SIG plc (SHI) AI Stock Analysis

• Market Cap: £152.18M
• Dividend Yield: N/A
• Average Volume (3M): 1.56M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.26
• Revenue Growth: -5.41%
• EPS Growth: -11.73%
• Country: UK
• Employees: 7,000
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial Equipment Distributors
• EPS (TTM): -0.04
• Shares Outstanding: 1,181,557,000
• 10 Day Avg. Volume: 2,523,380
• 30 Day Avg. Volume: 1,564,149
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.06
• Price to Cash Flow (P/CF): 2.40
• P/FCF Ratio: 1.60
• 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: 15.40p
• Price Target Upside: 19.57% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 4

SIG plc's financial health is under pressure due to declining revenues and high leverage, reflected in a low financial performance score. The technical indicators are mostly bearish, further weighing down the stock's potential. The valuation is unattractive due to a negative P/E ratio and lack of dividend yield. However, recent insider buying provides a slightly positive outlook, though it does not significantly offset the other negative factors. Overall, the stock's score is low, highlighting the need for cautious consideration by investors.

Positive Factors

Market Recovery

Market recovery is expected to be evidenced by further sequential improvement in like-for-like sales growth.

Strategic Progress

Management reports good progress on strategic and operational initiatives, supporting profit delivery and future growth.

Negative Factors

Leverage Concerns

SIG's shares have broadly halved since their October high driven by concerns over leverage.

SIG plc Business Overview & Revenue Model

Company Description

SIG plc is a leading European supplier of specialist building materials, operating in the construction and building sectors. The company primarily deals in the distribution of insulation, roofing, interiors, and exteriors products, serving both residential and commercial markets. With a network of branches across Europe, SIG plc caters to a diverse customer base including contractors, builders, and industrial clients, providing them with high-quality materials and expert solutions to meet their construction needs.

How the Company Makes Money

SIG plc generates revenue primarily through the sale of building materials, including insulation, roofing, and interior products. The company operates a distribution network that allows it to efficiently supply these materials to a wide range of customers across Europe. Key revenue streams include direct sales to construction companies, contractors, and industrial clients, as well as through established partnerships with manufacturers and suppliers. SIG plc's earnings are influenced by factors such as construction industry demand, economic conditions, and strategic partnerships with key suppliers who provide high-quality products essential for construction projects.

SIG plc Financial Statement Overview

Summary

SIG plc faces challenges with declining revenues and profitability, coupled with high leverage. While cash flow generation remains positive, the company must focus on improving operational efficiency and managing debt levels to enhance financial stability and performance.

Income Statement

The company has experienced fluctuations in profitability, with a negative net profit margin in the most recent year indicating ongoing challenges in achieving profitability. Revenue has declined significantly in the latest period, suggesting issues in maintaining sales momentum. The negative EBIT margin further reflects operational inefficiencies.

Balance Sheet

The balance sheet shows a relatively high debt-to-equity ratio, indicating significant leverage which could pose financial risk. However, the equity ratio has remained stable, suggesting a moderate level of equity financing. The company needs to manage its debt levels carefully to avoid liquidity issues.

Cash Flow

Cash flow management appears somewhat stable, with positive free cash flow indicating some ability to generate cash from operations. However, the decline in operating cash flow compared to the previous year may indicate potential liquidity challenges if not addressed.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
2.65B	2.61B	2.76B	2.74B	2.29B	1.87B
	Gross Profit
658.20M	640.00M	699.60M	706.30M	597.40M	464.40M
	EBIT
21.50M	-3.80M	4.00M	78.60M	35.50M	-75.60M
	EBITDA
36.90M	78.90M	87.20M	138.50M	83.10M	-93.00M
	Net Income Common Stockholders
-62.30M	-48.60M	-43.40M	15.50M	-28.30M	-200.50M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
132.20M	86.80M	132.20M	130.10M	145.10M	235.30M
	Total Assets
1.27B	1.18B	1.27B	1.33B	1.20B	1.15B
	Total Debt
590.60M	585.70M	590.60M	574.60M	510.70M	474.40M
	Net Debt
458.40M	498.90M	459.40M	444.50M	365.60M	239.10M
	Total Liabilities
1.04B	998.40M	1.04B	1.07B	937.00M	848.30M
	Stockholders Equity
228.50M	179.80M	228.50M	267.80M	264.70M	301.90M
Cash Flow		Free Cash Flow
78.40M	58.80M	98.60M	73.90M	-57.20M	-96.10M
	Operating Cash Flow
96.30M	75.50M	114.40M	89.20M	-38.60M	-82.80M
	Investing Cash Flow
-12.10M	-16.60M	-10.90M	-42.00M	-26.50M	139.30M
	Financing Cash Flow
-88.20M	-98.60M	-103.00M	-65.50M	-17.60M	11.90M

SIG plc Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 12.88
• 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:SHI, the sentiment is Neutral. The current price of 12.88 is above the 20-day moving average (MA) of 12.77, below the 50-day MA of 14.26, and below the 200-day MA of 20.61, indicating a neutral trend. The MACD of -0.51 indicates Negative momentum. The RSI at 44.22 is Neutral, neither overbought nor oversold. The STOCH value of 75.44 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for GB:SHI.

