LSE:SDY

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

Executive Summary

Speedy Hire Plc, together with its subsidiaries, provides tools, equipment, and plant hire services to the construction, infrastructure, and industrial markets in the United Kingdom, Ireland, the United Arab Emirates, and internationally. More Details


Snowflake Analysis

Good value with moderate growth potential.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: SDY has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

4.5%

SDY

2.2%

GB Trade Distributors

0.1%

GB Market


1 Year Return

3.7%

SDY

11.8%

GB Trade Distributors

-14.0%

GB Market

Return vs Industry: SDY underperformed the UK Trade Distributors industry which returned 11.8% over the past year.

Return vs Market: SDY exceeded the UK Market which returned -14% over the past year.


Shareholder returns

SDYIndustryMarket
7 Day4.5%2.2%0.1%
30 Day10.8%1.9%0.2%
90 Day-0.4%8.1%-1.8%
1 Year4.9%3.7%13.4%11.8%-10.6%-14.0%
3 Year15.9%8.0%34.1%24.3%-4.5%-16.0%
5 Year68.0%50.3%71.7%51.3%22.5%-4.8%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

17.7%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: SDY (£0.56) is trading below our estimate of fair value (£0.68)

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


Price To Earnings Ratio

PE vs Industry: SDY is good value based on its PE Ratio (17.2x) compared to the GB Trade Distributors industry average (18.5x).

PE vs Market: SDY is good value based on its PE Ratio (17.2x) compared to the UK market (17.7x).


Price to Earnings Growth Ratio

PEG Ratio: SDY is good value based on its PEG Ratio (0.5x)


Price to Book Ratio

PB vs Industry: SDY's PB Ratio (1.4x) is in line with the GB Trade Distributors industry average.


Next Steps

Future Growth

How is Speedy Hire forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

33.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SDY's forecast earnings growth (33% per year) is above the savings rate (1.2%).

Earnings vs Market: SDY's earnings (33% per year) are forecast to grow faster than the UK market (23.7% per year).

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

Revenue vs Market: SDY's revenue (2.7% per year) is forecast to grow slower than the UK market (6.3% per year).

High Growth Revenue: SDY's revenue (2.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: SDY's Return on Equity is forecast to be low in 3 years time (15.5%).


Next Steps

Past Performance

How has Speedy Hire performed over the past 5 years?

56.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SDY has a large one-off loss of £16.8M impacting its March 31 2020 financial results.

Growing Profit Margin: SDY's current net profit margins (4.1%) are lower than last year (5.9%).


Past Earnings Growth Analysis

Earnings Trend: SDY's earnings have grown significantly by 56.6% per year over the past 5 years.

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

Earnings vs Industry: SDY had negative earnings growth (-27.6%) over the past year, making it difficult to compare to the Trade Distributors industry average (-15.8%).


Return on Equity

High ROE: SDY's Return on Equity (8%) is considered low.


Next Steps

Financial Health

How is Speedy Hire's financial position?


Financial Position Analysis

Short Term Liabilities: SDY's short term assets (£135.3M) exceed its short term liabilities (£117.5M).

Long Term Liabilities: SDY's short term assets (£135.3M) do not cover its long term liabilities (£163.4M).


Debt to Equity History and Analysis

Debt Level: SDY's debt to equity ratio (48.9%) is considered high.

Reducing Debt: SDY's debt to equity ratio has increased from 45.4% to 48.9% over the past 5 years.

Debt Coverage: SDY's debt is well covered by operating cash flow (47.5%).

Interest Coverage: SDY's interest payments on its debt are well covered by EBIT (5.9x coverage).


Balance Sheet


Next Steps

Dividend

What is Speedy Hire current dividend yield, its reliability and sustainability?

3.30%

Forecast Dividend Yield


Dividend Yield vs Market

Notable Dividend: Unable to evaluate SDY's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate SDY's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if SDY's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if SDY's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: SDY is not paying a notable dividend for the UK market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of SDY's dividend in 3 years as they are not forecast to pay a notable one for the UK market.


Next Steps

Management

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

6.2yrs

Average management tenure


CEO

Russell Down (55 yo)

5.17yrs

Tenure

UK£683,000

Compensation

Mr. Russell Down has been the Chief Executive Officer of Speedy Hire Plc since July 1, 2015. Mr. Down served as Group Finance Director of Speedy Hire Plc from April 06, 2015 to December 3, 2015. He served ...


CEO Compensation Analysis

Compensation vs Market: Russell's total compensation ($USD884.83K) is about average for companies of similar size in the UK market ($USD918.51K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Russell Down
CEO & Executive Director5.17yrsUK£683.00k0.060%
£ 174.7k
James Bunn
CFO & Directorno datano datano data
Tracey Atkin
Chief Operations Officer and Group Assets & Information Directorno datano datano data
John Fahey
Director of Communicationsno datano datano data
Tony Bennett
Corporate Development Officer6.17yrsno datano data
Ed Cowell
Head of Major Accounts and Group Sales & Marketing Directorno datano datano data
Cathy Dawson
Group HR Directorno datano datano data
Andy Carter
Managing Director of Speedy Asset Services - Equipment11.83yrsno datano data
Neil Hunt
Company Secretaryno datano datano data

6.2yrs

Average Tenure

Experienced Management: SDY's management team is seasoned and experienced (6.2 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Russell Down
CEO & Executive Director5.17yrsUK£683.00k0.060%
£ 174.7k
James Bunn
CFO & Directorno datano datano data
Robert Contreras
Independent Director4.75yrsUK£55.00k0.0077%
£ 22.2k
David N. Garman
Senior Independent Director0.083yrUK£43.00k0.014%
£ 41.7k
David James Shearer
Independent Chairman of the Board1.92yrsUK£133.00k0.086%
£ 250.2k
Robert Barclay
Independent Non-Executive Director4.42yrsUK£50.00k0.0092%
£ 26.7k
Rhian Bartlett
Independent Non-Executive Director1.25yrsUK£35.00k0.014%
£ 41.6k

3.2yrs

Average Tenure

59yo

Average Age

Experienced Board: SDY's board of directors are considered experienced (3.2 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.


Recent Insider Transactions

Ownership Breakdown

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


Top Shareholders

Company Information

Speedy Hire Plc's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Speedy Hire Plc
  • Ticker: SDY
  • Exchange: LSE
  • Founded: 1968
  • Industry: Trading Companies and Distributors
  • Sector: Capital Goods
  • Market Cap: UK£289.971m
  • Shares outstanding: 521.53m
  • Website: https://www.speedyservices.com

Number of Employees


Location

  • Speedy Hire Plc
  • Chase House
  • 16 The Parks
  • Newton-le-Willows
  • Merseyside
  • WA12 0JQ
  • United Kingdom

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SDYLSE (London Stock Exchange)YesOrdinary SharesGBGBPJan 1992
5HNDB (Deutsche Boerse AG)YesOrdinary SharesDEEURJan 1992
SDYlBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBGBPJan 1992

Biography

Speedy Hire Plc, together with its subsidiaries, provides tools, equipment, and plant hire services to the construction, infrastructure, and industrial markets in the United Kingdom, Ireland, the United Ar ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/09/20 03:28
End of Day Share Price2020/09/18 00:00
Earnings2020/03/31
Annual Earnings2020/03/31


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.