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EKF Diagnostics Holdings PLC (GB:EKF)
LSE:EKF
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EKF Diagnostics Holdings (EKF) AI Stock Analysis

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GB:EKF

EKF Diagnostics Holdings

(LSE:EKF)

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Neutral 65 (OpenAI - 4o)
Rating:65Neutral
Price Target:
30.00p
▲(15.38% Upside)
EKF Diagnostics Holdings has a solid financial foundation with strong profitability and low leverage, which is a major strength. The positive earnings call further supports the stock's potential with strategic growth initiatives. However, technical indicators show bearish momentum, and the valuation is moderate, which tempers the overall score.
Positive Factors
Strong Balance Sheet
A strong balance sheet with minimal debt and high equity ratio reduces financial risk, providing stability and flexibility for future investments.
Improved Profitability
Improved profitability through better margins suggests effective cost management and operational efficiency, supporting long-term financial health.
Strategic Growth and Expansion
Expanding into new markets with strategic contracts enhances market reach and potential revenue streams, supporting sustainable growth.
Negative Factors
Revenue Decline
A declining revenue trend can hinder growth prospects and indicates challenges in maintaining market share or product demand.
APAC Region Challenges
Significant revenue drop in the APAC region due to product discontinuation suggests market challenges and potential loss of regional presence.
Legacy Product Reduction
Shifting focus away from legacy products may risk losing existing customer base unless new products can effectively replace them.

EKF Diagnostics Holdings (EKF) vs. iShares MSCI United Kingdom ETF (EWC)

EKF Diagnostics Holdings Business Overview & Revenue Model

Company DescriptionEKF Diagnostics Holdings (EKF) is a UK-based medical diagnostics company that specializes in the development, manufacture, and distribution of diagnostic products and services for the healthcare sector. The company operates primarily in the point-of-care testing market, focusing on areas such as diabetes management, anemia testing, and other critical care diagnostics. EKF's core products include handheld analyzers, reagents, and consumables that enable rapid and accurate diagnosis, facilitating timely clinical decision-making.
How the Company Makes MoneyEKF generates revenue through the sale of its diagnostic products and services, which are targeted at hospitals, clinics, and laboratories. The company has a diversified revenue model that includes direct sales of its point-of-care testing devices, as well as recurring revenue from consumables and reagents used alongside its equipment. Key revenue streams include sales of glucose monitoring products, hemoglobin analyzers, and electrolyte analyzers. Additionally, EKF benefits from strategic partnerships with healthcare providers and distributors, enhancing its market reach and enabling it to tap into various geographic markets. The company also invests in research and development to innovate new products and improve existing offerings, which can lead to increased sales and market share over time.

