tiprankstipranks
Trending News
More News >
SIG PLC (GB:SHI)
LSE:SHI

SIG plc (SHI) AI Stock Analysis

Compare
18 Followers

Top Page

GB

SIG plc

(LSE:SHI)

Rating:54Neutral
Price Target:
15.50p
▼(-0.39%Downside)
SIG plc's stock score reflects challenges in financial performance and valuation, with negative profitability and high leverage. However, technical indicators show stable momentum, and recent corporate events highlight strategic initiatives and market confidence, providing a balanced outlook.
Positive Factors
Market Share
The group has been winning share, indicating a stronger position in the market.
Revenue Growth
Q1 trading confirms inflection in volumes, with Q1 like-for-like revenues up 2% year-on-year.
Negative Factors
Leverage
SIG's leverage looks high, at 4.7x net debt / EBITDA, raising concerns about financial stability.
Profitability
Operating profit halved to £25m on a revenue decline of 5%.

SIG plc (SHI) vs. iShares MSCI United Kingdom ETF (EWC)

SIG plc Business Overview & Revenue Model

Company DescriptionSIG plc (SHI) is a leading distributor of specialist building products in Europe, primarily serving the construction industry. The company operates across key segments including Insulation, Interiors, and Exteriors, providing products such as insulation materials, interior fittings, and roofing solutions. With a focus on providing high-quality building materials, SIG plc caters to a diverse customer base including contractors, builders, and architects.
How the Company Makes MoneySIG 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
45
Neutral
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
50
Neutral
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
55
Neutral
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.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue2.61B2.76B2.74B2.29B1.87B
Gross Profit640.00M699.60M706.30M597.40M464.40M
EBITDA78.90M87.20M138.50M83.10M-93.00M
Net Income-48.60M-43.40M15.50M-28.30M-200.50M
Balance Sheet
Total Assets1.18B1.27B1.33B1.20B1.15B
Cash, Cash Equivalents and Short-Term Investments86.80M132.20M130.10M145.10M235.30M
Total Debt585.70M590.60M574.60M510.70M474.40M
Total Liabilities998.40M1.04B1.07B937.00M848.30M
Stockholders Equity179.80M228.50M267.80M264.70M301.90M
Cash Flow
Free Cash Flow58.80M98.60M73.90M-57.20M-96.10M
Operating Cash Flow75.50M114.40M89.20M-38.60M-82.80M
Investing Cash Flow-16.60M-10.90M-42.00M-26.50M139.30M
Financing Cash Flow-98.60M-103.00M-65.50M-17.60M11.90M

SIG plc Technical Analysis

Technical Analysis Sentiment
Positive
Last Price15.56
Price Trends
50DMA
14.95
Positive
100DMA
13.81
Positive
200DMA
16.44
Negative
Market Momentum
MACD
0.15
Negative
RSI
54.34
Neutral
STOCH
43.32
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 15.56 is above the 20-day moving average (MA) of 14.98, above the 50-day MA of 14.95, and below the 200-day MA of 16.44, indicating a neutral trend. The MACD of 0.15 indicates Negative momentum. The RSI at 54.34 is Neutral, neither overbought nor oversold. The STOCH value of 43.32 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

Overall Rating
UnderperformOutperform
Sector (68)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
81
Outperform
£1.99B16.847.50%3.85%-1.59%-12.46%
71
Outperform
£225.76M
4.80%
70
Outperform
£202.30M24.064.48%3.57%-8.13%-71.44%
68
Neutral
£2.96B10.478.40%3.16%2.88%-10.00%
GBSHI
54
Neutral
£175.58M-23.81%-5.41%-11.73%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
GB:SHI
SIG plc
15.56
-9.04
-36.75%
GB:GFTU
Grafton
1,025.40
137.55
15.49%
GB:LTHP
James Latham
122.50
7.87
6.87%
GB:BRCK
Brickability Group PLC
63.80
-2.64
-3.97%

SIG plc Corporate Events

Executive/Board ChangesBusiness Operations and Strategy
SIG plc CEO Resignation and Transition Plan Announced
Neutral
May 9, 2025

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.

Business Operations and Strategy
Azvalor Increases Stake in SIG plc
Neutral
May 6, 2025

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.

Shareholder MeetingsBusiness Operations and Strategy
SIG plc Successfully Passes All AGM Resolutions
Positive
May 1, 2025

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.

Business Operations and StrategyFinancial Disclosures
SIG plc Reports Positive Q1 2025 Sales Growth Amid Market Challenges
Positive
Apr 30, 2025

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.

Other
SIG plc Director and Spouse Increase Shareholdings
Positive
Apr 10, 2025

SIG plc, a company involved in the distribution of building products, announced that Non-Executive Director Simon King and his wife Amanda King have purchased a significant number of shares in the company. This transaction increases Mr. King’s beneficial interest in SIG, potentially signaling confidence in the company’s future performance and impacting stakeholder perceptions.

Regulatory Filings and Compliance
SIG plc Director’s Family Member Increases Shareholding
Neutral
Apr 4, 2025

SIG plc announced that Shivani Dasani, daughter of Non-Executive Director Mr. Shatish Dasani, purchased 100,000 ordinary shares in the company, increasing Mr. Dasani’s beneficial interest to 420,000 shares. This transaction, conducted on the London Stock Exchange, reflects compliance with the UK Market Abuse Regulation and signifies a notable increase in insider ownership, potentially impacting investor perception and stakeholder confidence.

Business Operations and Strategy
BlackRock Reduces Stake in SIG plc Below 5%
Neutral
Apr 1, 2025

BlackRock, Inc. has adjusted its holdings in SIG plc, with its voting rights now falling below 5%. This change in shareholding could impact SIG’s market perception and investor relations, as BlackRock is a significant global investment management corporation. The notification indicates a shift in BlackRock’s investment strategy regarding SIG, which may influence other stakeholders’ decisions.

Executive/Board ChangesBusiness Operations and Strategy
SIG plc Grants Deferred Share Awards to Key Executives
Neutral
Mar 28, 2025

SIG plc has announced the granting of Deferred Share Awards to its Chief Executive Officer, Gavin Slark, and Chief Financial Officer, Ian Ashton, under the 2018 SIG plc Bonus Plan. These awards, which are structured as nil cost options, reflect the company’s commitment to aligning executive compensation with shareholder interests, as one-third of annual bonuses are deferred into shares. The awards are set to vest on 27 March 2028, potentially impacting the company’s executive retention and incentivization strategy.

Executive/Board ChangesBusiness Operations and Strategy
SIG plc Grants Restricted Share Awards to Key Executives
Positive
Mar 28, 2025

SIG plc has announced the granting of Restricted Share Plan Awards to key executives, including CEO Gavin Slark and CFO Ian Ashton, with a significant number of shares allocated under the 2020 plan. These awards, which are structured as nil-cost options, are part of the company’s strategy to incentivize leadership and align their interests with long-term shareholder value. The vesting of these shares is set for March 2028, with an additional two-year holding period, indicating a focus on sustained performance and stability within the company’s management structure.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jun 27, 2025