SIG plc (SHI) AI Stock Analysis

• Market Cap: £179.60M
• Dividend Yield: N/A
• Average Volume (3M): 1.67M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.44
• Revenue Growth: -5.41%
• EPS Growth: -11.73%
• Country: UK
• Employees: 6,700
• Sector: Industrials
• Sector Strength: 91
• Industry: Industrial - Distribution
• EPS (TTM): -0.03
• Shares Outstanding: 1,181,557,000
• 10 Day Avg. Volume: 3,890,973
• 30 Day Avg. Volume: 1,671,167
• PEG Ratio: -0.16
• Price to Book (P/B): 0.99
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 4.24
• 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: £14.00
• Price Target Upside: -7.89% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 54 Neutral
• Price Target: 15.50p ▲(1.97%Upside)

SIG plc's stock score of 54 reflects its current financial struggles, particularly declining profitability and high leverage, balanced by stable cash flow and recent positive corporate developments. While technical analysis shows neutral trends, the valuation challenges due to a negative P/E ratio are significant. Strategic leadership changes and shareholder support are positive factors that could lead to improvement if successfully executed.

Positive Factors

Market Share

The group has been winning share and management notes signs of further volume stabilisation in most markets.

Potential Upside

SIG's shares could trade at 63p if the operating margin returns to the targeted 5%, which is significantly higher than the current level.

Valuation

The shares trade at 0.26x EV/Sales 2025E, suggesting significant upside if management's 5% operating margin target is met.

Negative Factors

Leverage Concerns

SIG's leverage is high at 4.7x net debt / EBITDA, which is a major concern contributing to a 40% drop in share value.

Margins

SIG's margins remain depressed, with an adjusted EBITA margin of only 1.0% in 2024.

Profitability

Operating profit halved to £25m on a revenue decline of 5%.

SIG plc Business Overview & Revenue Model

Company Description

SIG plc engages in the distribution and merchanting of specialist insulation and building products for the construction and related markets in the United Kingdom, Germany, France, Benelux, Poland, Ireland, and Mainland Europe. It offers insulation and interiors products, such as structural and technical insulations, dry linings, construction accessories and fixings, cladding and façade systems, ceiling tiles and grids, partition walls and door sets, and floor coverings. The company also provides roofing and exterior products, including tiles, slates, membranes, and battens for pitched roofs; single-ply flat roofing systems; industrial roofing and cladding systems; and room-in-roof panel systems, as well as industrial painting, coating, and repair services. It operates 426 trading sites. The company serves developers, contractors, specialist installers, and independent merchants. SIG plc was formerly known as Sheffield Insulations Limited. The company was founded in 1957 and is headquartered in Sheffield, the United Kingdom.

How the Company Makes Money

SIG plc generates revenue through the distribution and sale of building products across its core segments: Insulation, Interiors, and Exteriors. The company primarily makes money by purchasing products from manufacturers and selling them to customers in the construction industry at a markup. Key revenue streams include sales of insulation materials, interior products such as ceilings and partitions, and exterior solutions including roofing and cladding. The company's earnings are bolstered by its extensive distribution network, strong supplier relationships, and its ability to leverage economies of scale. Additionally, SIG plc benefits from strategic partnerships with leading manufacturers and a focus on providing value-added services to enhance customer satisfaction.

SIG plc Financial Statement Overview

Summary

SIG plc faces challenges with declining revenues and profitability, coupled with high leverage. While cash flow generation remains positive, the company must focus on improving operational efficiency and managing debt levels to enhance financial stability and performance.

Income Statement

The company has experienced fluctuations in profitability, with a negative net profit margin in the most recent year indicating ongoing challenges in achieving profitability. Revenue has declined significantly in the latest period, suggesting issues in maintaining sales momentum. The negative EBIT margin further reflects operational inefficiencies.

Balance Sheet

The balance sheet shows a relatively high debt-to-equity ratio, indicating significant leverage which could pose financial risk. However, the equity ratio has remained stable, suggesting a moderate level of equity financing. The company needs to manage its debt levels carefully to avoid liquidity issues.

Cash Flow

Cash flow management appears somewhat stable, with positive free cash flow indicating some ability to generate cash from operations. However, the decline in operating cash flow compared to the previous year may indicate potential liquidity challenges if not addressed.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.61B	2.76B	2.74B	2.29B	1.87B
Gross Profit	640.00M	699.60M	706.30M	597.40M	464.40M
EBITDA	78.90M	87.20M	138.50M	83.10M	-93.00M
Net Income	-48.60M	-43.40M	15.50M	-28.30M	-200.50M
Balance Sheet
Total Assets	1.18B	1.27B	1.33B	1.20B	1.15B
Cash, Cash Equivalents and Short-Term Investments	86.80M	132.20M	130.10M	145.10M	235.30M
Total Debt	585.70M	590.60M	574.60M	510.70M	474.40M
Total Liabilities	998.40M	1.04B	1.07B	937.00M	848.30M
Stockholders Equity	179.80M	228.50M	267.80M	264.70M	301.90M
Cash Flow
Free Cash Flow	58.80M	98.60M	73.90M	-57.20M	-96.10M
Operating Cash Flow	75.50M	114.40M	89.20M	-38.60M	-82.80M
Investing Cash Flow	-16.60M	-10.90M	-42.00M	-26.50M	139.30M
Financing Cash Flow	-98.60M	-103.00M	-65.50M	-17.60M	11.90M

