Bakkavor Group plc (BAKK) AI Stock Analysis

• Market Cap: £1.26B
• Dividend Yield: 2.72%
• Average Volume (3M): 670.87K
• Price to Earnings (P/E): 34.2
• Beta (1Y): 0.33
• Revenue Growth: 0.59%
• EPS Growth: -41.66%
• Country: UK
• Employees: 18,000
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Packaged Foods
• EPS (TTM): 0.06
• Shares Outstanding: 579,425,600
• 10 Day Avg. Volume: 1,355,207
• 30 Day Avg. Volume: 670,874
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: £231.33
• Price Target Upside: 5.39% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 3

• Rating: 63 Neutral
• Price Target: 234.00p ▲(6.61% Upside)

Bakkavor Group plc's overall stock score is primarily driven by its stable financial performance, which provides a strong foundation for future growth. However, the technical analysis indicates bearish momentum, and the valuation suggests the stock may be overvalued, which tempers the overall score.

Bakkavor Group plc Business Overview & Revenue Model

Company Description

Bakkavor Group plc, together with its subsidiaries, prepares and markets fresh prepared foods in the United Kingdom, the United States, and China. It offers meals, pizzas and breads, desserts, salads, soups and sauces, dips, food-to-go products, fresh cut salads, sandwiches and wraps, and bakery products. The company is also involved in the marketing and distribution of fresh produce; management of properties; manufacture and sale of custom and private label savory and bakery products; and customer invoicing and financing of receivables. It primarily sells its products through high-street supermarkets. The company was formerly known as Diamond Newco plc and changed its name to Bakkavor Group plc in October 2017. Bakkavor Group plc was founded in 1986 and is headquartered in London, the United Kingdom.

How the Company Makes Money

Bakkavor generates revenue primarily through the sale of its fresh prepared food products to supermarkets and food service companies. The company's revenue model is based on long-term contracts with major retailers, which provide a stable income stream. Key revenue streams include ready meals, salads, and desserts, which are produced in various facilities across the UK, the US, and other international markets. Additionally, Bakkavor's partnerships with leading grocery chains allow it to leverage their distribution networks, enhancing its market reach. Factors contributing to its earnings include operational efficiency in production, strong supply chain relationships, and the ability to respond quickly to market trends, which are essential for maintaining competitiveness in the fast-paced food industry.

Bakkavor Group plc Financial Statement Overview

Summary

Bakkavor Group plc demonstrates strong revenue growth and effective cost management with a gross profit margin of 27.71%. The company maintains stable operating performance with an EBIT margin of 4.08% and an EBITDA margin of 7.14%. While free cash flow growth has slowed, the company shows strong cash generation relative to earnings, indicating good financial health.

Income Statement

Bakkavor Group plc demonstrates strong revenue growth of 4.03% from 2023 to 2024, driven by consistent increases in total revenue over the years. The gross profit margin for 2024 is 27.71%, indicating effective cost management. The net profit margin improved slightly to 2.43%, showing moderate profitability. The EBIT margin is at 4.08%, while the EBITDA margin is at 7.14%, both reflecting stable operating performance.

Balance Sheet

The company's debt-to-equity ratio is 0.50, indicating a balanced leverage position. The return on equity (ROE) for 2024 is 9.04%, showcasing a reasonable return for shareholders. The equity ratio stands at 41.10%, suggesting a solid capital structure with a healthy proportion of equity.

Cash Flow

Bakkavor's free cash flow decreased slightly to 94 million in 2024 from 103.8 million in 2023, resulting in a negative free cash flow growth rate. However, the operating cash flow to net income ratio of 2.70 and free cash flow to net income ratio of 1.69 indicate strong cash generation relative to earnings.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.29B	2.20B	2.14B	1.87B	1.79B
Gross Profit	635.30M	589.40M	493.70M	475.00M	447.50M
EBITDA	163.80M	168.50M	106.90M	163.70M	131.60M
Net Income	55.70M	53.90M	12.50M	56.80M	34.10M
Balance Sheet
Total Assets	1.50B	1.48B	1.54B	1.50B	1.45B
Cash, Cash Equivalents and Short-Term Investments	29.90M	36.60M	40.20M	31.10M	24.80M
Total Debt	306.60M	355.90M	419.10M	405.00M	434.30M
Total Liabilities	882.50M	872.70M	923.60M	862.80M	851.10M
Stockholders Equity	616.10M	607.60M	617.80M	640.70M	598.10M
Cash Flow
Free Cash Flow	94.00M	103.80M	63.30M	84.90M	32.20M
Operating Cash Flow	150.30M	147.70M	127.30M	144.70M	88.60M
Investing Cash Flow	-50.50M	-39.10M	-63.90M	-55.60M	-56.30M
Financing Cash Flow	-106.50M	-113.30M	-55.40M	-83.00M	-33.20M

Bakkavor Group plc Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 219.50
• 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:BAKK, the sentiment is Neutral. The current price of 219.5 is below the 20-day moving average (MA) of 225.02, below the 50-day MA of 229.46, and above the 200-day MA of 183.66, indicating a neutral trend. The MACD of -3.36 indicates Positive momentum. The RSI at 43.10 is Neutral, neither overbought nor oversold. The STOCH value of 42.16 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for GB:BAKK.

