Fletcher King (FLK) AI Stock Analysis

• Market Cap: £3.59M
• Dividend Yield: 5.77%
• Average Volume (3M): 4.18K
• Price to Earnings (P/E): 23.5
• Beta (1Y): 0.52
• Revenue Growth: 0.55%
• EPS Growth: -45.82%
• Country: UK
• Employees: 18
• Sector: Real Estate
• Sector Strength: 53
• Industry: Real Estate - Services
• EPS (TTM): 0.01
• Shares Outstanding: 10,252,209
• 10 Day Avg. Volume: 2,340
• 30 Day Avg. Volume: 4,180
• PEG Ratio: -0.42
• Price to Book (P/B): 0.66
• Price to Sales (P/S): 0.76
• P/FCF Ratio: 5.07
• 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: £36.00
• Price Target Upside: -7.69% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 63 Neutral
• Price Target: 42.00p ▲(7.69% Upside)

Fletcher King's overall stock score is driven primarily by its solid valuation and attractive dividend yield, which provide a strong income component. However, challenges in financial performance, particularly declining profitability and revenue growth, weigh down the score. Technical indicators suggest mixed momentum, with potential oversold conditions but bearish signals from the MACD.

Fletcher King Business Overview & Revenue Model

Company Description

Fletcher King (FLK) is a prominent property consultancy firm based in the UK, specializing in commercial real estate. The company operates across various sectors including investment, development, and asset management, providing a comprehensive range of services such as property valuation, investment advice, and strategic consultancy. FLK aims to facilitate property transactions and enhance asset value for its clients, which include investors, developers, and corporate entities.

How the Company Makes Money

Fletcher King generates revenue through multiple streams, primarily by charging fees for its consultancy and advisory services. These fees are typically based on a percentage of the transaction value or a fixed fee for specific services rendered. Key revenue streams include property valuations, investment brokerage, and project management. The company also earns income from long-term contracts with clients for ongoing property management and consultancy services. Significant partnerships with real estate developers and financial institutions further enhance its earnings potential, allowing FLK to tap into lucrative investment opportunities and provide tailored solutions that meet client needs.

Fletcher King Financial Statement Overview

Summary

Fletcher King shows strong cost management and a solid capital structure, but faces challenges with declining profitability and revenue growth. The company's low leverage is positive, but reduced cash flow growth and profitability metrics indicate potential risks.

Income Statement

Fletcher King shows a mixed performance in its income statement. The company maintains a strong gross profit margin consistently at 100%, indicating effective cost management. However, the net profit margin has decreased to 3.98% from 7.37% in the previous year, reflecting declining profitability. The revenue growth rate is negative at -6.39%, suggesting a contraction in sales. EBIT and EBITDA margins have also decreased, indicating reduced operational efficiency.

Balance Sheet

The balance sheet reflects a stable financial position with a low debt-to-equity ratio of 0.052, indicating conservative leverage. The return on equity has decreased to 3.43%, showing reduced profitability for shareholders. The equity ratio is strong, suggesting a solid capital structure. However, the declining ROE is a concern for future profitability.

Cash Flow

Cash flow analysis reveals challenges with a significant decline in free cash flow growth at -38.33%. The operating cash flow to net income ratio is 0.35, indicating moderate cash generation from operations. The free cash flow to net income ratio is nearly 1, suggesting that the company is converting its net income into free cash flow effectively. However, the negative growth in free cash flow is a concern.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	3.84M	3.84M	3.83M	3.08M	2.97M	2.26M
Gross Profit	3.84M	3.84M	3.83M	3.08M	2.97M	2.26M
EBITDA	217.00K	479.00K	660.00K	408.00K	370.00K	-539.00K
Net Income	153.00K	153.00K	282.00K	233.00K	152.00K	-688.00K
Balance Sheet
Total Assets	6.13M	6.13M	6.26M	5.51M	6.19M	4.96M
Cash, Cash Equivalents and Short-Term Investments	4.21M	4.21M	3.83M	2.75M	3.37M	2.89M
Total Debt	231.00K	231.00K	312.00K	427.00K	1.01M	577.00K
Total Liabilities	1.67M	1.67M	1.82M	1.33M	2.16M	1.58M
Stockholders Equity	4.46M	4.46M	4.44M	4.18M	4.03M	3.38M
Cash Flow
Free Cash Flow	576.00K	576.00K	684.00K	45.00K	-30.00K	-688.00K
Operating Cash Flow	580.00K	580.00K	698.00K	50.00K	322.00K	-688.00K
Investing Cash Flow	2.50M	2.62M	-434.00K	-5.00K	-334.00K	2.00K
Financing Cash Flow	-321.00K	-321.00K	-205.00K	-655.00K	485.00K	-46.00K

Fletcher King Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 39.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:FLK, the sentiment is Positive. The current price of 39 is below the 20-day moving average (MA) of 40.36, above the 50-day MA of 37.58, and above the 200-day MA of 33.65, indicating a neutral trend. The MACD of -0.04 indicates Positive momentum. The RSI at 50.30 is Neutral, neither overbought nor oversold. The STOCH value of 22.69 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:FLK.

Fletcher King Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CDFF	69 Neutral	£26.11M	25.49	3.49%	0.94%	-1.79%	-10.25%
FPO	67 Neutral	£23.29M	9.43	5.09%	―	-3.81%	―
WINK	67 Neutral	£25.17M	15.46	24.60%	6.62%	7.02%	-12.85%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
FLK	63 Neutral	£3.59M	23.49	3.44%	5.77%	0.55%	-45.82%
SPDI	52 Neutral	£2.58M	0.40	-2.41%	―	-55.33%	-115.99%
LAS	50 Neutral	£6.83M	―	-6.18%	―	13.51%	-112.77%

Fletcher King Corporate Events

Fletcher King PLC Shows Resilience Amid Market Challenges

Fletcher King PLC reported improved earnings before tax in the six months ending October 31, 2024, despite challenging market conditions. The company maintained profitability, with revenues from non-transactional services showing growth. While the capital markets remain sluggish, the company is positioned to benefit from potential future improvements due to its strong balance sheet, although no interim dividend was declared. The broader commercial property market faced mixed results, with industrial sectors performing well and office sectors struggling.

Fletcher King PLC Reports Increased Earnings Despite Market Challenges

Fletcher King PLC reported improved earnings before tax for the first half of 2024 despite a challenging capital market environment. Revenues from non-transactional services have grown, helping the company to maintain profitability, though no interim dividend has been declared due to market uncertainties. The company remains optimistic about future opportunities, supported by a strong balance sheet.