SigmaRoc plc

AIM:SRC Stock Report

Market Cap: UK£888.5m

SigmaRoc Valuation

Is SRC undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

4/6

Valuation Score 4/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Sales vs Peers

  • Price-To-Sales vs Industry

  • Price-To-Sales vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of SRC when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: SRC (£0.78) is trading below our estimate of fair value (£2.56)

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

Key Valuation Metric

Which metric is best to use when looking at relative valuation for SRC?

Key metric: As SRC is unprofitable we use its Price-To-Sales Ratio for relative valuation analysis.

The above table shows the Price to Sales ratio for SRC. This is calculated by dividing SRC's market cap by their current revenue.
What is SRC's PS Ratio?
PS Ratio1.1x
SalesUK£759.05m
Market CapUK£888.54m

Price to Sales Ratio vs Peers

How does SRC's PS Ratio compare to its peers?

The above table shows the PS ratio for SRC vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PSEstimated GrowthMarket Cap
Peer Average1.2x
MSLH Marshalls
1.3x4.2%UK£825.0m
RHIM RHI Magnesita
0.5x4.3%UK£1.5b
IBST Ibstock
2x9.0%UK£741.2m
BREE Breedon Group
1.1x6.1%UK£1.6b
SRC SigmaRoc
1.1x11.6%UK£888.5m

Price-To-Sales vs Peers: SRC is good value based on its Price-To-Sales Ratio (1.1x) compared to the peer average (1.2x).

Price to Sales Ratio vs Industry

How does SRC's PS Ratio compare vs other companies in the European Basic Materials Industry?

0 CompaniesPrice / SalesEstimated GrowthMarket Cap
SRC 1.1xIndustry Avg. 1.0xNo. of Companies9PS00.61.21.82.43+
0 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Sales vs Industry: SRC is expensive based on its Price-To-Sales Ratio (1.1x) compared to the European Basic Materials industry average (1x).

Price to Sales Ratio vs Fair Ratio

What is SRC's PS Ratio compared to its Fair PS Ratio? This is the expected PS Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

SRC PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio1.1x
Fair PS Ratio0.9x

Price-To-Sales vs Fair Ratio: SRC is expensive based on its Price-To-Sales Ratio (1.1x) compared to the estimated Fair Price-To-Sales Ratio (0.9x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst SRC forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUK£0.78
UK£1.07
+37.5%
8.2%UK£1.20UK£0.95n/a6
Nov ’25UK£0.81
UK£1.04
+28.8%
8.6%UK£1.20UK£0.95n/a6
Oct ’25UK£0.69
UK£1.03
+49.0%
9.6%UK£1.20UK£0.90n/a6
Sep ’25UK£0.72
UK£1.02
+42.2%
10.5%UK£1.20UK£0.90n/a5
Aug ’25UK£0.73
UK£1.02
+40.3%
10.5%UK£1.20UK£0.90n/a5
Jul ’25UK£0.67
UK£1.02
+53.8%
10.5%UK£1.20UK£0.90n/a5
Jun ’25UK£0.67
UK£1.02
+53.8%
10.5%UK£1.20UK£0.90n/a5
May ’25UK£0.67
UK£1.04
+55.6%
11.4%UK£1.20UK£0.90n/a4
Apr ’25UK£0.68
UK£1.02
+50.4%
13.0%UK£1.20UK£0.85n/a4
Mar ’25UK£0.65
UK£1.02
+56.3%
13.0%UK£1.20UK£0.85n/a4
Feb ’25UK£0.65
UK£1.02
+58.3%
13.0%UK£1.20UK£0.85n/a4
Jan ’25UK£0.53
UK£1.05
+96.6%
10.3%UK£1.20UK£0.95n/a3
Dec ’24UK£0.48
UK£1.05
+117.4%
10.3%UK£1.20UK£0.95n/a3
Nov ’24UK£0.49
UK£1.00
+104.5%
12.7%UK£1.20UK£0.85UK£0.814
Oct ’24UK£0.54
UK£1.00
+85.2%
12.7%UK£1.20UK£0.85UK£0.694
Sep ’24UK£0.54
UK£0.99
+81.5%
14.5%UK£1.20UK£0.80UK£0.724
Aug ’24UK£0.60
UK£0.99
+64.6%
14.5%UK£1.20UK£0.80UK£0.734
Jul ’24UK£0.57
UK£0.99
+72.6%
14.5%UK£1.20UK£0.80UK£0.674
Jun ’24UK£0.60
UK£1.05
+75.0%
10.3%UK£1.20UK£0.95UK£0.673
May ’24UK£0.56
UK£0.96
+71.9%
18.5%UK£1.20UK£0.70UK£0.674
Apr ’24UK£0.53
UK£0.97
+83.1%
21.3%UK£1.20UK£0.70UK£0.683
Mar ’24UK£0.57
UK£0.95
+66.7%
21.5%UK£1.20UK£0.70UK£0.653
Feb ’24UK£0.59
UK£0.95
+61.6%
21.5%UK£1.20UK£0.70UK£0.653
Jan ’24UK£0.56
UK£0.95
+70.9%
21.5%UK£1.20UK£0.70UK£0.533
Dec ’23UK£0.54
UK£0.97
+79.0%
25.8%UK£1.30UK£0.70UK£0.483
Nov ’23UK£0.48
UK£0.97
+101.4%
25.8%UK£1.30UK£0.70UK£0.493

Analyst Forecast: Target price is more than 20% higher than the current share price and analysts are within a statistically confident range of agreement.

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