EKF Diagnostics Holdings Earnings Call Summary

Earnings Call Date:Sep 16, 2025
(Q2-2025)
|
% Change Since: |
Next Earnings Date:Mar 31, 2026
Earnings Call Sentiment Positive
The earnings call presented a generally positive outlook with notable revenue and profit growth, increased production capacity, and successful new contracts. However, there were challenges in the APAC region and some market constraints affecting the share buyback program. Overall, the positives, including significant production increases and strategic growth plans, outweigh the negatives.
Q2-2025 Updates
Positive Updates
Revenue and Profit Growth
Revenues for the first half were GBP 25.2 million, in line with the previous year, but closer to GBP 26 million on a constant currency basis. Gross profit improved with a gross margin increase to 50% from 48%. EBITDA grew by 7.4% to GBP 5.8 million, and profit increased by 16.1%.
Increase in Production and New Contracts
Hematology analyzer production increased by 60% compared to the previous year. Three new contracts were signed in strategic growth areas, specifically in Africa and Latin America.
Beta-Hydroxybutyrate Performance
Sales of Beta-Hydroxybutyrate increased by 12%, or 16% on a consistent currency basis, reflecting strong performance.
Share Buyback Program
The company implemented a share buyback program, acquiring 4.6 million shares, aimed at improving earnings per share.
Hematology Analyzer Growth
Significant growth in hematology analyzer build at 125%, with major deployments in Peru, Brazil, USA, and Italy.
Pipeline and New Business in Life Sciences
A $1.5 million pipeline of new business in Life Sciences, with a significant contract in the final stages of agreement.
Negative Updates
Decline in APAC Region
A 26% drop in the APAC region, primarily due to discontinued products in clinical chemistry.
Challenges in Share Buyback Speed
The share buyback program progressed slower than desired, partly due to market liquidity constraints.
Legacy Product Focus Shift
Reduction in legacy products like HematatSTAT and Ultracrit, focusing more on HemoControl and Diaspect product ranges.
Company Guidance
During the investor presentation, EKF Diagnostics reported a stable revenue of GBP 25.2 million for the first half of 2025, aligning with the previous year, but noted a rise to GBP 26 million on a constant currency basis. The company improved its gross margin from 48% to 50% by eliminating lower-margin products, resulting in a 7.4% increase in EBITDA to GBP 5.8 million and a 16.1% rise in profit. They also highlighted a cash reserve increase to GBP 16.6 million, aiming to reach GBP 20 million by year-end. Production capacity was a focal point, with hematology analyzer production up by 60%, anticipating substantial consumable growth in the latter half of 2025. Strategic expansions included signing contracts in Africa and Latin America, contributing to a 12% increase in Beta-Hydroxybutyrate sales. Additionally, EKF executed a share buyback, purchasing 4.6 million shares to enhance earnings per share, and maintained a focus on its 5-year strategy for sustainable growth and increasing revenue and EBITDA by 2029.

EKF Diagnostics Holdings Financial Statement Overview

Summary
EKF Diagnostics Holdings demonstrates a solid financial standing with strong profit margins and low leverage. Despite a decrease in revenue, profitability has improved, indicating efficient cost management. The balance sheet is particularly strong, with minimal debt and a high equity ratio, which reduces financial risk. Cash flows are robust, although historical volatility in free cash flow warrants monitoring. Overall, the company's financial health is sound, but attention to revenue growth is necessary for sustained future performance.
Income Statement
65
Positive
EKF Diagnostics Holdings has shown a mixed performance in its income statement. The gross profit margin for the latest year is approximately 42.78%, which is solid, but lower revenue growth is concerning. The net profit margin improved significantly from the previous year to 12.43%, indicating a rebound in profitability. However, revenue declined over the years with a negative growth rate of -4.60% from 2023 to 2024. The EBIT and EBITDA margins are healthy at 12.87% and 22.23%, respectively, showing operational efficiency.
Balance Sheet
75
Positive
The balance sheet is quite robust, reflecting a strong equity base with a high equity ratio of 88.49%. The debt-to-equity ratio is very low at 0.02, indicating minimal leverage and reduced financial risk. Return on equity is relatively strong at 8.63%, suggesting effective use of equity to generate profits. However, a downward trend in total assets and stockholders' equity over the years could be a point of concern.
Cash Flow
70
Positive
Cash flow analysis shows a positive trend with operating cash flow comfortably exceeding net income, resulting in a strong operating cash flow to net income ratio of 2.19. Free cash flow has turned positive and grew significantly from the previous year, with a free cash flow to net income ratio of 1.83, reflecting improved cash generation capabilities. However, fluctuations in free cash flow in prior years highlight some volatility.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue50.22M50.19M52.61M66.64M81.84M65.26M
Gross Profit25.00M21.48M23.86M24.04M39.37M37.42M
EBITDA11.47M11.16M7.68M-2.18M27.39M20.04M
Net Income6.12M6.24M2.35M-10.10M15.85M11.11M
Balance Sheet
Total Assets82.43M81.75M80.85M89.29M115.12M101.27M
Cash, Cash Equivalents and Short-Term Investments16.62M13.01M6.02M11.58M20.34M21.91M
Total Debt1.12M1.32M4.10M1.55M2.63M1.58M
Total Liabilities9.55M8.53M12.63M14.77M20.38M23.07M
Stockholders Equity71.73M72.33M67.12M73.35M94.12M77.65M
Cash Flow
Free Cash Flow9.47M11.41M-664.00K3.86M4.59M11.16M
Operating Cash Flow10.71M13.66M6.31M9.69M10.24M13.81M
Investing Cash Flow-1.84M-2.66M-5.64M-8.93M-5.48M1.34M
Financing Cash Flow-1.44M-4.08M-3.65M-11.04M-6.16M-5.21M

