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Volution Group Plc (GB:FAN)
:FAN
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Volution
(LSE:FAN)63Neutral
Positive Factors
M&A Activity
The integration of the largest ever transaction, Fantech, ahead of schedule, brings a greater weighting of commercial end markets and expanded geographic footprint.
Revenue Growth
Volution's AGM statement should be taken well by the market, with organic revenue growth accelerating and further expansion in margins.
Negative Factors
Valuation Concerns
The level of EPS growth is not adequately reflected in the current valuation, and a Buy recommendation is reaffirmed on the stock.
Volution (FAN) vs. S&P 500 (SPY)
Market Cap
£1.01B
Dividend Yield1.76%
Average Volume (3M)502.42K
Price to Earnings (P/E)23.7
Beta (1Y)0.95
Revenue Growth5.98%
EPS Growth14.41%
CountryUK
Employees1,869
SectorIndustrials
Sector Strength66
IndustryConstruction
Share Statistics
EPS (TTM)0.22
Shares Outstanding198,034,910
10 Day Avg. Volume655,182
30 Day Avg. Volume502,422
Financial Highlights & Ratios
PEG Ratio1.64
Price to Book (P/B)N/A
Price to Sales (P/S)2.92
Price to Cash Flow (P/CF)12.40
P/FCF Ratio12.80
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
696.67pPrice Target Upside36.07% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering3
Volution Business Overview & Revenue Model
Company DescriptionVolution Group PLC supplies ventilation products to residential and commercial constructions. Its products are categorized into residential ventilation, commercial ventilation, other products, and Torin-Sifan. Some of its brands include Vent-Axia, Manrose, VoltAir, and Simx. The company operates in three segments: the United Kingdom, Continental Europe, and Australasia. Nearly half of the revenue comes from the United Kingdom followed by Continental Europe.
How the Company Makes Money
Volution Financial Statement Overview
Summary
Volution shows robust financial health with strong revenue growth, solid profit margins, and effective cash generation. The company's balance sheet reflects stability with moderate leverage.Income Statement
Volution has demonstrated strong revenue growth of approximately 6% in the latest period, with a solid gross profit margin of 51.3% and a net profit margin of 12.3%. EBIT and EBITDA margins are healthy at 20.2% and 24.0% respectively, indicating a robust operating performance. These metrics suggest solid profitability and operational efficiency, though continued focus on maintaining cost efficiencies will be important.85
Very Positive
Balance Sheet
The company's balance sheet shows a debt-to-equity ratio of 0.35, indicating moderate leverage which is manageable. The return on equity is a respectable 17.4%, reflecting effective utilization of shareholder equity. The equity ratio stands at 57.1%, suggesting a strong capital structure. The balance sheet reflects financial stability, though any increase in leverage should be monitored.78
Positive
Cash Flow
Volution's cash flow statement highlights a significant free cash flow growth rate of 20.2% year-over-year, and a strong operating cash flow to net income ratio of 1.77, which indicates effective cash generation capabilities. Additionally, the free cash flow to net income ratio is 1.60, showing strong cash conversion. Overall, the company exhibits a strong cash flow position, supporting its financial health.82
Very Positive
| Breakdown | ||||
| Sep 2024 | Sep 2023 | Sep 2022 | Sep 2021 | Sep 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 347.61M | 328.01M | 307.70M | 272.59M | 216.64M | Gross Profit |
| 178.27M | 143.36M | 127.80M | 110.16M | 79.94M | EBIT |
| 70.36M | 58.56M | 49.66M | 38.62M | 14.85M | EBITDA |
| 83.51M | 79.13M | 73.11M | 58.38M | 37.64M | Net Income Common Stockholders |
| 42.80M | 37.37M | 35.61M | 20.84M | 9.66M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 18.24M | 21.24M | 14.63M | 19.96M | 18.49M | Total Assets |
| 430.31M | 440.65M | 411.37M | 383.98M | 326.47M | Total Debt |
| 85.99M | 120.46M | 108.03M | 108.32M | 92.20M | Net Debt |
| 67.75M | 99.21M | 94.49M | 88.86M | 73.71M | Total Liabilities |
| 184.39M | 214.40M | 203.06M | 198.69M | 150.91M | Stockholders Equity |
| 245.92M | 226.25M | 208.21M | 185.29M | 175.56M |
| Cash Flow | Free Cash Flow | |||
| 68.33M | 56.83M | 31.97M | 45.73M | 34.62M | Operating Cash Flow |
| 75.71M | 64.79M | 38.98M | 50.43M | 39.17M | Investing Cash Flow |
| -19.88M | -37.48M | -24.26M | -46.69M | -5.15M | Financing Cash Flow |
| -58.83M | -17.82M | -19.63M | -2.40M | -27.00M |
Volution Peers Comparison
Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Performance Comparison
GB:FAN
Volution
502.00
85.61
20.56%
GB:KIE
Kier Group plc
145.20
7.78
5.66%
GB:PSN
Persimmon
1,160.50
-139.50
-10.73%
GB:TPK
Travis Perkins
627.00
-91.29
-12.71%
GB:CRH
CRH plc
7,790.00
1,466.54
23.19%
GB:WOSG
Watches of Switzerland Group PLC
451.40
74.40
19.73%
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
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.