Hercules Site Services Plc (HERC) AI Stock Analysis

• Market Cap: £41.10M
• Dividend Yield: 3.37%
• Average Volume (3M): 93.85K
• Price to Earnings (P/E): 28.7
• Beta (1Y): -0.09
• Revenue Growth: 11.70%
• EPS Growth: 79.80%
• Country: UK
• Employees: 758
• Sector: Industrials
• Sector Strength: 72
• Industry: Engineering & Construction
• EPS (TTM): 0.02
• Shares Outstanding: 80,585,540
• 10 Day Avg. Volume: 68,771
• 30 Day Avg. Volume: 93,849
• PEG Ratio: 0.05
• Price to Book (P/B): 2.38
• Price to Sales (P/S): 0.27
• P/FCF Ratio: 4.85
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 3.32
• Revenue Forecast (FY): £9.73B

• Rating: 60 Neutral
• Price Target: 39.00p ▼(-23.53% Downside)

The overall stock score of 60 reflects the company's strong revenue growth and improved cash flow management, offset by challenges in profitability and high leverage. Technical indicators suggest a bearish trend, while valuation metrics indicate moderate attractiveness with a decent dividend yield.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong demand for services and effective market positioning, supporting long-term business expansion.

Cash Flow Management

Improved cash flow management enhances financial stability and provides the company with flexibility to invest in growth opportunities.

Market Position

Strong market position and reputation for reliability ensure repeat business and long-term contracts, supporting sustained revenue streams.

Negative Factors

Profitability Challenges

Ongoing profitability challenges could limit reinvestment capabilities and affect long-term financial health if not addressed.

High Leverage

High leverage increases financial risk and can constrain future growth due to higher interest obligations and reduced financial flexibility.

Declining Gross Profit Margin

A declining gross profit margin suggests cost pressures that could erode profitability, impacting the company's ability to sustain margins long-term.

Hercules Site Services Plc Business Overview & Revenue Model

Company Description

Hercules Site Services Plc engages in general construction and civil engineering for construction industry. The company offers labour supply, as well as delivers civils projects; hires suction excavators and other plants; and provides digital solutions for construction recruitment and workforce management. It serves the general civil, highway, utility, power and energy, and railways sectors. The company was incorporated in 2008 and is based in Cirencester, the United Kingdom.

How the Company Makes Money

Hercules Site Services generates revenue primarily through its core offerings in labor supply and equipment rental. The company charges clients for skilled labor on a contract basis, which can include hourly rates or project-based fees, depending on the complexity and duration of the work. Additionally, HERC earns income from renting out construction equipment and machinery, which provides a steady stream of revenue as clients require these resources for varying project timelines. The company's partnerships with construction firms and its reputation for reliability also contribute to its earnings by ensuring repeat business and long-term contracts. Furthermore, HERC may benefit from government infrastructure projects and private sector investments in construction, which can lead to increased demand for its services.

Hercules Site Services Plc Financial Statement Overview

Summary

Hercules Site Services Plc has shown impressive revenue growth, but faces challenges with profitability and leverage. The improvement in cash flows is a positive sign, but maintaining sustainable profitability and reducing reliance on debt remain critical for future financial stability.

Income Statement

The company has shown consistent revenue growth over the years, with a notable increase from 2019 to 2024. However, the gross profit margin has been declining, and the company posted a net loss in 2024, indicating challenges in controlling costs and achieving profitability. The EBIT and EBITDA margins have shown some improvement, but profitability remains a concern.

Balance Sheet

The debt-to-equity ratio has improved, but remains relatively high, indicating leverage risk. The company's equity ratio suggests a moderate reliance on equity financing. Return on equity has been negative recently, reflecting the net loss, which poses a risk to investors.

