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Bodycote PLC (GB:BOY)
LSE:BOY

Bodycote (BOY) AI Stock Analysis

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Bodycote

(LSE:BOY)

Rating:72Outperform
Price Target:
636.00p
â–²(10.99%Upside)
Bodycote's overall stock score of 72 reflects a balanced view of mixed financial performance, strong technical momentum, and positive corporate events. The company's robust cash flow generation and strategic buyback initiatives enhance its market position. However, high valuation metrics and declining profitability are key concerns, necessitating strategic improvements in revenue and cost management.
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.
Growth Potential
There is considerable top/bottom-line upside going forward, and there is an already-strong Balance Sheet to fund M&A or buybacks.
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 Adjustments
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 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 MoneyBodycote makes money by providing specialized thermal processing services to a diverse range of industries, including aerospace, automotive, and energy. Its revenue model is primarily service-based, charging clients for each treatment or process applied to their materials. Key revenue streams include heat treatment services, which involve altering the physical and sometimes chemical properties of materials to improve their performance, and surface technology services, which enhance material surfaces for better durability and functionality. Additionally, Bodycote generates income from metal joining services, which are crucial for creating strong, high-quality joints in metal components. The company benefits from long-term contracts and partnerships with major manufacturers in its core sectors, providing a stable and recurring source of income. Factors such as technological advancements, a broad geographic footprint, and a diverse customer base contribute significantly to Bodycote's earnings.

Bodycote Financial Statement Overview

Summary
Bodycote's financial performance shows mixed results. The income statement reflects revenue and profitability pressures, though EBITDA margins remain solid. The balance sheet shows increased leverage, which may elevate financial risk if earnings pressures persist. Cash flow performance is strong, demonstrating good cash generation capabilities, but declining profitability could impact future cash flows. 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.
Breakdown
Dec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
757.10M802.50M743.60M615.80M598.00M
Gross Profit
109.30M108.10M269.70M225.70M186.90M
EBIT
37.90M119.20M94.90M80.20M57.70M
EBITDA
124.00M201.70M186.60M167.70M97.00M
Net Income Common Stockholders
20.00M85.60M73.70M59.50M400.00K
Balance SheetCash, Cash Equivalents and Short-Term Investments
19.10M45.20M37.20M39.30M30.70M
Total Assets
1.07B1.14B1.17B1.07B1.11B
Total Debt
150.90M96.90M136.60M156.20M128.80M
Net Debt
131.80M51.70M99.40M116.90M98.10M
Total Liabilities
397.50M344.40M385.70M384.40M428.60M
Stockholders Equity
668.10M790.80M780.90M684.70M680.50M
Cash FlowFree Cash Flow
82.50M109.20M70.10M87.10M74.50M
Operating Cash Flow
152.60M191.60M137.10M139.10M134.40M
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 Price573.00
Price Trends
50DMA
516.72
Positive
100DMA
565.18
Positive
200DMA
575.59
Negative
Market Momentum
MACD
14.33
Negative
RSI
62.97
Neutral
STOCH
80.08
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 573 is above the 20-day moving average (MA) of 557.48, above the 50-day MA of 516.72, and below the 200-day MA of 575.59, indicating a neutral trend. The MACD of 14.33 indicates Negative momentum. The RSI at 62.97 is Neutral, neither overbought nor oversold. The STOCH value of 80.08 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

Overall Rating
UnderperformOutperform
Sector (66)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
GBIMI
76
Outperform
£4.95B20.6523.50%1.57%0.64%4.92%
75
Outperform
£598.48M12.1014.06%5.70%-1.26%6.56%
74
Outperform
£579.74M29.7216.39%1.72%3.13%24.54%
74
Outperform
£6.27B20.1017.83%1.64%-4.95%36.95%
GBBOY
72
Outperform
£1.01B53.022.74%4.04%-5.66%-76.42%
GBSPX
72
Outperform
£4.23B22.1616.16%2.87%-1.03%4.06%
66
Neutral
$4.50B12.295.40%248.66%4.13%-12.33%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
GB:BOY
Bodycote
573.00
-118.28
-17.11%
GB:GDWN
Goodwin
7,840.00
1,677.86
27.23%
GB:IMI
IMI plc
2,028.00
232.62
12.96%
GB:MGAM
Morgan Advanced Materials
219.50
-70.38
-24.28%
GB:SPX
Spirax Sarco Engineering
5,940.00
-2,446.54
-29.17%
GB:WEIR
Weir Group plc (The)
2,456.00
427.98
21.10%

Bodycote Corporate Events

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.

Business Operations and StrategyRegulatory Filings and Compliance
Goldman Sachs Increases Stake in Bodycote PLC
Neutral
Apr 7, 2025

Bodycote PLC has announced a change in the breakdown of its voting rights, with The Goldman Sachs Group, Inc. now holding an 8.001455% stake in the company. This adjustment in voting rights, as reported on April 4, 2025, reflects a slight increase from the previous position and may influence the company’s strategic decisions and stakeholder dynamics.

