Speedy Hire (SDY) AI Stock Analysis

• Market Cap: £114.60M
• Dividend Yield: 8.43%
• Average Volume (3M): 942.26K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.20
• Revenue Growth: 0.38%
• EPS Growth: -273.53%
• Country: UK
• Employees: 3,394
• Sector: Industrials
• Sector Strength: 72
• Industry: Rental & Leasing Services
• EPS (TTM): -0.01
• Shares Outstanding: 461,841,980
• 10 Day Avg. Volume: 1,593,256
• 30 Day Avg. Volume: 942,258
• PEG Ratio: 0.57
• Price to Book (P/B): 0.54
• Price to Sales (P/S): 0.21
• P/FCF Ratio: 3.47
• 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: £79.00
• Price Target Upside: 212.87% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 56 Neutral
• Price Target: 28.00p ▲(10.89% Upside)

Speedy Hire's overall stock score is driven by financial challenges and a negative P/E ratio, offset by positive corporate events and a high dividend yield. Technical indicators suggest stability, but financial performance remains a concern.

Positive Factors

Stable Gross Profit Margin

A stable gross profit margin indicates consistent efficiency in managing production costs, which can support long-term profitability if revenue stabilizes.

Extensive Network of Branches

An extensive branch network enhances market reach and customer service, providing a competitive edge in the equipment rental market.

High Dividend Yield

A high dividend yield can attract investors seeking income, potentially supporting stock demand and providing shareholder returns.

Negative Factors

High Leverage

High leverage can strain financial flexibility and increase risk, particularly in downturns, impacting long-term financial stability.

Declining Revenue

Declining revenue suggests challenges in market demand or competitive positioning, which can hinder growth and profitability.

Negative Net Profit Margin

A negative net profit margin reflects operational inefficiencies and profitability issues, potentially affecting long-term viability.

Speedy Hire Business Overview & Revenue Model

Company Description

Speedy Hire (SDY) is a leading provider of equipment rental services in the United Kingdom, specializing in the construction, infrastructure, and industrial sectors. Established to meet the growing demand for high-quality equipment, Speedy Hire offers a wide range of products including tools, plant hire, and safety equipment. The company focuses on delivering efficient and reliable services to its customers, ensuring they have access to the necessary equipment to complete their projects on time and within budget.

How the Company Makes Money

Speedy Hire generates revenue primarily through the rental of equipment and tools to a diverse clientele, including construction companies, engineers, and industrial firms. The company charges rental fees based on the duration of equipment use, which is a core component of its revenue model. Additional revenue streams include the sale of consumables, accessories, and maintenance services for the rented equipment. Speedy Hire also benefits from long-term contracts with major clients, which provide a stable income and predictable cash flow. Strategic partnerships with manufacturers and suppliers enhance its inventory and service offerings, contributing to overall earnings.

Speedy Hire Financial Statement Overview

Summary

Speedy Hire faces financial challenges, with declining revenue and negative net income. High leverage and declining free cash flow growth exacerbate financial risks, despite a stable gross profit margin.

Income Statement

Speedy Hire's income statement reveals a mixed performance. The company has experienced a decline in revenue over the past year, with a 0% growth rate in the latest period. Gross profit margins remain healthy at around 56%, but the net profit margin has turned negative, indicating profitability challenges. The EBIT and EBITDA margins have also decreased, reflecting operational inefficiencies.

Balance Sheet

The balance sheet shows a high debt-to-equity ratio of 1.36, indicating significant leverage, which could pose financial stability risks. Return on equity has turned negative, highlighting profitability issues. However, the equity ratio remains stable, suggesting a balanced asset structure.

Cash Flow

Cash flow analysis indicates a decline in free cash flow growth, with a significant drop of nearly 19%. The operating cash flow to net income ratio is low, suggesting potential cash flow challenges. The free cash flow to net income ratio is relatively high, indicating some efficiency in converting income to cash.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	418.20M	416.60M	421.50M	440.60M	386.80M	332.30M
Gross Profit	235.20M	236.10M	230.00M	239.40M	221.10M	184.90M
EBITDA	74.90M	85.40M	88.00M	102.00M	101.90M	76.90M
Net Income	-11.70M	-1.10M	2.70M	1.20M	21.60M	9.50M
Balance Sheet
Total Assets	527.80M	513.00M	500.20M	476.40M	486.60M	439.90M
Cash, Cash Equivalents and Short-Term Investments	16.30M	2.10M	4.00M	1.10M	2.50M	11.70M
Total Debt	243.40M	221.10M	202.90M	179.60M	146.70M	110.70M
Total Liabilities	385.50M	350.80M	324.50M	291.80M	270.20M	220.70M
Stockholders Equity	142.30M	162.20M	175.70M	184.60M	216.40M	219.20M
Cash Flow
Free Cash Flow	15.50M	25.20M	41.70M	24.50M	-1.20M	42.70M
Operating Cash Flow	70.20M	33.40M	52.60M	88.30M	86.30M	90.30M
Investing Cash Flow	-36.20M	-4.60M	-24.20M	-51.30M	-80.80M	-20.60M
Financing Cash Flow	-24.60M	-29.50M	-25.40M	-38.00M	-15.90M	-81.30M