SIG plc Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 15.20
• 50DMA: Positive
• 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:SHI, the sentiment is Positive. The current price of 15.2 is above the 20-day moving average (MA) of 15.06, above the 50-day MA of 15.14, and below the 200-day MA of 16.07, indicating a neutral trend. The MACD of 0.02 indicates Positive momentum. The RSI at 51.31 is Neutral, neither overbought nor oversold. The STOCH value of 37.81 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:SHI.

SIG plc Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
GFTU	72 Outperform	£1.78B	15.08	7.50%	4.25%	-1.59%	-12.46%
LTHP	71 Outperform	£222.77M	―		6.53%	―	―
BRCK	70 Outperform	£209.39M	31.86	3.43%	3.45%	-8.13%	-71.44%
LORD	70 Neutral	£80.61M	―	-4.13%	2.14%	-5.60%	-238.37%
Sector *	65 Neutral	$10.94B	15.63	5.27%	1.90%	3.14%	-27.13%
SHI	54 Neutral	£179.60M	―	-23.81%	―	-5.41%	-11.73%

SIG plc Corporate Events

SIG plc Appoints New CEO and Chair Designate

SIG plc has announced the appointment of Pim Vervaat as its new Chief Executive Officer and Chair designate, effective from October 1, 2025. This strategic leadership change is part of SIG’s long-term succession planning, with Vervaat expected to transition to Non-Executive Chair in 18 months. The company aims to leverage Vervaat’s extensive experience in European industrial businesses to drive growth and shareholder value. The current CEO, Gavin Slark, will be on garden leave until the end of 2025, with CFO Ian Ashton overseeing day-to-day operations in the interim.

The most recent analyst rating on (GB:SHI) stock is a Hold with a £0.17 price target. To see the full list of analyst forecasts on SIG plc stock, see the GB:SHI Stock Forecast page.

SIG plc Reports Modest Growth Amid Market Challenges

SIG plc reported a 1% like-for-like revenue growth for the first half of 2025, with underlying operating profit expected to reach approximately £15 million, up from £12 million in the same period last year. Despite ongoing market challenges, the company has managed to maintain robust cash performance and continues to execute strategic initiatives aimed at cost savings and productivity improvements. The company also announced the appointment of Pim Vervaat as CEO and Chair designate, effective from October 2025, signaling a strategic leadership transition. The outlook for the full year remains unchanged, with the company poised to benefit from market recovery when it occurs.

The most recent analyst rating on (GB:SHI) stock is a Hold with a £0.17 price target. To see the full list of analyst forecasts on SIG plc stock, see the GB:SHI Stock Forecast page.

SIG plc CEO Resignation and Transition Plan Announced

SIG plc announced the resignation of its Chief Executive Officer, Gavin Slark, who will transition to a new role at Travis Perkins plc in 2026. Slark will remain with SIG until the end of 2025 to ensure a smooth transition while the company searches for his successor. The Board, led by Chairman Andrew Allner, expressed confidence in the current leadership team and emphasized their commitment to ongoing initiatives aimed at enhancing SIG’s operational and financial performance.

Azvalor Increases Stake in SIG plc

SIG plc, a UK-based company, has announced a change in its major holdings. Azvalor Asset Management SGIIC SA, based in Madrid, Spain, has increased its voting rights in SIG plc from 11.585% to 12.020%. This acquisition of voting rights signifies a strategic move by Azvalor, potentially impacting SIG plc’s decision-making processes and shareholder dynamics.

SIG plc Successfully Passes All AGM Resolutions

SIG plc announced that all resolutions proposed at its Annual General Meeting on May 1, 2025, were passed with the required majorities. This includes both ordinary and special resolutions, reflecting strong shareholder support. The successful passing of these resolutions allows SIG to continue its strategic initiatives and maintain its market position, potentially impacting its operational strategies and stakeholder relations positively.

SIG plc Reports Positive Q1 2025 Sales Growth Amid Market Challenges

SIG plc reported a 2% like-for-like sales growth in the first quarter of 2025, demonstrating market outperformance and stabilization in demand. The UK Interiors segment showed significant improvement, moving from a decline to growth, while Germany continued to outperform its market. Despite challenges in France, the company remains optimistic about future growth, supported by strategic cost-saving and productivity initiatives. The company’s full-year outlook remains unchanged, with expectations of a potential market recovery in the latter half of the year.