Stock Buyback
Bodycote Enhances Shareholder Value Through Continued Share Buyback
Positive
Apr 7, 2025

Bodycote plc has announced the continuation of its share buyback program, purchasing 40,000 ordinary shares at prices ranging from 481.4p to 520.5p per share. This move is part of an extended program initiated in December 2024, aiming to enhance shareholder value by reducing the number of shares in circulation, thereby increasing the value of remaining shares. The company has purchased a total of 11,576,307 shares since March 2024, reflecting its commitment to returning capital to shareholders.

Stock Buyback
Bodycote Continues Share Buyback Program to Enhance Shareholder Value
Positive
Apr 2, 2025

Bodycote plc has announced the continuation of its share buyback program, purchasing 32,419 ordinary shares at an average price of 560.4150 pence per share. This move is part of an extended program initiated in December 2024, with the company having bought a total of 11,466,307 ordinary shares since March 2024. The cancellation of these shares will reduce the total number of shares in issue to 179,989,865, potentially increasing shareholder value and consolidating the company’s market position.

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

Bodycote plc has announced the purchase of 35,000 of its ordinary shares as part of its extended share buyback programme, with plans to cancel these shares. This move is part of a broader strategy to manage its capital structure, having repurchased a total of 11,433,888 shares since March 2024, reflecting the company’s commitment to enhancing shareholder value.

Stock BuybackBusiness Operations and Strategy
Bodycote Advances Share Buyback Program with Recent Purchases
Positive
Mar 27, 2025

Bodycote plc has announced the continuation of its share buyback program, purchasing 32,358 ordinary shares at a volume-weighted average price of 572.3309 pence per share. This move is part of the extended program initiated in December 2024, and the company intends to cancel these shares, reducing the total number of shares in issue to 180,107,323. This strategic action reflects Bodycote’s commitment to optimizing its capital structure and potentially enhancing shareholder value.

Stock BuybackBusiness Operations and Strategy
Bodycote Continues Share Buyback Program to Optimize Capital Structure
Positive
Mar 26, 2025

Bodycote plc has announced the continuation of its share buyback program, purchasing 25,711 ordinary shares through HSBC Bank PLC as part of an extended initiative. This strategic move, which involves canceling the acquired shares, aims to optimize the company’s capital structure and potentially enhance shareholder value by reducing the number of shares in circulation.

Stock Buyback
Bodycote Extends Share Buyback Program, Cancels Additional Shares
Positive
Mar 25, 2025

Bodycote plc has announced the continuation of its share buyback program, purchasing 21,402 of its ordinary shares at an average price of 567.7881 pence per share. This move is part of an extended program that began in December 2024, with the company having acquired a total of 11,290,780 shares since March 2024. The cancellation of these shares will reduce the total number of shares in issue, potentially increasing the value of remaining shares and demonstrating the company’s commitment to returning value to shareholders.

Stock Buyback
Bodycote plc Continues Share Buyback Program
Positive
Mar 24, 2025

Bodycote plc has announced the continuation of its share buyback program, purchasing 30,588 ordinary shares at prices ranging from 557.0p to 571.0p per share. This move is part of an extended program that began in December 2024, with the company having acquired a total of 11,269,378 shares since March 2024. The cancellation of these shares will reduce the total number of shares in issue, potentially increasing the value for remaining shareholders.

Business Operations and StrategyRegulatory Filings and Compliance
Goldman Sachs Increases Stake in Bodycote PLC
Neutral
Mar 21, 2025

Bodycote PLC, a UK-based company, has experienced a change in the voting rights distribution as reported by The Goldman Sachs Group, Inc. The notification indicates that Goldman Sachs now holds a total of 8.000080% of voting rights in Bodycote, up from a previous position of 7.158152%. This change signifies a notable increase in Goldman Sachs’ influence within the company, potentially impacting Bodycote’s strategic decisions and stakeholder dynamics.

Stock BuybackBusiness Operations and Strategy
Bodycote Continues Share Buyback Program to Optimize Capital Structure
Positive
Mar 14, 2025

Bodycote plc has announced the continuation of its share buyback program, purchasing 43,875 of its ordinary shares through HSBC Bank PLC. This move is part of an extended program that has seen the company buy back a total of 11,024,355 shares since March 2024. The company intends to cancel the purchased shares, which will affect the total number of voting rights, now standing at 180,431,817 shares. This strategic financial maneuver is aimed at optimizing the company’s capital structure and potentially enhancing shareholder value.

Stock BuybackBusiness Operations and Strategy
Bodycote Enhances Shareholder Value with Continued Buyback Programme
Positive
Mar 12, 2025

Bodycote plc has announced the purchase of 63,017 of its ordinary shares as part of an extended share buyback programme, with the intention to cancel these shares. This move is part of a larger strategy, having bought a total of 10,915,782 shares since March 2024, aimed at optimizing the company’s capital structure and potentially enhancing shareholder value.

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.