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Bodycote PLC (GB:BOY)
LSE:BOY

Bodycote (BOY) AI Stock Analysis

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GB

Bodycote

(LSE:BOY)

Rating:71Outperform
Price Target:
660.00p
▲(8.64%Upside)
Bodycote's stock is moderately attractive, primarily driven by strong cash flow generation and positive technical indicators. However, high valuation metrics and increased leverage present potential risks. The strategic share buyback program enhances shareholder value and supports a positive outlook.
Positive Factors
Financial Performance
Bodycote's FY24 Prelims are better than JEFe/cons across the P&L, and year-end debt was materially better than JEFe.
Strategic Progress
Bodycote's AGM Trading Update highlights good sequential improvement, new Specialist Technologies contracts, strong strategic progress, and management's expectations are in-line with consensus.
Negative Factors
Forecast Revisions
Forecasts for fiscal years 2025 and 2026 have been lowered to be prudent.
Macroeconomic Challenges
The market has de-rated Bodycote materially due to a challenging macroeconomic and industrial production backdrop.

Bodycote (BOY) vs. iShares MSCI United Kingdom ETF (EWC)

Bodycote Business Overview & Revenue Model

Company DescriptionBodycote (BOY) is a leading provider of heat treatment and specialist thermal processing services. The company operates in sectors such as aerospace, automotive, energy, and general industrial markets. Its core services include heat treatment, metal joining, surface technology, and hot isostatic pressing, which enhance the properties of metals and alloys, improving their performance and durability in various applications.
How the Company Makes MoneyBodycote generates revenue primarily through the provision of its heat treatment and thermal processing services to a diverse range of industries. The company charges fees for processing materials using advanced techniques that improve material properties, such as strength and wear resistance. Key revenue streams include contracts with major aerospace, automotive, and industrial manufacturers who require high-performance materials. Partnerships with these manufacturers are significant contributors to Bodycote's earnings, as they rely on the company's expertise to enhance the longevity and performance of their products. Additionally, Bodycote benefits from long-term relationships and repeat business from its clients, driven by the critical nature of its services in maintaining material integrity and performance.

Bodycote Financial Statement Overview

Summary
Bodycote's financial performance is mixed. Revenue and net profit margins have declined, impacting overall profitability. However, strong EBITDA margins and cash flow generation indicate solid operational cash generation. The balance sheet shows increased leverage, potentially raising financial risks if earnings pressures persist. Strategic focus on cost control and revenue growth is essential to improve performance metrics.
Income Statement
70
Positive
The company's revenue has seen fluctuations, with a notable decline from 2023 to 2024. Gross profit margin decreased from 13.5% in 2023 to 14.4% in 2024. Net profit margin also declined from 10.7% to 2.6%. The EBIT margin dropped significantly, indicating pressure on operating profits. However, the EBITDA margin remains strong at 24.9% in 2024, suggesting solid operational cash generation despite revenue pressures.
Balance Sheet
65
Positive
The debt-to-equity ratio increased from 0.12 in 2023 to 0.23 in 2024, reflecting higher leverage which could pose risks if profitability remains pressured. The equity ratio is stable, indicating a strong equity position relative to total assets. Return on equity fell sharply, from 10.8% in 2023 to 3.0% in 2024, due to declining net income, which may concern investors.
Cash Flow
75
Positive
Free cash flow generation remains strong, despite a decline from 2023. The operating cash flow to net income ratio is robust, indicating efficient cash conversion. However, the free cash flow to net income ratio has decreased, which could signal increased capital expenditures or reduced profitability.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue757.10M802.50M743.60M615.80M598.00M
Gross Profit109.30M108.10M269.70M225.70M186.90M
EBITDA124.00M201.70M186.60M167.70M97.00M
Net Income20.00M85.60M73.70M59.50M400.00K
Balance Sheet
Total Assets1.07B1.14B1.17B1.07B1.11B
Cash, Cash Equivalents and Short-Term Investments19.10M45.20M37.20M39.30M30.70M
Total Debt150.90M96.90M136.60M156.20M128.80M
Total Liabilities397.50M344.40M385.70M384.40M428.60M
Stockholders Equity668.10M790.80M780.90M684.70M680.50M
Cash Flow
Free Cash Flow82.50M109.20M70.10M87.10M74.50M
Operating Cash Flow152.60M191.60M137.10M139.10M134.40M
Investing Cash Flow-112.80M-71.20M-62.30M-104.80M-124.70M
Financing Cash Flow-67.60M-110.20M-76.60M-24.80M-1.30M

