Andrews Sykes (ASY) AI Stock Analysis

• Market Cap: £209.29M
• Dividend Yield: 5.18%
• Average Volume (3M): 7.50K
• Price to Earnings (P/E): 12.2
• Beta (1Y): 0.30
• Revenue Growth: -3.57%
• EPS Growth: -0.80%
• Country: UK
• Employees: 500
• Sector: Industrials
• Sector Strength: 72
• Industry: Rental & Leasing Services
• EPS (TTM): 0.18
• Shares Outstanding: 41,858,746
• 10 Day Avg. Volume: 17,249
• 30 Day Avg. Volume: 7,499
• PEG Ratio: -2.61
• Price to Book (P/B): 4.52
• Price to Sales (P/S): 2.75
• P/FCF Ratio: 13.98
• 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: 69 Neutral
• Price Target: 572.00p ▲(14.40% Upside)

Andrews Sykes' overall stock score is driven by its strong financial performance and positive corporate events, highlighting record operating profits and strategic growth initiatives. However, bearish technical indicators and concerns about revenue growth weigh on the score. The stock's reasonable valuation and attractive dividend yield provide additional support.

Positive Factors

Strong Profitability

High profitability margins indicate efficient operations and cost management, providing a buffer against market fluctuations and supporting sustainable growth.

Solid Balance Sheet

A strong balance sheet with low leverage enhances financial stability and flexibility, allowing the company to invest in growth opportunities without excessive risk.

Effective Cash Conversion

Efficient cash conversion supports liquidity and the ability to fund operations and investments, ensuring long-term operational resilience.

Negative Factors

Revenue Decline

A decline in revenue growth can indicate challenges in market expansion or competitive pressures, potentially impacting future profitability and market position.

Reduced Free Cash Flow

A significant reduction in free cash flow limits the company's ability to reinvest in growth or return capital to shareholders, potentially affecting long-term strategic initiatives.

EPS Decline

A decline in earnings per share reflects potential profitability challenges and could impact investor confidence and the company's ability to attract capital.

Andrews Sykes Business Overview & Revenue Model

Company Description

Andrews Sykes Group plc, an investment holding company, engages in the hire, sale, and installation of environmental control equipment in the United Kingdom, rest of Europe, the Middle East, Africa, and internationally. It operates through Hire and Sales UK, Hire and Sales Europe, Hire and Sales Middle East, and Installation and Maintenance segments. The company offers air conditioning products, including exhaust tube and split type air conditioners, evaporative coolers, cooling fans, and portable humidifiers; and pumps, such as general purpose, silenced range, bentonite, submersible drainage and wastewater, submersible sludge, hydraulic submersible, and air pumps, as well as hoses and accessories, repair services, and spare parts. It also provides fluid chillers, low temperature chillers, air handlers, heat exchangers, hear pump chillers, and fan coils; electric, direct and indirect fired gas, direct and indirect fired oil, high capacity, and marquee heaters; fuel tanks; electric, packaged, mobile, and medium pressure hot water boilers, as well as boiler air handlers; and ventilation and cooling fans, industrial fans, and carpet dryers. In addition, the company offers building dryers, refrigerant and desiccant dehumidifiers, and humidifiers. The company was founded in 1857 and is headquartered in Wolverhampton, the United Kingdom. Andrews Sykes Group plc is a subsidiary of EOI Sykes Sarl.

How the Company Makes Money

Andrews Sykes generates revenue primarily through the rental and sale of its climate control equipment. The rental segment accounts for a significant portion of their earnings, as customers often prefer to rent equipment for short-term projects rather than making large capital expenditures. Additionally, the company profits from the sale of new and refurbished units, along with providing specialized installation and maintenance services. Strategic partnerships with manufacturers and suppliers enhance their product offerings and operational efficiency. Seasonal demand, particularly during extreme weather conditions, also plays a crucial role in driving revenue, as businesses and events seek temporary climate control solutions.

Andrews Sykes Financial Statement Overview

Summary

Andrews Sykes demonstrates stable financial health with strong profitability and a solid balance sheet. The income statement reveals consistent margins, although revenue growth is a concern. The balance sheet is robust with low leverage and effective equity utilization. Cash flow management shows strength in operational cash generation, albeit with reduced free cash flow. Overall, the company maintains a solid financial position with opportunities for revenue growth.

Income Statement

Andrews Sykes displays stable profitability with consistent gross and net margins. The gross profit margin remained strong at 64.78% in 2024, while the net profit margin stood at 22.12%. However, there was a decline in revenue from 2023 to 2024 by 3.56%, indicating challenges in growing top-line revenue. The EBIT and EBITDA margins remain robust, reflecting efficient cost management.

Balance Sheet

The company maintains a healthy balance sheet with strong equity and manageable debt levels. The debt-to-equity ratio is favorable at 0.35, indicating low leverage. Return on equity is solid at 36.37%, showcasing effective use of shareholder funds. The equity ratio of 57.52% reflects a strong equity base relative to total assets, supporting financial stability.

Cash Flow

Cash flow metrics indicate a decrease in free cash flow by 32.37% from 2023 to 2024, suggesting reduced cash available for reinvestment or distribution. The operating cash flow to net income ratio is 1.21, showing a strong conversion of earnings to cash. However, the decrease in free cash flow could signal potential challenges in liquidity management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	75.50M	75.94M	78.75M	83.01M	75.22M	67.26M
Gross Profit	48.72M	49.20M	51.73M	53.00M	46.22M	39.08M
EBITDA	33.45M	33.10M	33.17M	31.75M	29.81M	26.66M
Net Income	17.16M	16.80M	17.76M	17.02M	15.54M	13.02M
Balance Sheet
Total Assets	81.53M	80.30M	77.57M	96.22M	97.34M	85.81M
Cash, Cash Equivalents and Short-Term Investments	23.41M	23.18M	19.97M	37.22M	32.44M	24.01M
Total Debt	16.48M	16.03M	15.40M	11.32M	15.93M	16.34M
Total Liabilities	33.68M	34.11M	37.11M	31.51M	33.72M	29.79M
Stockholders Equity	47.85M	46.19M	40.47M	64.71M	63.62M	56.02M
Cash Flow
Free Cash Flow	15.40M	14.94M	22.09M	25.13M	21.06M	18.10M
Operating Cash Flow	22.55M	20.32M	26.15M	27.60M	23.59M	22.25M
Investing Cash Flow	-6.38M	-3.27M	13.79M	-16.99M	-1.35M	-3.46M
Financing Cash Flow	-13.87M	-13.76M	-40.37M	-23.06M	-13.32M	-22.77M

Andrews Sykes Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 500.00
• 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:ASY, the sentiment is Negative. The current price of 500 is above the 20-day moving average (MA) of 499.75, below the 50-day MA of 501.68, and below the 200-day MA of 507.74, indicating a neutral trend. The MACD of -0.59 indicates Negative momentum. The RSI at 42.97 is Neutral, neither overbought nor oversold. The STOCH value of 50.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GB:ASY.

Andrews Sykes Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FSJ	73 Outperform	£195.81M	4.37	27.15%	―	-12.37%	―
ASY	69 Neutral	£209.29M	12.20	38.39%	5.18%	-3.57%	-0.80%
LUCE	69 Neutral	£201.29M	13.88	15.66%	3.92%	18.90%	-20.79%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
SDY	56 Neutral	£115.29M	-9.86	-7.62%	8.43%	0.38%	-273.53%
AVAP	42 Neutral	£87.71M	-17.72	-3.12%	0.90%	15.95%	-136.18%
PRO	42 Neutral	£50.31M	―	―	―	―	―