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): 1.07
• 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: £44.50
• Price Target Upside: 53.45% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 54 Neutral
• Price Target: 30.00p ▲(3.45% Upside)

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 (SFR) is a leading structural steel company based in the UK, specializing in the design, manufacture, and construction of steel solutions for various sectors, including commercial, industrial, and infrastructure projects. The company is known for its high-quality steel fabrication and engineering services, serving clients in both the public and private sectors. Severfield operates through several divisions, focusing on delivering innovative and sustainable steel structures, contributing significantly to construction and engineering projects across the UK and internationally.

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 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: Neutral
• Last Price: 29.00
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• 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 Neutral. The current price of 29 is above the 20-day moving average (MA) of 28.95, above the 50-day MA of 28.83, and below the 200-day MA of 29.98, indicating a neutral trend. The MACD of -0.08 indicates Negative momentum. The RSI at 51.12 is Neutral, neither overbought nor oversold. The STOCH value of 60.44 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for GB:SFR.

Severfield Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BILN	70 Neutral	£43.02M	7.11	11.79%	7.35%	-25.56%	-42.49%
SMJ	68 Neutral	£51.47M	10.14	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	21.22	5.90%	3.29%	-6.46%	-56.20%
SFR	54 Neutral	£85.19M	-5.50	-8.04%	13.07%	-19.13%	-581.31%

Severfield Corporate Events

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.

Severfield Updates Share Capital and Voting Rights

Severfield plc has announced an update on its share capital and voting rights. The company has a total of 296,181,987 ordinary shares in issue, each granting one vote at general meetings. This information is crucial for shareholders to determine their interests and obligations under the FCA’s Disclosure and Transparency Rules.

Severfield Aligns Managerial Incentives with Strategic Goals

Severfield plc has announced the grant of awards under its Performance Share Plan to key managerial personnel, including Mark Sanderson, the Company Secretary, and Matt Gamble, the Group Financial Controller. These awards are conditional on performance metrics such as EPS, ROCE, and key transformational objectives, with vesting scheduled for June 2028. This move aims to align managerial incentives with the company’s strategic goals and enhance operational efficiency, potentially impacting Severfield’s market positioning and stakeholder interests.

Severfield Appoints Jan Bramall as Interim CFO

Severfield plc has appointed Jan Bramall as Interim Chief Financial Officer, effective from 1 November 2025. Jan Bramall brings extensive international finance experience, having previously served as CFO at Manchester Airports Group and other global industrial companies. This appointment comes as the company conducts a comprehensive search for a permanent CFO. The board anticipates that Bramall’s leadership will provide strong financial guidance during this transitional period.

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.