Vertu Motors (VTU) AI Stock Analysis

• Market Cap: £185.55M
• Dividend Yield: 3.45%
• Average Volume (3M): 235.79K
• Price to Earnings (P/E): 10.8
• Beta (1Y): 0.66
• Revenue Growth: 0.94%
• EPS Growth: -28.04%
• Country: UK
• Employees: 7,610
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Auto - Dealerships
• EPS (TTM): <0.01
• Shares Outstanding: 320,158,540
• 10 Day Avg. Volume: 253,992
• 30 Day Avg. Volume: 235,794
• 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: £63.00
• Price Target Upside: 6.06% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 63 Neutral
• Price Target: 63.00p ▲(6.06% Upside)

Vertu Motors' overall score is driven by solid revenue growth and stable gross margins, though profitability and cash flow generation are under pressure. The technical analysis indicates a bearish trend, but the stock's valuation is reasonable with an attractive dividend yield. The absence of earnings call data and corporate events limits additional insights.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong market demand and effective sales strategies, supporting long-term business expansion and stability.

Stable Gross Margins

Stable gross margins suggest effective cost management and pricing strategies, which are crucial for maintaining profitability over time.

Manageable Leverage

Improving leverage indicates prudent financial management, enhancing the company's ability to invest in growth opportunities without excessive risk.

Negative Factors

Declining Net Margins

Declining net margins reflect increased cost pressures or inefficiencies, which can erode profitability and limit reinvestment capacity.

Reduced Profitability on Equity

Lower ROE suggests the company is generating less profit from its equity base, potentially impacting investor confidence and future capital raising.

Cash Flow Challenges

Declining free cash flow can constrain the company's ability to fund operations and growth initiatives, impacting long-term financial health.

Vertu Motors Business Overview & Revenue Model

Company Description

Vertu Motors plc operates as an automotive retailer in the United Kingdom. The company sells new and used cars and motorcycles, motability cars, and commercial vehicles, as well as provides related aftersales services. It operates 150 chain of franchised dealerships offering sales, service, parts, and bodyshop facilities for new and used cars, and commercial vehicles under the Bristol Street Motors, Macklin Motors, and Vertu Motors. The company's franchise dealerships include Audi, BMW, Honda, Jaguar, jeep, Kia, Land Rover, Mercedes-Benz, Mercedes-AMG, MINI, smart, Toyota, Volkswagen, Citroen, CUPRA, Dacia, DS, Ford, Hyundai, Mazda, MG, Nissan, Peugeot, Renault, SEAT, SKÖDA, and Vauxhall. In addition, it operates as a pension scheme trustee; and provides vehicle financing and related insurance products. Further, the company is involved in the online van and parts retailing; and online advertising businesses. It operates through a network of 160 sales and aftersales outlets in 121 locations. Vertu Motors plc was incorporated in 2006 and is headquartered in Gateshead, the United Kingdom.

How the Company Makes Money

Vertu Motors generates revenue primarily through the sale of new and used vehicles from its dealerships. Key revenue streams include the profit margin on vehicle sales, financing and insurance services offered to customers, and after-sales services such as maintenance and repairs. The company also earns income from the sale of parts and accessories. Significant partnerships with major automotive manufacturers allow Vertu Motors to offer a diverse lineup of vehicles, which enhances its competitive position and drives sales. Additionally, the company may benefit from fleet sales to businesses, further contributing to its earnings.

Vertu Motors Financial Statement Overview

Summary

Vertu Motors demonstrates solid revenue growth and stable gross margins, but profitability metrics are under pressure, with declining net margins and return on equity. The balance sheet shows manageable leverage, yet cash flow generation faces challenges, potentially impacting future investments or debt repayments. Overall, the company maintains a stable financial foundation with areas for improvement in profitability and cash efficiency.

Income Statement

Vertu Motors shows a consistent upward trajectory in revenue, with a notable 31% growth from 2021 to 2022 and steady growth in subsequent years. Gross profit margins are stable around 11%, while net profit margins have decreased over the years, dropping from 1.66% in 2022 to 0.38% in 2025. EBITDA and EBIT margins also show a declining trend, indicating increasing operational expenditures or cost pressures.

Balance Sheet

The balance sheet reflects a stable financial position with a debt-to-equity ratio improving to 0.65 in 2025, suggesting manageable leverage. However, the decline in Return on Equity from 18.1% in 2022 to 5.1% in 2025 signals reduced profitability on equity investments. The equity ratio remains steady, indicating a balanced proportion of equity in financing the assets.

