Beeks Financial Cloud Group Plc (BKS) AI Stock Analysis

• Market Cap: £138.00M
• Dividend Yield: N/A
• Average Volume (3M): 146.51K
• Price to Earnings (P/E): 57.0
• Beta (1Y): 0.52
• Revenue Growth: 25.72%
• EPS Growth: 287.78%
• Country: UK
• Employees: 103
• Sector: Technology
• Sector Strength: 81
• Industry: Software - Infrastructure
• EPS (TTM): 0.39
• Shares Outstanding: 67,317,190
• 10 Day Avg. Volume: 247,214
• 30 Day Avg. Volume: 146,510
• PEG Ratio: 0.32
• Price to Book (P/B): 5.01
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 36.58
• 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: £335.00
• Price Target Upside: 63.41% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 69 Neutral
• Price Target: 233.00p ▲(13.66%Upside)

Beeks Financial Cloud Group Plc scores well due to strong financial performance, highlighted by impressive revenue growth and cash flow management. Positive corporate events, including strategic partnerships, further strengthen its position. However, technical analysis and high valuation suggest caution, as market momentum is mixed and the stock appears overvalued.

Beeks Financial Cloud Group Plc Business Overview & Revenue Model

Company Description

Beeks Trading Corporation Ltd. provides virtual private server and infrastructure solutions for traders and broker partners worldwide. The company also offers co-location services; dedicated server packages; and server installation services. In addition, it provides institutional venue connections and retail broker connections through its Equinix platform; and Beeks Marketplace, a cloud-based portal that enables real-time connectivity to various exchanges, data feeds, trading tools, and news services for institutional traders, proprietary trading firms, brokers, wealth managers, and high-end retail traders. The company was incorporated in 2010 and is based in Paisley, United Kingdom with additional offices in Austria, Chicago, the United Kingdom, Indonesia, New York, and Tokyo. Beeks Trading Corporation Ltd. operates as a subsidiary of Beeks Financial Cloud Group Limited.

How the Company Makes Money

Beeks Financial Cloud Group Plc generates revenue primarily through the provision of cloud-based infrastructure and connectivity solutions. The company's key revenue streams include subscription fees for its Infrastructure as a Service (IaaS) offerings, which allow clients to access and utilize its secure and high-performance trading environments. Additionally, Beeks earns money through its connectivity services, providing secure and low-latency connections to key financial exchanges and data centers. Significant partnerships with financial exchanges and technology providers enhance its service offerings and expand its market reach, thereby contributing to its revenue growth.

Beeks Financial Cloud Group Plc Financial Statement Overview

Summary

Beeks Financial Cloud Group Plc exhibits strong financial performance with significant revenue growth and improved profitability. The company has a healthy balance sheet with low debt levels, indicating financial stability. Cash flow generation is robust, reflecting effective capital management. Focus on enhancing EBIT margins and ROE could further boost financial outcomes.

Income Statement

Beeks Financial Cloud Group Plc demonstrates strong revenue growth, with a recent annual increase of 27% from 2023 to 2024. The gross profit margin is healthy at 39%, indicating efficient production cost management. Net profit margin improved significantly to 7.6%, reflecting enhanced profitability and operational efficiency. However, the EBIT margin is relatively low at 5.5%, suggesting potential room for cost management improvements.

Balance Sheet

The company maintains a solid equity base, with an equity ratio of 76% in 2024, indicating financial stability. The debt-to-equity ratio is low at 0.08, showing conservative leverage use, which reduces financial risk. Return on equity is moderate at 5.8%, highlighting room for enhancing shareholder returns.

Cash Flow

Beeks Financial Cloud Group Plc shows robust cash flow management, with the operating cash flow to net income ratio at 4.81, indicating strong cash generation from operations. Free cash flow has turned positive in 2024, showing improvement in capital management. The free cash flow to net income ratio is 1.71, highlighting effective conversion of profits to cash.

Breakdown
Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement		Total Revenue
28.86M	22.72M	18.80M	11.62M	9.36M
	Gross Profit
11.34M	9.12M	7.94M	5.02M	4.51M
	EBIT
1.58M	-331.00K	385.00K	-450.00K	955.00K
	EBITDA
8.71M	6.04M	5.15M	4.60M	2.82M
	Net Income Common Stockholders
2.19M	-89.00K	826.00K	1.60M	575.00K
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
7.70M	7.83M	10.16M	3.37M	1.43M
	Total Assets
49.50M	47.44M	44.75M	22.88M	16.83M
	Total Debt
2.89M	5.82M	5.88M	4.35M	4.69M
	Net Debt
-4.81M	-2.01M	-4.28M	979.00K	3.26M
	Total Liabilities
12.00M	14.66M	13.99M	9.11M	10.12M
	Stockholders Equity
37.49M	32.79M	30.76M	13.77M	6.72M
Cash Flow		Free Cash Flow
3.76M	-207.00K	-7.65M	-1.28M	-304.00K
	Operating Cash Flow
10.55M	6.94M	4.50M	5.47M	3.23M
	Investing Cash Flow
-6.79M	-7.15M	-12.09M	-6.64M	-4.29M
	Financing Cash Flow
-3.81M	-2.19M	14.38M	3.10M	149.00K

Beeks Financial Cloud Group Plc Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 205.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:BKS, the sentiment is Negative. The current price of 205 is below the 20-day moving average (MA) of 212.30, below the 50-day MA of 214.37, and below the 200-day MA of 255.53, indicating a bearish trend. The MACD of -3.13 indicates Positive momentum. The RSI at 42.86 is Neutral, neither overbought nor oversold. The STOCH value of 28.75 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GB:BKS.

