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SFR

SeverfieldLSE:SFR Stock Report

Market Cap

UK£214.7m

7D

-2.3%

1Y

1.8%

Updated

30 Nov, 2021

Data

Company Financials +
SFR fundamental analysis
Snowflake Score
Valuation6/6
Future Growth2/6
Past Performance2/6
Financial Health5/6
Dividends4/6

SFR Stock Overview

Severfield plc, a structural steelwork company, engages in the designing, manufacturing, fabrication, construction, and erection of steelwork activities in the United Kingdom, Republic of Ireland, Mainland Europe, and India.

Severfield Competitors

Van Elle Holdings

AIM:VANL

UK£49.1m

Spirax-Sarco Engineering

LSE:SPX

UK£11.5b

Melrose Industries

LSE:MRO

UK£6.3b

Smiths Group

LSE:SMIN

UK£5.7b

Price History & Performance

Summary of all time highs, changes and price drops for Severfield
Historical stock prices
Current Share PriceUK£0.69
52 Week HighUK£0.85
52 Week LowUK£0.63
Beta0.89
1 Month Change-3.07%
3 Month Change-14.32%
1 Year Change1.76%
3 Year Change-4.93%
5 Year Change-2.60%
Change since IPO490.64%

Recent News & Updates

Nov 25
Severfield's (LON:SFR) Dividend Will Be UK£0.012

Severfield's (LON:SFR) Dividend Will Be UK£0.012

Severfield plc ( LON:SFR ) has announced that it will pay a dividend of UK£0.012 per share on the 7th of January. Based...

Oct 13
An Intrinsic Calculation For Severfield plc (LON:SFR) Suggests It's 42% Undervalued

An Intrinsic Calculation For Severfield plc (LON:SFR) Suggests It's 42% Undervalued

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

Aug 26
This Is Why Severfield plc's (LON:SFR) CEO Compensation Looks Appropriate

This Is Why Severfield plc's (LON:SFR) CEO Compensation Looks Appropriate

Despite Severfield plc's ( LON:SFR ) share price growing positively in the past few years, the per-share earnings...

Shareholder Returns

SFRGB ConstructionGB Market
7D-2.3%-2.9%-2.6%
1Y1.8%21.2%10.9%

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

Return vs Market: SFR underperformed the UK Market which returned 13.8% over the past year.

Price Volatility

Is SFR's price volatile compared to industry and market?
SFR volatility
SFR Average Weekly Movement4.1%
Construction Industry Average Movement4.0%
Market Average Movement4.9%
10% most volatile stocks in GB Market9.8%
10% least volatile stocks in GB Market2.5%

Stable Share Price: SFR is not significantly more volatile than the rest of UK stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: SFR's weekly volatility (4%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
19781,500Alan Dunsmorehttps://www.severfield.com

Severfield plc, a structural steelwork company, engages in the designing, manufacturing, fabrication, construction, and erection of steelwork activities in the United Kingdom, Republic of Ireland, Mainland Europe, and India. It manufactures metal decking products; plate girder sections, rectangular and/or circular apertures, optimal section profiles, and intumescent coating products. The company also provides steel-framed modular equipment rooms and housing; steelworks, including main structure, mezzanines, stairs, balustrade, and platforms; Staircase fabrication; composite and non-composite plain and cellular beams; offload and edge protection systems, as well as delivers constructional steel products.

Severfield Fundamentals Summary

How do Severfield's earnings and revenue compare to its market cap?
SFR fundamental statistics
Market CapUK£214.69m
Earnings (TTM)UK£17.27m
Revenue (TTM)UK£373.11m

12.4x

P/E Ratio

0.6x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
SFR income statement (TTM)
RevenueUK£373.11m
Cost of RevenueUK£227.15m
Gross ProfitUK£145.96m
ExpensesUK£128.69m
EarningsUK£17.27m

Last Reported Earnings

Sep 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)0.056
Gross Margin39.12%
Net Profit Margin4.63%
Debt/Equity Ratio9.2%

How did SFR perform over the long term?

See historical performance and comparison

Dividends

4.3%

Current Dividend Yield

54%

Payout Ratio

Does SFR pay a reliable dividends?

See SFR dividend history and benchmarks
When do you need to buy SFR by to receive an upcoming dividend?
Severfield dividend dates
Ex Dividend DateDec 09 2021
Dividend Pay DateJan 07 2022
Days until Ex dividend7 days
Days until Dividend pay date36 days

Does SFR pay a reliable dividends?