Speedy Hire Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 25.25
• 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:SDY, the sentiment is Negative. The current price of 25.25 is below the 20-day moving average (MA) of 26.03, below the 50-day MA of 26.24, and above the 200-day MA of 24.51, indicating a neutral trend. The MACD of -0.40 indicates Positive momentum. The RSI at 42.21 is Neutral, neither overbought nor oversold. The STOCH value of 32.58 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GB:SDY.

Speedy Hire Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AHT	77 Outperform	£21.64B	20.59	18.88%	1.71%	-3.66%	-9.01%
VP	70 Outperform	£207.17M	25.99	5.25%	7.52%	1.52%	―
ASY	69 Neutral	£209.29M	12.20	38.39%	5.18%	-3.57%	-0.80%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
SDY	56 Neutral	£114.60M	-9.65	-7.62%	8.43%	0.38%	-273.53%

Speedy Hire Corporate Events

Speedy Hire Reports Strategic Progress Amid Challenging Market Conditions

Speedy Hire Plc reported its interim results for the first half of FY2026, highlighting significant strategic progress despite challenging market conditions. The company has entered a transformational commercial agreement with ProService, expected to generate substantial revenue and earnings growth. Despite subdued markets, Speedy Hire has gained market share through long-term contract wins and strategic initiatives like the Velocity growth strategy. Financially, the company saw a slight revenue increase but faced a loss before tax due to higher interest costs and reduced hire revenues. The company remains optimistic about future growth, supported by recent contract wins and strategic partnerships.

Speedy Hire Completes Strategic Agreement with ProService

Speedy Hire PLC has completed a significant commercial agreement with ProService, marking a milestone in its Velocity growth strategy. The deal, expected to generate £50-55 million in annual revenue, is anticipated to be earnings accretive in its first full year, enhancing Speedy’s market position and operational capabilities.

Speedy Hire Strengthens Market Position with ProService Agreement

Speedy Hire plc has announced a significant commercial agreement with ProService, a UK building services marketplace, which includes Speedy acquiring a 9.99% stake in ProService. This transaction, pending final approvals, is expected to enhance Speedy’s market presence and operational capabilities in the building services sector.

Speedy Hire’s Director Purchases 200,000 Shares

Speedy Hire Plc announced a transaction involving the purchase of 200,000 ordinary shares by David Garman, a Non-Executive Director, at a price of £0.2915 per share, totaling £58,300. This transaction, conducted on the London Stock Exchange, may indicate confidence in the company’s future performance and could impact stakeholder perceptions positively.

Speedy Hire CFO and Associates Acquire Significant Shareholdings

Speedy Hire Plc announced transactions involving the purchase of shares by its Chief Financial Officer, Paul Rayner, and his closely associated persons, Claire Rayner and Robert Rayner. These transactions, conducted on the London Stock Exchange, reflect a significant acquisition of company shares, which may indicate confidence in the company’s future performance and could impact stakeholder perceptions positively.

Speedy Hire Chairman Purchases Company Shares

Speedy Hire Plc has announced a transaction involving its Non-Executive Chairman, David Shearer, who has purchased 250,000 ordinary shares of the company on the London Stock Exchange. This transaction, valued at £69,954.47, may indicate confidence in the company’s future performance and could impact stakeholder perceptions positively.

Speedy Hire Plc Directors Acquire Shares, Signaling Confidence

Speedy Hire Plc announced transactions involving the purchase of ordinary shares by Shatish Dasani, a Non-Executive Director, and Dina Dasani, a person closely associated with him. These transactions, conducted on the London Stock Exchange, involved the acquisition of 10,500 and 49,500 shares at prices of £0.276 and £0.278 respectively. This move may reflect confidence in the company’s market position and future prospects.

Speedy Hire Announces Transformational Agreement with ProService

Speedy Hire PLC has announced a significant commercial agreement with HSS ProService Limited, a subsidiary of HSS Hire Group, which will be renamed ProService Building Services Marketplace PLC. This agreement involves Speedy Asset Services acquiring certain assets and a 9.99% share in ProService, with a total consideration of £35 million funded from existing resources. The deal is expected to enhance Speedy’s earnings and operating margins significantly in the first full financial year, with a full payback anticipated within two to three years. The agreement aligns with Speedy’s Velocity growth strategy and is anticipated to provide substantial growth opportunities, including the addition of around 300 jobs. The transaction is set to complete by the end of 2025, with Speedy expecting to leverage its strong operating cash flow for meaningful deleveraging over the next 12-24 months.