Northcoders Group PLC (CODE) AI Stock Analysis

• Market Cap: £2.84M
• Dividend Yield: N/A
• Average Volume (3M): 11.25K
• Price to Earnings (P/E): 8.1
• Beta (1Y): -0.69
• Revenue Growth: 1.64%
• EPS Growth: N/A
• Country: UK
• Employees: 129
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Education & Training Services
• EPS (TTM): 0.01
• Shares Outstanding: 8,011,469
• 10 Day Avg. Volume: 6,194
• 30 Day Avg. Volume: 11,248
• PEG Ratio: -0.27
• Price to Book (P/B): 2.75
• Price to Sales (P/S): 1.66
• P/FCF Ratio: 16.43
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 70 Outperform
• Price Target: 37.00p ▲(4.23% Upside)

Northcoders Group PLC's strong financial performance, particularly in revenue growth and profitability, is the primary driver of its stock score. The technical analysis indicates potential bearish momentum, which tempers the overall score. The stock appears undervalued based on its P/E ratio, but the lack of a dividend yield and potential cash flow management issues are concerns.

Northcoders Group PLC Business Overview & Revenue Model

Company Description

Northcoders Group PLC provides various training programs for software coding to individual, government, and corporate customers in the United Kingdom. The company provides bootcamp training courses, government-funded apprenticeships, and bespoke training courses. It offers its courses through classroom and online teaching. Northcoders Group PLC was incorporated in 2021 and is headquartered in Manchester, the United Kingdom.

How the Company Makes Money

Northcoders generates revenue primarily through tuition fees from its coding bootcamps and training programs. The company offers various courses, including full-stack development, which attract a diverse range of students, from career changers to recent graduates. A significant revenue stream also comes from employer partnerships, where Northcoders collaborates with companies to provide tailored training for their employees or to create job placement opportunities for graduates. Additional income may derive from online resources, workshops, and consultancy services offered to organizations seeking to enhance their tech capabilities. The company's focus on aligning its curriculum with industry needs ensures a steady demand for its training services, contributing to its earnings growth.

Northcoders Group PLC Financial Statement Overview

Summary

Northcoders Group PLC shows strong financial performance with significant revenue growth and improved profitability. The balance sheet is stable with low leverage, but cash flow management needs improvement to ensure sustainable growth.

Income Statement

The company exhibited strong revenue growth of 24.1% in the latest annual period, showcasing robust expansion. Gross profit and net income margins improved significantly, indicating enhanced operational efficiency and profitability. The EBIT and EBITDA margins turned positive, reflecting a successful turnaround from previous losses.

Balance Sheet

The balance sheet is solid with a debt-to-equity ratio of 0.12, indicating low leverage and financial stability. The equity ratio of 76.0% signifies a strong equity position. However, the decline in cash and cash equivalents suggests a need for more efficient cash management.

Cash Flow

Free cash flow turned positive, indicating improved liquidity and cash generation. The operating cash flow to net income ratio is robust, reflecting efficient conversion of earnings into cash. However, a consistent negative investing cash flow could indicate potential future liquidity constraints.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	8.82M	7.10M	5.60M	3.01M	1.34M
Gross Profit	5.50M	4.44M	3.94M	2.16M	892.17K
EBITDA	872.27K	-81.70K	715.79K	-167.58K	-843.64K
Net Income	388.86K	-1.01M	359.54K	-358.12K	-938.34K
Balance Sheet
Total Assets	6.99M	7.26M	7.34M	4.40M	1.80M
Cash, Cash Equivalents and Short-Term Investments	1.19M	1.62M	2.78M	1.56M	525.67K
Total Debt	670.14K	1.13M	1.79M	1.62M	1.62M
Total Liabilities	1.67M	2.45M	2.69M	2.25M	2.34M
Stockholders Equity	5.31M	4.82M	4.64M	2.15M	-538.27K
Cash Flow
Free Cash Flow	890.51K	-186.07K	-770.15K	-1.40M	-645.40K
Operating Cash Flow	928.92K	651.44K	-245.03K	-1.09M	-464.30K
Investing Cash Flow	-819.08K	-996.76K	-515.36K	-302.67K	-196.51K
Financing Cash Flow	-588.29K	-814.78K	1.97M	2.43M	765.28K

Northcoders Group PLC Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 35.50
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:CODE, the sentiment is Positive. The current price of 35.5 is above the 20-day moving average (MA) of 33.96, above the 50-day MA of 33.84, and below the 200-day MA of 69.08, indicating a neutral trend. The MACD of 0.56 indicates Negative momentum. The RSI at 63.19 is Neutral, neither overbought nor oversold. The STOCH value of 66.06 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:CODE.

