Severfield (SFR) AI Stock Analysis

• Market Cap: £89.90M
• Dividend Yield: 12.09%
• Average Volume (3M): 511.06K
• Price to Earnings (P/E): 32.4
• Beta (1Y): 1.19
• Revenue Growth: -2.71%
• EPS Growth: -190.31%
• Country: UK
• Employees: 1,900
• Sector: Industrials
• Sector Strength: 72
• Industry: Engineering & Construction
• EPS (TTM): -0.03
• Shares Outstanding: 296,181,980
• 10 Day Avg. Volume: 561,965
• 30 Day Avg. Volume: 511,059
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: £36.50
• Price Target Upside: 19.28% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 50 Neutral
• Price Target: 32.00p ▲(4.58% Upside)

Severfield's overall stock score reflects significant financial challenges, particularly in revenue and cash flow, which are the most impactful factors. Technical analysis shows bearish momentum, and while the high dividend yield is a positive, the negative P/E ratio raises concerns. The absence of earnings call data and corporate events limits additional insights.

Positive Factors

Strong Market Presence

Severfield's strategic partnerships and involvement in high-profile projects strengthen its market position, potentially leading to repeat business and sustained revenue streams.

Sustainable Solutions

Focus on sustainability and innovation aligns with industry trends towards eco-friendly construction, potentially attracting more clients and projects.

Stable Balance Sheet

A stable balance sheet with manageable leverage provides financial flexibility, supporting long-term operational stability and growth opportunities.

Negative Factors

Revenue Decline

Declining revenue growth indicates potential challenges in market demand or competitive positioning, impacting future profitability and expansion.

Negative Profit Margins

Negative profit margins highlight operational inefficiencies, which can erode profitability and hinder the company's ability to reinvest in growth.

Cash Flow Challenges

Severe cash flow challenges limit the company's ability to fund operations and investments, posing a risk to financial health and strategic initiatives.

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 generates revenue primarily through its core business of providing structural steelwork services. The company earns money by bidding for and securing contracts for large-scale construction projects, which include the production and installation of steel components for buildings and infrastructure. Key revenue streams come from various sectors such as commercial construction, where they provide steel frameworks for offices and retail spaces, and infrastructure projects, including bridges and transportation networks. Severfield also benefits from ongoing maintenance and refurbishment contracts, which provide a steady income stream. Significant partnerships with major construction firms and involvement in high-profile projects enhance their market presence and can lead to repeat business, further contributing to their earnings.

Severfield Financial Statement Overview

Summary

Severfield's financial performance is challenged by declining revenues and profitability, with a negative net profit margin and significant cash flow issues. The balance sheet is stable but shows room for improvement in asset utilization.

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	500.46M	450.91M	463.46M	491.75M	403.56M	363.25M
Gross Profit	211.73M	219.53M	97.46M	73.84M	51.56M	63.14M
EBITDA	21.33M	-877.00K	41.07M	38.55M	33.09M	31.13M
Net Income	3.29M	-14.09M	15.90M	21.57M	15.60M	17.30M
Balance Sheet
Total Assets	387.92M	400.90M	378.41M	369.67M	375.48M	342.50M
Cash, Cash Equivalents and Short-Term Investments	9.42M	15.52M	13.80M	11.34M	0.00	24.98M
Total Debt	39.58M	79.26M	42.48M	22.35M	26.49M	31.86M
Total Liabilities	181.27M	217.94M	157.66M	151.95M	171.52M	151.57M
Stockholders Equity	206.65M	182.96M	220.75M	217.72M	203.96M	190.93M
Cash Flow
Free Cash Flow	11.50M	-8.35M	33.81M	41.33M	-12.13M	18.03M
Operating Cash Flow	20.56M	-522.00K	45.14M	47.80M	-6.74M	24.65M
Investing Cash Flow	-11.43M	-7.04M	-37.45M	-14.69M	-5.54M	-26.45M
Financing Cash Flow	-26.46M	12.69M	-8.63M	-17.80M	-16.68M	-17.56M

Severfield Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 30.60
• 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 30.6 is below the 20-day moving average (MA) of 32.06, below the 50-day MA of 32.20, and below the 200-day MA of 35.43, indicating a bearish trend. The MACD of -0.38 indicates Positive momentum. The RSI at 39.35 is Neutral, neither overbought nor oversold. The STOCH value of 18.55 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
BILN	74 Outperform	£41.76M	4.99	15.60%	7.58%	-14.67%	-19.63%
VANL	61 Neutral	£36.79M	19.77	3.38%	3.53%	-6.46%	-56.20%
SMJ	57 Neutral	£51.47M	32.96	―	2.44%	15.39%	1240.00%
SFR	50 Neutral	£89.90M	32.43	-6.98%	12.09%	-2.71%	-190.31%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