Bodycote Technical Analysis

Technical Analysis Sentiment
Positive
Last Price607.50
Price Trends
50DMA
560.28
Positive
100DMA
556.25
Positive
200DMA
572.71
Positive
Market Momentum
MACD
14.23
Negative
RSI
62.41
Neutral
STOCH
71.54
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:BOY, the sentiment is Positive. The current price of 607.5 is above the 20-day moving average (MA) of 583.28, above the 50-day MA of 560.28, and above the 200-day MA of 572.71, indicating a bullish trend. The MACD of 14.23 indicates Negative momentum. The RSI at 62.41 is Neutral, neither overbought nor oversold. The STOCH value of 71.54 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:BOY.

Bodycote Peers Comparison

Overall Rating
UnderperformOutperform
Sector (65)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
GBIMI
76
Outperform
£5.23B22.4723.50%1.46%0.64%4.92%
76
Outperform
£610.14M13.0714.06%4.57%-1.26%6.56%
74
Outperform
£561.72M28.8016.39%177.81%3.13%24.54%
GBSPX
74
Outperform
£4.56B24.4216.16%2.83%-1.03%4.06%
74
Outperform
£6.52B20.9117.83%1.28%-4.95%36.95%
GBBOY
71
Outperform
£1.08B56.932.74%4.02%-5.66%-76.42%
65
Neutral
$10.82B15.595.20%1.89%3.09%-26.84%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
GB:BOY
Bodycote
607.50
-70.41
-10.39%
GB:MGAM
Morgan Advanced Materials
231.00
-81.03
-25.97%
GB:GDWN
Goodwin
7,840.00
-49.10
-0.62%
GB:SPX
Spirax Sarco Engineering
6,335.00
-2,377.66
-27.29%
GB:IMI
IMI plc
2,158.00
336.08
18.45%
GB:WEIR
Weir Group plc (The)
2,624.00
656.84
33.39%

Bodycote Corporate Events

Business Operations and Strategy
FMR LLC Increases Stake in Bodycote PLC
Neutral
Jul 10, 2025

Bodycote PLC has announced a significant change in its shareholder structure as FMR LLC, a Boston-based investment firm, has increased its voting rights in the company to 10.0027%. This acquisition of voting rights marks a substantial increase from the previous 5.78%, potentially impacting Bodycote’s corporate governance and strategic direction.

The most recent analyst rating on (GB:BOY) stock is a Buy with a £980.00 price target. To see the full list of analyst forecasts on Bodycote stock, see the GB:BOY Stock Forecast page.

Stock BuybackBusiness Operations and Strategy
Bodycote Completes £30 Million Share Buyback Programme
Positive
Jul 10, 2025

Bodycote plc has completed the third tranche of its £30 million share buyback programme, purchasing 21,743 ordinary shares, which will be cancelled, leaving a total of 177,310,404 shares in issue. This move is part of a broader strategy to optimize capital structure and return value to shareholders, reflecting confidence in the company’s financial health and future prospects.

The most recent analyst rating on (GB:BOY) stock is a Buy with a £955.00 price target. To see the full list of analyst forecasts on Bodycote stock, see the GB:BOY Stock Forecast page.

Stock BuybackBusiness Operations and Strategy
Bodycote Continues Share Buyback Program to Enhance Shareholder Value
Positive
Jul 7, 2025

Bodycote plc has announced the continuation of its share buyback program, purchasing 18,105 ordinary shares as part of an extended initiative. This move is part of a broader strategy to manage its capital structure and enhance shareholder value, having acquired a total of 14,072,256 shares since March 2024, reflecting the company’s commitment to returning value to its investors.

