.92M	7.32M
Net Income	-1.29M	-1.29M	176.00K	-1.20M	2.52M	3.00M
Balance Sheet
Total Assets	108.83M	108.83M	101.71M	99.54M	100.03M	84.49M
Cash, Cash Equivalents and Short-Term Investments	4.61M	4.61M	3.76M	438.00K	4.23M	2.76M
Total Debt	14.63M	44.62M	37.09M	35.80M	33.58M	26.41M
Total Liabilities	78.96M	78.96M	71.79M	70.81M	68.37M	49.76M
Stockholders Equity	29.87M	29.87M	29.92M	28.74M	31.66M	34.73M
Cash Flow
Free Cash Flow	1.71M	1.71M	-1.37M	-2.46M	3.33M	553.00K
Operating Cash Flow	2.53M	2.53M	-303.00K	119.00K	4.24M	3.39M
Investing Cash Flow	-567.00K	-567.00K	3.83M	-2.33M	-716.00K	-2.65M
Financing Cash Flow	-1.12M	-1.12M	-208.00K	-1.57M	-2.05M	-3.71M

Caffyns Technical Analysis

Technical Analysis SentimentPositive

Last Price129.00

Price Trends

50DMA128.67Positive

100DMA123.74Positive

200DMA121.17Positive

Market Momentum

MACD0.26Positive

RSI91.92Negative

STOCH-0.00Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:79GL, the sentiment is Positive. The current price of 129.00 is above the 20-day moving average (MA) of 129.00, above the 50-day MA of 128.67, and above the 200-day MA of 121.17, indicating a bullish trend. The MACD of 0.26 indicates Positive momentum. The RSI at 91.92 is Negative, neither overbought nor oversold. The STOCH value of -0.00 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:79GL.

Caffyns Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

GB:79GL against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
GB:INCH	70Outperform	GBP 2.10B	9.79	19.59%	5.28%	7.27%	-39.82%
GB:VTU	67Neutral	GBP 269.60M	15.03	5.00%	2.31%	2.90%	15.43%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
GB:MOTR	53Neutral	GBP 114.24M	21.95	22.27%	1.51%	8.14%	81.96%
GB:79GL	43Neutral	GBP 12.95M	-2.66	-4.30%	8.80%	―	―

* General Sector Average

Performance Comparison

GB:79GL and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
GB:79GL	Caffyns (79GL)	129.00	14.59	12.76%
GB:INCH	Inchcape Plc (UK)	636.50	-81.40	-11.34%
GB:MOTR	Motorpoint Group plc	146.00	-7.34	-4.78%
GB:VTU	Vertu Motors	88.80	28.42	47.07%

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: Oct 01, 2026

Caffyns AI Stock Analysis