SIG plc (SHI) AI Stock Analysis

• Market Cap: £118.16M
• Dividend Yield: N/A
• Average Volume (3M): 1.07M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.31
• Revenue Growth: -2.08%
• EPS Growth: -9.83%
• Country: UK
• Employees: 6,700
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Distribution
• EPS (TTM): -0.01
• Shares Outstanding: 1,181,557,000
• 10 Day Avg. Volume: 1,091,492
• 30 Day Avg. Volume: 1,067,722
• PEG Ratio: -0.36
• Price to Book (P/B): 1.06
• Price to Sales (P/S): 0.07
• P/FCF Ratio: 3.25
• 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: £9.00
• Price Target Upside: -10.00% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 56 Neutral
• Price Target: 9.50p ▼(-5.00% Downside)

The overall stock score is primarily influenced by financial performance challenges, including declining revenues and high leverage. Technical analysis shows mixed signals with short-term bullish momentum but longer-term bearish trends. Valuation concerns arise from a negative P/E ratio and lack of dividend yield. However, positive corporate events, such as the CEO's share purchase and strategic leadership changes, provide a boost to the score.

Positive Factors

Diversified Customer Base

A diversified customer base reduces dependency on any single market segment, providing resilience against sector-specific downturns and stabilizing revenue.

Strategic Partnerships

Partnerships with suppliers enable SIG plc to offer a broader range of products at competitive prices, strengthening its market position and customer appeal.

Positive Cash Flow

Positive free cash flow suggests that the company can generate sufficient cash from operations, supporting reinvestment and debt management.

Negative Factors

Declining Revenue

Declining revenue indicates challenges in maintaining market share and sales growth, which could impact long-term financial performance and competitiveness.

High Leverage

High leverage increases financial risk, potentially limiting the company's ability to invest in growth opportunities and manage economic downturns.

Negative Profitability

Negative profitability reflects operational inefficiencies and market challenges, which may hinder the company's ability to generate sustainable earnings.

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 of a wide range of building materials and products. Its primary revenue streams include the sale of insulation materials, roofing products, and interior building solutions to contractors, builders, and developers in the construction sector. The company benefits from a robust supply chain and established relationships with leading manufacturers, which enables it to offer a diverse portfolio of high-quality products. Additionally, SIG plc leverages its expertise in the construction market to provide value-added services such as technical support, logistics, and project consultancy. Significant partnerships with key suppliers and ongoing investments in digital platforms also contribute to its earnings by enhancing customer engagement and operational efficiency.

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.60B	2.61B	2.76B	2.74B	2.29B	1.87B
Gross Profit	629.80M	640.00M	699.60M	706.30M	597.40M	464.40M
EBITDA	49.50M	78.90M	87.20M	138.50M	83.10M	-93.00M
Net Income	-68.80M	-48.60M	-43.40M	15.50M	-28.30M	-200.50M
Balance Sheet
Total Assets	1.26B	1.18B	1.27B	1.33B	1.20B	1.15B
Cash, Cash Equivalents and Short-Term Investments	81.70M	86.80M	132.20M	130.10M	145.10M	235.30M
Total Debt	606.90M	585.70M	590.60M	574.60M	510.70M	474.40M
Total Liabilities	1.12B	998.40M	1.04B	1.07B	937.00M	848.30M
Stockholders Equity	148.10M	179.80M	228.50M	267.80M	264.70M	301.90M
Cash Flow
Free Cash Flow	64.60M	58.80M	98.60M	73.90M	-57.20M	-96.10M
Operating Cash Flow	81.60M	75.50M	114.40M	89.20M	-38.60M	-82.80M
Investing Cash Flow	-14.40M	-16.60M	-8.70M	-42.00M	-26.50M	139.30M
Financing Cash Flow	-62.40M	-98.60M	-103.00M	-65.50M	-17.60M	-11.40M

SIG plc Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 10.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 10 is above the 20-day moving average (MA) of 9.30, above the 50-day MA of 9.07, and below the 200-day MA of 12.02, indicating a neutral trend. The MACD of 0.22 indicates Negative momentum. The RSI at 68.82 is Neutral, neither overbought nor oversold. The STOCH value of 91.95 is Negative, 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	80 Outperform	£1.80B	13.93	8.33%	3.96%	5.75%	5.86%
BRCK	67 Neutral	£168.80M	15.78	5.63%	6.67%	8.83%	27.20%
LTHP	64 Neutral	£194.93M	―	―	6.53%	―	―
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
LORD	62 Neutral	£38.73M	-16.18	-5.01%	3.61%	0.10%	-32.11%
SHI	56 Neutral	£118.16M	-1.70	-37.89%	―	-2.08%	-9.83%

SIG plc Corporate Events

SIG CEO Increases Stake with Major Share Purchase

SIG plc announced that Pim Vervaat, the Chief Executive Officer and Chair designate, purchased 500,000 ordinary shares of the company, increasing his total beneficial interest to 3,000,000 shares. This transaction reflects a significant personal investment by the CEO, potentially signaling confidence in the company’s future performance and stability, which could positively influence stakeholder sentiment.

SIG plc Maintains Profit Outlook Amidst Challenging Market Conditions

SIG plc reported a flat like-for-like revenue performance for Q3 2025, with year-to-date growth at 1%. Despite subdued demand and pricing pressures across its markets, the company maintained its full-year profit outlook, thanks to effective cost and working capital management. The UK Interiors business showed strong performance, contributing to overall growth in the UK, while the German market experienced unexpected weakness. The company continues to focus on operational efficiencies and is well-positioned to benefit from future market recoveries.

SIG plc Appoints New CEO with Significant Share Award

SIG plc, a company involved in the distribution of building products, has announced the appointment of Pim Vervaat as the new Group Chief Executive Officer and Chair designate. As part of his recruitment, Vervaat has been granted a significant share award of over 14 million shares, which will vest in 2027, reflecting the company’s strategic move to strengthen its leadership and potentially enhance its market position.