company background image
BOY

Bodycote LSE:BOY Stock Report

Last Price

UK£6.40

Market Cap

UK£1.2b

7D

3.6%

1Y

-21.5%

Updated

18 May, 2022

Data

Company Financials +
BOY fundamental analysis
Snowflake Score
Valuation2/6
Future Growth3/6
Past Performance4/6
Financial Health5/6
Dividends4/6

BOY Stock Overview

Bodycote plc provides heat treatment and thermal processing services worldwide.

Bodycote Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Bodycote
Historical stock prices
Current Share PriceUK£6.40
52 Week HighUK£10.07
52 Week LowUK£5.82
Beta1.01
1 Month Change2.08%
3 Month Change-15.02%
1 Year Change-21.53%
3 Year Change-18.59%
5 Year Change-17.96%
Change since IPO409.97%

Recent News & Updates

May 09
Does Bodycote (LON:BOY) Have A Healthy Balance Sheet?

Does Bodycote (LON:BOY) Have A Healthy Balance Sheet?

Legendary fund manager Li Lu (who Charlie Munger backed) once said, 'The biggest investment risk is not the volatility...

Apr 06
Bodycote (LON:BOY) Has Some Way To Go To Become A Multi-Bagger

Bodycote (LON:BOY) Has Some Way To Go To Become A Multi-Bagger

If you're looking for a multi-bagger, there's a few things to keep an eye out for. Firstly, we'll want to see a proven...

Shareholder Returns

BOYGB MachineryGB Market
7D3.6%-0.3%1.1%
1Y-21.5%-16.3%-2.5%

Return vs Industry: BOY underperformed the UK Machinery industry which returned -15.7% over the past year.

Return vs Market: BOY underperformed the UK Market which returned -2.5% over the past year.

Price Volatility

Is BOY's price volatile compared to industry and market?
BOY volatility
BOY Average Weekly Movement6.1%
Machinery Industry Average Movement6.5%
Market Average Movement6.1%
10% most volatile stocks in GB Market11.7%
10% least volatile stocks in GB Market3.2%

Stable Share Price: BOY is not significantly more volatile than the rest of UK stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: BOY's weekly volatility (6%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
19234,757Stephen Harrishttps://www.bodycote.com

Bodycote plc provides heat treatment and thermal processing services worldwide. The company operates in two 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£1.22b
Earnings (TTM)UK£59.50m
Revenue (TTM)UK£615.80m

20.5x

P/E Ratio

2.0x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
BOY income statement (TTM)
RevenueUK£615.80m
Cost of RevenueUK£532.50m
Gross ProfitUK£83.30m
Other ExpensesUK£23.80m
EarningsUK£59.50m

Last Reported Earnings

Dec 31, 2021

Next Earnings Date

n/a

Earnings per share (EPS)0.31
Gross Margin13.53%
Net Profit Margin9.66%
Debt/Equity Ratio13.4%

How did BOY perform over the long term?

See historical performance and comparison

Dividends

3.1%

Current Dividend Yield

64%

Payout Ratio

Valuation

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

Valuation Score

2/6

Valuation Score 2/6

  • Below Fair Value

  • Significantly Below Fair Value

  • PE vs Industry

  • PE vs Market

  • PEG Ratio

  • PB vs Industry


>50%

Undervalued compared to fair value

Share Price vs. Fair Value

Below Fair Value: BOY (£6.4) is trading below our estimate of fair value (£15.54)

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 (20.5x) compared to the UK Machinery industry average (18.9x).

PE vs Market: BOY is poor value based on its PE Ratio (20.5x) compared to the UK market (15.3x).


Price to Earnings Growth Ratio

PEG Ratio: BOY is poor value based on its PEG Ratio (1.3x)


Price to Book Ratio

PB vs Industry: BOY's PB Ratio (1.8x) 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?

Future Growth Score

3/6

Future Growth Score 3/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


15.5%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: BOY's forecast earnings growth (15.5% per year) is above the savings rate (0.9%).

Earnings vs Market: BOY's earnings (15.5% per year) are forecast to grow faster than the UK market (11.1% per year).

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

Revenue vs Market: BOY's revenue (6.4% per year) is forecast to grow faster than the UK market (4.1% per year).

High Growth Revenue: BOY's revenue (6.4% 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 (13.5%).


Past Performance

How has Bodycote performed over the past 5 years?

Past Performance Score

4/6

Past Performance Score 4/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


-18.0%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: BOY has high quality earnings.

Growing Profit Margin: BOY's current net profit margins (9.7%) are higher than last year (0.07%).


Past Earnings Growth Analysis

Earnings Trend: BOY's earnings have declined by 18% per year over the past 5 years.

Accelerating Growth: BOY's earnings growth over the past year (14775%) exceeds its 5-year average (-18% per year).

Earnings vs Industry: BOY earnings growth over the past year (14775%) exceeded the Machinery industry 54.3%.


Return on Equity

High ROE: BOY's Return on Equity (8.8%) is considered low.


Financial Health

How is Bodycote's financial position?

Financial Health Score

5/6

Financial Health Score 5/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: BOY's short term assets (£197.1M) do not cover its short term liabilities (£263.0M).

Long Term Liabilities: BOY's short term assets (£197.1M) exceed its long term liabilities (£121.4M).


Debt to Equity History and Analysis

Debt Level: BOY's net debt to equity ratio (7.6%) 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 (157.4%).

Interest Coverage: BOY's interest payments on its debt are well covered by EBIT (28.1x coverage).


Balance Sheet


Dividend

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

Dividend Score

4/6

Dividend Score 4/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Future Dividend Coverage


3.13%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: BOY's dividend (3.13%) is higher than the bottom 25% of dividend payers in the UK market (1.79%).

High Dividend: BOY's dividend (3.13%) is low compared to the top 25% of dividend payers in the UK market (4.82%).


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.


Earnings Payout to Shareholders

Earnings Coverage: With its reasonable payout ratio (64.1%), BOY's dividend payments are covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: With its reasonably low cash payout ratio (41.3%), BOY's dividend payments are well covered by cash flows.


Next Steps

Management

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

5.6yrs

Average board tenure


CEO

Stephen Harris (63 yo)

13.33yrs

Tenure

UK£1,969,000

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 ($USD2.44M) is about average for companies of similar size in the UK market ($USD1.89M).

Compensation vs Earnings: Stephen's compensation has increased by more than 20% in the past year.


Board Members

Experienced Board: BOY's board of directors are considered experienced (5.6 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
  • Implied Market Cap: UK£1.220b
  • Shares outstanding: 190.71m
  • 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 Analysis2022/05/18 00:00
End of Day Share Price2022/05/18 00:00
Earnings2021/12/31
Annual Earnings2021/12/31


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.