Bodycote PLC (GB:BOY)
LSE:BOY
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Bodycote
(LSE:BOY)
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Rating:62Neutral
Price Target:
859.00 p
▲(19.06% Upside)
Action:Reiterated
Date: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
Outsourced, fee-for-service model
Bodycote’s core fee-for-service model aligns revenue with recurring production and maintenance cycles across industrial customers. Outsourcing capital- and compliance-intensive thermal processing creates stable, repeatable demand and reduces clients' incentive to verticalize, supporting predictable long-term service volumes and contract durability.
Negative Factors
Choppy revenue trends
Flat-to-declining top-line performance reduces visibility into sustainable demand and constrains margin leverage. Without consistent revenue growth, fixed-cost recovery and pricing power are limited, increasing reliance on cyclical end markets and making earnings less resilient to sector slowdowns over a multi-quarter horizon.
Read all positive and negative factors
Positive Factors
Negative Factors
Outsourced, fee-for-service model
Bodycote’s core fee-for-service model aligns revenue with recurring production and maintenance cycles across industrial customers. Outsourcing capital- and compliance-intensive thermal processing creates stable, repeatable demand and reduces clients' incentive to verticalize, supporting predictable long-term service volumes and contract durability.
Read all positive factors
Bodycote (BOY) vs. iShares MSCI United Kingdom ETF (EWC)
Market Cap
£1.39B
Dividend Yield3.3%
Average Volume (3M)255.24K
Price to Earnings (P/E)25.4
Beta (1Y)1.76
Revenue Growth-3.96%
EPS Growth192.10%
CountryUK
Employees4,379
SectorIndustrials
Sector Strength72
IndustryIndustrial - Machinery
Share Statistics
EPS (TTM)0.32
Shares Outstanding171,400,880
10 Day Avg. Volume316,094
30 Day Avg. Volume255,238
Financial Highlights & Ratios
PEG Ratio0.12
Price to Book (P/B)1.93
Price to Sales (P/S)1.70
P/FCF Ratio20.95
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
£814.17Price Target Upside12.84% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering6
EPS Forecast (FY)0.49
Revenue Forecast (FY)£714.76M
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 micros...
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 tr...
Bodycote Financial Statement Overview
Summary
Income Statement
62
Positive
Balance Sheet
74
Positive
Cash Flow
58
Neutral
| 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
Positive
721.50
Price Trends
678.99
Positive
706.02
Positive
668.19
Positive
Market Momentum
36.34
Negative
69.40
Neutral
82.68
Negative
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 721.5 is below the 20-day moving average (MA) of 724.33, above the 50-day MA of 678.99, and above the 200-day MA of 668.19, indicating a bullish trend. The MACD of 36.34 indicates Negative momentum. The RSI at 69.40 is Neutral, neither overbought nor oversold. The STOCH value of 82.68 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:BOY.
Bodycote Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
71 Outperform | £1.15B | 28.53 | 33.12% | 1.01% | 24.42% | 103.25% | |
67 Neutral | £221.91M | 31.89 | 6.13% | 1.02% | 3.36% | 63.32% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
63 Neutral | £114.13M | 24.30 | 3.83% | 6.69% | -13.30% | -60.03% | |
62 Neutral | £1.39B | 25.35 | 8.58% | 3.30% | -3.96% | 192.10% | |
62 Neutral | £624.70M | 30.22 | 6.66% | 4.87% | -9.46% | -57.37% | |
60 Neutral | £5.16B | 31.45 | 13.86% | 2.46% | 2.26% | -14.63% |
* Industrials Sector Average
GB:BOY
Bodycote
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268.05
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Bodycote Corporate Events
Business Operations and StrategyStock BuybackDividendsShareholder Meetings
Bodycote Wins Strong Shareholder Backing at 2026 AGM
Positive
May 27, 2026
Bodycote shareholders approved all resolutions at the 27 May 2026 annual general meeting, with 86.36% of issued shares voting and strong majorities in favour across business items. The company confirmed receipt of the annual report, declaration of...
Business Operations and StrategyStock BuybackFinancial Disclosures
Bodycote Delivers Strong Core Growth and Reaffirms 2026 Outlook Amid Portfolio Optimisation
Positive
May 27, 2026
Bodycote reported group revenue growth of 1.9% at constant currency for the first four months of 2026, with core revenue up 9.0% driven by strong demand in aerospace and defence and accelerating industrial gas turbine activity, partly offset by we...