Cash Flow

The cash flow statement reveals a decline in free cash flow from 2023 to 2025, primarily due to reduced operating cash flow. The operating cash flow to net income ratio remains robust, reflecting efficient cash conversion. However, the free cash flow to net income ratio has decreased, indicating potential pressures on cash generation relative to profit.

Breakdown	TTM	Dec 2025	Dec 2023	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	4.76B	4.76B	4.01B	4.72B	3.62B	2.55B
Gross Profit	513.46M	532.93M	448.41M	516.08M	435.42M	301.02M
EBITDA	90.10M	89.80M	75.22M	93.57M	93.42M	44.88M
Net Income	18.10M	18.10M	25.53M	25.71M	60.00M	16.32M
Balance Sheet
Total Assets	1.58B	1.58B	1.38B	1.48B	1.06B	1.16B
Cash, Cash Equivalents and Short-Term Investments	72.65M	72.65M	78.98M	70.60M	83.79M	67.83M
Total Debt	233.22M	233.22M	237.80M	207.50M	156.46M	163.46M
Total Liabilities	1.22B	1.22B	1.04B	1.13B	725.51M	885.23M
Stockholders Equity	357.55M	357.55M	341.38M	353.37M	331.88M	275.94M
Cash Flow
Free Cash Flow	39.80M	39.80M	59.39M	57.02M	52.39M	60.10M
Operating Cash Flow	66.64M	66.64M	80.83M	83.97M	69.00M	74.92M
Investing Cash Flow	-32.37M	-32.37M	-143.33M	-29.11M	-24.52M	-33.64M
Financing Cash Flow	-32.22M	-32.22M	57.69M	-63.23M	-28.52M	-14.29M

Vertu Motors Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 59.40
• 50DMA: Negative
• 100DMA: Negative
• 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:VTU, the sentiment is Negative. The current price of 59.4 is below the 20-day moving average (MA) of 60.33, below the 50-day MA of 60.89, and above the 200-day MA of 57.95, indicating a neutral trend. The MACD of -0.03 indicates Positive momentum. The RSI at 41.49 is Neutral, neither overbought nor oversold. The STOCH value of 34.78 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GB:VTU.

Vertu Motors Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
INCH	74 Outperform	2.50B	6.40	30.53%	3.92%	-15.99%	69.97%
VTU	63 Neutral	£185.55M	10.84	5.09%	3.45%	0.94%	-28.04%
79GL	63 Neutral	13.63M	―	0.59%	8.76%	0.00%	0.00%
CFYN	61 Neutral	13.63M	77.52	0.59%	2.00%	5.11%	0.00%
78GL	57 Neutral	13.63M	―	0.59%	769.23%	0.00%	0.00%
MOTR	55 Neutral	130.11M	44.81	0.00%	0.61%	7.96%	0.00%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%

Vertu Motors Corporate Events

Vertu Motors Advances Share Buyback Programme

Vertu Motors has repurchased 52,898 ordinary shares as part of its ongoing share buyback programme, which began in February 2025. This move is part of a broader strategy that has returned over £41.6 million to shareholders since 2017, reducing the company’s shares in issue by 19.3%. The cancellation of these shares will adjust the total number of shares with voting rights, impacting shareholder calculations under FCA rules.

The most recent analyst rating on (GB:VTU) stock is a Hold with a £64.00 price target. To see the full list of analyst forecasts on Vertu Motors stock, see the GB:VTU Stock Forecast page.

Vertu Motors Extends Share Buyback Program to Enhance Shareholder Value

Vertu Motors has announced an extension of its share buyback program, having already returned over £41 million to shareholders since 2017, reducing its shares in issue by over 19%. The company has entered into an agreement with Stifel Nicolaus Europe Limited to purchase shares during a closed period, with the aim of further enhancing shareholder value and optimizing its capital structure.

The most recent analyst rating on (GB:VTU) stock is a Hold with a £64.00 price target. To see the full list of analyst forecasts on Vertu Motors stock, see the GB:VTU Stock Forecast page.

Vertu Motors Enhances Shareholder Value Through Strategic Buyback

Vertu Motors announced the purchase of 51,887 ordinary shares as part of its ongoing share buyback program, which began in 2017 and has returned over £41.5 million to shareholders, reducing the company’s shares in issue by 19.3%. This strategic move is expected to impact the company’s market positioning by enhancing shareholder value and optimizing its capital structure.

The most recent analyst rating on (GB:VTU) stock is a Hold with a £66.00 price target. To see the full list of analyst forecasts on Vertu Motors stock, see the GB:VTU Stock Forecast page.

