S & U plc (46IE) AI Stock Analysis

• Market Cap: £240.59M
• Dividend Yield: 6.15%
• Average Volume (3M): 0.00
• Price to Earnings (P/E): ―
• Beta (1Y): 0.00
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: UK
• Employees: 239
• Sector: Financial
• Sector Strength: 70
• Industry: Financial - Credit Services
• EPS (TTM): N/A
• Shares Outstanding: N/A
• 10 Day Avg. Volume: 0
• 30 Day Avg. Volume: 0
• PEG Ratio: -0.02
• Price to Book (P/B): 0.04
• Price to Sales (P/S): 0.11
• P/FCF Ratio: 0.16
• 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
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 61 Neutral
• Price Target: 90.00 p ▲(5.51% Upside)
• Action: Reiterated Date: 12/30/25
• Date: Action: Reiterated 12/30/25

The score is primarily driven by solid but weakening fundamentals (declining margins/earnings and historically volatile cash flow, partially offset by a stronger balance sheet with zero reported debt). Valuation support comes from a high dividend yield, while technical indicators are conflicting and reduce conviction.

Positive Factors

Strong Balance Sheet

A strong balance sheet with zero debt enhances financial stability and provides flexibility for strategic investments and growth.

Profitability

High profitability and robust margins indicate efficient operations and a strong competitive position in the market.

Cash Flow Improvement

Improving cash flow management supports operational stability and provides resources for future growth and debt servicing.

Negative Factors

Revenue Growth Volatility

Volatile revenue growth can hinder long-term planning and investment, impacting the company's ability to sustain competitive advantage.

Past Cash Flow Volatility

Historical cash flow volatility suggests potential challenges in maintaining consistent cash generation, affecting financial predictability.

Equity Fluctuations

Equity fluctuations can signal instability in financial performance, potentially impacting investor confidence and capital raising abilities.

S & U plc Business Overview & Revenue Model

Company Description

S & U PLC is a UK-based company. It is engaged in providing motor finance and specialist lending services. The company has three business segments: Motor finance, Property bridging finance, and Central fiance. The majority of the revenue derives from the Motor finance segment which operates within the non-prime market sector, and acts as a supplier of specialist finance facilities, through motor dealers throughout the UK which facilitate the purchase of new and used cars, vans, motorbikes, and caravans. The company's finance products allow motor dealers across the UK to provide credit facilities.

How the Company Makes Money

S & U plc generates revenue primarily through the provision of hire purchase agreements in the motor finance sector. Customers seeking to purchase vehicles but who might have difficulty obtaining credit from traditional sources are offered financing solutions through the company's Advantage Finance division. The company makes money through interest and fees charged on these hire purchase agreements. Additionally, S & U maintains a strong focus on credit management and risk assessment to ensure profitability and minimize defaults. Key revenue streams include the interest income from hire purchase agreements and related fees. The company also invests in maintaining and expanding its customer base, leveraging its expertise in the non-prime credit market to drive growth. Significant partnerships with car dealerships and brokers further facilitate the reach and accessibility of its financial products.

S & U plc Financial Statement Overview

Summary

Fundamentals are solid but less predictable: profitability remains positive yet margins and earnings have trended down, revenue was slightly lower in the latest year, cash flows have been volatile (despite a strong 2025 rebound), and the balance sheet improved materially with reported zero debt.

Income Statement

Revenue has been broadly stable but choppy, with a modest decline in the most recent year (2025: ~£97.5m vs. 2024: ~£100.5m) after prior growth. Profitability remains solid with net margins still healthy (2025: ~18% vs. 2024: ~25% and 2023: ~35%), but the trend is clearly down as earnings have fallen from 2022–2023 peaks. Overall, the business is still profitable, but growth and margin trajectory have weakened.

Balance Sheet

Balance sheet strength improved markedly in 2025 as total debt is reported at zero, lifting financial flexibility versus 2024 when leverage was close to equity (debt-to-equity ~1.0). Equity has remained sizable (~£238m) relative to total assets (~£445m), supporting stability. Return on equity has moderated (2025: ~7.5% vs. low-to-mid teens historically), suggesting profitability is not translating into the same shareholder returns as prior years.

Cash Flow

Cash generation is volatile: 2025 shows very strong operating cash flow (~£65m) and free cash flow (~£64m), with free cash flow roughly matching net income (about 0.99x). However, the prior two years were meaningfully negative on operating and free cash flow (2023–2024), indicating uneven cash conversion and higher variability in underlying cash earnings. The latest year is a clear positive inflection, but consistency remains a key watch item.

Breakdown	TTM	Jan 2025	Jan 2024	Jan 2023	Jan 2022	Jan 2021
Income Statement
Total Revenue	100.52M	97.49M	100.52M	95.36M	84.26M	84.26M
Gross Profit	100.52M	97.49M	100.52M	95.36M	84.26M	84.26M
EBITDA	0.00	0.00	0.00	0.00	0.00	0.00
Net Income	25.44M	17.91M	25.44M	33.72M	37.98M	37.98M
Balance Sheet
Total Assets	466.85M	445.06M	466.85M	428.17M	428.17M	327.23M
Cash, Cash Equivalents and Short-Term Investments	1.00K	5.22M	1.00K	3.14M	3.14M	-417.00K
Total Debt	224.80M	0.00	224.80M	196.09M	196.09M	113.98M
Total Liabilities	232.68M	206.98M	232.68M	203.29M	203.29M	120.48M
Stockholders Equity	234.16M	238.08M	234.16M	224.88M	224.88M	206.75M
Cash Flow
Free Cash Flow	-711.00K	64.27M	-711.00K	-63.59M	-63.59M	-2.47M
Operating Cash Flow	-446.00K	64.99M	-446.00K	-62.76M	-62.76M	-2.09M
Investing Cash Flow	-189.00K	-685.00K	-189.00K	-660.00K	-660.00K	-284.00K
Financing Cash Flow	-2.50M	-59.09M	-2.50M	66.56M	66.56M	2.38M

S & U plc Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TRU	73 Outperform	£119.03M	4.61	16.60%	―	203.09%	―
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
IPF	67 Neutral	£559.18M	9.42	10.35%	4.39%	-7.52%	50.23%
46IE	61 Neutral	£240.59M	―	―	6.15%	―	―
ASAI	61 Neutral	£206.00M	2.44	-965.56%	4.74%	―	―
VANQ	53 Neutral	£279.00M	24.71	1.89%	―	-3.77%	-147.20%
AMGO	48 Neutral	£29.29M	-9.86	―	―	-97.14%	98.49%