EKF Diagnostics Holdings Technical Analysis

Technical Analysis Sentiment
Negative
Last Price26.00
Price Trends
50DMA
29.20
Negative
100DMA
28.26
Negative
200DMA
25.69
Positive
Market Momentum
MACD
-0.69
Positive
RSI
34.41
Neutral
STOCH
24.86
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:EKF, the sentiment is Negative. The current price of 26 is below the 20-day moving average (MA) of 28.91, below the 50-day MA of 29.20, and above the 200-day MA of 25.69, indicating a neutral trend. The MACD of -0.69 indicates Positive momentum. The RSI at 34.41 is Neutral, neither overbought nor oversold. The STOCH value of 24.86 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GB:EKF.

EKF Diagnostics Holdings Peers Comparison

Overall Rating
UnderperformOutperform
Sector (51)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
£115.62M19.268.71%-1.43%28.57%
£6.98M1,125.000.08%87.72%
$7.86B-0.30-43.30%2.27%22.53%-2.21%
£18.83M-1.65-51.63%31.78%10.27%
£45.37M-1.84
£41.08M-12.701557.07%24.70%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
GB:EKF
EKF Diagnostics Holdings
26.00
-0.20
-0.76%
GB:RUA
RUA Life Sciences
11.25
-1.25
-10.00%
GB:CREO
Creo Medical
11.00
-9.00
-45.00%
GB:IHC
Inspiration Healthcare
21.00
4.50
27.27%
GB:SBTX
SkinBioTherapeutics
15.88
-2.62
-14.16%
GB:KOO
Kooth
129.00
-31.00
-19.38%

EKF Diagnostics Holdings Corporate Events

Business Operations and StrategyStock Buyback
EKF Diagnostics Extends Share Buyback Program
Positive
Oct 21, 2025

EKF Diagnostics Holdings plc has announced the purchase of 919,331 of its ordinary shares at an average price of 28 pence per share, which will be held in treasury. The company also extended its share buyback program to include additional purchases of up to £1.0 million. This move is part of a strategy to manage the company’s capital structure and potentially enhance shareholder value. The buyback includes shares acquired from Harwood as an investment manager to Oryx International Growth Fund Limited and North Atlantic Smaller Companies Investment Trust PLC, ensuring that Mr. Mills’ indirect beneficial interest remains stable. Following the buyback, the total number of ordinary shares carrying voting rights is 445,518,745.

The most recent analyst rating on (GB:EKF) stock is a Hold with a £30.00 price target. To see the full list of analyst forecasts on EKF Diagnostics Holdings stock, see the GB:EKF Stock Forecast page.

Business Operations and StrategyStock Buyback
EKF Diagnostics Announces Strategic Share Buyback
Neutral
Oct 20, 2025

EKF Diagnostics Holdings plc announced a share buyback, purchasing 929,169 ordinary shares at a weighted average price of 27.5269 pence per share, which will be held in treasury. This transaction includes a notable acquisition of shares from Harwood, acting as an investment manager for Oryx International Growth Fund Limited and North Atlantic Smaller Companies Investment Trust PLC, ensuring that Mr. Mills’ aggregate indirect interest remains stable. The buyback impacts the company’s total voting rights, now consisting of 446,438,076 shares, and reflects a strategic move to manage shareholder interests and market positioning.

The most recent analyst rating on (GB:EKF) stock is a Hold with a £30.00 price target. To see the full list of analyst forecasts on EKF Diagnostics Holdings stock, see the GB:EKF Stock Forecast page.

