Bakkavor Group plc (BAKK) AI Stock Analysis

• Market Cap: £1.28B
• Dividend Yield: 2.69%
• Average Volume (3M): 841.84K
• Price to Earnings (P/E): 34.3
• Beta (1Y): 0.28
• 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: 619,783
• 30 Day Avg. Volume: 841,840
• PEG Ratio: 5.46
• Price to Book (P/B): 1.37
• Price to Sales (P/S): 0.37
• P/FCF Ratio: 8.99
• 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: £230.00
• Price Target Upside: 3.60% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 2

• Rating: 64 Neutral
• Price Target: 230.00p ▲(3.60% Upside)

Bakkavor Group plc's overall stock score is driven primarily by its stable financial performance, which provides a strong foundation for future growth. However, technical analysis indicates potential short-term weakness, and the valuation suggests the stock might be overvalued. The absence of earnings call data and corporate events limits additional insights.

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 shows stable financial health with consistent revenue growth and solid profitability margins. The company's balanced capital structure and strong cash flow indicators highlight its capacity to generate cash and support operations, despite a slight decrease in free cash flow.

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.25B	2.29B	2.20B	2.14B	1.87B	1.79B
Gross Profit	597.70M	635.30M	589.40M	493.70M	475.00M	447.50M
EBITDA	164.90M	163.80M	168.50M	106.90M	163.70M	131.60M
Net Income	37.30M	55.70M	53.90M	12.50M	56.80M	34.10M
Balance Sheet
Total Assets	1.48B	1.50B	1.48B	1.54B	1.50B	1.45B
Cash, Cash Equivalents and Short-Term Investments	21.20M	29.90M	36.60M	40.20M	31.10M	24.80M
Total Debt	311.10M	306.60M	355.90M	419.10M	405.00M	436.60M
Total Liabilities	884.80M	882.50M	872.70M	923.60M	862.80M	851.10M
Stockholders Equity	598.10M	616.10M	607.60M	617.80M	640.70M	598.10M
Cash Flow
Free Cash Flow	81.00M	94.00M	103.80M	63.30M	84.90M	32.20M
Operating Cash Flow	136.00M	150.30M	147.70M	127.30M	144.70M	88.60M
Investing Cash Flow	-56.10M	-50.50M	-36.90M	-63.90M	-55.60M	-56.30M
Financing Cash Flow	-91.80M	-106.50M	-113.30M	-55.40M	-83.00M	-33.20M

Bakkavor Group plc Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 222.00
• 50DMA: Positive
• 100DMA: Negative
• 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:BAKK, the sentiment is Positive. The current price of 222 is above the 20-day moving average (MA) of 219.05, above the 50-day MA of 219.93, and above the 200-day MA of 195.30, indicating a bullish trend. The MACD of 1.77 indicates Negative momentum. The RSI at 53.35 is Neutral, neither overbought nor oversold. The STOCH value of 57.63 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:BAKK.

Bakkavor Group plc Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CWK	―	£2.64B	19.69	14.14%	2.05%	4.77%	18.94%
PFD	―	£1.57B	12.77	9.02%	1.54%	1.01%	11.12%
GNC	―	£1.03B	19.61	12.12%	0.84%	0.49%	14.18%
HFG	―	£578.04M	14.77	12.72%	5.43%	8.58%	-15.81%
TATE	―	£1.71B	27.25	3.39%	5.13%	5.40%	-67.46%
BAKK	―	£1.28B	34.31	5.88%	2.69%	0.59%	-41.66%
Sector *	―	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%

Bakkavor Group plc Corporate Events

Bakkavor Director Distributes Shares for Estate Planning

Bakkavor Group plc announced that Lydur Gudmundsson, a Director and Person Discharging Managerial Responsibility, distributed 3,240,741 ordinary shares to a third party for personal estate planning purposes. This transaction, conducted outside a trading venue, reflects internal strategic decisions and may influence stakeholders’ perceptions of the company’s governance and financial strategies.

The most recent analyst rating on (GB:BAKK) stock is a Hold with a £230.00 price target. To see the full list of analyst forecasts on Bakkavor Group plc stock, see the GB:BAKK Stock Forecast page.

Bakkavor Reports Strong H1 2025 Performance and Upgrades FY25 Guidance

Bakkavor Group plc reported strong financial performance for the first half of 2025, with a 9.8% increase in adjusted operating profit and a 1.2% rise in like-for-like revenue, driven by robust US growth and UK pricing. The company successfully exited its China operations, enhancing its focus on UK and US markets, and upgraded its FY25 profit guidance, expecting to reach the upper end of its forecasted range. The strategic acquisition by Greencore is progressing, with regulatory approvals underway, which could significantly impact Bakkavor’s market positioning.

The most recent analyst rating on (GB:BAKK) stock is a Buy with a £271.00 price target. To see the full list of analyst forecasts on Bakkavor Group plc stock, see the GB:BAKK Stock Forecast page.

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.