Beeks Financial Cloud Group Plc Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BKS	69 Neutral	£138.00M	57.02	6.33%	―	25.72%	287.78%
IOM	66 Neutral	£35.64M	10.43	2.80%	14.93%	1.47%	-49.08%
CNS	63 Neutral	£81.95M	228.57	2.72%	―	6.95%	―
Sector *	61 Neutral	$11.56B	10.44	-6.88%	2.93%	7.49%	-8.97%
CLCO	51 Neutral	£1.20M	―		―	―	―
SPT		£1.09B	110.47	3.25%	―	―	―
SYS	55 Neutral	£18.32M	―	-26.77%	―	2.89%	-804.62%

Beeks Financial Cloud Group Plc Corporate Events

Beeks Financial Cloud CEO Sells Shares, Retains Major Stake

Beeks Financial Cloud Group plc announced that its CEO, Gordon McArthur, sold 260,000 ordinary shares for personal reasons, retaining a significant shareholding of 31.3% in the company. This transaction, conducted on the London Stock Exchange, does not alter the company’s operations or strategic direction but highlights the CEO’s substantial continued investment in the company.

The most recent analyst rating on (GB:BKS) stock is a Buy with a £260.00 price target. To see the full list of analyst forecasts on Beeks Financial Cloud Group Plc stock, see the GB:BKS Stock Forecast page.

Beeks Financial Cloud Partners with ASX for Innovative Cloud Solution

Beeks Financial Cloud Group plc has secured a multi-year contract with the Australian Securities Exchange (ASX) to provide its Exchange Cloud service, supporting ASX’s new Colocation on Demand offering. This partnership, structured as a revenue share deal, is expected to enhance Beeks’ recurring revenue and shorten sales cycles, while enabling ASX to offer scalable, secure cloud computing and trading infrastructure to a broader range of market participants. The collaboration is anticipated to lower entry barriers to the Australian financial markets, benefiting smaller firms and emerging software providers by reducing the complexity and cost of managing their own infrastructure.

The most recent analyst rating on (GB:BKS) stock is a Buy with a £260.00 price target. To see the full list of analyst forecasts on Beeks Financial Cloud Group Plc stock, see the GB:BKS Stock Forecast page.

Beeks Financial Cloud Expands Share Capital with New Issuance

Beeks Financial Cloud Group plc has announced the issuance of 33,500 new ordinary shares following the exercise of options under its Employee Share Option Plan. These shares are set to be admitted to trading on AIM, increasing the total number of shares in issue to 67,317,194. This move is part of Beeks’ ongoing efforts to enhance its market presence and operational capabilities in the financial cloud computing sector, potentially impacting shareholder calculations under FCA rules.

Beeks Financial Cloud Secures $2 Million Contract with Global Brokerage Firm

Beeks Financial Cloud Group plc has secured a multi-year Proximity Cloud contract valued at approximately $2 million with a leading global FX and multi-asset brokerage firm. This contract will enhance Beeks’ revenue from the second half of fiscal year 2025 and underscores the company’s strong sales momentum, following a recent win with Kraken. The deal highlights the increasing demand for Beeks’ cloud solutions as financial services firms advance their cloud strategies, positioning the company for further growth.

Beeks Financial Cloud Issues New Shares Following Option Exercise

Beeks Financial Cloud Group plc has announced the issuance of 99,255 ordinary shares following the exercise of options under its Employee Share Option Plan. These shares will be admitted to trading on AIM, with dealings expected to commence on or around 4 April 2025. This move will increase the total number of ordinary shares in issue to 67,283,694, impacting shareholder calculations under the FCA’s Disclosure and Transparency Rules.

Beeks Financial Cloud Executives Increase Shareholdings

Beeks Financial Cloud Group plc announced that its Non-executive Chair, Will Meldrum, and Non-executive Director, Kevin Covington, have purchased additional ordinary shares in the company. Meldrum acquired 4,950 shares, while Covington purchased 2,283 shares, reflecting their confidence in the company’s growth prospects. These transactions, conducted on the London Stock Exchange, slightly increase their respective holdings, representing a minor percentage of the company’s issued share capital.

Beeks Partners with Kraken for First Cryptocurrency Exchange Colocation Service

Beeks Financial Cloud Group plc has announced a significant partnership with Kraken, a prominent cryptocurrency exchange, to launch a colocation service for ultra-low latency trading. This marks Beeks’ first venture into the cryptocurrency exchange market, leveraging its Exchange Cloud to provide institutional-grade infrastructure from Kraken’s European data center. The partnership, structured as a revenue share deal, is expected to enhance Beeks’ market presence and profitability by tapping into Kraken’s extensive client base of 13 million users, offering substantial revenue growth opportunities.

Beeks Financial Cloud Reports Strong H1 2025 Results with Significant Contract Wins

Beeks Financial Cloud Group Plc reported a strong financial performance for the six months ending December 2024, with a 22% increase in revenue to £15.79m and a 25% rise in underlying EBITDA to £5.74m. The company secured significant Exchange Cloud contracts, including a multi-year deal with a major global exchange and a post-period win with Grupo Bolsa Mexicana de Valores. The company is expanding its product offerings with a new AI-based analytics tool and transitioning to a revenue-sharing model to enhance profitability. The outlook for FY25 remains positive, with continued growth expected in its Exchange Cloud product and a strong sales pipeline.