Bodycote (BOY) AI Stock Analysis

• Market Cap: £1.08B
• Dividend Yield: 3.3%
• Average Volume (3M): 255.24K
• Price to Earnings (P/E): 22.5
• Beta (1Y): 1.63
• Revenue Growth: -6.95%
• EPS Growth: -52.08%
• Country: UK
• Employees: 4,379
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Machinery
• EPS (TTM): 0.16
• Shares Outstanding: 172,707,050
• 10 Day Avg. Volume: 316,094
• 30 Day Avg. Volume: 255,238
• PEG Ratio: 0.12
• Price to Book (P/B): 1.93
• Price to Sales (P/S): 1.70
• P/FCF Ratio: 20.95
• 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: £823.00
• Price Target Upside: 31.47% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 5
• EPS Forecast (FY): 0.49
• Revenue Forecast (FY): £713.95M

• Rating: 62 Neutral
• Price Target: 664.00 p ▲(6.07% Upside)
• Action: Reiterated Date: 03/12/26
• Date: Action: Reiterated 03/12/26

The score is driven primarily by mid-tier financial performance: a strong 2025 profitability rebound and a solid balance sheet are tempered by uneven revenue trends and inconsistent free cash flow conversion. Technicals are mildly supportive but not strong due to negative MACD, and valuation looks somewhat demanding despite a decent dividend yield.

Positive Factors

Balance Sheet Health

A structurally solid balance sheet with moderate leverage provides durable financial flexibility: it supports investment in service centres, absorbs cyclical downturns in industrial end markets, and allows management to fund maintenance capex or opportunistic M&A without immediate refinancing pressure.

Profitability Rebound

A material margin recovery in 2025 indicates the business retains operating leverage and the ability to restore profitability after weak periods. Sustained margin improvement strengthens free cash generation potential, supports reinvestment in higher-value processes, and underpins long-term earnings resilience.

Business Model and Market Position

A fee-for-service, networked model serving aerospace, automotive and industrial supply chains creates recurring demand and customer stickiness. High compliance, certification and capital intensity raise barriers to entry, advantaging a scaled incumbent and supporting stable structural demand over multi-year cycles.

Negative Factors

Revenue Trend Volatility

Choppy and recently negative revenue trends reduce confidence in top-line durability. For a fee-for-service industrial operator, flat-to-declining revenue constrains margin expansion and makes long-term capacity planning, pricing recovery and investment returns more uncertain across 2–6 month horizons and beyond.

Inconsistent Free Cash Flow Conversion

Inconsistent FCF and weaker conversion versus net income weaken the company’s ability to self-fund capex, dividends or strategic deals. Persistent variability increases sensitivity to working-capital swings and elevates refinancing and liquidity risk if earnings weaken again or if investment needs rise.

Earnings Power Volatility

Material historical swings in profitability signal unstable earnings power, complicating forecasting and capital allocation. Volatility undermines confidence in sustainable margins, raises the chance of future profit surprises, and can constrain strategic investments during weaker cycles.

Bodycote Business Overview & Revenue Model

Company Description

Bodycote plc provides heat treatment and thermal processing services worldwide. The company operates in two Aerospace, Defence & Energy; and Automotive & General Industrial segments. It offers heat treatment services, including altering the microstructure of metals and alloys, such as steel and aluminum to impart properties comprising surface hardness, temperature resistance, ductility, and strength; metal joining services consisting of electron beam welding, HIP diffusion bonding, hydrogen brazing, induction brazing, and vacuum and honeycomb brazing; and hot isostatic pressing (HIP) services, including isostatic pressing and HIP supporting services, as well as Powdermet technology, a manufacturing process used in the production of complex components using powder metallurgy. The company also provides surface technologies, which are used to prolong the working life of components and protect from environmental factors, such as corrosion and abrasion. Its surface technologies include anodizing, ceramic, flame and combustion spraying, high velocity oxygen fuel, plasma spray, electric arc spraying, aluminide coatings, liquid coatings, and thermo-chemically formed ceramic coatings to enhance corrosion protection and wear resistance. The company serves automotive, aerospace and defense, energy, and general industrial markets. Bodycote plc was founded in 1923 and is headquartered in Macclesfield, the United Kingdom.

How the Company Makes Money

Bodycote makes money by providing outsourced heat treatment and specialist thermal processing services to manufacturers and their supply chains, earning revenue largely on a fee-for-service basis. Key revenue streams typically include: (1) Heat treatment services performed per batch/lot or per component, where customers pay for processing parts to specified metallurgical standards (often tied to customer or industry certifications); (2) Specialist thermal processing and surface technology services, where higher-value processes (and associated quality assurance requirements) can command premium pricing; and (3) Ancillary services embedded in contracts such as testing, certification/documentation, and quality assurance activities required for regulated end markets (notably aerospace and defense). Commercially, Bodycote’s earnings are supported by long-term customer relationships and repeat demand driven by ongoing production and maintenance cycles in end markets, as well as by its scale/network model, which enables customers to outsource capital-intensive, compliance-heavy processes rather than run them in-house. Specific information on named significant partnerships is null.