The most recent analyst rating on (GB:BOY) stock is a Buy with a £955.00 price target. To see the full list of analyst forecasts on Bodycote stock, see the GB:BOY Stock Forecast page.

Stock Buyback
Bodycote Continues Share Buyback Program
Positive
Jun 26, 2025

Bodycote plc has announced the continuation of its share buyback program, purchasing 15,701 ordinary shares at an average price of 582.1958 pence per share. This move is part of an extended program that has seen the company buy back a total of 13,881,011 shares since March 2024, potentially signaling confidence in its financial health and aiming to enhance shareholder value.

The most recent analyst rating on (GB:BOY) stock is a Buy with a £955.00 price target. To see the full list of analyst forecasts on Bodycote stock, see the GB:BOY Stock Forecast page.

Stock BuybackBusiness Operations and Strategy
Bodycote plc Advances Share Buyback Program
Positive
Jun 24, 2025

Bodycote plc has announced the continuation of its share buyback program, purchasing 27,288 ordinary shares at an average price of 562.7418 pence per share. This move is part of an extended program that has seen the company buy back a total of 13,38,123 ordinary shares since March 2024, reflecting its strategy to manage capital and enhance shareholder value.

The most recent analyst rating on (GB:BOY) stock is a Buy with a £955.00 price target. To see the full list of analyst forecasts on Bodycote stock, see the GB:BOY Stock Forecast page.

Stock Buyback
Bodycote Extends Share Buyback Program with Recent Purchases
Positive
Jun 18, 2025

Bodycote plc has announced the continuation of its share buyback program, purchasing 31,337 ordinary shares at an average price of 565.1951 pence per share. This move is part of an extended program that began in December 2024, aiming to optimize the company’s capital structure and enhance shareholder value, with a total of 13,723,753 shares bought back since March 2024.

The most recent analyst rating on (GB:BOY) stock is a Buy with a £955.00 price target. To see the full list of analyst forecasts on Bodycote stock, see the GB:BOY Stock Forecast page.

Stock Buyback
Bodycote Continues Share Buyback Programme
Positive
Jun 17, 2025

Bodycote plc has announced the continuation of its share buyback programme, purchasing 38,679 of its own ordinary shares at an average price of 569.0436 pence per share. This move is part of an extended programme that has seen the company buy back a total of 13,692,416 shares since March 2024, which may impact the company’s market positioning by reducing the number of shares in circulation, potentially increasing shareholder value.

The most recent analyst rating on (GB:BOY) stock is a Buy with a £955.00 price target. To see the full list of analyst forecasts on Bodycote stock, see the GB:BOY Stock Forecast page.

Stock BuybackBusiness Operations and Strategy
Bodycote Continues Share Buyback Program to Enhance Shareholder Value
Positive
Jun 10, 2025

Bodycote plc announced the continuation of its share buyback program, purchasing 29,362 ordinary shares as part of its extended program. This move is part of a broader strategy to enhance shareholder value, having repurchased a total of 13,512,523 shares since March 2024, indicating a strong commitment to returning capital to shareholders and potentially improving market confidence.

The most recent analyst rating on (GB:BOY) stock is a Buy with a £955.00 price target. To see the full list of analyst forecasts on Bodycote stock, see the GB:BOY Stock Forecast page.

Regulatory Filings and Compliance
Bodycote PLC Announces Change in Major Holdings
Neutral
Jun 6, 2025

Bodycote PLC has announced a change in its major holdings, with Martin Currie Investment Management Limited adjusting its voting rights in the company. The adjustment sees Martin Currie’s voting rights decrease from 5.27% to 4.96%, indicating a slight reduction in their stake. This change could potentially impact Bodycote’s shareholder dynamics and influence future decision-making processes within the company.

The most recent analyst rating on (GB:BOY) stock is a Buy with a £890.00 price target. To see the full list of analyst forecasts on Bodycote stock, see the GB:BOY Stock Forecast page.

