Speedy Hire (SDY) AI Stock Analysis

• Market Cap: £130.93M
• Dividend Yield: 11.25%
• Average Volume (3M): 806.81K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.64
• Revenue Growth: -4.08%
• EPS Growth: 29.90%
• Country: UK
• Employees: 3,394
• Sector: Industrials
• Sector Strength: 86
• Industry: Rental & Leasing Services
• EPS (TTM): <0.01
• Shares Outstanding: 461,841,980
• 10 Day Avg. Volume: 1,301,660
• 30 Day Avg. Volume: 806,808
• PEG Ratio: -1.46
• Price to Book (P/B): 0.89
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 6.70
• 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: £70.00
• Price Target Upside: 140.14% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 64 Neutral
• Price Target: ―

Speedy Hire's overall stock score is driven by strengths in cash flow management and insider confidence as evidenced by recent share purchases. However, the negative P/E ratio and increased leverage present significant risks. The technical analysis suggests caution with potential bearish trends, while high dividend yield could provide some investor appeal.

Speedy Hire Business Overview & Revenue Model

Company Description

Speedy Hire (SDY) is a leading provider of tools, equipment, and plant hire services in the United Kingdom and Ireland. The company caters to various sectors, including construction, infrastructure, industrial, and events. Speedy Hire offers a comprehensive range of products and services, including equipment rental, training, testing, and asset management, tailored to meet the diverse needs of its customers.

How the Company Makes Money

Speedy Hire generates revenue primarily through the rental of tools, equipment, and plant machinery to businesses across multiple sectors. The company's key revenue streams include short-term and long-term hire agreements for its extensive inventory of equipment. In addition to rental income, Speedy Hire earns money through complementary services such as equipment sales, maintenance, training, and asset management solutions. Strategic partnerships with equipment manufacturers and suppliers also play a crucial role in optimizing inventory and ensuring a steady flow of high-demand products, further contributing to the company's earnings. The company leverages its expansive depot network and digital platform to enhance customer reach and operational efficiency.

Speedy Hire Financial Statement Overview

Summary

Speedy Hire displays a reasonable financial position with strengths in cash flow management and gross profit margins. However, challenges in net income growth and increased leverage are areas of concern. Continued focus on improving operational efficiency and revenue growth will be crucial for enhancing financial health.

Income Statement

The income statement reflects mixed results. Gross profit margin is strong, indicating effective cost management. However, net profit margin is quite low, driven by a significant decline in net income compared to previous years. Revenue growth has also been inconsistent, with a recent decline. The EBIT and EBITDA margins show some stability, but the drop in EBIT indicates potential challenges in operational efficiency.

Balance Sheet

The balance sheet reveals moderate financial stability. The debt-to-equity ratio has increased, suggesting higher leverage which could pose risks if earnings do not improve. Return on equity is low due to declining net income, impacting shareholders' returns. The equity ratio is stable, indicating that a sizable portion of assets is financed by equity.

Cash Flow

Cash flow statements show robust operating cash flow, which is positive for sustainability. Free cash flow has demonstrated growth, although the magnitude is modest. The operating cash flow to net income ratio is strong, highlighting efficient cash generation from operations despite low net income.

Breakdown	TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement
Total Revenue	416.60M	421.50M	440.60M	386.80M	332.30M	371.50M
Gross Profit	230.70M	230.00M	239.40M	221.10M	184.90M	214.30M
EBITDA	60.10M	85.50M	102.00M	98.90M	76.90M	113.00M
Net Income	-3.10M	2.70M	1.20M	21.60M	9.50M	16.80M
Balance Sheet
Total Assets	504.60M	500.20M	476.40M	486.60M	439.90M	490.80M
Cash, Cash Equivalents and Short-Term Investments	1.40M	4.00M	1.10M	2.50M	11.70M	22.80M
Total Debt	207.60M	202.90M	179.60M	146.70M	110.70M	175.00M
Total Liabilities	340.00M	324.50M	291.80M	270.20M	220.70M	280.90M
Stockholders Equity	164.60M	175.70M	184.60M	216.40M	219.20M	209.90M
Cash Flow
Free Cash Flow	31.10M	41.70M	24.50M	-1.20M	42.70M	28.00M
Operating Cash Flow	41.80M	52.60M	88.30M	86.30M	90.30M	90.60M
Investing Cash Flow	-25.10M	-24.20M	-51.30M	-80.80M	-20.60M	-45.40M
Financing Cash Flow	-16.80M	-25.40M	-38.00M	-15.90M	-81.30M	-32.80M

Speedy Hire Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 29.15
• 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:SDY, the sentiment is Positive. The current price of 29.15 is above the 20-day moving average (MA) of 26.43, above the 50-day MA of 24.14, and above the 200-day MA of 26.33, indicating a bullish trend. The MACD of 1.21 indicates Negative momentum. The RSI at 71.09 is Negative, neither overbought nor oversold. The STOCH value of 93.58 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:SDY.

Speedy Hire Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BBY	80 Outperform	£2.60B	15.32	15.35%	3.32%	3.02%	-3.23%
SRP	75 Outperform	£2.08B	49.16	4.71%	2.05%	-0.68%	-78.93%
COST	73 Outperform	£400.77M	13.05	13.45%	2.70%	-6.07%	41.18%
ASHM	70 Outperform	£1.05B	14.61	8.62%	0.12%	0.82%	-26.44%
RTO	68 Neutral	£9.02B	29.45	7.38%	2.44%	1.13%	-19.48%
Sector *	68 Neutral	£2.96B	10.48	8.40%	3.16%	2.88%	-10.00%
SDY	64 Neutral	£130.93M	―	-0.65%	11.25%	-4.08%	29.90%

Speedy Hire Corporate Events

Speedy Hire Reports Robust FY2025 Performance and Secures New Refinancing

Speedy Hire Plc has reported a robust trading performance for the fiscal year ending March 31, 2025, despite challenging market conditions. The company experienced marginal growth in hire revenue, impacted by economic conditions and slower growth in the Trade & Retail sector. However, it remains optimistic about future opportunities, particularly with government infrastructure programs and new multi-year contracts. The company has also refinanced its borrowings, enhancing its financial flexibility with a new £225m facility, comprising a revolving credit facility and a private placement term loan, to support its growth strategy.

Spark’s Take on GB:SDY Stock

According to Spark, TipRanks’ AI Analyst, GB:SDY is a Neutral.

Speedy Hire’s overall stock score reflects mixed financial performance with strong cash flow management but challenges in income growth and leverage. The technical analysis points to a bearish trend, while the valuation shows potential unprofitability concerns. However, insider confidence through share purchases adds a positive note, suggesting potential future improvements.

To see Spark’s full report on GB:SDY stock, click here.

Speedy Hire PLC Announces Change in Major Holdings

Speedy Hire PLC announced a change in major holdings as Martin Currie Investment Management Limited has adjusted its stake in the company. The voting rights held by Martin Currie decreased from 5.01% to 4.92%, indicating a slight reduction in their investment. This change may impact how stakeholders perceive the company’s market standing and could influence future shareholder decisions.

Speedy Hire CFO and Associates Increase Stake with Share Purchases

Speedy Hire Plc announced the purchase of ordinary shares by its Chief Financial Officer, Paul Rayner, and his closely associated persons, Claire and Robert Rayner. The transactions, conducted on February 6, 2025, at the London Stock Exchange, reflect a total acquisition of 50,000 shares, signaling a consolidated investment in the company, which could indicate confidence in its market position and future prospects.