Severfield (SFR) AI Stock Analysis

• Market Cap: £91.36M
• Dividend Yield: 12.89%
• Average Volume (3M): 826.44K
• Price to Earnings (P/E): 32.4
• Beta (1Y): 1.13
• Revenue Growth: -2.71%
• EPS Growth: -188.37%
• Country: UK
• Employees: 1,900
• Sector: Industrials
• Sector Strength: 85
• Industry: Engineering & Construction
• EPS (TTM): -0.03
• Shares Outstanding: 296,181,980
• 10 Day Avg. Volume: 414,394
• 30 Day Avg. Volume: 826,437
• PEG Ratio: 0.00
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: 17.36% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 52 Neutral
• Price Target: 31.00p ▼(-0.32% Downside)

Severfield's overall stock score reflects significant financial challenges, particularly in cash flow and profitability. However, positive corporate events, including leadership changes, provide a potential catalyst for future growth. The technical analysis and valuation suggest a cautious outlook, with mixed signals from market indicators and a high dividend yield.

Positive Factors

Financial Flexibility

The Option Agreement reflects the Board's strategic planning and gives the group additional financial flexibility.

Order Book Growth

Order books are improved in both the UK/Europe and the Indian JV.

Recovery Potential

There is strong recovery potential at Severfield.

Negative Factors

Dividend Concerns

There is no final dividend, which might concern some investors.

Leadership Challenges

CEO Alan Dunsmore has mutually agreed with the Board to step down, indicating ongoing challenges for the company.

Market Conditions

End market conditions are tougher-than-expected, with tighter-than-expected pricing and project delays/cancellations.

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 presents a stable financial profile with a strong balance sheet and reasonable cash flow generation. While profitability metrics have shown some weaknesses, particularly in net income, the company maintains a healthy equity position which mitigates financial risks. The primary areas for improvement include enhancing revenue growth and stabilizing free cash flow.

Income Statement

Severfield has shown stable revenue with fluctuations over the years. The gross profit margin is healthy at approximately 21% for the latest year, although the net profit margin has decreased from previous years. There have been some declines in revenue growth rate, especially in the most recent year, which affects the overall score. EBIT and EBITDA margins are reasonable but show room for improvement.

Balance Sheet

The balance sheet reflects a strong equity position with an equity ratio of around 58%. The debt-to-equity ratio is low, indicating financial stability. Return on Equity (ROE) has shown a slight decline over the years, suggesting a need for improved profitability. Overall, the company's balance sheet is solid with manageable debt levels.

Cash Flow

Severfield's cash flow statement shows a positive operating cash flow, but free cash flow has seen a decline recently. The Free Cash Flow to Net Income Ratio is robust, indicating a strong ability to generate cash relative to its net income. However, the volatility in free cash flow growth rates suggests some challenges in cash flow management.

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: 31.10
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

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 31.1 is below the 20-day moving average (MA) of 32.20, below the 50-day MA of 34.88, and below the 200-day MA of 41.81, indicating a bearish trend. The MACD of -1.08 indicates Positive momentum. The RSI at 44.20 is Neutral, neither overbought nor oversold. The STOCH value of 28.25 is Neutral, 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	£46.82M	5.59	16.40%	6.76%	-14.67%	-19.63%
VANL	68 Neutral	£44.58M	23.95	5.90%	2.91%	-6.46%	-56.46%
Sector *	58 Neutral	HK$13.61B	5.40	-2.78%	5.74%	2.29%	-57.49%
SMJ	57 Neutral	£46.67M	29.85	1.28%	2.69%	15.39%	1240.00%
SFR	52 Neutral	£91.36M	32.43	-6.98%	12.89%	-2.71%	-188.37%
KINO	51 Neutral	$56.02M	9.42	470.34%	―	0.20%	79.77%
CLLN	―	£61.08M	―		―	―	―

Severfield Corporate Events

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.

Severfield Faces Tough Year but Secures Strong Order Book for Future Growth

Severfield PLC reported a challenging fiscal year ending March 2025, with a 3% decline in revenue to £450.9 million and a significant drop in underlying profit before tax by 50% to £18.1 million. Despite tough market conditions in the UK and Europe, the company has secured a diversified order book of £444 million, with strategic progress in India and a strong outlook for future growth, particularly in markets driving the green energy transition.

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 PLC Announces Change in Voting Rights

Severfield PLC, a company listed on the stock exchange, has announced a significant change in its voting rights structure. Perpetual Limited, based in Sydney, Australia, has increased its voting rights in Severfield to 12.026%, up from a previous position of 11.121%. This change in voting rights indicates a strategic move by Perpetual Limited, potentially impacting Severfield’s decision-making processes and its market positioning.

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 Secures Financial Flexibility with JSSL Option Agreement

Severfield plc has entered into a share purchase option agreement with JSW Steel Limited, allowing it to potentially sell up to 24.9% of its stake in their joint venture, JSSL, for up to £20 million. This agreement provides Severfield with financial flexibility, although there is no current intention to exercise the option. The joint venture remains strategically important for Severfield, which continues to see long-term value in the Indian market.

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 to Announce Annual Financial Results on 24 July 2025

Severfield plc, a leading structural steel group, will announce its financial results for the year ending 29 March 2025 on 24 July 2025. This announcement is significant for stakeholders as it provides insights into the company’s financial health and strategic direction, potentially impacting its market positioning and operations.

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 Updates Shareholders on Voting Rights and Share Capital

Severfield plc has announced an update regarding its voting rights and share capital. The company currently has 296,181,987 ordinary shares in issue, each granting one vote at general meetings, and no shares are held in treasury. This update is crucial for shareholders to calculate their interests in compliance with the FCA’s Disclosure and Transparency Rules.

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 PLC Announces Major Holdings Change

Severfield PLC, a company operating in the construction industry, has announced a change in its major holdings. Artemis Investment Management LLP, based in London, has crossed a threshold by acquiring a 5.026778% voting rights stake in Severfield as of May 20, 2025. This acquisition could potentially impact Severfield’s governance and decision-making processes, reflecting a significant interest from a prominent investment management firm.

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.