Bakkavor Group plc Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PFD	72 Outperform	1.66B	13.47	8.66%	1.46%	1.01%	11.12%
CWK	71 Outperform	2.68B	19.99	13.59%	2.02%	4.77%	18.94%
TATE	67 Neutral	2.21B	35.27	8.99%	3.96%	5.40%	-67.46%
HFG	66 Neutral	586.12M	14.97	12.82%	5.28%	8.58%	-15.81%
GNC	64 Neutral	1.04B	19.78	10.28%	0.83%	0.49%	14.18%
BAKK	63 Neutral	£1.26B	34.16	5.88%	2.72%	0.59%	-41.66%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%

Bakkavor Group plc Corporate Events

Bakkavor Director Receives Significant Share Distribution

Bakkavor Group plc announced that Lydur Gudmundsson, a Director and Person Discharging Managerial Responsibility, received a distribution of 3,240,741 ordinary shares in the company from Umbriel Ventures Ltd for nil consideration. This transaction, conducted for personal estate planning, reflects internal shareholding adjustments and does not involve a trading venue, potentially impacting the company’s shareholding structure and stakeholder interests.

The most recent analyst rating on (GB:BAKK) stock is a Hold with a £120.00 price target. To see the full list of analyst forecasts on Bakkavor Group plc stock, see the GB:BAKK Stock Forecast page.

Bakkavor Group Announces Share Distribution to Director

Bakkavor Group plc announced a transaction involving the distribution of 3,240,741 ordinary shares from Umbriel Ventures Ltd to Lydur Gudmundsson, a director of the company, for personal estate planning. This transaction, conducted outside a trading venue, aligns with regulatory requirements and reflects internal shareholding adjustments, potentially impacting stakeholder perceptions and company governance.

The most recent analyst rating on (GB:BAKK) stock is a Hold with a £120.00 price target. To see the full list of analyst forecasts on Bakkavor Group plc stock, see the GB:BAKK Stock Forecast page.

Bakkavor Group Exits China with £50m Sale

Bakkavor Group plc has completed the sale of its China operations to Lihe Xing (Qingdoa) Food Technology Co. Ltd., marking the company’s exit from the region. The transaction, valued at approximately £50 million, is expected to yield a net profit of around £18 million. This strategic move allows Bakkavor to focus on its core markets and supports its medium-term margin target of 6%, enhancing its operational focus and financial leverage.

The most recent analyst rating on (GB:BAKK) stock is a Buy with a £2.00 price target. To see the full list of analyst forecasts on Bakkavor Group plc stock, see the GB:BAKK Stock Forecast page.

Bakkavor Shareholders Approve Acquisition by Greencore

Bakkavor Group plc has announced that its shareholders have voted in favor of a proposed acquisition by Greencore Group plc, which will be executed through a Court-sanctioned scheme of arrangement. The approval from both Bakkavor and Greencore shareholders marks a significant step forward in the transaction, which is expected to be finalized in early 2026, pending court approval. This acquisition is anticipated to enhance the market positioning of both companies in the fresh prepared foods sector, potentially benefiting stakeholders through expanded market reach and operational synergies.

The most recent analyst rating on (GB:BAKK) stock is a Hold with a £120.00 price target. To see the full list of analyst forecasts on Bakkavor Group plc stock, see the GB:BAKK Stock Forecast page.

Bakkavor Group to be Acquired by Greencore Group

Bakkavor Group plc has announced the publication of the Scheme Document regarding its acquisition by Greencore Group plc, which will be executed through a Court-approved scheme of arrangement. The transaction, which involves a cash and share offer for Bakkavor’s entire issued share capital, is recommended by Bakkavor’s board as being in the best interest of its shareholders. The Scheme Document outlines the terms and conditions of the acquisition, the expected timetable, and the necessary shareholder approvals required for the transaction to proceed. The acquisition is expected to enhance Bakkavor’s market positioning and operational capabilities, with the Scheme anticipated to become effective in early 2026, pending shareholder and court approvals.

The most recent analyst rating on (GB:BAKK) stock is a Hold with a £120.00 price target. To see the full list of analyst forecasts on Bakkavor Group plc stock, see the GB:BAKK Stock Forecast page.

Bakkavor Group plc Announces Successful AGM with All Resolutions Passed

Bakkavor Group plc successfully held its 2025 Annual General Meeting virtually, where all proposed resolutions were passed. Key decisions included the approval of the 2024 Annual Report and Accounts, the declaration of a final dividend, and the re-election of several directors. The meeting’s outcomes reflect strong shareholder support and are expected to reinforce the company’s governance and strategic direction.

The most recent analyst rating on (GB:BAKK) stock is a Hold with a £120.00 price target. To see the full list of analyst forecasts on Bakkavor Group plc stock, see the GB:BAKK Stock Forecast page.

Bakkavor Group Reports Strong Q1 2025 Performance and Upgrades Profit Guidance

Bakkavor Group plc reported a strong performance in Q1 2025, with a 3.9% increase in like-for-like revenue driven by international volume growth and pricing strategies in the UK. The company has made significant strategic progress, including the sale of its Hong Kong and mainland China operations, and has upgraded its full-year profit guidance, reflecting confidence in inflation recovery and efficiency improvements across its markets.

The most recent analyst rating on (GB:BAKK) stock is a Hold with a £1.55 price target. To see the full list of analyst forecasts on Bakkavor Group plc stock, see the GB:BAKK Stock Forecast page.