SIG plc Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CRH	82 Outperform	£63.43B	19.44	16.07%	1.85%	1.78%	15.53%
GFRD	77 Outperform	£345.91M	9.19	35.97%	4.19%	22.39%	179.53%
KIE	67 Neutral	£524.72M	14.21	9.87%	3.68%	15.51%	4.30%
FERG	66 Neutral	£33.10B	20.21	29.63%	1.93%	1.84%	-5.54%
WOSG	65 Neutral	£1.10B	26.56	7.71%	―	1.45%	-61.69%
Sector *	62 Neutral	$8.16B	12.85	0.64%	3.04%	3.83%	-15.83%
SHI	44 Neutral	£152.18M	―	-23.81%	―	-5.41%	-11.73%

SIG plc Corporate Events

SIG plc Director Increases Shareholding

SIG plc, a company involved in the distribution of building products, announced that Non-Executive Director Ms. Kath Durrant purchased 92,518 ordinary shares, increasing her total beneficial interest to 193,292 shares. This transaction, conducted on the London Stock Exchange, highlights a significant increase in shareholding by a key company figure, potentially signaling confidence in the company’s future performance.

SIG plc Announces Retirement of Non-Executive Director

SIG plc, a company operating in the construction and building materials industry, has announced the retirement of Gillian Kent, a non-executive Director, who will not seek re-election at the upcoming Annual General Meeting on May 1, 2025. The company’s Chairman, Andrew Allner, expressed gratitude for her six years of service. Despite her departure, the Board remains confident in its ability to support the company’s strategic goals and will continue to evaluate its composition to ensure it has the necessary skills and experience.

SIG plc Director Increases Shareholding

SIG plc announced that Alan Lovell, a Non-Executive Director, purchased 170,000 ordinary shares, increasing his total beneficial interest to 500,000 shares. This transaction, conducted on the London Stock Exchange, reflects confidence in the company’s future prospects and aligns with regulatory compliance under the UK Market Abuse Regulation.

SIG plc Releases 2024 Annual Report & Accounts

SIG plc has published its 2024 Annual Report & Accounts, which is now available on the company’s website and will be distributed to shareholders by March 24, 2025. The report has also been submitted to the Financial Conduct Authority and will be accessible through its National Storage Mechanism, reflecting compliance with the TD ESEF Regulation for electronic reporting.

SIG plc Reports 2024 Financial Results Amid Market Challenges

SIG plc reported a challenging financial year for 2024, with underlying revenues decreasing to £2.61 billion from £2.76 billion in 2023, and an underlying operating profit of £25.1 million. Despite the tough market conditions, the company made strategic progress in cost reduction and restructuring, which is expected to enhance future profitability. The company also successfully refinanced its debt, extending maturities to 2029, and maintained strong liquidity. SIG’s ‘GEMS’ strategy is driving modernization and specialization efforts, including the launch of a new e-commerce platform in Germany and expansion into specialist markets in the UK. The company is poised to benefit from market recovery, with a focus on improving operating margins and delivering value to stakeholders.

Azvalor Increases Stake in SIG plc

SIG plc has announced a change in its major holdings, with Azvalor Asset Management SGIIC SA, based in Madrid, Spain, increasing its voting rights in the company to 11.585% from a previous 10.070%. This acquisition of voting rights signifies a strengthened position for Azvalor within SIG plc, potentially impacting the company’s strategic decisions and stakeholder interests.

SIG plc Experiences Change in Voting Rights Held by BlackRock

SIG plc, a UK-based company, announced a decrease in its voting rights held by BlackRock, Inc. The notification revealed a reduction from a previous 6.2% to 5.03% in total voting rights. This change, due to a disposal of financial instruments, indicates a shift in BlackRock’s investment position, potentially impacting SIG’s shareholder dynamics and market perception.

SIG plc Announces Significant Change in Shareholder Voting Rights

SIG plc, a UK-based company, has reported a significant change in its shareholder structure. Azvalor Asset Management SGIIC SA, based in Madrid, Spain, has increased its voting rights in SIG plc to 10.07% as of October 24, 2024, from a previous 5.01%. This change in holdings could influence the company’s decision-making processes and strategic direction as Azvalor Asset Management now holds a substantial stake in the company.

SIG plc Navigates Challenging Market with Strong Cost Reductions and Strategic Initiatives

SIG plc reported a challenging yet resilient performance for the fiscal year 2024, with revenues of £2.61 billion, reflecting a 4% decline in like-for-like sales. Despite weak market demand in the European construction sector, the company achieved significant cost reductions and productivity gains, expected to result in an underlying operating profit of approximately £25 million, aligning with market expectations. The company successfully refinanced in October 2024, ensuring funding certainty, and is prepared to capitalize on future market recovery.