Speedy Hire (SDY) AI Stock Analysis

• Market Cap: £89.69M
• Dividend Yield: 13.53%
• Average Volume (3M): 2.10M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.43
• Revenue Growth: -4.08%
• EPS Growth: 29.90%
• Country: UK
• Employees: 3,394
• Sector: Industrials
• Sector Strength: 72
• Industry: Corporate Services
• EPS (TTM): >-0.01
• Shares Outstanding: 461,841,980
• 10 Day Avg. Volume: 1,181,007
• 30 Day Avg. Volume: 2,099,967
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.20
• Price to Cash Flow (P/CF): 1.70
• P/FCF Ratio: 1.80
• 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: 70.00p
• Price Target Upside: 260.45% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

Speedy Hire's overall stock score reflects mixed financial performance with strong cash flow management but challenges in income growth and leverage. The technical analysis points to a bearish trend, while the valuation shows potential unprofitability concerns. However, insider confidence through share purchases adds a positive note, suggesting potential future improvements.

Speedy Hire Business Overview & Revenue Model

Company Description

Speedy Hire (SDY) is a leading provider of tools, equipment, and plant hire services in the United Kingdom and Ireland. The company caters to various sectors, including construction, infrastructure, industrial, and events. Speedy Hire offers a comprehensive range of products and services, including equipment rental, training, testing, and asset management, tailored to meet the diverse needs of its customers.

How the Company Makes Money

Speedy Hire generates revenue primarily through the rental of tools, equipment, and plant machinery to businesses across multiple sectors. The company's key revenue streams include short-term and long-term hire agreements for its extensive inventory of equipment. In addition to rental income, Speedy Hire earns money through complementary services such as equipment sales, maintenance, training, and asset management solutions. Strategic partnerships with equipment manufacturers and suppliers also play a crucial role in optimizing inventory and ensuring a steady flow of high-demand products, further contributing to the company's earnings. The company leverages its expansive depot network and digital platform to enhance customer reach and operational efficiency.

Speedy Hire Financial Statement Overview

Summary

Speedy Hire displays a reasonable financial position with strengths in cash flow management and gross profit margins. However, challenges in net income growth and increased leverage are areas of concern. Continued focus on improving operational efficiency and revenue growth will be crucial for enhancing financial health.

Income Statement

The income statement reflects mixed results. Gross profit margin is strong, indicating effective cost management. However, net profit margin is quite low, driven by a significant decline in net income compared to previous years. Revenue growth has also been inconsistent, with a recent decline. The EBIT and EBITDA margins show some stability, but the drop in EBIT indicates potential challenges in operational efficiency.

Balance Sheet

The balance sheet reveals moderate financial stability. The debt-to-equity ratio has increased, suggesting higher leverage which could pose risks if earnings do not improve. Return on equity is low due to declining net income, impacting shareholders' returns. The equity ratio is stable, indicating that a sizable portion of assets is financed by equity.

Cash Flow

Cash flow statements show robust operating cash flow, which is positive for sustainability. Free cash flow has demonstrated growth, although the magnitude is modest. The operating cash flow to net income ratio is strong, highlighting efficient cash generation from operations despite low net income.

Breakdown
Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement		Total Revenue
421.50M	440.60M	386.80M	332.30M	371.50M
	Gross Profit
230.00M	239.40M	221.10M	184.90M	214.30M
	EBIT
14.90M	30.60M	31.20M	23.50M	45.90M
	EBITDA
85.50M	102.00M	98.90M	76.90M	113.00M
	Net Income Common Stockholders
2.70M	1.20M	21.60M	9.50M	16.80M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
4.00M	1.10M	2.50M	11.70M	22.80M
	Total Assets
500.20M	476.40M	486.60M	439.90M	490.80M
	Total Debt
202.90M	179.60M	146.70M	110.70M	175.00M
	Net Debt
198.90M	178.50M	144.20M	99.00M	152.20M
	Total Liabilities
324.50M	291.80M	270.20M	220.70M	280.90M
	Stockholders Equity
175.70M	184.60M	216.40M	219.20M	209.90M
Cash Flow		Free Cash Flow
41.70M	24.50M	-1.20M	42.70M	28.00M
	Operating Cash Flow
52.60M	88.30M	86.30M	90.30M	90.60M
	Investing Cash Flow
-24.20M	-51.30M	-80.80M	-20.60M	-45.40M
	Financing Cash Flow
-25.40M	-38.00M	-15.90M	-81.30M	-32.80M

Speedy Hire Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 19.42
• 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:SDY, the sentiment is Negative. The current price of 19.42 is above the 20-day moving average (MA) of 19.38, below the 50-day MA of 23.28, and below the 200-day MA of 30.49, indicating a neutral trend. The MACD of -1.05 indicates Negative momentum. The RSI at 38.05 is Neutral, neither overbought nor oversold. The STOCH value of 33.49 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GB:SDY.

Speedy Hire Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SRP	74 Outperform	£1.61B	39.16	4.71%	2.21%	-0.68%	-78.93%
ASHM	68 Neutral	£1.01B	14.05	8.62%	11.05%	0.82%	-26.44%
Sector *	62 Neutral	$8.16B	12.85	0.64%	3.04%	3.83%	-15.83%
SDY	56 Neutral	£89.69M	―	-1.79%	13.53%	-4.08%	29.90%

Speedy Hire Corporate Events

Speedy Hire PLC Announces Change in Major Holdings

Speedy Hire PLC announced a change in major holdings as Martin Currie Investment Management Limited has adjusted its stake in the company. The voting rights held by Martin Currie decreased from 5.01% to 4.92%, indicating a slight reduction in their investment. This change may impact how stakeholders perceive the company’s market standing and could influence future shareholder decisions.

Speedy Hire CFO and Associates Increase Stake with Share Purchases

Speedy Hire Plc announced the purchase of ordinary shares by its Chief Financial Officer, Paul Rayner, and his closely associated persons, Claire and Robert Rayner. The transactions, conducted on February 6, 2025, at the London Stock Exchange, reflect a total acquisition of 50,000 shares, signaling a consolidated investment in the company, which could indicate confidence in its market position and future prospects.

Speedy Hire Announces Major Shareholding Change

Speedy Hire PLC has announced a change in its major holdings, with Aberforth Partners LLP increasing its voting rights in the company to 11.01%, up from the previous 10.31%. This change reflects a significant shift in the company’s shareholder structure and could influence future strategic decisions, potentially impacting its market position and stakeholder interests.

Speedy Hire Plc: Insider Share Acquisition Reflects Confidence

Speedy Hire Plc has announced a transaction involving the purchase of ordinary shares by Dina Dasani, who is closely associated with Shatish Dasani, a Non-Executive Director of the company. This acquisition, consisting of 70,000 shares at a price of £0.1988 each, was conducted on the London Stock Exchange. The move reflects insider confidence in the company’s market position and could have implications for shareholder value.

Speedy Hire Navigates Economic Uncertainty with Strategic Focus

Speedy Hire reported a promising start to the fiscal year with a 5% increase in hire revenue for December 2024. However, an economic downturn and delays in CP7 rail works have slowed post-December recovery, impacting the final quarter’s trading performance. Despite challenges, including a downturn in its Kazakhstan joint venture and increased net debt, the company remains focused on its Velocity strategy to manage costs and investment decisions. Although facing macroeconomic uncertainties, Speedy Hire sees growth opportunities from government infrastructure projects and anticipates a recovery in FY2026.