S&U plc (SUS) AI Stock Analysis

• Market Cap: £168.90M
• Dividend Yield: 8.39%
• Average Volume (3M): 4.11K
• Price to Earnings (P/E): 8.8
• Beta (1Y): 0.61
• Revenue Growth: 10.81%
• EPS Growth: -42.66%
• Country: UK
• Employees: 239
• Sector: Financial
• Sector Strength: 77
• Industry: Credit Finance
• EPS (TTM): 1.55
• Shares Outstanding: 12,150,760
• 10 Day Avg. Volume: 5,903
• 30 Day Avg. Volume: 4,108
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 1.74
• Price to Cash Flow (P/CF): 16.90
• P/FCF Ratio: 4.30
• 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: 1,700.00p
• Price Target Upside: 21.86% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

S&U plc's overall stock score reflects a mixed performance. Strong profitability and operational efficiency are overshadowed by significant challenges in cash flow generation and weak technical indicators. However, the company benefits from a relatively low valuation and positive corporate events, indicating potential recovery and growth. Investors should weigh the attractive dividend yield against the risks posed by financial stability concerns and technical weaknesses.

S&U plc Business Overview & Revenue Model

Company Description

S&U plc (SUS) is a UK-based financial services company that primarily operates in the non-standard consumer credit sector. The company focuses on providing motor finance and home credit services to individuals who may not have access to traditional banking facilities. Its core products include hire purchase motor finance through its subsidiary Advantage Finance, and home credit services via Loans at Home.

How the Company Makes Money

S&U plc generates revenue through interest and fee income from its motor finance and home credit operations. In the motor finance segment, the company provides hire purchase agreements to customers for used vehicles, earning interest on the financed amount over the life of the loan. The home credit segment involves providing small, unsecured, short-term loans to consumers, with income generated from repayments including interest and service fees. Key factors contributing to earnings include effective risk management, strong customer relationships, and a robust collections process. The company's partnerships with car dealerships and brokers also play a crucial role in customer acquisition and revenue generation.

S&U plc Financial Statement Overview

Summary

S&U plc demonstrates strong profitability and operational efficiency, as seen in its margins, but faces challenges with revenue growth and cash flow generation. The balance sheet reflects a well-managed capital structure with moderate leverage, though cash flow issues could pose risks to financial stability if not addressed.

Income Statement

The company's revenue has decreased significantly over the past year, showing a negative revenue growth rate. However, gross profit and net profit margins remain strong, indicating good cost control and profitability. The EBIT and EBITDA margins are also healthy, reflecting efficient operations despite the revenue decline.

Balance Sheet

The debt-to-equity ratio is moderate, indicating a balanced capital structure but a slight increase in leverage. Return on equity remains solid, showcasing profitability relative to shareholder investment. The equity ratio is stable, reflecting a reasonable proportion of equity financing.

Cash Flow

The company has experienced negative operating and free cash flows, raising concerns about cash generation capabilities. The operating cash flow to net income ratio is unfavorable, suggesting difficulties in converting income into cash. Free cash flow growth is also negative, pointing to potential liquidity issues.

Breakdown
TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement		Total Revenue
66.69M	76.17M	102.71M	87.89M	83.76M	89.94M
	Gross Profit
43.98M	92.11M	78.51M	68.59M	68.98M	69.62M
	EBIT
34.64M	48.65M	62.78M	54.91M	58.39M	57.21M
	EBITDA
25.63M	49.14M	49.43M	51.32M	22.20M	40.44M
	Net Income Common Stockholders
18.82M	25.44M	33.72M	37.98M	14.65M	28.88M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
1.00K	1.00K	3.14M	1.00K	1.00K	656.00K
	Total Assets
284.84M	466.85M	428.17M	327.23M	284.84M	306.08M
	Total Debt
99.80M	225.25M	196.54M	114.44M	99.80M	119.18M
	Net Debt
99.80M	225.25M	193.40M	114.43M	99.80M	118.53M
	Total Liabilities
103.81M	232.68M	203.29M	120.48M	103.81M	126.61M
	Stockholders Equity
181.03M	234.16M	224.88M	206.75M	181.03M	179.47M
Cash Flow		Free Cash Flow
-15.96M	-711.00K	-63.59M	-2.47M	31.72M	4.64M
	Operating Cash Flow
-15.80M	-446.00K	-62.76M	-2.09M	32.94M	4.95M
	Investing Cash Flow
-124.00K	-189.00K	-660.00K	-284.00K	-1.11M	-265.00K
	Financing Cash Flow
15.93M	-2.50M	66.56M	2.38M	-32.48M	-4.03M

S&U plc Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1395.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:SUS, the sentiment is Negative. The current price of 1395 is below the 20-day moving average (MA) of 1494.50, below the 50-day MA of 1500.52, and below the 200-day MA of 1624.63, indicating a bearish trend. The MACD of -43.31 indicates Positive momentum. The RSI at 36.53 is Neutral, neither overbought nor oversold. The STOCH value of 11.30 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GB:SUS.

S&U plc Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	64 Neutral	$13.80B	10.64	9.23%	4.22%	17.66%	-7.66%
SUS	56 Neutral	£168.90M	8.85	8.14%	8.39%	10.81%	-42.66%