Cash Flow

The company has demonstrated significant improvement in operating cash flows and free cash flow over the past year, indicating effective cash management. However, the reliance on financing activities for cash flow stability in earlier years highlights potential liquidity risks.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	107.73M	101.93M	84.66M	49.55M	32.75M	22.90M
Gross Profit	14.07M	14.97M	13.28M	9.78M	6.69M	4.25M
EBITDA	4.71M	4.37M	3.83M	1.75M	1.47M	1.47M
Net Income	1.34M	-1.67M	770.00K	320.85K	-56.20K	752.19K
Balance Sheet
Total Assets	42.00M	47.52M	47.68M	33.90M	19.35M	17.72M
Cash, Cash Equivalents and Short-Term Investments	9.80M	6.39M	4.15M	1.21M	1.74M	2.33M
Total Debt	14.30M	12.67M	26.94M	19.46M	10.69M	6.04M
Total Liabilities	28.70M	35.81M	39.03M	27.06M	15.91M	11.40M
Stockholders Equity	13.30M	11.71M	8.66M	6.84M	3.44M	6.32M
Cash Flow
Free Cash Flow	1.67M	5.75M	3.04M	-5.56M	-1.96M	3.22M
Operating Cash Flow	1.70M	6.07M	3.10M	-5.33M	-1.60M	3.45M
Investing Cash Flow	128.00K	-1.47M	-207.62K	289.35K	-338.12K	-192.04K
Financing Cash Flow	6.22M	-1.18M	48.10K	4.79M	1.39M	-2.22M

Hercules Site Services Plc Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 51.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:HERC, the sentiment is Positive. The current price of 51 is above the 20-day moving average (MA) of 45.32, above the 50-day MA of 40.64, and above the 200-day MA of 43.01, indicating a bullish trend. The MACD of 3.11 indicates Negative momentum. The RSI at 84.31 is Negative, neither overbought nor oversold. The STOCH value of 83.22 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:HERC.

Hercules Site Services Plc Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
RNWH	73 Outperform	£704.49M	14.43	19.85%	2.16%	7.13%	17.31%
BILN	70 Neutral	£43.02M	7.11	11.79%	7.35%	-25.56%	-42.49%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
HERC	60 Neutral	£41.10M	28.65	23.37%	3.37%	11.70%	79.80%
VANL	57 Neutral	£38.41M	20.64	5.90%	3.29%	-6.46%	-56.20%
NEXS	48 Neutral	£10.98M	-3.44	-10.69%	2.47%	-3.17%	69.15%

Hercules Site Services Plc Corporate Events

Hercules Site Services Announces Total Voting Rights

Hercules Site Services Plc has announced that its issued share capital consists of 80,585,543 Ordinary Shares with full voting rights. This figure is essential for shareholders to determine their notification requirements under the Financial Conduct Authority’s rules, impacting how they manage their investments in the company.

The most recent analyst rating on (GB:HERC) stock is a Hold with a £40.00 price target. To see the full list of analyst forecasts on Hercules Site Services Plc stock, see the GB:HERC Stock Forecast page.

Hercules plc Expands Power Sector Presence with Lyons Power Services Acquisition

Hercules plc has acquired a 70% stake in Lyons Power Services Ltd, a provider of power and energy infrastructure services, for £702,800. This acquisition is part of Hercules’ strategy to expand its service offerings and strengthen its position in the power and energy sector, aligning with the UK’s major electrical infrastructure upgrade plans. The acquisition follows Hercules’ earlier purchase of Advantage NRG Ltd, further cementing its presence in the sector and offering long-term growth opportunities.

The most recent analyst rating on (GB:HERC) stock is a Hold with a £49.00 price target. To see the full list of analyst forecasts on Hercules Site Services Plc stock, see the GB:HERC Stock Forecast page.

Hercules Site Services Plc Reports Record Year Amid UK Infrastructure Boom

Hercules Site Services Plc anticipates another record year with revenue expected to exceed £118 million, driven by increased investment in UK infrastructure. The company has strengthened its position through strategic acquisitions, including Advantage NRG, expanding into the power and energy sector. Hercules is well-positioned to benefit from major UK infrastructure projects, with a strong presence in nuclear, power, water, and rail sectors. The expansion of the Hercules Academy aims to address the skills shortage in the UK construction industry, further enhancing the company’s operational capabilities.

The most recent analyst rating on (GB:HERC) stock is a Hold with a £49.00 price target. To see the full list of analyst forecasts on Hercules Site Services Plc stock, see the GB:HERC Stock Forecast page.

Hercules Secures £6.5 Million in UK Water Sector Contracts

Hercules Site Services Plc has secured new contracts worth approximately £6.5 million in the UK water sector, highlighting its strong position as a trusted partner in this industry. These contracts come at a time of significant investment in the sector, with water utility companies expected to invest over £104 billion in environmental improvements and infrastructure upgrades during the current Asset Management Period (2025-2030). This development positions Hercules to potentially secure more contracts and expand its role in enhancing water and wastewater services across the UK.

The most recent analyst rating on (GB:HERC) stock is a Hold with a £49.00 price target. To see the full list of analyst forecasts on Hercules Site Services Plc stock, see the GB:HERC Stock Forecast page.