CVS Group plc (CVSG) AI Stock Analysis

• Market Cap: £709.51M
• Dividend Yield: 0.76%
• Average Volume (3M): 282.76K
• Price to Earnings (P/E): 43.4
• Beta (1Y): 0.59
• Revenue Growth: 2.70%
• EPS Growth: -51.35%
• Country: UK
• Employees: 8,822
• Sector: Consumer Cyclical
• Sector Strength: 50
• Industry: Personal Services
• EPS (TTM): 0.24
• Shares Outstanding: 71,740,180
• 10 Day Avg. Volume: 355,834
• 30 Day Avg. Volume: 282,764
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 1.16
• Price to Cash Flow (P/CF): 13.20
• P/FCF Ratio: 0.00
• 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: 2,000.00p
• Price Target Upside: 102.22% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

CVS Group plc demonstrates robust revenue growth and strategic international expansion, particularly in Australia. However, challenges such as increased debt levels, declining net income, and a high P/E ratio present financial risks. The technical indicators show neutral momentum, suggesting potential caution in the near term. Positive investor sentiment and strategic moves boost confidence, but financial management needs to address profitability and leverage issues.

CVS Group plc Business Overview & Revenue Model

Company Description

CVS Group plc (CVSG) is a leading provider of integrated veterinary services in the United Kingdom. The company operates across several sectors, including veterinary practices, laboratories, crematoria, and online retail for pet products. With a focus on comprehensive animal healthcare, CVS Group offers a wide range of services from routine check-ups and vaccinations to advanced medical treatments and surgeries, catering to both companion animals and livestock.

How the Company Makes Money

CVS Group plc makes money primarily through its network of veterinary practices, which generate revenue by providing medical and surgical care for animals. This includes routine services such as health checks, vaccinations, and dental care, as well as more complex procedures like surgeries and emergency treatments. Additionally, CVS Group operates diagnostic laboratories that offer testing services to veterinary practices, both within and outside its network, contributing a significant portion to its revenue. The company also earns from its pet crematoria services, which provide aftercare services for deceased pets. Furthermore, CVS Group has an online retail business that sells pet food, medications, and other pet-related products, enhancing its revenue streams. Strategic partnerships and acquisitions of veterinary practices and complementary businesses also play a crucial role in expanding its market presence and increasing earnings.

CVS Group plc Financial Statement Overview

Summary

CVS Group plc shows solid revenue growth and operational margins, yet faces profitability and leverage challenges. The increase in debt levels and lower net income highlight potential risks. Cash flow remains relatively strong, but the decrease in free cash flow necessitates careful financial management to sustain growth.

Income Statement

The company has shown consistent revenue growth, with the latest annual revenue increasing by approximately 6.4% from the previous year. Gross profit margin remains healthy at 42.9%, although net profit margin has declined sharply to 1% due to decreased net income. EBIT and EBITDA margins indicate operational efficiency, but the drop in net income is a concern.

Balance Sheet

The debt-to-equity ratio has increased, indicating a higher reliance on debt financing. The equity ratio stands at 37.7%, reflecting a moderate level of equity financing. Return on equity has significantly decreased to 2.4%, suggesting lower profitability relative to shareholder equity.

Cash Flow

Operating cash flow to net income ratio is robust, indicating strong cash generation relative to net income. However, free cash flow has declined, and the free cash flow to net income ratio has weakened, reflecting lower cash available for expansion or debt repayment.

Breakdown
Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement		Total Revenue
647.30M	608.30M	554.20M	510.10M	427.80M
	Gross Profit
277.90M	262.30M	239.10M	221.90M	170.10M
	EBIT
50.80M	62.30M	42.80M	40.10M	18.50M
	EBITDA
108.40M	118.80M	90.40M	88.20M	64.90M
	Net Income Common Stockholders
6.20M	41.90M	25.70M	19.30M	5.70M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
16.50M	21.50M	49.00M	33.70M	21.50M
	Total Assets
690.00M	572.30M	518.20M	484.50M	464.30M
	Total Debt
287.80M	199.10M	188.80M	182.70M	182.20M
	Net Debt
271.30M	177.60M	139.80M	149.00M	160.70M
	Total Liabilities
429.50M	315.30M	300.80M	293.40M	297.70M
	Stockholders Equity
260.40M	257.00M	217.40M	191.10M	166.60M
Cash Flow		Free Cash Flow
24.70M	38.80M	51.00M	43.60M	65.20M
	Operating Cash Flow
67.80M	84.50M	75.50M	60.20M	77.60M
	Investing Cash Flow
-140.50M	-99.90M	-45.10M	-35.40M	-19.60M
	Financing Cash Flow
68.30M	-12.10M	-15.10M	-12.60M	-49.00M

CVS Group plc Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 989.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:CVSG, the sentiment is Neutral. The current price of 989 is below the 20-day moving average (MA) of 1042.65, above the 50-day MA of 967.24, and below the 200-day MA of 998.10, indicating a neutral trend. The MACD of 9.78 indicates Positive momentum. The RSI at 45.40 is Neutral, neither overbought nor oversold. The STOCH value of 26.30 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for GB:CVSG.

