Caffyns (CFYN) AI Stock Analysis

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Caffyns

(LSE:CFYN)

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Rating:44Neutral

Price Target:GBX 437.00▼(-8.00% Downside)

Action:reiterated

Date:10/01/26

The overall score of 44 is heavily weighed down by poor financial performance, highlighted by net losses, deteriorating margins, and escalating debt levels. Valuation offers little relief due to negative earnings. While longer-term technical support and a recent return to positive free cash flow provide some stability, the company's fundamentals currently present significant risks.

Positive Factors

Rebound in Cash GenerationThe return to positive operating and free cash flow shows the business again generated cash after two negative FCF years. While the amount remains modest, sustained positive conversion would support ongoing dealership investment, working-capital needs, and debt servicing.

Negative Factors

Material Revenue ContractionA decline of this magnitude signals substantial pressure on sales volumes or business scale and reduces the revenue base available to absorb fixed dealership costs. Unless reversed, the contraction can keep operating leverage unfavorable and limit the company’s ability to rebuild sustainable profitability.

Caffyns (CFYN) vs. iShares MSCI United Kingdom ETF (EWC)

Market Cap: GBP 12.95M
Dividend Yield: 2.11%
Average Volume (3M): 1,410
Price to Earnings (P/E): -10.1
Beta (1Y): -0.08
Revenue Growth: -1.74%
EPS Growth: -830.03%
Country: UK
Employees: 485
Sector: Consumer Cyclical
Sector Strength: 61
Industry: Auto - Dealerships

Caffyns Business Overview & Revenue Model

Company Description

Caffyns plc operates as an automotive retail group across the southeastern region of the United Kingdom. The company's offerings encompass the sale of both brand-new and pre-owned vehicles, alongside a variety of automotive components including tires...

How the Company Makes Money

Caffyns makes money primarily through automotive retailing and aftersales operations. Its key revenue streams include: (1) New vehicle sales: revenue generated from selling new cars sourced from manufacturer/brand relationships operated under franchi...

Caffyns Financial Statement Overview

Summary

Financial performance is weak, driven by stalled revenue, net losses, and razor-thin margins. While free cash flow recently turned positive, a highly leveraged balance sheet with an elevated debt-to-equity ratio of 1.49x introduces significant long-term financial risk.

Income Statement

38Negative

Balance Sheet

30Negative

Cash Flow

48Neutral

Financial statement breakdown
Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	270.66M	270.66M	275.46M	262.08M	251.43M	223.93M
Gross Profit	31.63M	31.63M	34.69M	31.70M	31.45M	29.92M
EBITDA	3.21M	3.46M	5.11M	3.25M	6.75M	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	27.23M
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 SentimentNegative

Last Price475.00

Price Trends

50DMA490.70Negative

100DMA457.46Positive

200DMA426.84Positive

Market Momentum

MACD-4.05Negative

RSI41.60Neutral

STOCH33.33Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:CFYN, the sentiment is Negative. The current price of 475.00 is below the 20-day moving average (MA) of 477.50, below the 50-day MA of 490.70, and above the 200-day MA of 426.84, indicating a neutral trend. The MACD of -4.05 indicates Negative momentum. The RSI at 41.60 is Neutral, neither overbought nor oversold. The STOCH value of 33.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GB:CFYN.

Caffyns Peers Comparison

Overall Rating

UnderperformOutperform

Sector (61)

Financial Indicators

GB:CFYN against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
GB:CTA	73Outperform	GBP 17.52M	3.59	20.83%	―	4.04%	-25.71%
GB:INCH	70Outperform	GBP 2.16B	10.02	19.59%	5.16%	7.27%	-39.82%
GB:HFD	68Neutral	GBP 552.32M	16.79	6.52%	3.55%	5.04%	―
Sector *	61Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
GB:VTU	58Neutral	GBP 259.34M	14.53	5.00%	2.39%	2.90%	15.43%
GB:MOTR	53Neutral	GBP 116.23M	15.70	29.00%	1.50%	3.97%	92.37%
GB:CFYN	44Neutral	GBP 12.95M	-10.11	-4.30%	2.11%	-1.74%	-830.03%

* Consumer Cyclical Sector Average

Performance Comparison

GB:CFYN and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
GB:CFYN	Caffyns (CFYN)	475.00	11.59	2.50%
GB:HFD	Halfords Group plc	253.50	121.28	91.72%
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%
GB:CTA	CT Automotive Group Plc	23.80	-9.20	-27.88%

Caffyns Corporate Events

Business Operations and StrategyDividendsFinancial DisclosuresShareholder Meetings

Caffyns shareholders back board at AGM but reject share split proposal

Positive

Aug 7, 2026

Caffyns PLC reported that all resolutions proposed at its 6 August 2026 annual general meeting were approved by shareholders, including the adoption of accounts for the year ended 31 March 2026, the directors’ remuneration report and policy, and the...

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: Sep 30, 2026

Caffyns AI Stock Analysis