Stock Analysis Report

Header cover image

Market Cap


Last Updated

2021/07/31 19:16 UTC

Data Sources

Company Financials +

Executive Summary

Bodycote plc provides heat treatment and thermal processing services worldwide. More Details

Snowflake Analysis

Excellent balance sheet with moderate growth potential.

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

Stable Share Price: BOY is less volatile than 75% of UK stocks over the past 3 months, typically moving +/- 3% a week.

Volatility Over Time: BOY's weekly volatility (3%) has been stable over the past year.

Market Performance

7 Day Return




GB Machinery


GB Market

1 Year Return




GB Machinery


GB Market

Return vs Industry: BOY exceeded the UK Machinery industry which returned 46% over the past year.

Return vs Market: BOY exceeded the UK Market which returned 22.4% over the past year.

Shareholder returns

7 Day3.8%0.3%0.3%
30 Day4.5%3.6%-0.7%
90 Day19.4%11.0%1.5%
1 Year68.1%60.3%48.8%45.9%27.8%22.5%
3 Year-0.2%-9.8%29.6%22.3%13.3%0.9%
5 Year81.5%53.2%115.3%92.1%39.6%13.2%

Long-Term 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


Is Bodycote undervalued compared to its fair value and its price relative to the market?


Undervalued compared to fair value

Share Price vs. Fair Value

Below Fair Value: BOY (£9.03) is trading below our estimate of fair value (£14.42)

Significantly Below Fair Value: BOY is trading below fair value by more than 20%.

Price To Earnings Ratio

PE vs Industry: BOY is poor value based on its PE Ratio (50.6x) compared to the UK Machinery industry average (32.9x).

PE vs Market: BOY is poor value based on its PE Ratio (50.6x) compared to the UK market (23.6x).

Price to Earnings Growth Ratio

PEG Ratio: BOY is poor value based on its PEG Ratio (2.7x)

Price to Book Ratio

PB vs Industry: BOY is overvalued based on its PB Ratio (2.6x) compared to the GB Machinery industry average (2.2x).

Future Growth

How is Bodycote forecast to perform in the next 1 to 3 years based on estimates from 15 analysts?


Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: BOY's forecast earnings growth (18.8% per year) is above the savings rate (0.9%).

Earnings vs Market: BOY's earnings (18.8% per year) are forecast to grow faster than the UK market (14.8% per year).

High Growth Earnings: BOY's earnings are forecast to grow, but not significantly.

Revenue vs Market: BOY's revenue (5.8% per year) is forecast to grow faster than the UK market (4.7% per year).

High Growth Revenue: BOY's revenue (5.8% per year) is forecast to grow slower than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: BOY's Return on Equity is forecast to be low in 3 years time (14.3%).

Past Performance

How has Bodycote performed over the past 5 years?


Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: BOY has a large one-off loss of £26.7M impacting its June 30 2021 financial results.

Growing Profit Margin: BOY's current net profit margins (5.6%) are lower than last year (6.7%).

Past Earnings Growth Analysis

Earnings Trend: BOY's earnings have declined by 14.4% per year over the past 5 years.

Accelerating Growth: BOY's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: BOY had negative earnings growth (-23.6%) over the past year, making it difficult to compare to the Machinery industry average (-0.8%).

Return on Equity

High ROE: BOY's Return on Equity (5.2%) is considered low.

Financial Health

How is Bodycote's financial position?

Financial Position Analysis

Short Term Liabilities: BOY's short term assets (£183.2M) do not cover its short term liabilities (£281.0M).

Long Term Liabilities: BOY's short term assets (£183.2M) exceed its long term liabilities (£124.4M).

Debt to Equity History and Analysis

Debt Level: BOY's debt to equity ratio (15.3%) is considered satisfactory.

Reducing Debt: BOY had negative shareholder equity 5 years ago, but is now positive and has therefore improved.

Debt Coverage: BOY's debt is well covered by operating cash flow (140%).

Interest Coverage: BOY's interest payments on its debt are well covered by EBIT (21.1x coverage).

Balance Sheet


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


Current Dividend Yield

Upcoming Dividend Payment

TodayAug 01 2021Ex Dividend DateOct 07 2021Dividend Pay DateNov 05 202129 days from Ex DividendBuy in the next 67 days to receive the upcoming dividend

Dividend Yield vs Market

Notable Dividend: BOY's dividend (2.15%) is higher than the bottom 25% of dividend payers in the UK market (1.31%).

High Dividend: BOY's dividend (2.15%) is low compared to the top 25% of dividend payers in the UK market (4%).

Stability and Growth of Payments

Stable Dividend: BOY's dividend payments have been volatile in the past 10 years.

Growing Dividend: BOY's dividend payments have increased over the past 10 years.

Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (109.9%), BOY's dividend payments are not well covered by earnings.

Future Payout to Shareholders

Future Dividend Coverage: BOY's dividends in 3 years are forecast to be well covered by earnings (41% payout ratio).

Next Steps


How experienced are the management team and are they aligned to shareholders interests?


Average board tenure


Stephen Harris (63 yo)





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

Compensation vs Market: Stephen's total compensation ($USD1.09M) is about average for companies of similar size in the UK market ($USD1.38M).

Compensation vs Earnings: Stephen's compensation has been consistent with company performance over the past year.

Board Members

Experienced Board: BOY's board of directors are considered experienced (4.7 years average tenure).


Who are the major shareholders and have insiders been buying or selling?

Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.

Top Shareholders

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£1.720b
  • Shares outstanding: 190.59m
  • Website:

Number of Employees


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



Bodycote plc provides heat treatment and thermal processing services worldwide. The company operates through Aerospace, Defence & Energy; and Automotive & General Industrial segments. It offers heat treatm...

Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/07/31 19:16
End of Day Share Price2021/07/30 00:00
Annual Earnings2020/12/31

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.