Bodycote Financial Statement Overview

Summary

Overall fundamentals are mid-range: profitability rebounded sharply in 2025 after a weak 2024, and the balance sheet remains solid with moderate leverage. However, revenue has been choppy/flat and both earnings power and free cash flow conversion have been volatile, limiting confidence in consistency.

Income Statement

Revenue has been choppy (down in 2024 and flat in 2025), but profitability rebounded sharply in 2025 versus the depressed 2024 result, with stronger operating and net margins. Longer-term, earnings power appears volatile (notably strong in 2022–2023, weak in 2020 and 2024), which reduces confidence in the consistency of the margin structure despite the 2025 improvement.

Balance Sheet

The balance sheet looks solid with moderate leverage: debt remains well below equity across the period, supporting financial flexibility. A key watch-out is the upward drift in leverage from 2023 to 2025 (debt rising while equity trends lower), which modestly increases risk if profitability weakens again.

Cash Flow

Cash generation is positive and operating cash flow is sizable, but free cash flow has been inconsistent and declined in 2025 (down ~16%). Free cash flow conversion is also middling (free cash flow is well below net income in 2025), pointing to less reliable cash profitability and a higher sensitivity to working-capital and investment swings.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	727.10M	757.10M	802.50M	743.60M	615.80M
Gross Profit	280.80M	109.30M	108.10M	269.70M	225.70M
EBITDA	179.80M	124.00M	201.70M	186.60M	167.70M
Net Income	54.90M	20.00M	85.60M	73.70M	59.50M
Balance Sheet
Total Assets	1.05B	1.07B	1.14B	1.17B	1.07B
Cash, Cash Equivalents and Short-Term Investments	25.20M	19.10M	45.20M	37.20M	39.30M
Total Debt	190.80M	150.90M	96.90M	136.60M	156.20M
Total Liabilities	411.70M	397.50M	344.40M	385.70M	384.40M
Stockholders Equity	640.20M	668.10M	790.80M	780.90M	684.70M
Cash Flow
Free Cash Flow	58.90M	82.50M	109.20M	70.10M	87.10M
Operating Cash Flow	135.30M	152.60M	191.60M	137.10M	139.10M
Investing Cash Flow	-56.00M	-112.80M	-71.20M	-62.30M	-104.80M
Financing Cash Flow	-71.00M	-67.60M	-110.20M	-82.80M	-30.30M

Bodycote Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 626.00
• 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:BOY, the sentiment is Negative. The current price of 626 is below the 20-day moving average (MA) of 730.08, below the 50-day MA of 747.64, and below the 200-day MA of 657.89, indicating a bearish trend. The MACD of -26.87 indicates Positive momentum. The RSI at 35.41 is Neutral, neither overbought nor oversold. The STOCH value of 5.73 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GB:BOY.

Bodycote Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
GDWN	71 Outperform	£1.82B	15.43	33.12%	1.01%	24.42%	103.25%
AVG	70 Outperform	£176.33M	10.69	6.13%	1.02%	14.49%	76.33%
CGS	65 Neutral	£110.87M	7.63	3.83%	6.69%	-13.30%	-60.03%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
BOY	62 Neutral	£1.08B	22.48	8.58%	3.30%	-6.95%	-52.08%
MGAM	62 Neutral	£534.19M	28.89	8.04%	4.87%	-7.30%	-59.71%
SPX	61 Neutral	£4.81B	30.76	13.88%	2.46%	0.10%	-15.33%

Bodycote Corporate Events

Bodycote Launches £80 Million Share Buyback to Cut Capital and Boost Returns

Bodycote plc has launched a new share buyback programme of up to £80 million, to be completed by the end of 2027, signalling confidence in its strong balance sheet and a disciplined approach to capital allocation. The programme will be executed in two £40 million tranches, with Barclays Bank PLC mandated to repurchase and cancel up to 12,301,205 ordinary shares under current authority, reducing the company’s share capital and potentially enhancing earnings per share and shareholder value.

Under an arrangement with Barclays, the bank will act as riskless principal in purchasing Bodycote shares in compliance with UK Listing Rules and shareholder authorities, including during closed periods where trades will be conducted independently of the company. All repurchased shares will be cancelled, underlining that the sole purpose of the initiative is capital reduction rather than holding treasury stock, reinforcing Bodycote’s capital return strategy for investors.

The most recent analyst rating on (GB:BOY) stock is a Hold with a £829.00 price target. To see the full list of analyst forecasts on Bodycote stock, see the GB:BOY Stock Forecast page.

Bodycote Confirms Total Voting Rights at 172.8 Million Shares

Bodycote plc has confirmed that, as of 27 February 2026, it has 172,762,590 ordinary shares in issue, each carrying voting rights, with none held in treasury. This disclosure clarifies the company’s current share capital structure for investors and maintains compliance with the Financial Conduct Authority’s transparency requirements.

The stated figure will serve as the denominator for shareholders when calculating whether their holdings trigger disclosure thresholds under U.K. rules on significant shareholdings. The announcement helps ensure accurate reporting of ownership changes, supporting market transparency and providing a clear reference point for institutional and retail investors monitoring their positions in Bodycote.

The most recent analyst rating on (GB:BOY) stock is a Hold with a £829.00 price target. To see the full list of analyst forecasts on Bodycote stock, see the GB:BOY Stock Forecast page.