Business Operations and StrategyStock Buyback
EKF Diagnostics Announces Share Buyback to Optimize Capital Structure
Positive
Oct 20, 2025

EKF Diagnostics Holdings plc has announced the buyback of 929,169 of its ordinary shares, which will be held in treasury. This move is part of a strategic effort to manage its share capital and maintain the indirect beneficial interest of Mr. Mills, a non-executive director, at a stable level. The transaction involved acquiring shares from Harwood, acting as an investment manager for Oryx International Growth Fund Limited and North Atlantic Smaller Companies Investment Trust PLC. The buyback reflects EKF’s ongoing commitment to optimizing shareholder value and maintaining a balanced shareholding structure.

The most recent analyst rating on (GB:EKF) stock is a Hold with a £30.00 price target. To see the full list of analyst forecasts on EKF Diagnostics Holdings stock, see the GB:EKF Stock Forecast page.

Business Operations and StrategyStock Buyback
EKF Diagnostics Announces Strategic Share Buyback
Neutral
Oct 17, 2025

EKF Diagnostics Holdings plc announced a share buyback, purchasing 1,017,352 ordinary shares at a weighted average price of 28 pence per share, which will be held in treasury. This move is part of a strategic effort to manage the company’s share capital and maintain the aggregate indirect beneficial interest of Mr. Mills, a non-executive director, at approximately the same level, ensuring it does not exceed 30% of the total voting rights in the company. The transaction involved acquiring shares from Oryx International Growth Fund Limited and North Atlantic Smaller Companies Investment Trust PLC, facilitated by Harwood, the investment manager.

The most recent analyst rating on (GB:EKF) stock is a Buy with a £0.35 price target. To see the full list of analyst forecasts on EKF Diagnostics Holdings stock, see the GB:EKF Stock Forecast page.

Business Operations and StrategyStock Buyback
EKF Diagnostics Executes Strategic Share Buyback
Positive
Oct 15, 2025

EKF Diagnostics Holdings plc has announced the repurchase of 709,193 of its ordinary shares at a price of 28 pence per share, which will be held in treasury. This buyback is part of a strategic move to manage the company’s share capital and maintain shareholder value. The transaction includes the acquisition of shares from Harwood as investment manager to Oryx International Growth Fund Limited and North Atlantic Smaller Companies Investment Trust PLC, ensuring that Mr. Mills’ indirect beneficial interest remains stable and does not exceed 30% of the total voting rights. This move could impact the company’s market positioning by potentially increasing shareholder confidence and stabilizing the share price.

The most recent analyst rating on (GB:EKF) stock is a Hold with a £32.00 price target. To see the full list of analyst forecasts on EKF Diagnostics Holdings stock, see the GB:EKF Stock Forecast page.

EKF Diagnostics Reports Strong Growth Amid Challenges
Sep 17, 2025

EKF Diagnostics Holdings’ recent earnings call conveyed a generally positive sentiment, highlighting notable revenue and profit growth, increased production capacity, and successful new contracts. Despite facing challenges in the APAC region and some market constraints affecting their share buyback program, the company remains optimistic. The positives, including significant production increases and strategic growth plans, appear to outweigh the negatives.

Business Operations and StrategyExecutive/Board Changes
EKF Diagnostics Implements Long Term Incentive Plan for Executives
Positive
Sep 16, 2025

EKF Diagnostics Holdings plc has announced the implementation of a Long Term Incentive Plan (LTIP) for its senior executives, with a specific award granted to CEO Gavin Jones. The LTIP is designed to align executive performance with shareholder value creation, with vesting conditions based on the growth of Adjusted EBITDA per share over a three-year period. This move reflects the company’s commitment to incentivizing its leadership while potentially enhancing its market position and stakeholder confidence.

The most recent analyst rating on (GB:EKF) stock is a Hold with a £31.00 price target. To see the full list of analyst forecasts on EKF Diagnostics Holdings stock, see the GB:EKF Stock Forecast page.

