Volution (FAN) AI Stock Analysis

• Market Cap: £1.36B
• Dividend Yield: 1.42%
• Average Volume (3M): 473.29K
• Price to Earnings (P/E): 32.6
• Beta (1Y): 1.40
• Revenue Growth: 20.57%
• EPS Growth: -3.18%
• Country: UK
• Employees: 2,200
• Sector: Industrials
• Sector Strength: 72
• Industry: Construction
• EPS (TTM): 0.18
• Shares Outstanding: 197,997,770
• 10 Day Avg. Volume: 495,480
• 30 Day Avg. Volume: 473,293
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: £703.75
• Price Target Upside: 2.74% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 5

• Rating: 61 Neutral
• Price Target: 647.00p ▼(-5.55% Downside)

Volution's overall stock score is primarily driven by its strong financial performance, which is a significant strength. However, the bearish technical indicators and relatively high valuation dampen the overall score. The lack of earnings call data and notable corporate events means these factors do not influence the score.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong market demand and effective product positioning, supporting long-term business expansion.

Cash Flow Generation

Strong cash flow generation enhances financial flexibility, enabling strategic investments and debt management, bolstering long-term stability.

Profit Margins

High profit margins reflect operational efficiency and pricing power, crucial for sustaining profitability and competitive advantage.

Negative Factors

Earnings Decline

Declining earnings per share could indicate challenges in cost management or market conditions, potentially impacting investor confidence and growth.

Leverage Concerns

While currently manageable, any increase in leverage could strain financial resources and limit strategic flexibility, affecting long-term resilience.

Technical Weakness

Persistent technical weakness may reflect underlying market skepticism, potentially affecting capital raising and investor sentiment over time.

Volution Business Overview & Revenue Model

Company Description

Volution Group plc, together with its subsidiaries, manufactures and supplies ventilation products to residential and commercial construction markets in the United Kingdom, Continental Europe, Australasia, and internationally. The company offers unitary extractor fans for use in bathrooms and kitchens; MVHR and MEV systems; rigid, semi-rigid, and flexible ducting products and accessories; mechanical heat recovery units; air handling units, fan coils, and hybrid ventilation products; underfloor heating, heated towel rails, radiators, and storage and panel heaters; wall, box, and tower fans, as well as portable air conditioners; hand dryers and insect killers; and sensors, controllers, and ducting products. It also manufactures blowers and motors for the heating and ventilation industry, such as direct and belt-drive fans, fandecks, double inlet centrifugal blowers, motorized impellers, and combustion blowers. The company sells its products principally under the Vent-Axia, Manrose, Diffusion, Airtech, National Ventilation, Breathing Buildings, Torin-Sifan, Fresh, PAX, VoltAir, Kair, Air Connection, inVENTer, Ventilair, ClimaRad, ERI, Rtek, Simx, and Ventair brands. Volution Group plc was incorporated in 2014 and is based in Crawley, the United Kingdom.

How the Company Makes Money

Volution generates revenue through the sale of its ventilation products and systems, which are sold to a diverse customer base including contractors, builders, and distributors. The company has multiple key revenue streams, including direct sales of products, installation services, and maintenance contracts. Additionally, Volution benefits from strategic partnerships with construction firms and energy efficiency organizations, which help drive demand for its products. The company also engages in research and development to create new product lines that align with emerging market trends, thus enhancing its competitive edge and revenue potential.

Volution Financial Statement Overview

Summary

Volution displays strong financial performance with solid profitability, a stable balance sheet, and robust cash flow generation. Key metrics include a 6% revenue growth, a 51.3% gross profit margin, and a 20.2% EBIT margin. The balance sheet shows moderate leverage with a debt-to-equity ratio of 0.35 and a strong equity ratio of 57.1%. Cash flow is strong with a 20.2% free cash flow growth rate.

Income Statement

Volution has demonstrated strong revenue growth of approximately 6% in the latest period, with a solid gross profit margin of 51.3% and a net profit margin of 12.3%. EBIT and EBITDA margins are healthy at 20.2% and 24.0% respectively, indicating a robust operating performance. These metrics suggest solid profitability and operational efficiency, though continued focus on maintaining cost efficiencies will be important.

Balance Sheet

The company's balance sheet shows a debt-to-equity ratio of 0.35, indicating moderate leverage which is manageable. The return on equity is a respectable 17.4%, reflecting effective utilization of shareholder equity. The equity ratio stands at 57.1%, suggesting a strong capital structure. The balance sheet reflects financial stability, though any increase in leverage should be monitored.

Cash Flow

Volution's cash flow statement highlights a significant free cash flow growth rate of 20.2% year-over-year, and a strong operating cash flow to net income ratio of 1.77, which indicates effective cash generation capabilities. Additionally, the free cash flow to net income ratio is 1.60, showing strong cash conversion. Overall, the company exhibits a strong cash flow position, supporting its financial health.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	362.96M	347.61M	328.01M	307.70M	272.59M	216.64M
Gross Profit	172.95M	178.27M	143.36M	127.80M	110.16M	79.94M
EBITDA	80.18M	82.76M	79.13M	73.11M	58.38M	37.64M
Net Income	39.70M	42.80M	37.37M	35.61M	20.84M	9.66M
Balance Sheet
Total Assets	589.37M	430.31M	440.65M	411.37M	383.98M	326.47M
Cash, Cash Equivalents and Short-Term Investments	10.68M	18.24M	21.24M	14.63M	19.96M	18.49M
Total Debt	196.40M	85.99M	120.46M	108.03M	108.32M	92.20M
Total Liabilities	339.38M	184.39M	214.40M	203.06M	198.69M	150.91M
Stockholders Equity	249.99M	245.92M	226.25M	208.21M	185.29M	175.56M
Cash Flow
Free Cash Flow	74.20M	68.33M	56.83M	31.97M	45.73M	34.62M
Operating Cash Flow	79.03M	75.71M	64.79M	38.98M	50.43M	39.17M
Investing Cash Flow	-117.20M	-19.59M	-37.48M	-24.26M	-46.69M	-5.15M
Financing Cash Flow	31.25M	-58.83M	-17.82M	-19.63M	-2.40M	-27.00M