Business Operations and StrategyFinancial Disclosures
Bodycote Reports Revenue Decline but Optimistic Outlook for 2025
Neutral
May 27, 2025

Bodycote’s recent trading update reveals a 6% decline in group revenue for the first four months of 2025 compared to the previous year, attributed to strong prior year comparators and reduced energy surcharges. Despite challenges in the Automotive and Industrial markets, the company has seen improvements in Civil Aerospace and Defence sectors. Bodycote is advancing its ‘Optimise, Perform & Grow’ strategy, aiming to enhance operational efficiency and resilience, with plans to expand its plant and overhead reduction program. The company anticipates a second-half weighted improvement in adjusted operating profit, driven by new contracts in Defence and Oil & Gas, as well as growth in Aerospace & Defence.

The most recent analyst rating on (GB:BOY) stock is a Buy with a £955.00 price target. To see the full list of analyst forecasts on Bodycote stock, see the GB:BOY Stock Forecast page.

Shareholder MeetingsBusiness Operations and Strategy
Bodycote plc Secures Shareholder Approval for AGM Resolutions
Positive
May 21, 2025

Bodycote plc announced that all resolutions proposed at its Annual General Meeting on May 21, 2025, were approved by shareholders. The resolutions included the re-election of board members, approval of the directors’ remuneration policy, and the renewal of authorities related to share capital management. The successful passage of these resolutions reflects shareholder confidence in the company’s governance and strategic direction, potentially strengthening Bodycote’s market position and operational stability.

The most recent analyst rating on (GB:BOY) stock is a Buy with a £955.00 price target. To see the full list of analyst forecasts on Bodycote stock, see the GB:BOY Stock Forecast page.

Executive/Board ChangesBusiness Operations and Strategy
Bodycote Strengthens Board with New Appointments
Positive
May 21, 2025

Bodycote plc has announced the appointment of Emmanuelle Dubu as a Non-Executive Director, effective June 23, 2025. Dubu, with extensive experience in international engineering and leadership roles, will join the Remuneration, Nomination, and Audit committees. Her background in metallurgy and international industry experience is expected to contribute significantly to Bodycote’s board. Additionally, Lili Chahbazi has been appointed as the Senior Independent Director, succeeding Patrick Larmon, who will step down from the board in September 2025. These changes reflect Bodycote’s strategic focus on strengthening its leadership team to enhance its market position and stakeholder engagement.

The most recent analyst rating on (GB:BOY) stock is a Buy with a £955.00 price target. To see the full list of analyst forecasts on Bodycote stock, see the GB:BOY Stock Forecast page.

Stock Buyback
Bodycote Continues Share Buyback Programme
Positive
May 13, 2025

Bodycote plc has announced the continuation of its share buyback programme, purchasing 1,397 ordinary shares at an average price of 533.515 pence per share. This move is part of an extended programme that has seen the company buy back a total of 12,712,626 shares, aiming to cancel these shares and reduce the number of shares in circulation, which could potentially enhance shareholder value by increasing earnings per share.

The most recent analyst rating on (GB:BOY) stock is a Buy with a £955.00 price target. To see the full list of analyst forecasts on Bodycote stock, see the GB:BOY Stock Forecast page.

Stock Buyback
Bodycote Advances Share Buyback Programme with Latest Purchase
Positive
May 8, 2025

Bodycote plc has announced the purchase and cancellation of 122,951 ordinary shares as part of its ongoing share buyback programme. This move is part of an extended programme that has seen the company buy back a total of 12,602,072 shares, aiming to optimize its capital structure and potentially enhance shareholder value.

Stock BuybackBusiness Operations and Strategy
Bodycote Enhances Shareholder Value with Continued Share Buyback
Positive
May 2, 2025

Bodycote plc announced the continuation of its share buyback programme, purchasing 37,485 ordinary shares at an average price of 482.8736 pence per share. This move is part of an extended programme aimed at reducing the number of shares in circulation, thereby potentially increasing the value of remaining shares and enhancing shareholder value. Following this transaction, Bodycote has a total of 179,142,288 ordinary shares in issue, with no shares held in treasury. This strategic financial maneuver is expected to strengthen Bodycote’s market position and demonstrate its commitment to returning value to shareholders.