CVS Group plc Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
DCC	69 Neutral	£5.22B	15.85	11.08%	3.77%	-6.75%	-0.02%
CVSG	66 Neutral	£709.51M	43.45	8.64%	0.76%	2.70%	-51.35%
Sector *	60 Neutral	$12.41B	10.84	1.22%	3.53%	1.65%	-18.69%
MARS	57 Neutral	£252.15M	―	2.70%	―	3.02%	29.25%

CVS Group plc Corporate Events

CVS Group Announces Total Voting Rights Update

CVS Group plc, a leading UK-listed veterinary services provider, announced that its total issued share capital consists of 71,740,184 Ordinary Shares as of 28 February 2025, each carrying one voting right. This update is relevant for shareholders to assess their interests under the FCA’s Disclosure Guidance and Transparency Rules, impacting how they manage their shareholdings in the company.

CVS Group Reports Revenue Growth Amid UK Market Challenges

CVS Group plc reported a 6.6% increase in revenue for the first half of 2025, driven by growth in Australia, despite softer market conditions in the UK. The company faced a decline in profit before tax due to increased finance expenses and depreciation costs. CVS has been actively expanding its presence in Australia, completing several acquisitions and identifying synergies to enhance returns. The company is cautious about UK investments due to regulatory uncertainties but remains optimistic about its growth prospects and aims to deliver results in line with market expectations.

CVS Group’s Voting Rights Update Reflects Increased Stake from Van Lanschot Kempen

CVS Group plc has announced a change in voting rights involving Van Lanschot Kempen Investment Management NV, which now holds 5.000126% of the voting rights, an increase from a previous 4.146040%. This transaction indicates a significant interest from an international investor based in Amsterdam, Netherlands, potentially impacting CVS Group’s governance and signaling confidence in its market position.

CVS Group Updates on Total Voting Rights

CVS Group plc has announced its total issued share capital as of January 31, 2025, which consists of 71,740,184 ordinary shares, each conferring one voting right. This update is significant for shareholders needing to calculate their interests under the FCA’s Disclosure Guidance and Transparency Rules, which may affect their holdings and obligations within the company.

CVS Group Reports Growth Amid UK Challenges, Expands in Australia

CVS Group plc reported a 6.6% increase in Group sales to £341.8m for the six months ended December 31, 2024, despite challenging market conditions in the UK. The company’s adjusted EBITDA grew by 4.5%, and their Healthy Pet Club membership rose by 1.4%. CVS is shifting its investment focus towards Australia due to regulatory stability, as evidenced by recent acquisitions there. Meanwhile, the UK operations face rising employment costs due to government budget changes. Despite these challenges, the company remains optimistic about future growth, supported by an improving employee engagement score and a strengthened management team.

CVS Group Reports Strong H1 2025 Performance and Expansion in Australia

CVS Group plc reported a 6.6% increase in sales to £341.8m for the first half of 2025, despite facing softer market conditions in the UK. The company is focusing on growth in Australia due to the stable regulatory environment, completing five acquisitions. Adjusted EBITDA rose by 4.5%, and the company aims to offset anticipated UK cost increases through efficiencies and synergies. The Healthy Pet Club scheme membership grew, and the company invested £16.8m in infrastructure and technology. Despite the UK’s regulatory challenges, CVS remains confident in meeting its full-year expectations.

CVS Group’s Non-Executive Director Increases Shareholding

CVS Group plc announced that Joanne Shaw, a Non-executive Director, purchased 14 ordinary shares as part of a dividend reinvestment plan. This transaction, conducted on 29 November 2024, brings her total holdings to 1,562 shares, representing 0.002% of the company’s issued share capital. This move is a part of routine managerial activities and is in compliance with the UK Market Abuse Regulation, reflecting the company’s structured approach to shareholder engagement and governance.

CVS Group Announces Total Voting Rights for 2024

CVS Group plc announced its total issued share capital as of December 31, 2024, comprises 71,740,184 Ordinary Shares, each with one voting right, reflecting its transparency in corporate governance. This information is crucial for shareholders under the FCA’s Disclosure Guidance and Transparency Rules, as it affects their notification requirements regarding their interests in the company.