Want to see GB:VTU full AI Analyst Report?
Top Page
Vertu Motors
(LSE:VTU)
Select Model
Select Model
Rating:63Neutral
Price Target:
95.00 p
▲(10.47% Upside)
Action:Reiterated
Date:10/29/26
The score is driven primarily by acceptable-but-weakening fundamentals (deteriorating margins/returns and softer free-cash-flow momentum despite solid scale and manageable leverage). Technicals are a notable positive with the shares in an uptrend above major moving averages. Valuation is reasonable with a modest dividend, while the earnings call adds balanced support from cost savings and aftersales strength but is tempered by ongoing new-car margin pressure and policy/regulatory risks.
Positive Factors
Aftersales resilience
Aftersales provides recurring revenue from the installed vehicle base and is less dependent on new-car cycles. Its recent profit growth and record labour sales show that workshops are helping offset retail weakness, supporting earnings resilience and customer retention over the next several quarters.
Negative Factors
New-car margin erosion
Repeated declines in new-vehicle profitability indicate a structural deterioration in an important earnings stream rather than a single-quarter fluctuation. Lower margins reduce the benefit of Vertu’s dealership scale and increase reliance on aftersales, used cars and cost reductions.
Read all positive and negative factors
Positive Factors
Negative Factors
Aftersales resilience
Aftersales provides recurring revenue from the installed vehicle base and is less dependent on new-car cycles. Its recent profit growth and record labour sales show that workshops are helping offset retail weakness, supporting earnings resilience and customer retention over the next several quarters.
Read all positive factors
Vertu Motors (VTU) vs. iShares MSCI United Kingdom ETF (EWC)
Market Cap
£269.60M
Dividend Yield2.3%
Average Volume (3M)458.60K
Price to Earnings (P/E)15.1
Beta (1Y)0.20
Revenue Growth2.90%
EPS Growth15.43%
CountryUK
Employees7,200
SectorConsumer Cyclical
Sector Strength84
IndustryAuto - Dealerships
Share Statistics
EPS (TTM)0.06
Shares Outstanding309,905,460
10 Day Avg. Volume814,807
30 Day Avg. Volume458,601
Financial Highlights & Ratios
PEG Ratio-1.38
Price to Book (P/B)0.53
Price to Sales (P/S)0.04
P/FCF Ratio4.68
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)0.06
Revenue Forecast (FY)£5.02B
Vertu Motors Business Overview & Revenue Model
Company Description
Vertu Motors plc is a leading automotive retail group with significant operations throughout the United Kingdom. The company's primary activities include the sale of new and pre-owned cars, motorcycles, Motability vehicles, and commercial vehicles...
How the Company Makes Money
Vertu Motors makes money primarily through automotive retail and related aftersales activities conducted across its franchised dealership network. Key revenue streams include: (1) New vehicle sales: revenue generated from selling new cars and vans...
Vertu Motors Earnings Call Summary
Earnings Call Date:May 13, 2026
(Q4-2026)
| % Change Since: |
Next Earnings Date:May 12, 2027
Earnings Call Sentiment Neutral
The call presents a balanced picture: the group remains profitable, cash-generative and operationally resilient with notable wins in aftersales, BEV retail performance, digitalisation, tangible net asset growth and planned cost savings (GBP 10m). However, material structural headwinds persist — notably a sustained decline in new-vehicle profitability (GBP 8.7m reduction), sector disruption from the ZEV mandate, regulatory uncertainty around motor finance, and market-specific weaknesses in vans and certain used segments. Management has tangible mitigations (pruning, buybacks, measured Chinese-brand expansion, efficiency and digital initiatives) but key industry policy and macro risks leave near-term visibility constrained.Positive Updates
Strong cash generation and healthier net debt
Generated free cash inflow of GBP 30.7m in FY'26; net debt reduced to GBP 61.3m (down GBP 5.3m year-on-year); unencumbered used-vehicle stock at GBP 174m; sustaining capex c. GBP 30m and additional GBP 8.2m on capital projects.
Negative Updates
Significant decline in new vehicle profitability
Core group gross profit declined by GBP 4.3m YoY with a standout reduction of GBP 8.7m in gross profit from new vehicle sales (retail and Motability) — the second consecutive year of falling new-vehicle profitability (prior year reduction GBP 10.9m).
Read all updates
Q4-2026 Updates
Positive
Negative
Strong cash generation and healthier net debt
Generated free cash inflow of GBP 30.7m in FY'26; net debt reduced to GBP 61.3m (down GBP 5.3m year-on-year); unencumbered used-vehicle stock at GBP 174m; sustaining capex c. GBP 30m and additional GBP 8.2m on capital projects.
