Bodycote (BOY) AI Stock Analysis

• Market Cap: £1.07B
• Dividend Yield: 3.05%
• Average Volume (3M): 255.24K
• Price to Earnings (P/E): 38.7
• Beta (1Y): 1.72
• Revenue Growth: -6.95%
• EPS Growth: -52.08%
• Country: UK
• Employees: 4,379
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Machinery
• EPS (TTM): 0.21
• Shares Outstanding: 174,889,650
• 10 Day Avg. Volume: 316,094
• 30 Day Avg. Volume: 255,238
• PEG Ratio: -0.78
• Price to Book (P/B): 1.77
• Price to Sales (P/S): 1.56
• P/FCF Ratio: 14.34
• 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: £698.33
• Price Target Upside: 12.36% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 4
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 55 Neutral
• Price Target: 632.00p ▲(1.69% Upside)

Bodycote's overall stock score is primarily influenced by its mixed financial performance, with solid cash flow generation but declining profitability and increased leverage. Technical analysis indicates bearish momentum, and the high P/E ratio raises valuation concerns. The absence of earnings call data and corporate events means these factors do not influence the score.

Positive Factors

Cash Generation Ability

Strong cash generation ability ensures that Bodycote can fund operations, invest in growth opportunities, and manage debt obligations effectively.

EBITDA Margin

A strong EBITDA margin indicates efficient operations and the ability to maintain profitability despite revenue pressures, supporting long-term financial health.

Market Position

As a leader in thermal processing, Bodycote benefits from a strong market position, enabling it to leverage its expertise and client relationships for sustained growth.

Negative Factors

Revenue Decline

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

Increased Leverage

Increased leverage can elevate financial risk, particularly if profitability remains under pressure, limiting financial flexibility and increasing interest obligations.

Declining Profitability

Declining profitability may hinder Bodycote's ability to reinvest in the business and maintain competitive advantages, affecting long-term sustainability.

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 generates revenue primarily through its extensive range of thermal processing services. The company operates on a business-to-business model, charging customers for services that improve the mechanical properties and performance of their metal components. Key revenue streams include heat treatment services, which are essential for industries like aerospace and automotive, as well as surface technology services that provide corrosion resistance and wear resistance. Bodycote has established significant partnerships with major manufacturers and original equipment manufacturers (OEMs), which helps secure long-term contracts and repeat business. Additionally, the company benefits from its global presence, allowing it to tap into diverse markets and industries, thus enhancing its earnings potential.

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

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

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

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	727.10M	757.10M	802.50M	743.60M	615.80M	598.00M
Gross Profit	100.50M	109.30M	108.10M	269.70M	225.70M	186.90M
EBITDA	176.80M	124.00M	201.70M	186.60M	167.70M	97.00M
Net Income	28.40M	20.00M	85.60M	73.70M	59.50M	400.00K
Balance Sheet
Total Assets	1.05B	1.07B	1.14B	1.17B	1.07B	1.11B
Cash, Cash Equivalents and Short-Term Investments	20.20M	19.10M	45.20M	37.20M	39.30M	30.70M
Total Debt	190.50M	150.90M	96.90M	136.60M	156.20M	128.80M
Total Liabilities	406.70M	397.50M	344.40M	385.70M	384.40M	428.60M
Stockholders Equity	639.40M	668.10M	790.80M	780.90M	684.70M	680.50M
Cash Flow
Free Cash Flow	70.40M	82.50M	109.20M	70.10M	87.10M	74.50M
Operating Cash Flow	146.70M	152.60M	191.60M	137.10M	139.10M	134.40M
Investing Cash Flow	-64.20M	-112.80M	-71.20M	-62.30M	-104.80M	-124.70M
Financing Cash Flow	-74.40M	-67.60M	-110.20M	-82.80M	-30.30M	-6.30M

Bodycote Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 621.50
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:BOY, the sentiment is Neutral. The current price of 621.5 is below the 20-day moving average (MA) of 635.05, below the 50-day MA of 640.22, and above the 200-day MA of 588.26, indicating a neutral trend. The MACD of -8.48 indicates Positive momentum. The RSI at 44.88 is Neutral, neither overbought nor oversold. The STOCH value of 54.23 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for GB:BOY.

Bodycote Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
IMI	75 Outperform	£5.79B	25.13	23.79%	1.29%	-0.32%	-3.96%
WEIR	74 Outperform	£7.42B	24.23	17.68%	1.24%	-1.97%	40.55%
SPX	71 Outperform	£5.18B	31.85	14.19%	2.35%	0.10%	-15.33%
GDWN	66 Neutral	£1.70B	69.38	18.87%	0.57%	14.88%	45.73%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
MGAM	60 Neutral	£559.38M	20.35	8.04%	5.14%	-7.30%	-59.71%
BOY	55 Neutral	£1.07B	38.73	4.10%	3.05%	-6.95%	-52.08%

Bodycote Corporate Events

Bodycote Continues Share Buyback Program to Enhance Shareholder Value

Bodycote plc has announced a continuation of its share buyback program, purchasing 36,188 of its ordinary shares at a volume-weighted average price of 635.87 pence per share. This move, part of an extended program, aims to cancel the repurchased shares, reducing the total number of shares in issue to 175,699,513, thereby potentially increasing shareholder value and consolidating its market position.

The most recent analyst rating on (GB:BOY) stock is a Buy with a £708.00 price target. To see the full list of analyst forecasts on Bodycote stock, see the GB:BOY Stock Forecast page.

Bodycote Continues Share Buyback Program to Enhance Market Position

Bodycote plc has announced the continuation of its share buyback program, purchasing 36,248 ordinary shares at a volume-weighted average price of 635.77 pence per share. This move is part of an extended program aimed at reducing the number of shares in circulation, thereby potentially increasing the value of remaining shares and strengthening the company’s market position.

The most recent analyst rating on (GB:BOY) stock is a Buy with a £708.00 price target. To see the full list of analyst forecasts on Bodycote stock, see the GB:BOY Stock Forecast page.

Bodycote Announces Share Buyback Transaction

Bodycote plc has announced a transaction involving the repurchase of its own shares as part of an extended share buyback programme. The company purchased 36,940 ordinary shares at a volume-weighted average price of 627.26 pence per share, with plans to cancel these shares, reducing the total number of shares in issue to 176,984,103. This move is part of a broader strategy to manage the company’s capital structure and potentially 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.