Vertu Motors Enhances Shareholder Value with Latest Share Buyback

Vertu Motors PLC has repurchased 54,332 ordinary shares as part of its ongoing share buyback programme, which began in February 2025. This move is part of a broader strategy to return value to shareholders, having already returned over £41.4 million since 2017, reducing the company’s shares in issue by 19.3%. The repurchased shares will be cancelled, adjusting the total number of shares with voting rights to 320,588,728. This transaction reflects Vertu Motors’ commitment to enhancing shareholder value and optimizing its capital structure.

The most recent analyst rating on (GB:VTU) stock is a Hold with a £66.00 price target. To see the full list of analyst forecasts on Vertu Motors stock, see the GB:VTU Stock Forecast page.

Vertu Motors Reports Stable Performance Amid Market Challenges

Vertu Motors has reported a stable performance in the five-month period to July 2025, with used car volumes and margins remaining steady despite supply constraints and low consumer confidence. The company has seen strong growth in its aftersales business and has maintained cost control despite inflationary pressures. While the new car market faces challenges due to the Zero Emission Vehicle mandate and consumer environment, recent government grants for electric vehicles are expected to boost demand. Vertu Motors is expanding its portfolio by opening new BYD sales outlets and continues its share buyback program, enhancing shareholder value. The company is also involved in discussions with the Financial Conduct Authority regarding a proposed redress scheme for motor finance customers following a Supreme Court ruling.

The most recent analyst rating on (GB:VTU) stock is a Hold with a £66.00 price target. To see the full list of analyst forecasts on Vertu Motors stock, see the GB:VTU Stock Forecast page.

Vertu Motors Enhances Shareholder Value with Continued Buyback Program

Vertu Motors PLC announced the repurchase of 57,072 ordinary shares as part of its ongoing share buyback program, which began in July 2017. This initiative has returned over £41.4 million to shareholders and reduced the company’s shares in issue by 19.3%, reflecting a strategic move to enhance shareholder value and optimize the company’s capital structure.

The most recent analyst rating on (GB:VTU) stock is a Hold with a £66.00 price target. To see the full list of analyst forecasts on Vertu Motors stock, see the GB:VTU Stock Forecast page.

Vertu Motors Advances Share Buyback Program with Latest Repurchase

Vertu Motors has repurchased 25,000 ordinary shares as part of its ongoing share buyback program, which has returned over £41.4 million to shareholders since 2017. This move reduces the company’s shares in issue by 19.3%, potentially impacting shareholder calculations under FCA rules, and reflects Vertu’s strategic focus on enhancing shareholder value.

The most recent analyst rating on (GB:VTU) stock is a Hold with a £66.00 price target. To see the full list of analyst forecasts on Vertu Motors stock, see the GB:VTU Stock Forecast page.

Vertu Motors Advances Share Buyback Program with Latest Repurchase

Vertu Motors announced the repurchase of 68,760 ordinary shares as part of its ongoing share buyback program, initiated in February 2025. This move, which contributes to a reduction in the total number of shares with voting rights, reflects the company’s strategy to return value to shareholders, having returned over £41.4 million since 2017, and underscores its commitment to enhancing shareholder value.

The most recent analyst rating on (GB:VTU) stock is a Hold with a £66.00 price target. To see the full list of analyst forecasts on Vertu Motors stock, see the GB:VTU Stock Forecast page.

Vertu Motors Enhances Shareholder Value with Share Buyback

Vertu Motors announced the purchase of 78,765 ordinary shares as part of its ongoing share buyback program, which has returned over £41.4 million to shareholders since 2017. This transaction reduces the company’s shares in issue by 19.3%, enhancing shareholder value and potentially strengthening its market position.

The most recent analyst rating on (GB:VTU) stock is a Hold with a £66.00 price target. To see the full list of analyst forecasts on Vertu Motors stock, see the GB:VTU Stock Forecast page.

Vertu Motors Advances Share Buyback Programme with Latest Repurchase

Vertu Motors PLC announced the repurchase of 78,303 ordinary shares as part of its ongoing share buyback programme, initiated in February 2025. This transaction, executed through Stifel Nicolaus Europe Limited, reflects the company’s strategy to return value to shareholders, having already reduced its shares in issue by 19.2% since 2017. The repurchased shares will be cancelled, adjusting the total number of shares with voting rights to 320,872,657. This move is part of Vertu’s broader financial strategy to enhance shareholder value and maintain transparency under the FCA’s Disclosure Guidance and Transparency Rules.

The most recent analyst rating on (GB:VTU) stock is a Hold with a £66.00 price target. To see the full list of analyst forecasts on Vertu Motors stock, see the GB:VTU Stock Forecast page.