LSE:BOY

Stock Analysis Report

Executive Summary

Bodycote plc provides thermal processing services worldwide.

Snowflake

Fundamentals

Average dividend payer with acceptable track record.


Similar Companies

Share Price & News

How has Bodycote's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

3.6%

LSE:BOY

1.3%

GB Machinery

1.6%

GB Market


1 Year Return

-14.9%

LSE:BOY

-3.9%

GB Machinery

-0.08%

GB Market

BOY underperformed the Machinery industry which returned -4% over the past year.

BOY underperformed the Market in United Kingdom of Great Britain and Northern Ireland which returned 0.3% over the past year.


Share holder returns

BOYIndustryMarket
7 Day3.6%1.3%1.6%
30 Day12.1%9.2%4.6%
90 Day-7.7%-2.2%-0.1%
1 Year-11.0%-14.9%-1.2%-3.9%4.7%-0.08%
3 Year37.1%22.6%34.5%24.6%21.8%7.3%
5 Year30.7%6.9%20.5%4.2%30.7%3.1%

Price Volatility Vs. Market

How volatile is Bodycote's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Bodycote undervalued based on future cash flows and its price relative to the stock market?

19%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Bodycote's share price is below the future cash flow value, but not at a moderate discount (< 20%).

Bodycote's share price is below the future cash flow value, but not at a substantial discount (< 40%).


Price Based on Earnings

Bodycote is good value based on earnings compared to the GB Machinery industry average.

Bodycote is good value based on earnings compared to the United Kingdom of Great Britain and Northern Ireland market.


Price Based on Expected Growth

Bodycote is poor value based on expected growth next year.


Price Based on Value of Assets

Bodycote is overvalued based on assets compared to the GB Machinery industry average.


Next Steps

Future Growth

How is Bodycote expected to perform in the next 1 to 3 years based on estimates from 16 analysts?

6.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Bodycote's revenue is expected to grow by 3.6% yearly, however this is not considered high growth (20% yearly).

Bodycote's earnings are expected to grow by 6.5% yearly, however this is not considered high growth (20% yearly).

Bodycote's revenue growth is positive but not above the United Kingdom of Great Britain and Northern Ireland market average.

Bodycote's earnings growth is positive but not above the United Kingdom of Great Britain and Northern Ireland market average.

Bodycote's earnings growth is expected to exceed the low risk savings rate of 1.2%.


Earnings per Share Growth Estimates


Future Return on Equity

Bodycote is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


Next Steps

Past Performance

How has Bodycote performed over the past 5 years?

10.3%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Bodycote's year on year earnings growth rate has been positive over the past 5 years.

Bodycote's 1-year earnings growth is negative, it can't be compared to the 5-year average.

Bodycote's 1-year earnings growth is negative, it can't be compared to the GB Machinery industry average.


Return on Equity

Bodycote has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Bodycote used its assets more efficiently than the GB Machinery industry average last year based on Return on Assets.


Return on Capital Employed

Bodycote has improved its use of capital last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Bodycote's financial position?


Financial Position Analysis

Bodycote's short term (1 year) commitments are greater than its holdings of cash and other short term assets.

Bodycote's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

Bodycote's level of debt (5.4%) compared to net worth is satisfactory (less than 40%).

The level of debt compared to net worth has increased over the past 5 years (1.1% vs 5.4% today).

Debt is well covered by operating cash flow (460.8%, greater than 20% of total debt).

Unable to confirm if the interest payments on Bodycote's debt are well covered by earnings due to lack of past financial data.


Balance Sheet

High level of physical assets or inventory.

Debt is covered by short term assets, assets are 5.1x debt.


Next Steps

Dividend

What is Bodycote's current dividend yield, its reliability and sustainability?

2.96%

Expected Dividend Yield


Upcoming Dividend Payment

Purchase Bodycote before the 'Buy Limit' to receive their next dividend payment.


Dividend Yield and Payments Analysis

Bodycote's pays a higher dividend yield than the bottom 25% of dividend payers in United Kingdom of Great Britain and Northern Ireland (1.99%).

