Senior plc (SNR) AI Stock Analysis

• Market Cap: £668.28M
• Dividend Yield: 1.46%
• Average Volume (3M): 1.33M
• Price to Earnings (P/E): 26.8
• Beta (1Y): 0.60
• Revenue Growth: 1.41%
• EPS Growth: -16.76%
• Country: UK
• Employees: 5,664
• Sector: Industrials
• Sector Strength: 66
• Industry: Aerospace & Defense
• EPS (TTM): 0.06
• Shares Outstanding: 419,418,100
• 10 Day Avg. Volume: 2,563,813
• 30 Day Avg. Volume: 1,327,723
• PEG Ratio: 0.54
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.73
• Price to Cash Flow (P/CF): 24.40
• P/FCF Ratio: 49.70
• 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: 193.33p
• Price Target Upside: 20.08% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3

Senior plc exhibits a solid financial foundation with stable revenue growth and efficient cash flow management. The strategic divestment and focus on core segments, coupled with strong recent financial performance, enhance the stock's appeal. While the valuation is somewhat high, the positive corporate events and technical indicators support a favorable outlook.

Positive Factors

Earnings

Senior's FY24 results were generally ahead of JEFe/consensus.

Strategic Direction

Management is clearly looking to the future, which indicates confidence in the company's strategic direction.

Negative Factors

Operational Challenges

The Aerospace division is being impacted by the Boeing strike.

Senior plc Business Overview & Revenue Model

Company Description

Senior plc is an international manufacturing group headquartered in the United Kingdom. The company operates in the aerospace, defense, land vehicle, and power & energy sectors, providing engineered products and solutions. Senior plc specializes in the design and manufacture of high-technology components and systems, serving major original equipment manufacturers (OEMs) and other industry leaders worldwide.

How the Company Makes Money

Senior plc generates revenue primarily through the sale of its engineered products and solutions across multiple sectors. In the aerospace sector, the company supplies components and systems to major aircraft manufacturers and their suppliers. In the defense sector, it provides similar solutions to defense contractors. For the land vehicle sector, Senior plc manufactures components used in trucks and other vehicles. Additionally, the power & energy sector contributes to revenue through the provision of equipment used in energy generation and distribution. The company's earnings are bolstered by long-term contracts, strategic partnerships with key OEMs, and a focus on operational efficiency and innovation to meet the evolving needs of its clients.

Senior plc Financial Statement Overview

Summary

Senior plc demonstrates a solid financial position with stable revenue growth and improving profitability metrics. The balance sheet is well-managed, maintaining a healthy equity base and reasonable leverage. Cash flow analysis reveals stable cash generation, enabling ongoing investment while maintaining financial flexibility. The company is on a positive trajectory, though it should continue to focus on enhancing profitability and cash flow efficiency.

Income Statement

Senior plc has shown consistent revenue growth over the years, with a significant increase from 2021 to 2022. The gross profit margin has remained stable, indicating good cost management. However, the net profit margin has seen some fluctuations, reflecting variability in net income. The EBIT and EBITDA margins have been recovering since 2020, showing improved operational efficiency.

Balance Sheet

The company maintains a moderate debt-to-equity ratio, suggesting balanced leverage. The return on equity has been positive but modest, indicating room for improvement in generating returns on shareholders' equity. The equity ratio signifies a solid capital structure with a substantial portion of assets financed by equity.

