S4 Capital Plc (SFOR) AI Stock Analysis

• Market Cap: £137.83M
• Dividend Yield: 4.42%
• Average Volume (3M): 1.71M
• Price to Earnings (P/E): 99.9
• Beta (1Y): 2.24
• Revenue Growth: -16.14%
• EPS Growth: -5856.63%
• Country: UK
• Employees: 7,044
• Sector: Communication Services
• Sector Strength: 85
• Industry: Advertising Agencies
• EPS (TTM): 0.04
• Shares Outstanding: 613,636,660
• 10 Day Avg. Volume: 1,588,019
• 30 Day Avg. Volume: 1,713,371
• PEG Ratio: <0.01
• Price to Book (P/B): 0.25
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 2.68
• 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: £29.00
• Price Target Upside: 28.04% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 2

• Rating: 49 Neutral
• Price Target: 22.50p ▼(-0.66%Downside)

S4 Capital Plc's overall score reflects significant financial and technical challenges, particularly with declining revenues and bearish market signals. However, strategic initiatives and dividend yield provide some positive aspects. The company's ability to navigate market uncertainties and leverage its strategic moves will be crucial for future performance.

S4 Capital Plc Business Overview & Revenue Model

Company Description

S4 Capital plc, together with its subsidiaries, operates as a digital advertising and marketing services company in the Americas, Europe, the Middle East, Africa, and the Asia Pacific. It operates through three segments: Content, Data & Digital Media, and Technology Services. The company offers contents, campaigns, and assets for paid, social, and earned media, such as digital platforms and apps, as well as brand activations. It also provides campaign management analytics, creative production and ad serving, platform and systems integration and transition, and training and education services. In addition, the company offers digital transformation services in delivering digital product design, engineering services, and delivery services. S4 Capital plc is headquartered in London, the United Kingdom.

How the Company Makes Money

S4 Capital Plc generates revenue primarily through its digital marketing services, which include the creation and distribution of digital content, data-driven analytics, and media planning and buying. The company earns money by offering these services to a diverse range of clients, including multinational corporations and brands seeking to enhance their digital presence and engagement with consumers. A significant portion of its income comes from long-term contracts and project-based work in digital advertising and marketing. The company has established key partnerships with technology and media platforms to enhance its service offerings and leverage advanced technologies in data analytics and digital content production. Additionally, strategic acquisitions play a role in expanding S4 Capital's capabilities and geographical reach, contributing to its revenue growth.

S4 Capital Plc Financial Statement Overview

Summary

S4 Capital Plc faces significant financial instability, with declining revenues, negative net income, and high leverage. Despite these challenges, there is some positive cash flow generation recently.

Income Statement

S4 Capital Plc's revenue has shown significant volatility, with a decrease from 2023 to 2024. The gross profit margin has deteriorated, and the company is facing challenges with profitability, evidenced by negative net income and EBITDA margins. The consistent negative net profitability over the years indicates ongoing operational challenges.

Balance Sheet

The company's balance sheet shows a declining equity position and high leverage, with a debt-to-equity ratio that has been increasing over the years. Although the equity ratio remains reasonable, the high debt level poses a risk to financial stability. Return on equity is negative, reflecting the company's struggles with profitability.

Cash Flow

S4 Capital Plc's cash flow from operations has been inconsistent, with a return to positive free cash flow in 2024 after a negative figure in 2023. The operating cash flow to net income ratio is volatile, and the free cash flow to net income ratio indicates challenges in translating profits into cash flow.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	848.20M	1.01B	1.07B	686.60M	342.69M
Gross Profit	754.60M	873.20M	126.22M	91.27M	53.03M
EBITDA	-232.30M	94.00M	-54.10M	14.09M	45.85M
Net Income	-306.90M	-6.00M	-159.63M	-56.72M	-3.93M
Balance Sheet
Total Assets	1.45B	1.72B	1.94B	1.69B	1.17B
Cash, Cash Equivalents and Short-Term Investments	168.40M	145.70M	223.57M	301.02M	142.05M
Total Debt	349.90M	370.10M	385.30M	353.06M	119.40M
Total Liabilities	867.80M	854.00M	1.09B	884.43M	454.61M
Stockholders Equity	577.40M	865.80M	849.51M	801.14M	715.68M
Cash Flow
Free Cash Flow	53.10M	-18.70M	46.20M	34.52M	53.50M
Operating Cash Flow	57.10M	-10.70M	64.10M	49.09M	60.93M
Investing Cash Flow	-14.40M	-13.30M	-139.79M	-106.62M	-130.71M
Financing Cash Flow	-15.40M	-43.00M	-18.22M	213.96M	146.59M

S4 Capital Plc Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 22.65
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:SFOR, the sentiment is Negative. The current price of 22.65 is below the 20-day moving average (MA) of 24.55, below the 50-day MA of 25.08, and below the 200-day MA of 30.86, indicating a bearish trend. The MACD of -0.66 indicates Positive momentum. The RSI at 34.32 is Neutral, neither overbought nor oversold. The STOCH value of 13.09 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GB:SFOR.

