LSE:SDY

Stock Analysis Report

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.

Snowflake

Fundamentals

Very undervalued with proven track record.


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


Market Performance


7 Day Return

1.4%

SDY

0.1%

GB Trade Distributors

-0.4%

GB Market


1 Year Return

-9.4%

SDY

7.8%

GB Trade Distributors

2.9%

GB Market

Return vs Industry: SDY underperformed the UK Trade Distributors industry which returned 7.8% over the past year.

Return vs Market: SDY underperformed the UK Market which returned 2.9% over the past year.


Shareholder returns

SDYIndustryMarket
7 Day1.4%0.1%-0.4%
30 Day4.1%0.5%-1.4%
90 Day-1.4%2.5%-2.1%
1 Year-6.3%-9.4%12.4%7.8%7.9%2.9%
3 Year54.9%43.2%41.0%28.0%18.0%3.6%
5 Year-0.04%-10.4%81.9%58.0%35.8%6.4%

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?

45.8%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: SDY (£0.56) is trading below our estimate of fair value (£1.04)

Significantly Undervalued: SDY is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: SDY is good value based on its PE Ratio (13.2x) compared to the Trade Distributors industry average (15.8x).

PE vs Market: SDY is good value based on its PE Ratio (13.2x) compared to the UK market (16.7x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: SDY is good value based on its PB Ratio (1.4x) compared to the GB Trade Distributors industry average (1.9x).


Next Steps

Future Growth

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

14.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SDY's forecast earnings growth (14.2% per year) is above the savings rate (1.2%).

Earnings vs Market: SDY's earnings (14.2% per year) are forecast to grow faster than the UK market (12.6% per year).

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

Revenue vs Market: SDY's revenue (4% per year) is forecast to grow faster than the UK market (3.9% per year).

High Growth Revenue: SDY's revenue (4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: SDY's Return on Equity is forecast to be low in 3 years time (15.1%).


Next Steps

Past Performance

How has Speedy Hire performed over the past 5 years?

34.5%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: SDY's earnings have grown significantly by 34.5% per year over the past 5 years.

Accelerating Growth: SDY's earnings growth over the past year (56.7%) exceeds its 5-year average (34.5% per year).

Earnings vs Industry: SDY earnings growth over the past year (56.7%) exceeded the Trade Distributors industry 3.4%.


Return on Equity

High ROE: SDY's Return on Equity (10.5%) is considered low.


Return on Assets

ROA vs Industry: SDY's Return on Assets is below or equal to the Trade Distributors industry average last year.


Return on Capital Employed

ROCE Improving: SDY has significantly improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is Speedy Hire's financial position?


Financial Position Analysis

Short Term Liabilities: SDY's short term assets (£126.9M) exceeds its short term liabilities (£97.9M)

Long Term Liabilities: SDY's short term assets (126.9M) exceeds its long term liabilities (113.5M)


Debt to Equity History and Analysis

Debt Level: SDY's debt to equity ratio (47.8%) is considered high

Reducing Debt: SDY's debt to equity ratio has increased from 36.5% to 47.8% over the past 5 years.

Debt Coverage: SDY's debt is well covered by operating cash flow (26.2%).

Interest Coverage: SDY's interest payments on its debt are well covered by EBIT (10.1x coverage).


Balance Sheet

Inventory Level: SDY has a low level of unsold assets or inventory.

Debt Coverage by Assets: SDY's debt is covered by short term assets (assets are 1.257680x debt).


Next Steps

Dividend

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

3.56%

Current Dividend Yield


Dividend Yield vs Market

company3.6%marketbottom25%2.0%markettop25%5.4%industryaverage2.5%forecastin3Years4.4%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: SDY's dividend (3.56%) is higher than the bottom 25% of dividend payers in the UK market (2.01%).

High Dividend: SDY's dividend (3.56%) is low compared to the top 25% of dividend payers in the UK market (5.36%).

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

Growing Dividend: SDY's dividend payments have fallen over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (46.9%), SDY's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: SDY's dividends in 3 years are forecast to be well covered by earnings (41.3% payout ratio).


Next Steps

Management

What is the CEO of Speedy Hire's salary, the management and board of directors tenure and is there insider trading?

4.8yrs

Average management tenure


CEO

Russell Down (54yo)

4.3yrs

Tenure

UK£1,278,000

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 ($USD1.65M) is about average for companies of similar size in the UK market ($USD875.35K).

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


Management Age and Tenure

4.8yrs

Average Tenure

Experienced Management: SDY's management team is considered experienced (4.8 years average tenure).


Board Age and Tenure

3.5yrs

Average Tenure

58yo

Average Age

Experienced Board: SDY's board of directors are considered experienced (3.5 years average tenure).


Insider Trading

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


Recent Insider Transactions

BuyUK£63,88015 May 19
David James Shearer
EntityIndividual
Role
Chairman of the Board
Independent Chairman of the Board
Shares100,000
Max PriceUK£0.64

Ownership Breakdown


Management Team

  • Andy Carter (53yo)

    Managing Director of Speedy Asset Services - Equipment

    • Tenure: 10.9yrs
  • Russell Down (54yo)

    CEO & Executive Director

    • Tenure: 4.3yrs
    • Compensation: UK£1.28m
  • Chris Morgan

    Group Finance Director & Executive Director

    • Tenure: 3.5yrs
    • Compensation: UK£810.00k
  • Tracey Atkin

    Chief Operations Officer and Group Assets & Information Director

    • Tenure: 0yrs
  • Tony Bennett

    Corporate Development Officer

    • Tenure: 5.3yrs
  • Ed Cowell

    Head of Major Accounts and Group Sales & Marketing Director

    • Tenure: 0yrs
  • John Fahey

    Director of Communications

    • Tenure: 0yrs
  • Cathy Dawson

    Group HR Director

    • Tenure: 0yrs
  • Neil Hunt

    Company Secretary

    • Tenure: 0yrs

Board Members

  • Bob Contreras (56yo)

    Senior Independent Director

    • Tenure: 3.6yrs
    • Compensation: UK£53.00k
  • David N. Garman (67yo)

    Independent Non-Executive Director

    • Tenure: 2.3yrs
    • Compensation: UK£41.00k
  • David James Shearer (60yo)

    Independent Chairman of the Board

    • Tenure: 1yrs
    • Compensation: UK£86.00k
  • Russell Down (54yo)

    CEO & Executive Director

    • Tenure: 4.3yrs
    • Compensation: UK£1.28m
  • Chris Morgan

    Group Finance Director & Executive Director

    • Tenure: 3.5yrs
    • Compensation: UK£810.00k
  • Rob Barclay

    Independent Non-Executive Director

    • Tenure: 3.5yrs
    • Compensation: UK£48.00k
  • Rhian Bartlett

    Independent Non-Executive Director

    • Tenure: 0.3yrs

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£292.007m
  • Shares outstanding: 519.58m
  • 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
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 Analysis2019/10/19 20:34
End of Day Share Price2019/10/18 00:00
Earnings2019/03/31
Annual Earnings2019/03/31


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.