Stock BuybackBusiness Operations and Strategy
Bodycote Expands Share Buyback Programme with Latest Purchase
Neutral
May 1, 2025

Bodycote plc has announced the purchase and cancellation of 177,715 of its ordinary shares as part of its extended share buyback programme. This move is part of a broader strategy to manage the company’s capital structure, having acquired a total of 12,276,399 shares since March 2024, which may impact shareholder value and market perception.

Executive/Board ChangesBusiness Operations and Strategy
Bodycote CFO Exercises Incentive Plan Shares
Neutral
Apr 29, 2025

Bodycote PLC announced that its Chief Financial Officer, Ben Fidler, has exercised shares under the Bodycote Incentive Plan. A total of 63,906 shares were exercised, with 29,835 shares sold to cover tax liabilities and 34,071 shares retained. This transaction reflects the company’s ongoing commitment to aligning executive interests with shareholder value, potentially impacting its market positioning and stakeholder confidence.

Business Operations and Strategy
Bodycote CEO Exercises Incentive Plan Shares
Neutral
Apr 29, 2025

Bodycote PLC announced that its CEO, Jim Fairbairn, exercised shares from the Bodycote Incentive Plan granted in 2024. The transaction involved exercising 94,139 shares, with 43,949 sold to cover tax liabilities and 50,190 retained, highlighting a strategic financial decision by the company’s leadership.

Business Operations and StrategyFinancial Disclosures
Bodycote Announces 2025 Incentive Plan Targets
Positive
Apr 17, 2025

Bodycote plc has announced the performance targets for its Bodycote Incentive Plan (BIP) for 2025, following the release of its 2024 Annual Report. The targets include metrics for Return on Capital Employed, Earnings Per Share growth, and CO2 emissions reduction, reflecting the company’s commitment to financial performance and sustainability goals. These measures are expected to align with Bodycote’s strategic objectives and enhance its market position, potentially impacting shareholder value and environmental performance.

Shareholder MeetingsFinancial DisclosuresRegulatory Filings and Compliance
Bodycote Releases 2024 Annual Report and AGM Notice
Neutral
Apr 15, 2025

Bodycote plc has released its 2024 Annual Report and Accounts along with the notice for the 2025 Annual General Meeting. These documents are available for inspection on the National Storage Mechanism and the company’s website. The announcement underscores Bodycote’s commitment to transparency and regulatory compliance, potentially impacting investor confidence and stakeholder engagement.

Stock BuybackBusiness Operations and Strategy
Bodycote Extends Share Buyback Programme with Recent Purchase
Positive
Apr 15, 2025

Bodycote plc has announced the purchase of 43,776 of its own ordinary shares as part of its extended share buyback programme, with the intention to cancel these shares. This move is part of a broader strategy to manage the company’s capital structure and enhance shareholder value, reflecting confidence in its financial position and future prospects.

Stock Buyback
Bodycote Extends Share Buyback Programme, Cancels Additional Shares
Positive
Apr 14, 2025

Bodycote plc has announced a continuation of its share buyback programme, purchasing 43,525 of its ordinary shares at prices ranging from 455.4p to 482.2p per share. This move is part of an extended programme that began in December 2024, with the company having bought a total of 11,796,983 shares since March 2024. The purchased shares will be canceled, reducing the total number of shares in issue to 179,659,189, which could potentially enhance shareholder value by increasing earnings per share.

Stock BuybackBusiness Operations and Strategy
Bodycote Enhances Shareholder Value with Continued Buyback Initiative
Positive
Apr 11, 2025

Bodycote plc has announced the purchase of 44,761 of its ordinary shares as part of its extended share buyback program. This move, which is part of a larger strategy that has seen the company repurchase over 11 million shares since March 2024, aims to reduce the number of shares in circulation, potentially enhancing shareholder value and reflecting confidence in the company’s financial health.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jul 10, 2025