company background image
BOY

BodycoteLSE:BOY Stock Report

Market Cap

UK£1.6b

7D

-2.5%

1Y

8.5%

Updated

03 Dec, 2021

Data

Company Financials +
BOY fundamental analysis
Snowflake Score
Valuation2/6
Future Growth4/6
Past Performance0/6
Financial Health5/6
Dividends3/6

BOY Stock Overview

Bodycote plc provides heat treatment and thermal processing services worldwide.

Bodycote Competitors

Weir Group

LSE:WEIR

UK£4.4b

Renold

AIM:RNO

UK£66.2m

Linde

NYSE:LIN

US$162.4b

Albemarle

NYSE:ALB

US$30.4b

Price History & Performance

Summary of all time highs, changes and price drops for Bodycote
Historical stock prices
Current Share PriceUK£8.24
52 Week HighUK£10.07
52 Week LowUK£6.72
Beta1.07
1 Month Change1.29%
3 Month Change-16.35%
1 Year Change8.50%
3 Year Change18.07%
5 Year Change31.87%
Change since IPO556.71%

Recent News & Updates

Dec 02
Here's What's Concerning About Bodycote's (LON:BOY) Returns On Capital

Here's What's Concerning About Bodycote's (LON:BOY) Returns On Capital

What underlying fundamental trends can indicate that a company might be in decline? A business that's potentially in...

Nov 17
Bodycote plc's (LON:BOY) Intrinsic Value Is Potentially 69% Above Its Share Price

Bodycote plc's (LON:BOY) Intrinsic Value Is Potentially 69% Above Its Share Price

How far off is Bodycote plc ( LON:BOY ) from its intrinsic value? Using the most recent financial data, we'll take a...

Oct 30
Is There Now An Opportunity In Bodycote plc (LON:BOY)?

Is There Now An Opportunity In Bodycote plc (LON:BOY)?

Bodycote plc ( LON:BOY ), might not be a large cap stock, but it saw significant share price movement during recent...

Shareholder Returns

BOYGB MachineryGB Market
7D-2.5%-1.6%-2.2%
1Y8.5%25.3%10.5%

Return vs Industry: BOY underperformed the UK Machinery industry which returned 25.3% over the past year.

Return vs Market: BOY underperformed the UK Market which returned 10.5% over the past year.

Price Volatility

Is BOY's price volatile compared to industry and market?
BOY volatility
BOY Average Weekly Movement3.0%
Machinery Industry Average Movement4.6%
Market Average Movement4.9%
10% most volatile stocks in GB Market9.8%
10% least volatile stocks in GB Market2.6%

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.

About the Company

FoundedEmployeesCEOWebsite
19234,747Stephen Harrishttps://www.bodycote.com

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 treatment services, including altering the microstructure of metals and alloys, such as steel and aluminum to impart properties comprising surface hardness, temperature resistance, ductility, and strength; metal joining services consisting of electron beam welding, HIP diffusion bonding, hydrogen brazing, induction brazing, and vacuum and honeycomb brazing; and hot isostatic pressing (HIP) services, including isostatic pressing and HIP supporting services, as well as Powdermet technology, a manufacturing process used in the production of complex components using powder metallurgy.

Bodycote Fundamentals Summary

How do Bodycote's earnings and revenue compare to its market cap?
BOY fundamental statistics
Market CapUK£1.59b
Earnings (TTM)UK£34.00m
Revenue (TTM)UK£604.20m

46.2x

P/E Ratio

2.6x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
BOY income statement (TTM)
RevenueUK£604.20m
Cost of RevenueUK£397.50m
Gross ProfitUK£206.70m
ExpensesUK£172.70m
EarningsUK£34.00m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)0.18
Gross Margin34.21%
Net Profit Margin5.63%
Debt/Equity Ratio15.3%

How did BOY perform over the long term?

See historical performance and comparison

Dividends

2.4%

Current Dividend Yield

110%

Payout Ratio

Valuation

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

45.4%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: BOY (£8.24) is trading below our estimate of fair value (£15.09)

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 (46.2x) compared to the UK Machinery industry average (25x).

PE vs Market: BOY is poor value based on its PE Ratio (46.2x) compared to the UK market (19.3x).


Price to Earnings Growth Ratio

PEG Ratio: BOY is poor value based on its PEG Ratio (2.1x)


Price to Book Ratio

PB vs Industry: BOY's PB Ratio (2.4x) is in line with the GB Machinery industry average.


Future Growth

How is Bodycote forecast to perform in the next 1 to 3 years based on estimates from 13 analysts?

21.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: BOY's forecast earnings growth (21.5% per year) is above the savings rate (0.9%).

Earnings vs Market: BOY's earnings (21.5% per year) are forecast to grow faster than the UK market (12.5% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: BOY's revenue (6.5% per year) is forecast to grow faster than the UK market (4.9% per year).

High Growth Revenue: BOY's revenue (6.5% 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 (14.1%).


Past Performance

How has Bodycote performed over the past 5 years?

-14.4%

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 (19.6%).


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 net debt to equity ratio (10.5%) 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


Dividend

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

2.38%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: BOY's dividend (2.38%) is higher than the bottom 25% of dividend payers in the UK market (1.38%).

High Dividend: BOY's dividend (2.38%) is low compared to the top 25% of dividend payers in the UK market (4.17%).


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 (42.7% payout ratio).


Next Steps

Management

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

5.2yrs

Average board tenure


CEO

Stephen Harris (63 yo)

12.92yrs

Tenure

UK£783,000

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

Compensation vs Market: Stephen's total compensation ($USD1.04M) is below average for companies of similar size in the UK market ($USD1.51M).

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 (5.2 years average tenure).


Ownership

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 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£1.592b
  • Shares outstanding: 190.59m
  • Website: https://www.bodycote.com

Number of Employees


Location

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

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/12/03 18:47
End of Day Share Price2021/12/03 00:00
Earnings2021/06/30
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.