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Bodycote PLC (GB:BOY)
LSE:BOY
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Bodycote (BOY) AI Stock Analysis

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GB:BOY

Bodycote

(LSE:BOY)

Rating:74Outperform
Price Target:
721.00p
▲(13.28%Upside)
Bodycote's stock score is driven by strong corporate events, particularly the share buyback program, which signals confidence in the company's prospects and aims to enhance shareholder value. Technical analysis suggests a positive trend, although valuation remains a concern due to a high P/E ratio. Financial performance shows mixed results, with strong cash flow but increased leverage and profitability pressures. Earnings call data was not available for this analysis.
Positive Factors
Share Buyback
A £30m buyback has been announced, which should be well-received.
Strategic Progress
Strong strategic progress was made with management increasing the cost-saving benefits from the Optimise programme.
Negative Factors
Forecasts
Forecasts for fiscal years 2025 and 2026 have been lowered to be prudent.
Macroeconomic Conditions
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 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 shows mixed results. The income statement reflects revenue and profitability pressures, with a decline in net profit margin and EBIT margin, though EBITDA margins remain solid. The balance sheet shows increased leverage, raising potential financial risk. Cash flow performance is strong, demonstrating good cash generation capabilities, but declining profitability could impact future cash flows.
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 Price636.50
Price Trends
50DMA
580.18
Positive
100DMA
550.97
Positive
200DMA
575.57
Positive
Market Momentum
MACD
8.36
Negative
RSI
65.69
Neutral
STOCH
56.94
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 636.5 is above the 20-day moving average (MA) of 599.03, above the 50-day MA of 580.18, and above the 200-day MA of 575.57, indicating a bullish trend. The MACD of 8.36 indicates Negative momentum. The RSI at 65.69 is Neutral, neither overbought nor oversold. The STOCH value of 56.94 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
81
Outperform
£5.46B23.1023.50%1.03%0.64%4.92%
77
Outperform
£6.80B21.8017.83%1.11%-4.95%36.95%
74
Outperform
£558.71M22.7418.87%1.60%3.13%24.54%
74
Outperform
£1.01B36.054.10%2.66%-6.95%-52.08%
73
Outperform
£629.01M12.7514.06%3.92%-1.26%6.56%
71
Outperform
£4.56B23.8816.16%2.18%-1.03%4.06%
65
Neutral
$11.04B15.744.60%2.11%3.27%-26.87%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
GB:BOY
Bodycote
636.50
-6.08
-0.95%
GB:GDWN
Goodwin
8,520.00
277.65
3.37%
GB:IMI
IMI plc
2,222.00
422.69
23.49%
GB:MGAM
Morgan Advanced Materials
232.00
-79.56
-25.54%
GB:SPX
Spirax Sarco Engineering
6,345.00
-2,294.65
-26.56%
GB:WEIR
Weir Group plc (The)
2,666.00
722.40
37.17%

Bodycote Corporate Events

Stock Buyback
Bodycote Extends Share Buyback Programme to £120 Million
Neutral
Jul 30, 2025

Bodycote plc has announced an extension to its share buyback programme, increasing the total allocation to £120 million. This move, executed through Jefferies International Limited, aims to reduce the company’s share capital by repurchasing and cancelling shares, potentially impacting market perceptions and 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.

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.

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 31, 2025