LSE:BOY

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Executive Summary

Bodycote plc provides heat treatment and thermal processing services worldwide.


Snowflake Analysis

Reasonable growth potential with adequate balance sheet and pays a dividend.


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 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

6.0%

BOY

5.4%

GB Machinery

2.6%

GB Market


1 Year Return

-7.3%

BOY

10.0%

GB Machinery

-10.3%

GB Market

Return vs Industry: BOY underperformed the UK Machinery industry which returned 10% over the past year.

Return vs Market: BOY exceeded the UK Market which returned -10.3% over the past year.


Shareholder returns

BOYIndustryMarket
7 Day6.0%5.4%2.6%
30 Day-0.4%11.3%2.3%
90 Day22.9%23.0%6.9%
1 Year-6.5%-7.3%11.6%10.0%-6.7%-10.3%
3 Year-27.4%-34.3%20.6%12.4%-3.9%-15.4%
5 Year11.3%-5.5%64.0%43.8%16.9%-9.0%

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 compared to its fair value and its price relative to the market?

18.5%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: BOY (£6.12) is trading below our estimate of fair value (£7.5)

Significantly Below Fair Value: BOY is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: BOY is poor value based on its PE Ratio (26.1x) compared to the GB Machinery industry average (20.9x).

PE vs Market: BOY is poor value based on its PE Ratio (26.1x) compared to the UK market (16.3x).


Price to Earnings Growth Ratio

PEG Ratio: BOY is good value based on its PEG Ratio (0.9x)


Price to Book Ratio

PB vs Industry: BOY's PB Ratio (1.6x) is in line with the GB Machinery industry average.


Next Steps

Future Growth

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

28.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: BOY's forecast earnings growth (28.2% per year) is above the savings rate (1.2%).

Earnings vs Market: BOY's earnings (28.2% per year) are forecast to grow faster than the UK market (23% per year).

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

Revenue vs Market: BOY's revenue (7.4% per year) is forecast to grow faster than the UK market (4.8% per year).

High Growth Revenue: BOY's revenue (7.4% 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 (13.9%).


Next Steps

Past Performance

How has Bodycote performed over the past 5 years?

7.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: BOY has a large one-off loss of £40.8M impacting its June 30 2020 financial results.

Growing Profit Margin: BOY's current net profit margins (6.7%) are lower than last year (13.7%).


Past Earnings Growth Analysis

Earnings Trend: BOY's earnings have grown by 7.4% 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 (-55.4%) over the past year, making it difficult to compare to the Machinery industry average (-0.2%).


Return on Equity

High ROE: BOY's Return on Equity (6.1%) is considered low.


Next Steps

Financial Health

How is Bodycote's financial position?


Financial Position Analysis

Short Term Liabilities: BOY's short term assets (£187.7M) do not cover its short term liabilities (£300.6M).

Long Term Liabilities: BOY's short term assets (£187.7M) exceed its long term liabilities (£153.7M).


Debt to Equity History and Analysis

Debt Level: BOY's debt to equity ratio (6.5%) is considered satisfactory.

Reducing Debt: BOY's debt to equity ratio has increased from 3.9% to 6.5% over the past 5 years.

Debt Coverage: BOY's debt is well covered by operating cash flow (363.6%).

Interest Coverage: BOY's interest payments on its debt are well covered by EBIT (33.5x coverage).


Balance Sheet


Next Steps

Dividend

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

3.15%

Current Dividend Yield


Upcoming Dividend Payment


Dividend Yield vs Market

Notable Dividend: BOY's dividend (3.15%) is higher than the bottom 25% of dividend payers in the UK market (1.82%).

High Dividend: BOY's dividend (3.15%) is low compared to the top 25% of dividend payers in the UK market (5.31%).


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 reasonable payout ratio (56.8%), BOY's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: BOY's dividends in 3 years are forecast to be well covered by earnings (39.7% payout ratio).


Next Steps

Management

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

3.9yrs

Average board tenure


CEO

Stephen Harris (62 yo)

11.58yrs

Tenure

UK£2,156,000

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 ($USD2.81M) is above average for companies of similar size in the UK market ($USD1.75M).

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


Board Members

NamePositionTenureCompensationOwnership
Stephen Harris
Group CEO & Executive Director11.58yrsUK£2.16m0.28%
£ 3.2m
Dominique de Lisle Yates
CFO & Executive Director3.75yrsUK£1.47m0.21%
£ 2.4m
Ian Duncan
Senior Independent Director4.25yrsUK£78.00kno data
Eva Lindqvist
Independent Non-Executive Director8.17yrsUK£70.00k0.0064%
£ 74.7k
Patrick Larmon
Independent Non-Executive Director3.92yrsUK£66.00k0.0026%
£ 30.6k
Anne Quinn
Independent Non-Executive Chairman2.58yrsUK£233.00k0.011%
£ 122.4k
Lili Chahbazi
Independent Non-Executive Director2.58yrsUK£59.00kno data

3.9yrs

Average Tenure

62yo

Average Age

Experienced Board: BOY's board of directors are considered experienced (3.9 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 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£1.163b
  • Shares outstanding: 190.05m
  • 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 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 Analysis2020/08/12 20:48
End of Day Share Price2020/08/12 00:00
Earnings2020/06/30
Annual Earnings2019/12/31


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.