Severfield (SFR) AI Stock Analysis

• Market Cap: £73.74M
• Dividend Yield: 13.07%
• Average Volume (3M): 482.84K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.19
• Revenue Growth: -19.13%
• EPS Growth: -581.31%
• Country: UK
• Employees: 1,900
• Sector: Industrials
• Sector Strength: 72
• Industry: Engineering & Construction
• EPS (TTM): <0.01
• Shares Outstanding: 296,181,980
• 10 Day Avg. Volume: 415,940
• 30 Day Avg. Volume: 482,842
• PEG Ratio: 0.02
• Price to Book (P/B): 0.33
• Price to Sales (P/S): 0.13
• P/FCF Ratio: -7.19
• 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: £41.00
• Price Target Upside: 63.35% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): 0.03
• Revenue Forecast (FY): £445.17M

• Rating: 54 Neutral
• Price Target: 26.00 p ▲(3.59% Upside)
• Action: Reiterated Date: 12/07/25
• Date: Action: Reiterated 12/07/25

Severfield's overall stock score reflects a challenging financial environment with declining revenues and profitability. While technical indicators and corporate events provide some positive signals, the negative valuation metrics and liquidity concerns weigh heavily on the score. The high dividend yield and strategic alignment of managerial incentives offer some optimism for future improvements.

Positive Factors

Integrated business model

Severfield's end-to-end model (engineering, offsite fabrication, logistics and on-site erection) captures multiple value points across projects. This integration builds customer stickiness, spreads fixed costs across activities and supports stable contract margins over several months as projects progress.

Manageable leverage

A moderate debt-to-equity ratio and ~45.6% equity ratio indicate capital structure headroom. That leverage profile supports access to bonding and project finance, helps absorb cyclical swings in construction demand, and preserves capacity to invest in capacity or working capital in the medium term.

Improved gross margin

A near-49% gross margin indicates effective cost control in fabrication and procurement. Higher gross margins create a buffer against project overruns and pricing pressure, improving the company's ability to restore positive operating profitability as revenue trends stabilize over coming months.

Negative Factors

Declining revenue & profitability

Sustained top-line contraction and negative operating/net margins erode scale benefits in fabrication and erection. Continued revenue weakness reduces utilization of fixed-capacity, pressures margins further, and constrains reinvestment into business improvement over a 2-6 month horizon.

Severe cash flow strain

A dramatic fall in free cash flow and negative operating cash conversion create near-term liquidity risk. This raises the likelihood of increased working-capital financing, delayed supplier payments or curtailed capex, all of which can impair execution on multi-month projects and competitive bidding ability.

Negative return on equity

A negative ROE shows the company is destroying shareholder capital rather than generating returns. Over time this undermines retained earnings growth and limits self-funding for equipment or margin-improvement initiatives, weakening long-term financial resilience and strategic flexibility.

Severfield Business Overview & Revenue Model

Company Description

Severfield plc, a structural steelwork company, engages in the designing, manufacturing, fabrication, construction, and erection of steelwork activities in the United Kingdom, Republic of Ireland, Mainland Europe, and India. The company manufactures metal decking products; plate girder sections, rectangular and/or circular apertures, optimal section profiles, and intumescent coating products. It also provides steel-framed modular equipment rooms and housing; steelworks, including the main structure, mezzanines, stairs, balustrade, and platforms; staircase fabrication; composite and non-composite plain and cellular beams; and offload and edge protection systems, as well as delivers constructional steel products. The company provides its services for various projects, such as industrial and distribution, nuclear, health and education, commercial offices, power and energy, stadia and leisure, retail, transport, data centers, and process industries. It serves contractors, developers, engineers, and architects. The company was formerly known as Severfield–Rowen plc and changed its name to Severfield plc in May 2014. The company was founded in 1978 and is headquartered in Thirsk, the United Kingdom.

How the Company Makes Money

Severfield makes money primarily by delivering structural steelwork packages for construction and infrastructure projects under contract. Revenue is generated from project-based contracts that bundle some or all of the following: (1) design/engineering and detailing services (translating project requirements into fabrication-ready specifications), (2) fabrication of structural steel components in its manufacturing facilities, (3) logistics and site operations including erection/installation of the steel frame, and (4) associated project management and delivery services. The company is typically paid based on agreed contract terms tied to project milestones and progress (with cash flows influenced by timing of fabrication and site installation). Earnings are driven by the volume and mix of projects secured (order book), pricing and contract execution (including productivity and cost control in fabrication and erection), and market demand in UK construction and infrastructure. Specific details on material partnerships, customer concentration, or segment-level revenue breakdowns are null.

Severfield Financial Statement Overview

Summary

Severfield's financial performance is under pressure with declining revenues and profitability. The income statement shows a negative net profit margin and EBIT margin, while cash flow analysis indicates severe liquidity challenges. Despite a stable balance sheet, the overall financial health is concerning.

Income Statement

Severfield's income statement reveals a challenging year with a significant decline in revenue and profitability. The gross profit margin improved to 48.7% in the latest period, indicating better cost management. However, the net profit margin turned negative at -3.1%, reflecting operational inefficiencies and a negative EBIT margin of -3.0%. Revenue growth has been negative, showing a decline of 9.9% compared to the previous year, which is concerning for future prospects.

