Caffyns (CFYN) AI Stock Analysis

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Caffyns

(LSE:CFYN)

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Rating:46Neutral

Price Target:GBX 441.00▼(-7.16% Downside)

Action:reiterated

Date:10/01/26

The score is primarily weighed down by weak financial performance (losses, revenue decline, and higher leverage), with only partial relief from the 2026 rebound to positive free cash flow. Technicals are mixed-to-slightly supportive, but valuation remains pressured due to negative earnings despite a modest dividend yield.

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): 1,401
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

Overall financial quality is weak. The income statement shows a return to net losses (2026) alongside a sharp revenue decline and compressed EBIT margin, while the balance sheet has become more debt-heavy (higher debt-to-equity), increasing risk. The main positive is improved 2026 cash generation with positive operating and free cash flow, but multi-year volatility and modest cash conversion keep the score below average.

Income Statement

38Negative

Balance Sheet

44Neutral

Cash Flow

52Neutral

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

50DMA491.70Negative

100DMA455.86Positive

200DMA426.19Positive

Market Momentum

MACD-4.42Positive

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 478.50, below the 50-day MA of 491.70, and above the 200-day MA of 426.19, indicating a neutral trend. The MACD of -4.42 indicates Positive 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:INCH	70Outperform	GBP 2.12B	9.90	19.59%	5.22%	7.27%	-39.82%
GB:HFD	68Neutral	GBP 556.68M	16.59	6.52%	3.59%	5.04%	―
GB:VTU	67Neutral	GBP 257.22M	14.38	5.00%	2.41%	2.90%	15.43%
GB:CTA	66Neutral	GBP 16.56M	3.41	20.83%	―	4.04%	-25.71%
Sector *	61Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
GB:MOTR	53Neutral	GBP 111.07M	21.95	22.27%	1.51%	8.14%	81.96%
GB:CFYN	46Neutral	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	250.50	115.79	85.96%
GB:INCH	Inchcape Plc (UK)	643.50	-78.73	-10.90%
GB:MOTR	Motorpoint Group plc	146.00	-0.46	-0.31%
GB:VTU	Vertu Motors	85.00	23.36	37.89%
GB:CTA	CT Automotive Group Plc	22.50	-10.50	-31.82%

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