See SFR dividend history and benchmarks

Valuation

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

43.9%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: SFR (£0.69) is trading below our estimate of fair value (£1.24)

Significantly Below Fair Value: SFR is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: SFR is good value based on its PE Ratio (12.4x) compared to the UK Construction industry average (19.8x).

PE vs Market: SFR is good value based on its PE Ratio (12.4x) compared to the UK market (19x).


Price to Earnings Growth Ratio

PEG Ratio: SFR is good value based on its PEG Ratio (1x)


Price to Book Ratio

PB vs Industry: SFR is good value based on its PB Ratio (1.1x) compared to the GB Construction industry average (1.4x).


Future Growth

How is Severfield forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

12.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SFR's forecast earnings growth (12.8% per year) is above the savings rate (0.9%).

Earnings vs Market: SFR's earnings (12.8% per year) are forecast to grow faster than the UK market (12.6% per year).

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

Revenue vs Market: SFR's revenue (1% per year) is forecast to grow slower than the UK market (4.9% per year).

High Growth Revenue: SFR's revenue (1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if SFR's Return on Equity is forecast to be high in 3 years time


Past Performance

How has Severfield performed over the past 5 years?

3.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SFR has high quality earnings.

Growing Profit Margin: SFR's current net profit margins (4.6%) are lower than last year (4.9%).


Past Earnings Growth Analysis

Earnings Trend: SFR's earnings have grown by 3.3% per year over the past 5 years.

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

Earnings vs Industry: SFR had negative earnings growth (-7.7%) over the past year, making it difficult to compare to the Construction industry average (-7.7%).


Return on Equity

High ROE: SFR's Return on Equity (9%) is considered low.


Financial Health

How is Severfield's financial position?


Financial Position Analysis

Short Term Liabilities: SFR's short term assets (£109.1M) exceed its short term liabilities (£94.8M).

Long Term Liabilities: SFR's short term assets (£109.1M) exceed its long term liabilities (£50.8M).


Debt to Equity History and Analysis

Debt Level: SFR's net debt to equity ratio (3.5%) is considered satisfactory.

Reducing Debt: SFR's debt to equity ratio has increased from 0% to 9.2% over the past 5 years.

Debt Coverage: SFR's debt is well covered by operating cash flow (70.1%).

Interest Coverage: SFR's interest payments on its debt are well covered by EBIT (28.4x coverage).


Balance Sheet


Dividend

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

4.32%

Current Dividend Yield


Upcoming Dividend Payment

TodayDec 01 2021Ex Dividend DateDec 09 2021Dividend Pay DateJan 07 202229 days from Ex DividendBuy in the next 7 days to receive the upcoming dividend

Dividend Yield vs Market

Notable Dividend: SFR's dividend (4.32%) is higher than the bottom 25% of dividend payers in the UK market (1.37%).

High Dividend: SFR's dividend (4.32%) is in the top 25% of dividend payers in the UK market (4.17%)


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (53.5%), SFR's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: SFR's dividends in 3 years are forecast to be well covered by earnings (39.6% payout ratio).


Next Steps

Management

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

4.7yrs

Average management tenure


CEO

Alan Dunsmore (51 yo)

4.67yrs

Tenure

UK£747,000

Compensation

Mr. Alan Dunsmore, BAcc, CA, has been Chief Executive Officer at Severfield plc since February 2018. He served as the Interim Chief Executive of Severfield plc since March, 2017 until January 31, 2018. Mr....


CEO Compensation Analysis

Compensation vs Market: Alan's total compensation ($USD989.08K) is above average for companies of similar size in the UK market ($USD560.47K).

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


Leadership Team

Experienced Management: SFR's management team is considered experienced (4.7 years average tenure).


Board Members

Experienced Board: SFR's board of directors are considered experienced (3.8 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

Severfield plc's employee growth, exchange listings and data sources


Key Information

  • Name: Severfield plc
  • Ticker: SFR
  • Exchange: LSE
  • Founded: 1978
  • Industry: Construction and Engineering
  • Sector: Capital Goods
  • Market Cap: UK£214.687m
  • Shares outstanding: 309.35m
  • Website: https://www.severfield.com

Number of Employees


Location

  • Severfield plc
  • Severs House
  • Dalton Airfield Industrial Estate
  • Thirsk
  • North Yorkshire
  • YO7 3JN
  • United Kingdom

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/11/30 21:36
End of Day Share Price2021/11/30 00:00
Earnings2021/09/30
Annual Earnings2021/03/31


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.