Kitwave Group PLC (KITW) AI Stock Analysis

• Market Cap: £183.38M
• Dividend Yield: 5.23%
• Average Volume (3M): 314.37K
• Price to Earnings (P/E): 10.2
• Beta (1Y): 0.99
• Revenue Growth: 19.01%
• EPS Growth: -15.21%
• Country: UK
• Employees: 2,100
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Food Distribution
• EPS (TTM): 0.08
• Shares Outstanding: 83,736,540
• 10 Day Avg. Volume: 348,680
• 30 Day Avg. Volume: 314,374
• 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: £447.50
• Price Target Upside: 104.34% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 70 Outperform
• Price Target: 256.00p ▲(16.89% Upside)

Kitwave Group PLC's overall stock score is driven by its strong valuation, with an attractive P/E ratio and high dividend yield. While financial performance shows robust revenue growth, concerns about declining net income and rising debt levels need attention. Technical analysis indicates a bearish trend, which may limit short-term upside potential.

Positive Factors

Revenue Growth

The company's robust revenue growth highlights its ability to expand market presence and meet customer demand, supporting long-term business sustainability.

Operational Efficiency

Efficient cost management and healthy margins indicate strong operational efficiency, which can enhance profitability and competitive positioning over time.

Cash Flow Generation

Consistent cash flow generation supports financial flexibility, enabling the company to invest in growth opportunities and manage debt effectively.

Negative Factors

Declining Net Income

The decline in net income suggests challenges in managing operating expenses or interest costs, which could impact profitability if not addressed.

Rising Debt Levels

Rising debt levels may strain financial resources, limiting the company's ability to invest in growth and potentially increasing financial risk.

Decreasing Free Cash Flow

A decrease in free cash flow could hinder the company's ability to maintain financial flexibility and support long-term investments.

Kitwave Group PLC Business Overview & Revenue Model

Company Description

Kitwave Group plc engages in the wholesale business in the United Kingdom. The company operates through three divisions: Ambient, Frozen & Chilled, and Foodservice. The Ambient division supplies confectionery, soft drinks, crisps and snacks, and tobacco. This division serves independent convenience stores, vending operators, national retailers, and other UK wholesalers through a network of 6 depots. The Frozen & Chilled division offers ice creams, pizzas, chips, ready meals, and a range of chilled products. It serves independent convenience stores, leisure outlets, and UK wholesalers through a network of 10 depots. The Foodservice division provides frozen, chilled, and ambient food, as well as alcohol and soft drinks to independent traditional foodservice outlets, including bars, restaurants, and leisure outlets, as well as customers in the care home and education sectors through a network of 11 depots. The company was founded in 1987 and is headquartered in North Shields, the United Kingdom.

How the Company Makes Money

Kitwave Group PLC generates revenue primarily through the wholesale distribution of its product range to retailers and foodservice operators. The company employs a multi-channel approach, leveraging both direct sales and an extensive network of independent distributors to reach its customer base. Key revenue streams include sales of food and beverage products, non-food items, and seasonal goods. Additionally, the company benefits from strategic partnerships with major manufacturers and brands, allowing it to enhance its product offerings and maintain competitive pricing. The scale of its operations and the breadth of its distribution network also contribute to economies of scale, improving profit margins.

Kitwave Group PLC Financial Statement Overview

Summary

Kitwave Group PLC shows strong revenue growth and operational efficiency, but faces challenges with declining net income and increasing debt. Sustaining cash flow is crucial for financial health and future growth.

Income Statement

Kitwave Group PLC has demonstrated strong revenue growth, with a significant increase from the previous year. The gross profit and EBIT margins are healthy, indicating efficient cost management. However, the decline in net income and its margin suggests potential challenges in managing operating expenses or interest costs.

Balance Sheet

The company's balance sheet shows a moderate debt-to-equity ratio, indicating a reasonable level of leverage. The equity ratio is satisfactory, suggesting a stable asset base supported by equity. However, the increasing total debt over the years could pose potential financial risks if not managed properly.

Cash Flow

Kitwave's cash flow statement indicates solid operating cash flow relative to net income, supporting its operational efficiency. The consistent free cash flow generation is a positive sign, although the decrease in free cash flow compared to the previous year is a concern. The company must maintain its cash flow to ensure financial flexibility.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	663.65M	602.22M	503.09M	380.69M	592.02M
Gross Profit	147.82M	132.13M	102.63M	68.58M	96.02M
EBITDA	41.40M	39.33M	28.37M	19.77M	24.63M
Net Income	16.72M	18.96M	14.34M	1.10M	-500.00K
Balance Sheet
Total Assets	359.29M	209.59M	179.66M	148.82M	129.86M
Cash, Cash Equivalents and Short-Term Investments	4.14M	673.00K	5.51M	4.97M	342.00K
Total Debt	121.39M	59.07M	49.10M	39.26M	82.16M
Total Liabilities	234.74M	125.14M	107.77M	87.23M	129.92M
Stockholders Equity	124.55M	84.44M	71.89M	61.58M	-53.00K
Cash Flow
Free Cash Flow	24.13M	26.38M	23.92M	4.96M	26.76M
Operating Cash Flow	31.40M	30.30M	26.52M	7.92M	29.89M
Investing Cash Flow	-77.09M	-23.04M	-19.21M	-2.71M	-16.30M
Financing Cash Flow	49.15M	-12.10M	-6.77M	-577.00K	-14.45M