Bodycote's dividend is below the markets top 25% of dividend payers in United Kingdom of Great Britain and Northern Ireland (5.5%).

Dividends per share have been volatile in the past 10 years (annual drop of over 20%).

Dividends per share have increased over the past 10 years.


Current Payout to Shareholders

Dividends paid are well covered by earnings (2.7x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be well covered by earnings (2.5x coverage).


Next Steps

Management

What is the CEO of Bodycote's salary, the management and board of directors tenure and is there insider trading?

2.9yrs

Average board tenure


CEO

Stephen Harris (61yo)

10.7yrs

Tenure

UK£2,649,000

Compensation

Mr. Stephen C. Harris, MA, MBA, C.Eng. has been the Group Chief Executive Officer at Bodycote plc since January 12, 2009. Mr. Harris served as Business Group Director of Spectris Plc and was responsible fo ...


CEO Compensation Analysis

Stephen's remuneration is higher than average for companies of similar size in United Kingdom of Great Britain and Northern Ireland.

Stephen's compensation has been consistent with company performance over the past year, both up more than 20%.


Board Age and Tenure

2.9yrs

Average Tenure

61yo

Average Age

The average tenure for the Bodycote board of directors is less than 3 years, this suggests a new board.


Insider Trading

No 3 month open market individual insider trading information.


Recent Insider Transactions

BuyUK£80,39011 Oct 18
Anne Quinn
EntityIndividual
Role
Chairman of the Board
Non-Executive Chairman
Shares10,000
Max PriceUK£8.04

Ownership Breakdown


Management Team

  • Stephen Harris (61yo)

    Group CEO & Executive Director

    • Tenure: 10.7yrs
    • Compensation: UK£2.65m
  • Ute Ball (58yo)

    Group Company Secretary

    • Tenure: 0yrs
  • Mike Hallas

    MD of Nordic UK SBU & Member of Senior Operating Board

    • Tenure: 0yrs
    • Compensation: UK£152.00k
  • Dominique de Lisle Yates (51yo)

    CFO & Executive Director

    • Tenure: 2.8yrs
    • Compensation: UK£900.00k

Board Members

  • Ian Duncan (58yo)

    Senior Independent Director

    • Tenure: 3.3yrs
    • Compensation: UK£74.00k
  • Pat Larmon (66yo)

    Non-Executive Director

    • Tenure: 3yrs
    • Compensation: UK£58.00k
  • Stephen Harris (61yo)

    Group CEO & Executive Director

    • Tenure: 10.7yrs
    • Compensation: UK£2.65m
  • Anne Quinn (67yo)

    Non-Executive Chairman

    • Tenure: 1.7yrs
    • Compensation: UK£225.00k
  • Dominique de Lisle Yates (51yo)

    CFO & Executive Director

    • Tenure: 2.8yrs
    • Compensation: UK£900.00k
  • Lili Chahbazi

    Non-Executive Director

    • Tenure: 1.7yrs
    • Compensation: UK£56.00k

Company Information

Bodycote plc's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Bodycote plc
  • Ticker: BOY
  • Exchange: LSE
  • Founded: 1923
  • Industry: Industrial Machinery
  • Sector: Capital Goods
  • Market Cap: UK£1.416b
  • Shares outstanding: 189.62m
  • Website: https://www.bodycote.com

Number of Employees


Location

  • Bodycote plc
  • Springwood Court
  • Springwood Close
  • Macclesfield
  • Cheshire
  • SK10 2XF
  • United Kingdom

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
BYPL.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJan 1992
BOYLSE (London Stock Exchange)YesOrdinary SharesGBGBPJan 1992
BOYLBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBGBPJan 1992
21TDB (Deutsche Boerse AG)YesOrdinary SharesDEEURJan 1992

Biography

Bodycote plc provides thermal processing services worldwide. The company operates in two business areas, Aerospace, Defence & Energy; and Automotive & General Industrial. It offers heat treatment services, ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/09/16 21:05
End of Day Share Price2019/09/16 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.