Read all positive updates
Company Guidance
Management guided that FY‑27 will benefit from c.£10m of cost savings (including c.£7m from ~280 headcount reductions and c.£0.4m from avoided losses), and reported a strong start to the year with March–April profitability above last year driven by aftersales (c.£2.9m extra gross profit in two months; aftersales +£8.4m YoY) and fleet growth (fleet cars +32% in two months; vans LFL +8.5%). They signalled capital discipline—prioritising pruning and shareholder returns (a new £12m buyback, on top of £10.7m spent in FY‑26 and £46.5m total repurchased) rather than broad expansion unless very high‑value opportunities emerge—while retaining capacity to act. Key balance‑sheet and cash metrics highlighted were net debt c.£61.3m (down £5.3m), free cash inflow £30.7m, sustaining capex £30m, £8.2m growth/project spend, unencumbered used stock £174m, property £327m and tangible NAV 75.9p (up from 72.9p); the final dividend was held at 1.15p (total 2.05p; cover 2.6x). They also reiterated focus on digitalisation (60 in‑house developers; 30,000‑call LLM) and warned that the ZEV mandate remains the principal downside risk to new‑car margins.Vertu Motors Financial Statement Overview
Summary
Income Statement
54
Neutral
Balance Sheet
63
Positive
Cash Flow
58
Neutral
| Breakdown | TTM | Feb 2026 | Feb 2025 | Feb 2024 | Feb 2023 | Feb 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 4.92B | 4.83B | 4.76B | 4.72B | 4.01B | 3.62B |
| Gross Profit | 505.04M | 497.25M | 532.93M | 516.08M | 448.41M | 435.42M |
| EBITDA | 85.50M | 74.64M | 110.19M | 93.57M | 91.60M | 110.25M |
| Net Income | 18.15M | 14.62M | 18.10M | 25.71M | 25.53M | 60.00M |
Balance Sheet | ||||||
| Total Assets | 1.54B | 1.56B | 1.58B | 1.48B | 1.38B | 1.06B |
| Cash, Cash Equivalents and Short-Term Investments | 77.99M | 73.08M | 72.65M | 70.60M | 78.98M | 83.79M |
| Total Debt | 228.81M | 232.34M | 233.22M | 207.50M | 237.80M | 156.46M |
| Total Liabilities | 1.17B | 1.20B | 1.22B | 1.13B | 1.04B | 725.51M |
| Stockholders Equity | 367.94M | 357.53M | 357.55M | 353.37M | 341.38M | 331.88M |
Cash Flow | ||||||
| Free Cash Flow | 61.19M | 40.75M | 39.80M | 57.02M | 59.39M | 52.39M |
| Operating Cash Flow | 77.28M | 60.72M | 66.64M | 83.97M | 80.83M | 69.00M |
| Investing Cash Flow | -13.25M | -15.88M | -32.37M | -29.11M | -143.33M | -24.52M |
| Financing Cash Flow | -44.53M | -44.41M | -32.22M | -63.23M | 57.69M | -28.52M |
Vertu Motors Technical Analysis
Positive
86.00
Price Trends
85.97
Positive
82.05
Positive
72.26
Positive
Market Momentum
1.19
Negative
59.90
Neutral
76.69
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:VTU, the sentiment is Positive. The current price of 86 is above the 20-day moving average (MA) of 85.96, above the 50-day MA of 85.97, and above the 200-day MA of 72.26, indicating a bullish trend. The MACD of 1.19 indicates Negative momentum. The RSI at 59.90 is Neutral, neither overbought nor oversold. The STOCH value of 76.69 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:VTU.
Vertu Motors Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
65 Neutral | £554.50M | 16.85 | 6.52% | 3.54% | 5.04% | ― | |
65 Neutral | £2.10B | 9.69 | 19.59% | 5.33% | 7.27% | -39.82% | |
63 Neutral | £269.60M | 15.11 | 5.00% | 2.30% | 2.90% | 15.43% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
56 Neutral | £14.35M | 2.98 | 20.83% | ― | 4.04% | -25.71% | |
54 Neutral | £114.24M | 21.65 | 22.27% | 1.53% | 8.14% | 81.96% | |
46 Neutral | £12.95M | -10.11 | -4.30% | 2.11% | -1.74% | -830.03% |
* Consumer Cyclical Sector Average
GB:VTU
Vertu Motors
89.30
28.53
46.95%
GB:CFYN
Caffyns
475.00
11.59
2.50%
GB:HFD
Halfords
254.50
111.58
78.07%
GB:INCH
Inchcape
630.00
-103.75
-14.14%
GB:MOTR
Motorpoint
144.00
-12.29
-7.86%
GB:CTA
CT Automotive Group Plc
19.50
-13.50
-40.91%
Vertu Motors Corporate Events
Business Operations and StrategyStock Buyback
Vertu Motors Cancels Latest Buyback Shares as Capital Returns Top £48m
Positive
Oct 19, 2026
Vertu Motors plc has repurchased 193,977 ordinary shares between 12 and 16 October 2026 under its ongoing share buyback programme. The trades, executed on the London Stock Exchange through Shore Capital, were carried out at prices between 82.70p a...
