Sanderson Design Group PLC (SDG) AI Stock Analysis

• Market Cap: £33.12M
• Dividend Yield: 6.77%
• Average Volume (3M): 145.68K
• Price to Earnings (P/E): 7.6
• Beta (1Y): 0.77
• Revenue Growth: -7.45%
• EPS Growth: -51.68%
• Country: UK
• Employees: 631
• Sector: Consumer Cyclical
• Sector Strength: 53
• Industry: Home and Homeware
• EPS (TTM): 0.06
• Shares Outstanding: 71,994,850
• 10 Day Avg. Volume: 147,606
• 30 Day Avg. Volume: 145,675
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.32
• Price to Cash Flow (P/CF): 3.10
• P/FCF Ratio: 4.20
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

Sanderson Design Group PLC is financially stable with robust operational metrics and low leverage. Valuation metrics suggest the stock is undervalued, supported by a high dividend yield. However, technical analysis indicates a bearish trend, and recent corporate events highlight both executive confidence and challenging market conditions. This balance of strengths and risks results in a moderate overall stock score.

Sanderson Design Group PLC Business Overview & Revenue Model

Company Description

Sanderson Design Group PLC (SDG) is a leading luxury interior furnishings company, renowned for its high-quality designs and craftsmanship. It operates in the home and lifestyle sector, offering a diverse range of products, including wallpapers, fabrics, and homeware. The company owns several iconic brands such as Sanderson, Morris & Co., Harlequin, Zoffany, and Scion, each known for its unique aesthetic and heritage appeal. SDG's products are distributed globally, catering to both retail consumers and interior design professionals.

How the Company Makes Money

Sanderson Design Group PLC generates revenue primarily through the sale of its luxury interior furnishings. The company's key revenue streams include direct sales to consumers via its e-commerce platform and physical retail outlets, as well as wholesale distribution to interior designers, architects, and retailers. SDG also licenses its designs to global partners, expanding its brand reach and generating additional income. The company's earnings are bolstered by strategic partnerships and collaborations that enhance its product offerings and market presence. Additionally, SDG invests in innovative design and technology to maintain its competitive edge and drive sales.

Sanderson Design Group PLC Financial Statement Overview

Summary

Sanderson Design Group PLC shows a solid financial foundation with stable profitability and strong operational metrics. The income statement reveals stable margins despite slight revenue decline, while the balance sheet indicates low leverage and high equity. Cash flow efficiency has improved, though further conversion of income to free cash flow is needed.

Income Statement

The company exhibits stable gross and net profit margins with slight declines in revenue. Gross Profit Margin is approximately 67.8%, while Net Profit Margin is around 7.5%. However, a slight decline in revenue growth over recent years poses a concern. The EBIT Margin is healthy at 9.0%, and the EBITDA Margin is robust at 14.7%, showcasing strong operational efficiency.

Balance Sheet

The company's balance sheet indicates strong equity with an Equity Ratio of 78.2%. The Debt-to-Equity Ratio is low at 0.06, indicating minimal leverage risk. Return on Equity (ROE) stands at 9.5%, reflecting decent profitability for shareholders. Overall, the company maintains a solid financial position with a healthy balance between assets and liabilities.

Cash Flow

Operating Cash Flow has improved, with a strong Operating Cash Flow to Net Income Ratio of 1.11. Free Cash Flow has grown significantly, reflecting improved cash efficiency. However, the Free Cash Flow to Net Income Ratio at 0.71 suggests room for improvement in translating earnings into free cash flow.

Breakdown
TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement		Total Revenue
102.49M	108.64M	111.98M	112.20M	93.76M	111.45M
	Gross Profit
65.63M	73.68M	74.22M	73.83M	56.98M	68.13M
	EBIT
70.00K	9.73M	10.65M	10.33M	5.18M	4.78M
	EBITDA
11.52M	15.93M	17.42M	17.30M	12.67M	12.29M
	Net Income Common Stockholders
4.54M	8.20M	8.82M	7.76M	3.83M	3.72M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
3.06M	16.34M	15.40M	19.05M	15.55M	3.06M
	Total Assets
104.36M	110.64M	107.33M	105.73M	100.40M	104.36M
	Total Debt
10.13M	5.15M	5.12M	3.90M	6.29M	10.13M
	Net Debt
7.08M	-11.20M	-10.28M	-15.15M	-9.26M	7.08M
	Total Liabilities
39.53M	24.11M	26.01M	26.02M	32.92M	39.53M
	Stockholders Equity
64.83M	86.53M	81.32M	79.71M	67.48M	64.83M
Cash Flow		Free Cash Flow
-1.04M	5.83M	828.00K	6.85M	16.84M	5.74M
	Operating Cash Flow
2.56M	9.09M	5.62M	8.98M	17.92M	8.23M
	Investing Cash Flow
-4.19M	-3.04M	-4.76M	-2.12M	-999.00K	-2.39M
	Financing Cash Flow
-4.70M	-4.95M	-4.90M	-3.29M	-2.55M	-4.91M