Kitwave Group PLC Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 219.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:KITW, the sentiment is Negative. The current price of 219 is below the 20-day moving average (MA) of 230.25, below the 50-day MA of 234.48, and below the 200-day MA of 269.44, indicating a bearish trend. The MACD of -4.20 indicates Positive momentum. The RSI at 40.52 is Neutral, neither overbought nor oversold. The STOCH value of 9.71 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GB:KITW.

Kitwave Group PLC Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
KITW	70 Outperform	£183.38M	10.23	15.19%	5.23%	19.01%	-15.21%
BNZL	70 Outperform	£7.55B	16.00	17.95%	2.94%	1.92%	0.50%
MCB	70 Outperform	£209.63M	6.35	―	―	-0.89%	0.36%
NICL	64 Neutral	£420.46M	24.01	21.22%	2.79%	3.04%	-6.67%
54GW	56 Neutral	£304.79M	―	6.61%	3.72%	―	―
PZC	50 Neutral	£337.69M	-58.33	―	1.86%	-2.67%	89.86%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%

Kitwave Group PLC Corporate Events

Kitwave Group PLC Adjusts Financial Year-End to Align with Calendar Year

Kitwave Group PLC has announced a change in its accounting reference date from 31 October to 31 December, aligning its financial year with the calendar year. This adjustment aims to provide a more balanced financial statement presentation, reflecting the company’s revenue patterns more accurately. The change will affect the reporting timetable, with new dates set for the publication of unaudited and audited accounts. Additionally, the company plans to distribute a single dividend for the eight-month period ending 31 December 2025, in conjunction with the interim dividend previously announced.

The most recent analyst rating on (GB:KITW) stock is a Buy with a £495.00 price target. To see the full list of analyst forecasts on Kitwave Group PLC stock, see the GB:KITW Stock Forecast page.

Kitwave Group PLC Sees Increase in Major Holdings by Downing LLP

Kitwave Group PLC has announced a change in its major holdings, with Downing LLP increasing its voting rights from 3.06% to 4.14%. This acquisition of additional voting rights signifies a strengthened position for Downing LLP within Kitwave, potentially impacting the company’s governance and strategic decisions.

The most recent analyst rating on (GB:KITW) stock is a Buy with a £4.75 price target. To see the full list of analyst forecasts on Kitwave Group PLC stock, see the GB:KITW Stock Forecast page.

Kitwave Group Sees Shift in Major Shareholder Voting Rights

Kitwave Group PLC has announced a change in its major holdings, with Liontrust Investment Partners LLP reducing its voting rights from 9.653% to 5.702%. This shift in voting rights could impact Kitwave’s strategic decisions and influence within the market, as Liontrust’s reduced stake may alter the dynamics of shareholder influence and decision-making processes.

The most recent analyst rating on (GB:KITW) stock is a Buy with a £420.00 price target. To see the full list of analyst forecasts on Kitwave Group PLC stock, see the GB:KITW Stock Forecast page.

Kitwave Director and PCA Increase Shareholding

Kitwave Group PLC announced that Gerard Murray, a Non-Executive Director, along with his PCA, Marta Fernandez Varona, purchased a total of 30,000 ordinary shares of the company on July 3, 2025. This transaction, conducted on the London Stock Exchange, reflects a modest increase in their shareholding, each now holding 75,000 shares, representing 0.09% of the current issued share capital. This move could indicate confidence in the company’s future prospects and may impact investor perceptions positively.

The most recent analyst rating on (GB:KITW) stock is a Buy with a £495.00 price target. To see the full list of analyst forecasts on Kitwave Group PLC stock, see the GB:KITW Stock Forecast page.

Kitwave Group PLC Reports Revenue Growth Amid Operational Challenges

Kitwave Group PLC reported a 26.7% increase in revenue to £376.2 million for the six months ending April 2025, driven by strategic acquisitions and infrastructure investments. Despite record revenue and operating profits, the company anticipates lower than expected financial performance due to increased operational costs, macroeconomic challenges affecting consumer confidence, and higher employer National Insurance contributions. The integration of Creed Foodservice and the new South West distribution center have strengthened Kitwave’s position, but the company has revised its profit expectations for the year. Kitwave remains confident in its long-term strategy and continues to focus on service-led growth initiatives, supported by a robust balance sheet.

The most recent analyst rating on (GB:KITW) stock is a Buy with a £495.00 price target. To see the full list of analyst forecasts on Kitwave Group PLC stock, see the GB:KITW Stock Forecast page.