Severfield Corporate Events

Severfield Announces CFO Departure and Strategic Focus

Severfield plc announced that Adam Semple will step down as Chief Financial Officer at the end of October 2025 after nearly eight years in the role. The company is in the process of appointing a successor, with interim arrangements being finalized. Under new leadership, Severfield remains focused on maintaining its market-leading position in the UK and expanding its presence in Europe and India, aiming for strategic progress in manufacturing efficiency and project delivery to ensure long-term growth and shareholder returns.

The most recent analyst rating on (GB:SFR) stock is a Hold with a £32.00 price target. To see the full list of analyst forecasts on Severfield stock, see the GB:SFR Stock Forecast page.

Severfield PLC Announces Successful AGM Resolutions

Severfield PLC announced the successful passage of all resolutions at its Annual General Meeting held on 2 September 2025. Key resolutions included the adoption of annual accounts, approval of directors’ remuneration, and the reappointment of directors and auditors. The approval of these resolutions reflects strong shareholder support and positions the company for continued stability and growth in the coming year.

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 Reports Stable Trading and Strong Order Books

Severfield plc announced that its trading is in line with expectations, with no changes in market conditions since the FY25 results. The company’s financial position remains strong, supported by an extended £60m Revolving Credit Facility and a focus on cash generation. The UK and Europe order book is robust, with £420m in orders, while the Indian market shows strong growth with a record order book of £252m. The bridge remedial works program is progressing as expected, and the company has received a £20m insurance recovery. Severfield will release its half-year financial results on 25 November 2025.

The most recent analyst rating on (GB:SFR) stock is a Hold with a £33.00 price target. To see the full list of analyst forecasts on Severfield stock, see the GB:SFR Stock Forecast page.

Severfield Appoints New CEO to Lead Growth and Innovation

Severfield plc has appointed Paul McNerney as its new Chief Executive Officer, effective in the autumn. McNerney brings over 25 years of leadership experience in the construction and engineering sector, notably from Laing O’Rourke, where he led significant projects and drove transformation and growth. His appointment is expected to guide Severfield through its rebuilding process and into a new phase of growth and innovation, enhancing its market leadership and long-term success.

The most recent analyst rating on (GB:SFR) stock is a Buy with a £122.00 price target. To see the full list of analyst forecasts on Severfield stock, see the GB:SFR Stock Forecast page.

Severfield Awards Deferred Bonus Shares to Key Executive

Severfield plc announced the grant of deferred bonus share awards to Mark Sanderson, the Legal Director and Company Secretary, under the company’s Deferred Share Bonus Plan. This award, comprising 31,013 shares, is part of the bonus entitlement for the financial year ending March 2025 and is exercisable between 3 and 10 years, reflecting Severfield’s commitment to rewarding its key personnel and aligning their interests with long-term company performance.

The most recent analyst rating on (GB:SFR) stock is a Buy with a £122.00 price target. To see the full list of analyst forecasts on Severfield stock, see the GB:SFR Stock Forecast page.

Severfield Announces Share Option Vesting and Exercise

Severfield plc announced the vesting and exercise of nil cost share options under its Deferred Share Bonus Plan, which were granted in June 2022 as part of bonuses earned in 2021/22. The exercise of these options, settled on July 28, 2025, involved directors receiving cash payments or shares, depending on their choice to sell or retain their shares, impacting the company’s financial operations and shareholder value.

The most recent analyst rating on (GB:SFR) stock is a Buy with a £122.00 price target. To see the full list of analyst forecasts on Severfield stock, see the GB:SFR Stock Forecast page.

Severfield Maintains Guidance Amid Challenging Market Conditions

Severfield PLC, a prominent player in the construction and engineering industry, has commissioned Progressive Equity Research to provide ongoing research coverage. The latest research note indicates that Severfield’s financial year 2025 results were robust, despite a halving in underlying profit before tax due to challenging market conditions. The company has maintained its full-year guidance for FY26, despite expectations of continued contract delays and tough price competition. Tendering activity has shown recent improvement, prompting an upward revision of estimates for FY27, although these remain conservative.

The most recent analyst rating on (GB:SFR) stock is a Buy with a £122.00 price target. To see the full list of analyst forecasts on Severfield stock, see the GB:SFR Stock Forecast page.