Cash Flow

Operating cash flow has been stable, supporting the company's investment activities. Free cash flow growth has been positive, although there have been fluctuations. The operating cash flow to net income ratio indicates adequate cash generation relative to reported earnings, while the free cash flow to net income ratio shows a conservative cash position.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
982.60M	977.10M	963.50M	848.40M	658.70M	733.60M
	Gross Profit
176.50M	173.70M	170.30M	148.00M	101.50M	95.80M
	EBIT
37.30M	40.30M	42.70M	32.40M	8.90M	-145.00M
	EBITDA
88.00M	100.30M	94.00M	82.40M	79.80M	-119.40M
	Net Income Common Stockholders
30.40M	25.90M	31.10M	20.20M	24.20M	-158.50M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
17.20M	45.50M	47.60M	43.20M	51.10M	23.60M
	Total Assets
1.02B	1.02B	985.30M	976.90M	827.80M	814.70M
	Total Debt
170.20M	275.10M	251.40M	222.10M	204.20M	229.50M
	Net Debt
153.00M	229.60M	203.80M	178.90M	153.10M	205.90M
	Total Liabilities
452.90M	545.90M	528.20M	527.50M	402.70M	421.40M
	Stockholders Equity
571.80M	469.90M	457.10M	449.40M	425.10M	393.30M
Cash Flow		Free Cash Flow
21.40M	6.20M	5.50M	27.90M	5.80M	22.30M
	Operating Cash Flow
59.90M	49.40M	41.40M	58.40M	27.10M	49.10M
	Investing Cash Flow
-68.70M	-44.20M	-54.80M	-55.30M	30.60M	-25.90M
	Financing Cash Flow
9.90M	-4.80M	17.60M	-14.40M	-29.50M	-15.10M

Senior plc Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 161.00
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:SNR, the sentiment is Negative. The current price of 161 is below the 20-day moving average (MA) of 163.60, below the 50-day MA of 162.26, and above the 200-day MA of 155.82, indicating a neutral trend. The MACD of 1.35 indicates Negative momentum. The RSI at 47.62 is Neutral, neither overbought nor oversold. The STOCH value of 55.28 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GB:SNR.

Senior plc Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SNR	72 Outperform	£668.28M	26.82	5.59%	1.46%	1.41%	-16.76%
RR	72 Outperform	$62.29B	24.56		―	―	―
Sector *	62 Neutral	$8.11B	13.34	1.17%	3.02%	4.16%	-15.14%

Senior plc Corporate Events

Senior plc Focuses on Fluid Conveyance and Thermal Management with Strategic Divestment

Senior plc announced its strategic focus on becoming a leading pure-play fluid conveyance and thermal management business by divesting its Aerostructures division. The company aims to enhance shareholder value through improved financial targets, including higher operating margins and cash conversion rates, while prioritizing organic growth and a progressive dividend policy.

Senior plc Reports 2024 Financial Results and Strategic Progress

Senior plc reported its financial results for the year ending December 31, 2024, highlighting a 4% increase in group sales and a 5% rise in adjusted operating profit. The company is progressing with the sale of its Aerostructures business, aligning with its strategy to focus on fluid conveyance and thermal management. Notable achievements include strong cash performance, significant contract wins in Aerospace and Flexonics divisions, and a 135% growth in Spencer sales since acquisition. The Board anticipates good growth in 2025, driven by increased aircraft build rates and improved contract pricing, with a final dividend increase reflecting confidence in future prospects.

Senior plc Announces Change in Voting Rights

Senior plc announced a change in voting rights following an acquisition or disposal by Alantra EQMC Asset Management. The transaction led to a decrease in voting rights to 16.8% from a previous 17.46%, impacting the company’s shareholder dynamics and potentially its strategic decision-making processes.

Senior plc Announces 2024 Results and Strategic Investor Event

Senior plc is set to announce its full-year results for 2024 on March 3, 2025, followed by an investor event focusing on strategy delivery, aerospace fluid systems performance, and new financial targets. The event highlights Senior’s commitment to its strategic goals, potentially impacting its market positioning and offering insights into future growth prospects.

Senior plc Announces Directorate Change with Susan Brennan’s Retirement

Senior plc announced that Susan Brennan will retire from her role as an independent non-executive director and member of several committees at the conclusion of the company’s next Annual General Meeting in April 2025. This change marks the end of her nine-year tenure with the board, and it aligns with the company’s adherence to regulatory requirements while potentially impacting board dynamics and investor perceptions.