Balance Sheet

The balance sheet shows a moderate debt-to-equity ratio of 0.43, indicating manageable leverage. However, the return on equity is negative at -7.7%, highlighting challenges in generating returns for shareholders. The equity ratio stands at 45.6%, suggesting a stable capital structure but with room for improvement in asset utilization.

Cash Flow

Cash flow analysis indicates severe challenges, with a significant decline in free cash flow growth at -172.6%. The operating cash flow to net income ratio is negative, reflecting operational cash flow issues. Despite a high free cash flow to net income ratio, the overall cash flow position is weak, raising concerns about liquidity.

Breakdown	TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement
Total Revenue	404.71M	450.91M	463.46M	491.75M	403.56M	363.25M
Gross Profit	197.81M	219.53M	97.46M	73.84M	51.56M	63.14M
EBITDA	-24.68M	-877.00K	41.07M	40.39M	34.44M	31.13M
Net Income	-15.39M	-14.09M	15.90M	21.57M	15.60M	17.30M
Balance Sheet
Total Assets	379.68M	400.90M	378.41M	369.67M	375.48M	342.50M
Cash, Cash Equivalents and Short-Term Investments	31.96M	15.52M	13.80M	11.34M	0.00	24.98M
Total Debt	73.41M	79.26M	42.48M	22.35M	26.49M	31.86M
Total Liabilities	203.49M	217.94M	157.66M	151.95M	171.52M	151.57M
Stockholders Equity	176.19M	182.96M	220.75M	217.72M	203.96M	190.93M
Cash Flow
Free Cash Flow	8.33M	-8.35M	33.81M	41.33M	-12.13M	18.03M
Operating Cash Flow	14.70M	-522.00K	45.14M	47.80M	-6.74M	24.65M
Investing Cash Flow	-2.49M	-7.04M	-37.45M	-14.69M	-5.54M	-26.45M
Financing Cash Flow	16.70M	12.69M	-8.63M	-17.80M	-16.68M	-17.56M

Severfield Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 25.10
• 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:SFR, the sentiment is Negative. The current price of 25.1 is below the 20-day moving average (MA) of 28.55, below the 50-day MA of 28.87, and below the 200-day MA of 30.82, indicating a bearish trend. The MACD of -0.96 indicates Positive momentum. The RSI at 33.62 is Neutral, neither overbought nor oversold. The STOCH value of 1.65 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GB:SFR.

Severfield Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
COST	78 Outperform	£486.73M	11.49	13.06%	1.88%	-12.98%	5.51%
GFRD	72 Outperform	£501.42M	7.10	27.48%	3.65%	5.78%	-6.80%
BILN	70 Neutral	£44.92M	10.36	11.64%	7.35%	-25.56%	-42.49%
SMJ	68 Neutral	£46.59M	9.18	4.00%	2.45%	5.54%	209.72%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
VANL	57 Neutral	£37.33M	2,272.39	0.90%	3.29%	-6.46%	-56.20%
SFR	54 Neutral	£73.74M	-3.98	-8.57%	13.07%	-19.13%	-581.31%

Severfield Corporate Events

Severfield Grants CEO Performance-Linked Share Award After Delayed Disclosure

Severfield has disclosed that CEO Paul McNerney received a conditional award of 1,843,972 ordinary shares under the company’s Performance Share Plan, following an administrative delay in notifying the market. The award, made on 7 January 2026 at nil cost, is scheduled to vest in June 2028 subject to performance and service conditions.

The vesting will depend on earnings per share and return on capital employed targets for the year ending 31 March 2028, as well as progress on five transformational objectives focused on market prioritisation, manufacturing, and project delivery. The structure of the award ties executive remuneration closely to profitability, capital efficiency, and operational transformation, aligning management incentives with shareholder and strategic priorities.

The most recent analyst rating on (GB:SFR) stock is a Hold with a £30.00 price target. To see the full list of analyst forecasts on Severfield stock, see the GB:SFR Stock Forecast page.

Severfield names Andrew Page as new CFO to drive long-term growth

Severfield has appointed Andrew Page as Chief Financial Officer and Executive Director, effective 16 February 2026, following a board-led search to replace interim CFO Jan Bramall. Page brings extensive senior finance experience from construction and other UK-listed companies, and is expected to play a key role in the group’s ongoing transformation and long-term growth strategy.

The company also disclosed, under UK Listing Rules, that Page has been a director of several entities within the ISG Group which ceased trading in September 2024 and are now in administration or liquidation. Severfield emphasised there are no further matters requiring disclosure beyond these ISG directorships, while expressing thanks to Bramall for her contribution as interim CFO.

The most recent analyst rating on (GB:SFR) stock is a Buy with a £41.00 price target. To see the full list of analyst forecasts on Severfield stock, see the GB:SFR Stock Forecast page.

Severfield Shuts Modular Solutions Unit to Refocus on Core Steel Operations

Severfield plc has decided to discontinue its Modular Solutions business after a strategic review by new leadership concluded that the unit is sub-scale and non-core, following a period of more challenging trading for both the business and the wider modular market. The decision excludes the Construction Metal Forming joint venture, which will continue to operate, and Severfield is working with affected stakeholders to minimise impacts on employees while refocusing on its core structural steelwork operations, supported by a diversified £479m order book and with no expected change to guidance for underlying profit before tax or net debt in FY26, nor any material cash impact from the closure.

The most recent analyst rating on (GB:SFR) stock is a Hold with a £30.00 price target. To see the full list of analyst forecasts on Severfield stock, see the GB:SFR Stock Forecast page.