# Bytes Technology Group PLC (BYIT.L) fundamentals

Data as of 2026-09-08. LSE, United Kingdom. Sector: Technology / Software. Price 399p, market value 918 millionp.

## Valuation
- **P/E (trailing): 19.0×** (5-yr avg 2451.0×, 3-yr avg 2075.1×). Bytes Technology Group PLC trades at 19.0× trailing earnings, well below its own five-year average of 2451.0×: cheap by its own standards. The Technology median in the September 2026 study was 32.1×. Forward P/E is 16.6×, lower than trailing, so analysts expect earnings to grow.
- **Price / sales: 2.1×**. Each dollar of revenue is priced at 2.1×.
- **Price / book: 11.6×**. The shares trade at 11.6× book value; most of the value is in earnings power and intangibles rather than the balance sheet.
- **EV / EBITDA: 5.9×**. Enterprise value is 5.9× operating earnings before depreciation, the multiple that ignores how the company is financed; below 8× is inexpensive for most sectors.
- **Free-cash-flow yield: 13.9%** (5-yr avg 0.1%). Free cash flow equals 13.9% of the market value, above its five-year average of 0.1%, so the shares are cheaper on cash than they have usually been. Above 5% is generally attractive.
- **Earnings yield: 5.3%**. The inverse of the P/E: 5.3% of the price is earned each year.

## Profitability
- **Gross margin: 74.8%**. Bytes Technology Group PLC keeps 74.8% of revenue after the direct cost of what it sells, the kind of margin that comes with software, brands or pricing power.
- **Operating margin: 29.6%**. 29.6% of revenue is left after running the business, an exceptional level.
- **Net margin: 23.3%**. 23.3% of each dollar of sales reaches the bottom line.
- **Return on equity: 63.2%**. A 63.2% return on equity is extremely high; check whether buybacks or debt have shrunk the equity base, which flatters the ratio.
- **Return on invested capital: -612.2%**. Return on all capital, debt included, is -612.2%: close to or below the cost of capital, so growth may not create value.
- **Return on assets: 22.4%**. Each dollar of assets produces 22.4% of profit.

## Growth
- **Revenue growth (1 yr): 1.6%** (3-yr 6.1%/yr, 5-yr -10.9%/yr). Revenue grew 1.6% over the last year, against -10.9% a year compounded over five years: growth is accelerating.
- **EPS growth (1 yr): -4.5%** (3-yr 9.5%/yr, 5-yr 19.9%/yr). Earnings per share fell 4.5%, slower than revenue, so margins compressed.
- **Free-cash-flow growth (3 yr): 17.2%/yr**. Free cash flow has compounded at 17.2% a year over three years, keeping pace with earnings: the growth is real cash.

## Financial health
- **Debt to equity: 0.02**. Debt is 0.02 times equity: a conservative balance sheet.
- **Net debt / EBITDA: net cash**. Bytes Technology Group PLC holds more cash than debt.
- **Interest coverage: 212.4×**. Operating profit covers interest 212.4× over, a safe margin.
- **Current ratio: 1.05** (quick 1.05). Current assets cover the next year's liabilities 1.05 times.
- **Altman Z-score: 2.63**. A Z-score of 2.63 is in the grey zone; not distressed, not clearly safe.
- **Piotroski F-score: 5/9**. 5 of 9 checks pass: mixed.

## Dividends
- **Dividend yield: 2.41%** (0p per share, trailing). Bytes Technology Group PLC yields 2.41%, a modest yield more typical of a growth-oriented payer.
- **Payout ratio: 95%** (72% of free cash flow). 95% of earnings goes out as dividends, leaving a thin cushion.
- **Consecutive years of increases: 5**. 5 straight years of increases.
- **Shareholder yield: 4.3%**. Dividends plus net buybacks return 4.3% of the market value a year.

## Analyst view
- **Analyst consensus: buy** (9 analysts). 9 analysts cover Bytes Technology Group PLC; the consensus is buy, with an average price target of 411p (+3% from the current price). Analyst opinion is shown for context; it is not part of the Fundamental Score.

## Price and momentum
- **Total return (1 yr): 0.7%** (YTD 16.6%, 3-mo 11.2%). The shares are up 0.7% over twelve months including dividends.
- **From 52-week high: -10.1%** (60.4% above the low). Trading 10% below its 52-week high.
- **200-day average: above**. The price sits above its 200-day moving average, the usual definition of an uptrend.
- **RSI (14-day): 51**. An RSI of 51 is neutral.
- **Beta (1 yr): 0.14** (volatility 34%). Beta of 0.14 against the FTSE All-Share: the shares move much less than the market.

Live score and charts: https://foliofundamentals.com/analyzer?s=BYIT.L · Page: https://foliofundamentals.com/stocks/byit.l

Not investment advice.