Severfield (SFR) AI Stock Analysis

• Market Cap: £85.19M
• Dividend Yield: 13.07%
• Average Volume (3M): 482.84K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.10
• 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: 41.38% 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: 33.00p ▲(13.79% 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

Market Position

Severfield's leadership in the structural steelwork industry in the UK provides a competitive advantage, enabling it to secure high-profile projects and maintain strong relationships with major construction firms, which can lead to repeat business and sustained revenue streams.

Business Model Strength

The company's focus on structural steelwork services across diverse sectors like commercial, industrial, and infrastructure ensures a diversified revenue base, reducing dependency on any single market and enhancing resilience against sector-specific downturns.

Partnerships and Projects

Strong partnerships with major firms and participation in high-profile projects enhance Severfield's market presence, providing opportunities for future contracts and revenue growth, while reinforcing its reputation in the industry.

Negative Factors

Revenue Decline

The decline in revenue growth indicates challenges in maintaining market share or project volume, which could impact long-term financial stability and limit the company's ability to invest in new opportunities or technologies.

Profitability Challenges

Negative profitability margins highlight operational inefficiencies and cost management issues, which could strain financial resources and hinder the company's ability to reinvest in growth initiatives or weather economic downturns.

Cash Flow Issues

Severe cash flow challenges limit Severfield's ability to fund operations, invest in growth, or manage debt, posing a risk to its financial health and operational flexibility in the medium to long term.

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 the sale of steel products and related services, including fabrication, engineering, and project management. The company operates on a project basis, where it bids for contracts to supply steel structures for large-scale construction projects. Key revenue streams include contracts for commercial buildings, infrastructure projects such as bridges and railways, and industrial applications. Severfield also benefits from long-term partnerships with major construction firms and government entities, enhancing its ability to secure ongoing projects. Additionally, the company engages in value-added services such as design and consultancy, which further contribute to its earnings.

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: 29.00
• 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 29 is below the 20-day moving average (MA) of 30.06, below the 50-day MA of 29.14, and below the 200-day MA of 31.18, indicating a bearish trend. The MACD of 0.16 indicates Positive momentum. The RSI at 47.12 is Neutral, neither overbought nor oversold. The STOCH value of 25.40 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
COST	78 Outperform	£469.95M	6.99	13.21%	1.88%	-12.98%	5.51%
GFRD	72 Outperform	£538.90M	7.10	27.48%	3.65%	5.78%	-6.80%
BILN	70 Neutral	£48.71M	10.36	11.79%	7.35%	-25.56%	-42.49%
SMJ	68 Neutral	£50.47M	9.18	3.98%	2.45%	5.54%	209.72%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
VANL	57 Neutral	£39.49M	2,272.39	5.90%	3.29%	-6.46%	-56.20%
SFR	54 Neutral	£85.19M	-3.98	-8.04%	13.07%	-19.13%	-581.31%

Severfield Corporate Events

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.

Severfield Reports Interim Results Amid Challenging Market Conditions

Severfield PLC reported its interim results for the period ending 27 September 2025, showing a challenging market environment with decreased revenue and profits due to subdued demand and contract delays. Despite these challenges, the company has secured significant new projects, maintaining a diversified order book and improving its net debt position. Severfield is focusing on strategic growth, particularly in infrastructure and energy sectors, and has extended its revolving credit facility to enhance financial flexibility. The company is not declaring an interim dividend due to market conditions but remains committed to resuming payments when appropriate.

The most recent analyst rating on (GB:SFR) stock is a Hold with a £27.00 price target. To see the full list of analyst forecasts on Severfield stock, see the GB:SFR Stock Forecast page.