Regulatory Filings and Compliance
Vertu Motors Operations Director Trims Stake in Modest Share Sale
Neutral
Oct 16, 2026
Vertu Motors plc has disclosed that Operations Director Christopher Taylor, a person discharging managerial responsibility, sold 48,206 ordinary shares in the company on 15 October 2026 at 83.0 pence per share. Following this transaction, his bene...
Business Operations and StrategyStock BuybackDividendsFinancial Disclosures
Vertu Motors lifts profit outlook on record revenues, cash generation
Positive
Oct 14, 2026
Vertu Motors reported record interim revenue of £2.6bn for the six months to 31 August 2026, with adjusted profit before tax up 19% to £23.8m and gross profit rising across all departments. Strong cash generation cut net debt to £54...
Business Operations and StrategyStock Buyback
Vertu Motors Cancels Latest Share Buyback Tranche, Shrinks Free Float
Positive
Oct 12, 2026
Vertu Motors has repurchased 131,533 ordinary shares between 5 and 9 October 2026 under its ongoing buyback programme, with purchases executed on the London Stock Exchange at prices around 82–83 pence per share. The company plans to cancel t...
Business Operations and StrategyFinancial Disclosures
Vertu Motors to Outline Interim Performance in Live Investor Presentation
Positive
Oct 7, 2026
Vertu Motors plc will announce its interim results for the six months to 31 August 2026 on 14 October, underscoring an important mid-year update for stakeholders in the UK automotive retail sector. The timing gives investors a fresh look at perfor...
Business Operations and StrategyStock BuybackRegulatory Filings and Compliance
Vertu Motors Cuts Share Count Further With Ongoing Buyback
Positive
Sep 21, 2026
Vertu Motors plc has continued its share buyback programme, repurchasing 47,000 ordinary shares between 14 and 18 September 2026 at a price of 83 pence per share. The shares will be cancelled, reducing the total number of ordinary shares with voti...
Business Operations and StrategyStock Buyback
Vertu Motors Continues Share Buybacks, Cancels 30,000 Shares
Positive
Sep 14, 2026
Vertu Motors has repurchased 30,000 ordinary shares at 83 pence each as part of its ongoing share buyback programme, with the shares to be cancelled, reducing the total number of voting shares to 310,277,970. Since initiating buybacks in 2017, the...
Business Operations and StrategyStock BuybackFinancial Disclosures
Vertu Motors Expects FY27 Results Ahead of Market Expectations as Chinese Brand Push Accelerates
Positive
Aug 27, 2026
Vertu Motors reported strong trading for the five months to 31 July 2026, with like-for-like growth in revenues, new and used vehicle volumes, and high-margin aftersales, underpinned by disciplined cost control and stable gross margins. Careful wo...
Business Operations and StrategyStock Buyback
Vertu Motors Cancels New Share Buyback Tranche as Capital Returns Top £48m
Positive
Aug 24, 2026
Vertu Motors has repurchased 107,000 of its own ordinary shares between 17 and 21 August 2026 under its ongoing share buyback programme, paying a volume-weighted average price of about 82.8 pence per share. The company plans to cancel these shares...
Business Operations and StrategyStock Buyback
Vertu Motors Extends Share Buyback, Shrinks Share Capital Further
Positive
Aug 17, 2026
Vertu Motors has continued its share buyback programme by purchasing 35,000 ordinary shares at 83 pence each between 10 August and 14 August 2026, with the shares to be cancelled. Following this latest transaction, the company’s total voting...
Business Operations and StrategyStock Buyback
Vertu Motors Steps Up Share Buybacks, Cancels Further Stock
Positive
Aug 10, 2026
Vertu Motors has repurchased 280,266 ordinary shares between 3 and 7 August 2026 under its ongoing share buyback programme, with the shares to be cancelled, reducing the total number of voting shares to 310,449,970 and confirming that the company ...
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.