Northcoders Group PLC Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CODE	70 Outperform	£2.84M	8.11	6.74%	―	1.64%	―
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
MLVN	60 Neutral	£6.36M	74.29	―	―	31.39%	―
SORT	49 Neutral	£2.67M	-1.08	-556.25%	―	51.87%	62.47%
TIDE	46 Neutral	£4.27M	-50.39	―	―	―	―
AIQ	41 Neutral	£3.89M	―	―	―	-47.47%	12.50%
CLCO	41 Neutral	£1.24M	―	―	―	―	―

Northcoders Group PLC Corporate Events

Northcoders Secures £0.25 Million Contract for London Skills Bootcamp

Northcoders Group PLC has secured a £0.25 million contract under the Skills Bootcamps for Londoners Programme to fund software development training with AI for 31 participants. This contract supports the company’s strategy to expand its B2B consultancy division, Counter®, into the London market by creating a pool of skilled technologists. The move aligns with Northcoders’ selective approach to government-funded training and aims to leverage the growing demand for senior technologists driven by AI and digital transformation.

The most recent analyst rating on (GB:CODE) stock is a Hold with a £36.00 price target. To see the full list of analyst forecasts on Northcoders Group PLC stock, see the GB:CODE Stock Forecast page.

Northcoders Group PLC Reports Stable Profitability Amid Revenue Decline

Northcoders Group PLC reported interim results for the first half of 2025, showing a decline in revenue to £3.7 million compared to the previous year, but maintaining a stable gross margin of 67%. Despite challenges in UK Government funding for B2C operations, the company achieved stable profitability and expanded its B2B consultancy contracts. The company launched a new AI and data course and secured funding for training bootcamps, while also receiving an ‘Outstanding’ rating from OFSTED. Looking ahead, Northcoders anticipates a weaker second half of 2025 due to regional funding delays but remains confident in its strong cash position and ability to adapt, aiming for growth and profitability in 2026.

The most recent analyst rating on (GB:CODE) stock is a Hold with a £36.00 price target. To see the full list of analyst forecasts on Northcoders Group PLC stock, see the GB:CODE Stock Forecast page.

Northcoders Secures Major Contract with Global Software Provider

Northcoders Group PLC announced that its consultancy brand, Counter®, has secured a significant 12-month contract with a global business management software provider, valued at over £500,000. This contract underscores Northcoders’ ability to attract major clients and highlights the increasing demand for its services in the technology and service sectors, reinforcing the company’s growth prospects.

The most recent analyst rating on (GB:CODE) stock is a Hold with a £40.00 price target. To see the full list of analyst forecasts on Northcoders Group PLC stock, see the GB:CODE Stock Forecast page.

Northcoders Group PLC Reports Improved Profitability Amidst Funding Challenges

Northcoders Group PLC reported a trading update for the first half of 2025, highlighting improved profitability despite a challenging operating environment and slower government funding. The company achieved a gross profit margin increase and maintained a solid cash balance, allowing for strategic investments. While government funding delays impacted training bootcamp applications, privately funded places increased, and the company launched a new Data and AI course. The COUNTER® division showed steady progress with new contracts and strengthened sales, contributing to the company’s diversification strategy. Northcoders remains cautious but optimistic about future growth, focusing on revenue diversification, AI development, and cost control.

Northcoders Group PLC Reports Resilient H1-2025 Amid Funding Challenges

Northcoders Group PLC reported a challenging first half of 2025, with revenues declining due to slower government funding access. Despite this, the company improved its profitability and maintained a strong cash position through cost control and revenue diversification. The launch of a new Data and AI course and the growth of its COUNTER® consultancy brand are key strategic moves. The company remains focused on diversifying revenue streams and maintaining operational efficiency to adapt to market conditions and funding uncertainties.