Volution Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 685.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:FAN, the sentiment is Positive. The current price of 685 is above the 20-day moving average (MA) of 636.95, above the 50-day MA of 639.98, and above the 200-day MA of 584.42, indicating a bullish trend. The MACD of 10.60 indicates Negative momentum. The RSI at 69.62 is Neutral, neither overbought nor oversold. The STOCH value of 61.83 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:FAN.

Volution Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
EPWN	77 Outperform	£161.91M	9.72	16.23%	4.27%	4.67%	93.06%
GEN	70 Outperform	£896.27M	18.26	7.68%	2.89%	5.88%	107.36%
ECEL	66 Neutral	£130.41M	17.43	7.23%	4.07%	5.51%	-33.75%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
TPK	63 Neutral	£1.31B	―	-0.94%	2.17%	-4.34%	-220.12%
NXR	62 Neutral	£244.66M	69.57	1.63%	3.61%	-6.12%	-86.98%
FAN	61 Neutral	£1.36B	32.65	16.10%	1.42%	20.57%	-3.18%

Volution Corporate Events

Volution Group Announces Total Voting Rights Update

Volution Group plc has announced its total voting rights, with an issued share capital of 200 million ordinary shares, of which 197,987,230 carry voting rights. This update is crucial for shareholders to determine their notification requirements under the FCA’s rules, impacting how they manage their interests in the company.

The most recent analyst rating on (GB:FAN) stock is a Buy with a £700.00 price target. To see the full list of analyst forecasts on Volution stock, see the GB:FAN Stock Forecast page.

Volution Group Reports Strong Financial Performance and Growth Prospects

Volution Group plc has reported strong financial performance for the fiscal year ending July 31, 2025, with expectations of adjusted earnings per share slightly exceeding market consensus. The company anticipates over 5% organic revenue growth and more than 20% total revenue growth, partly due to the acquisition of Fantech. The UK market showed robust growth in residential revenue, while Continental Europe and Australasia also performed well. Despite currency translation impacts, Volution expects operating margins to remain stable and cash conversion to exceed targets, supporting future investments.

The most recent analyst rating on (GB:FAN) stock is a Buy with a £7.00 price target. To see the full list of analyst forecasts on Volution stock, see the GB:FAN Stock Forecast page.

Volution Group to Release Pre-Close Trading Update

Volution Group plc announced its intention to release a pre-close trading update for the financial year ending 31 July 2025. This announcement is significant as it provides stakeholders with insights into the company’s financial performance and strategic positioning in the market for energy-efficient indoor air quality solutions.

The most recent analyst rating on (GB:FAN) stock is a Buy with a £7.00 price target. To see the full list of analyst forecasts on Volution stock, see the GB:FAN Stock Forecast page.

Volution Group Announces Key Board and Committee Changes

Volution Group plc announced changes to its Board and Committees, appointing Celia Baxter as the new Remuneration Committee Chair and Designated Non-Executive Director for workforce engagement. Claire Tiney will retire from the Board and various committees after nine years of service, with the company expressing gratitude for her significant contributions.

The most recent analyst rating on (GB:FAN) stock is a Buy with a £690.00 price target. To see the full list of analyst forecasts on Volution stock, see the GB:FAN Stock Forecast page.

Volution Group Announces Total Voting Rights Update

Volution Group plc has announced its total voting rights, with an issued share capital of 200,000,000 ordinary shares, of which 197,975,141 carry voting rights. This information is crucial for shareholders to determine their interest in the company, in compliance with the Financial Conduct Authority’s Disclosure Guidance and Transparency Rules.

The most recent analyst rating on (GB:FAN) stock is a Buy with a £7.00 price target. To see the full list of analyst forecasts on Volution stock, see the GB:FAN Stock Forecast page.

Volution Group Announces Total Voting Rights Update

Volution Group plc has announced its total voting rights, with the company’s issued share capital consisting of 200,000,000 ordinary shares, of which 197,970,539 carry voting rights. This information is crucial for shareholders to determine their interests in the company under the FCA’s Disclosure Guidance and Transparency Rules.

The most recent analyst rating on (GB:FAN) stock is a Buy with a £7.00 price target. To see the full list of analyst forecasts on Volution stock, see the GB:FAN Stock Forecast page.

Volution Group Announces New Director Appointment

Volution Group plc has announced the appointment of Emmanuelle Dubu as a non-executive director of Bodycote plc, effective from June 23, 2025. This strategic move may enhance Volution’s industry positioning by fostering stronger leadership connections and potentially influencing future collaborations or market strategies.

The most recent analyst rating on (GB:FAN) stock is a Buy with a £7.00 price target. To see the full list of analyst forecasts on Volution stock, see the GB:FAN Stock Forecast page.