S4 Capital Plc Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NFG	68 Neutral	£274.52M	6.82	23.38%	7.79%	-0.66%	-26.16%
SAA	67 Neutral	£233.93M	18.32	33.95%	0.74%	-12.89%	―
Sector *	62 Neutral	$40.93B	-1.67	-12.06%	3.96%	2.10%	-69.66%
YOU	62 Neutral	£373.57M	277.88	0.70%	2.82%	42.19%	-94.16%
WPP	61 Neutral	£4.44B	8.22	15.82%	11.85%	-0.70%	388.07%
CAU	60 Neutral	£47.82M	9.61	-24.72%	7.27%	-5.93%	―
SFOR	49 Neutral	£137.83M	99.88	-42.53%	4.42%	-16.14%	-5856.63%

S4 Capital Plc Corporate Events

S4 Capital Announces Board Change as Sue Prevezer Steps Down

S4 Capital Plc announced the resignation of Non-Executive Director Sue Prevezer, who is stepping down to focus on her arbitration and mediation practice. Nirvik Singh will take over as Chair of the Nomination and Remuneration Committee. This change reflects the company’s ongoing evolution and commitment to leadership transitions, potentially impacting its strategic direction.

The most recent analyst rating on (GB:SFOR) stock is a Hold with a £0.44 price target. To see the full list of analyst forecasts on S4 Capital Plc stock, see the GB:SFOR Stock Forecast page.

S4 Capital Secures Shareholder Approval at 2025 AGM

S4 Capital Plc announced that all resolutions proposed at its 2025 Annual General Meeting were approved by shareholders. The resolutions included re-elections of directors, approval of remuneration policies, and authorization for share allotment and purchase. The successful passing of these resolutions reflects strong shareholder support and positions the company to continue its strategic focus on digital advertising and marketing services. This outcome is likely to enhance S4 Capital’s operational stability and market positioning, benefiting stakeholders by aligning with the company’s growth objectives.

The most recent analyst rating on (GB:SFOR) stock is a Hold with a £0.44 price target. To see the full list of analyst forecasts on S4 Capital Plc stock, see the GB:SFOR Stock Forecast page.

S4 Capital Projects Resilient Performance Amid Global Challenges

S4 Capital Plc announced that its full-year like-for-like net revenue is expected to decline slightly, with Marketing Services only slightly down and Technology Services affected by a major client’s reduced spending, which is expected to recover in the second half of the year. Despite challenging global macroeconomic conditions, the company has improved liquidity, reduced net debt by 30%, and maintained its operational EBITDA target. S4 Capital is optimistic about the second half of 2025, driven by new business wins with major clients like General Motors, Amazon, and T-Mobile, and the growing impact of its AI initiatives on efficiency and client engagement.

The most recent analyst rating on (GB:SFOR) stock is a Hold with a £0.44 price target. To see the full list of analyst forecasts on S4 Capital Plc stock, see the GB:SFOR Stock Forecast page.

S4 Capital Aligns Executive Incentives with Shareholder Interests

S4 Capital Plc announced the issuance of Long-Term Incentive Plan (LTIP) awards to key executives under its Employee Share Ownership Plan, aiming to align their interests with shareholders. These awards, including market-priced options and conditional share awards, are designed to incentivize leadership and ensure continued employment, with additional awards granted to newly appointed CFO Radhika Radhakrishnan to strengthen her stake in the company.

The most recent analyst rating on (GB:SFOR) stock is a Hold with a £0.44 price target. To see the full list of analyst forecasts on S4 Capital Plc stock, see the GB:SFOR Stock Forecast page.

S4 Capital Announces 2025 AGM Details

S4 Capital plc has announced the publication of its Notice of Annual General Meeting (AGM) 2025, which will be held on June 4, 2025, in London and broadcast live for electronic participation. This announcement is part of the company’s compliance with UK Financial Conduct Authority’s listing rules, allowing shareholders to access the AGM Notice and Proxy Form for inspection. The AGM is a significant event for stakeholders, providing an opportunity to engage with the company’s strategic direction and operational updates.

S4 Capital Faces Q1 Revenue Decline Amidst Global Economic Challenges

S4 Capital Plc reported a challenging first quarter with a decline in net revenue due to cautious spending by technology clients and macroeconomic volatility. Despite these challenges, the company maintained its full-year financial targets and improved its liquidity and cash flow. S4 Capital is focusing on larger client relationships and AI adoption to drive efficiency and expects better performance in the second half of the year.

S4 Capital Strengthens Leadership with Key Appointments

S4 Capital Plc has announced the appointment of Radhika Radhakrishnan as Chief Financial Officer and Nirvik Singh as an Independent Non-Executive Director, effective May 1, 2025. Radhika, with extensive experience in the advertising and marketing industry, succeeds Mary Basterfield, who is stepping down. Nirvik Singh brings a wealth of experience from his previous roles at Grey Group and other companies, enhancing S4 Capital’s strategic positioning in the industry. These appointments are expected to strengthen the company’s leadership and support its focus on AI and digital solutions, positioning it to capitalize on industry opportunities.

S4 Capital to Announce Q1 Trading Update on May 8, 2025

S4 Capital plc has announced that it will release its Q1 trading update on May 8, 2025. The company will host webcasts and conference calls to discuss the update, reflecting its commitment to transparency and stakeholder engagement. This announcement is part of S4 Capital’s ongoing efforts to strengthen its position in the digital advertising and marketing industry, leveraging its global presence and expertise in technology services.