Business Operations and StrategyStock BuybackRegulatory Filings and Compliance
Bodycote Advances £80m Share Buyback, Cuts Share Count to 171.4m
Positive
May 26, 2026
Bodycote plc has continued executing the first £40 million tranche of its £80 million share repurchase programme, buying 119,464 ordinary shares for cancellation between 18 and 22 May 2026 through Barclays Bank plc. Prices paid ranged fr...
M&A TransactionsRegulatory Filings and Compliance
Bodycote Confirms Apollo’s Conditional Cash Approach Amid UK Takeover Code Offer Period
Positive
May 22, 2026
Bodycote has confirmed it received a conditional proposal from Apollo Management X, acting on behalf of certain managed funds, for a possible all-cash offer of 885 pence per share for the entire company, with shareholders also retaining the right ...
Business Operations and StrategyStock BuybackRegulatory Filings and Compliance
Bodycote Advances £80m Buyback, Cuts Share Count to 171.5m
Positive
May 18, 2026
Bodycote plc has continued executing its previously announced £80 million share repurchase programme, confirming that between 11 May and 15 May 2026 it bought back 133,211 ordinary shares for cancellation through Barclays Bank. Prices during ...
Business Operations and StrategyStock Buyback
Bodycote Advances £80 Million Share Buyback, Cancels Over 1.1 Million Shares
Positive
May 11, 2026
Bodycote plc has continued its previously announced £80 million share repurchase programme, buying 110,000 ordinary shares for cancellation between 5 and 8 May 2026 at prices ranging from 662.50p to 713.00p, with a volume-weighted average of ...
Business Operations and StrategyStock BuybackRegulatory Filings and Compliance
Bodycote Advances £80m Share Buyback, Cuts Share Count Further
Positive
May 5, 2026
Bodycote plc has continued execution of its £80 million share repurchase programme, confirming that between 27 April and 1 May 2026 it bought 139,939 ordinary shares for cancellation via Barclays Bank at prices ranging from 666p to 704p, with...
Business Operations and StrategyStock Buyback
Bodycote Advances £80m Share Buyback, Cuts Share Count Further
Positive
Apr 27, 2026
Bodycote has continued executing its previously announced £80 million share repurchase programme, buying 123,384 ordinary shares for cancellation between 20 and 24 April 2026 through Barclays Bank at a volume-weighted average price of 702.45p...
Stock BuybackFinancial Disclosures
Bodycote Continues £80m Buyback with Further Share Cancellations
Positive
Apr 20, 2026
Bodycote plc has continued to execute its previously announced £80 million share buyback, confirming that between 13 and 17 April 2026 it repurchased 129,821 ordinary shares for cancellation through Barclays Bank at prices ranging from 679.00...
Business Operations and StrategyStock Buyback
Bodycote Advances £80m Share Buyback, Cuts Share Count Further
Positive
Apr 7, 2026
Bodycote has continued executing the first £40 million tranche of its £80 million share repurchase programme, buying 159,589 ordinary shares for cancellation between 30 March and 2 April 2026 via Barclays Bank at a volume-weighted averag...
Regulatory Filings and Compliance
Bodycote CEO Exercises 2024 Incentive Plan Shares and Increases Shareholding
Neutral
Mar 27, 2026
Bodycote plc has disclosed a share transaction by its chief executive officer, Jim Fairbairn, relating to incentive plan awards granted in 2024. The notification details his exercise of ordinary shares under the company’s incentive scheme, a...
Executive/Board Changes
Bodycote Grants 2025 Share Awards to Chief Executive and Finance Chief
Positive
Mar 25, 2026
Bodycote has granted 2025 share awards under its 2016 incentive plan to chief executive officer Jim Fairbairn and chief financial officer Ben Fidler, in the form of ordinary shares. The awards, totalling 338,386 shares at a price reference of ...
Executive/Board Changes
Bodycote Grants Deferred Bonus Share Awards to CEO and CFO
Positive
Mar 25, 2026
Bodycote has disclosed share awards granted to its top executives under the company’s deferred bonus plan, aligning leadership incentives with shareholder interests through equity-based compensation. Chief executive officer Jim Fairbairn rec...
Business Operations and StrategyStock BuybackRegulatory Filings and Compliance
Bodycote Advances £80m Buyback as Share Count Falls to 172.5m
Positive
Mar 23, 2026
Bodycote plc has continued executing the first £40 million tranche of its £80 million share repurchase programme, buying 164,567 ordinary shares for cancellation between 16 and 20 March 2026 through Barclays Bank at prices ranging from 6...
Business Operations and StrategyStock Buyback
Bodycote Launches £80 Million Share Buyback to Cut Capital and Boost Returns
Positive
Mar 11, 2026
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 execut...
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.