Business Operations and StrategyStock BuybackFinancial Disclosures
EKF Diagnostics Reports Record Sales and Strong Financial Performance in H1 2025
Positive
Sep 16, 2025

EKF Diagnostics Holdings plc reported record analyzer sales and improved earnings for the first half of 2025, with gross margins rising to 50.2% and a 16.1% increase in pre-tax profit. The company is on track to meet full-year revenue and adjusted EBITDA growth expectations, supported by strong performances in Hematology and β-HB product lines. The strategic development plan is yielding results, with increased production capacity and a focus on high-margin products driving profitability. The company also completed a share buyback and canceled a loan facility due to strong cash generation, indicating a robust financial position.

The most recent analyst rating on (GB:EKF) stock is a Hold with a £31.00 price target. To see the full list of analyst forecasts on EKF Diagnostics Holdings stock, see the GB:EKF Stock Forecast page.

Business Operations and StrategyFinancial Disclosures
EKF Diagnostics to Announce Interim Results and Host Investor Presentation
Neutral
Sep 10, 2025

EKF Diagnostics Holdings plc will announce its interim results for the first half of 2025 on 16 September and will host a live online presentation for investors on the same day. This announcement is significant for stakeholders as it provides insights into the company’s financial performance and strategic direction, potentially impacting its market positioning and investor relations.

The most recent analyst rating on (GB:EKF) stock is a Hold with a £31.00 price target. To see the full list of analyst forecasts on EKF Diagnostics Holdings stock, see the GB:EKF Stock Forecast page.

Business Operations and StrategyProduct-Related Announcements
EKF Diagnostics Secures €4.65m Hematology Contracts, Expands Production Capacity
Positive
Aug 26, 2025

EKF Diagnostics Holdings plc has announced the signing of three new contracts in the Hematology point-of-care testing sector, valued at approximately €4.65 million. These contracts, secured by EKF’s distribution partners in Latin America and Africa, include a significant return to the Peruvian market and the company’s first sales in Uganda. To meet the rising demand, EKF plans to increase its production capacity by 30% at its Barleben site as part of its five-year strategic development plan. This expansion reinforces the company’s confidence in achieving its revenue and adjusted EBITDA targets for FY 2025, aligning with market expectations. The continued global expansion of EKF’s Hematology analyzer footprint is expected to drive future growth and higher margin revenue through consumable pull-through.

The most recent analyst rating on (GB:EKF) stock is a Hold with a £29.00 price target. To see the full list of analyst forecasts on EKF Diagnostics Holdings stock, see the GB:EKF Stock Forecast page.

Business Operations and StrategyProduct-Related Announcements
EKF Diagnostics Secures €4.65 Million in Hematology Contracts
Positive
Aug 26, 2025

EKF Diagnostics Holdings plc has announced the signing of three new contracts in the Hematology point-of-care testing sector, valued at approximately €4.65 million. These contracts, secured by distribution partners in Latin America and Africa, mark significant sales growth in Peru and new market entry in Uganda. To meet rising demand, EKF is increasing its production capacity by 30% at its Barleben site as part of its five-year strategic development plan. This expansion is expected to drive revenue and adjusted EBITDA growth in line with market expectations, reinforcing the company’s confidence in its strategic focus on Hemoglobin testing as a key growth area.

The most recent analyst rating on (GB:EKF) stock is a Hold with a £29.00 price target. To see the full list of analyst forecasts on EKF Diagnostics Holdings stock, see the GB:EKF Stock Forecast page.

Business Operations and StrategyFinancial Disclosures
EKF Diagnostics Reports Steady Revenue and Growth in Key Sectors for H1 2025
Positive
Jul 28, 2025

EKF Diagnostics Holdings plc reported a stable revenue of £25.2 million for the first half of 2025, with improvements in gross margins and cash generation, aligning with management expectations. The company saw significant growth in its hematology and β-HB sectors, with revenues increasing by 8% and 12% respectively, and is optimistic about future contract manufacturing and fermentation opportunities, indicating a positive trajectory in its strategic development plan.

The most recent analyst rating on (GB:EKF) stock is a Buy with a £0.29 price target. To see the full list of analyst forecasts on EKF Diagnostics Holdings stock, see the GB:EKF Stock Forecast page.

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: Oct 17, 2025