Sanderson Design Group PLC Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 46.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:SDG, the sentiment is Negative. The current price of 46 is below the 20-day moving average (MA) of 48.97, below the 50-day MA of 51.49, and below the 200-day MA of 71.08, indicating a bearish trend. The MACD of -1.30 indicates Negative momentum. The RSI at 41.00 is Neutral, neither overbought nor oversold. The STOCH value of 35.96 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GB:SDG.

Sanderson Design Group PLC Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
GFRD	77 Outperform	£362.57M	9.48	35.97%	4.06%	27.20%	318.27%
BKG	75 Outperform	£3.62B	10.01	11.03%	1.89%	0.39%	-17.64%
SDG	68 Neutral	£33.12M	7.58	5.26%	6.77%	-7.45%	-51.68%
FRAS	68 Neutral	£2.68B	9.14	16.46%	―	-6.82%	-37.46%
BWY	64 Neutral	£2.63B	20.83	3.77%	2.36%	-30.13%	-63.13%
Sector *	60 Neutral	$13.01B	10.45	0.79%	3.53%	1.60%	-22.47%
CRST	47 Neutral	£373.81M	―	-13.06%	8.31%	-5.98%	-677.54%

Sanderson Design Group PLC Corporate Events

Patrick Lewis Increases Stake in Sanderson Design Group

Sanderson Design Group PLC announced that Patrick Lewis, a Non-Executive Director, has acquired a discretionary portfolio containing 4,571 ordinary shares in the company. This transaction slightly increases his stake, representing 0.006% of the total voting rights. The acquisition of shares by a member of the Board can be seen as a signal of confidence in the company’s future prospects, potentially reassuring stakeholders and investors about the company’s strategic direction and stability.

Sanderson Design Group Announces Board Resignation

Sanderson Design Group PLC announced the resignation of Christopher Rogers, Non-Executive Director and Chair of the Remuneration Committee, effective from February 1, 2025. This change in the board may affect the company’s strategic direction and governance, with potential implications for its stakeholders as the company continues to position itself in the luxury interior furnishings market.

Change in Voting Rights at Sanderson Design Group

Sanderson Design Group PLC announced a significant change in voting rights following an acquisition or disposal by LBV Asset Management LLP. The notification indicates that LBV Asset Management now holds 5.063% of the voting rights, equivalent to 3,645,387 shares, impacting the company’s shareholder dynamics.

Sanderson Design Group Executive Purchases Company Shares

Sanderson Design Group PLC announced that Mauricio Solodujin, Global Commercial Director, has purchased ordinary shares in the company. This transaction, in line with market regulations, may reflect confidence in the company’s ongoing performance and strategic direction, potentially impacting stakeholder perceptions positively.

Sanderson Design Executives Increase Shareholding, Signaling Confidence

Sanderson Design Group PLC announced the purchase of ordinary shares by two key executives, CEO Lisa Montague and Chairman Dianne Thompson. This action highlights their confidence in the company’s future prospects. Montague purchased 32,000 shares, while Thompson acquired 21,062 shares, bringing their total holdings to 0.70% and 0.05% of total voting rights, respectively. This move may positively influence stakeholder perception and reflects a commitment to the company’s growth strategy.

Sanderson Design Group Faces Challenging Market Conditions in 2025

Sanderson Design Group PLC announced a trading update indicating a challenging financial year ending 31 January 2025, with expected sales of approximately £101 million, slightly below earlier forecasts. The company faces subdued demand, particularly in the UK market, impacting profitability, and anticipates underlying pre-tax profits to be between £4.0 million and £4.8 million. Despite these challenges, licensing revenues show positive momentum, and the company is focusing on strategic changes, efficiency, and cost savings to adapt to the current environment, supported by a robust balance sheet and undrawn credit facilities.

Sanderson Design Group Celebrates 100 Years with Royal Warrant Renewal

Sanderson Design Group PLC has been awarded a Royal Warrant of Appointment by King Charles III, marking 100 years since the brand first received this honor from King George V. This recognition underscores Sanderson’s long-standing relationship with the Royal Household and highlights its commitment to sustainability, aligning with the Royal Household’s focus on environmental stewardship. The Royal Warrant reinforces Sanderson’s reputation for excellence in British design and craftsmanship, potentially enhancing its market position and strengthening its stakeholder relationships.