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SIG PLC (GB:SHI)
LSE:SHI
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SIG plc (SHI) AI Stock Analysis

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GB:SHI

SIG plc

(LSE:SHI)

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Neutral 50 (OpenAI - 4o)
Rating:50Neutral
Price Target:
15.00p
▲(54.32% Upside)
SIG plc's stock score is primarily influenced by financial performance challenges, including declining revenues and profitability with high leverage. Technical analysis indicates bearish trends, and valuation concerns are highlighted by a negative P/E ratio. However, recent positive corporate events, such as leadership changes and modest growth, offer some optimism for future performance.
Positive Factors
Strategic Partnerships
Strategic partnerships strengthen SIG plc's market position by expanding its product range and enabling competitive pricing, which can attract more customers and stabilize revenue over time.
Diversified Customer Base
A diversified customer base reduces dependency on any single market segment, providing resilience against sector-specific downturns and contributing to stable long-term revenue.
Leadership Changes
Leadership changes can bring fresh perspectives and strategies, potentially improving operational efficiency and driving future growth, which is crucial for long-term business success.
Negative Factors
Declining Revenue
Declining revenue indicates challenges in market demand or competitive positioning, which can impact long-term growth prospects and financial health if not addressed.
High Leverage
High leverage increases financial risk, potentially limiting the company's ability to invest in growth opportunities and manage economic downturns, affecting long-term stability.
Profitability Challenges
Ongoing profitability challenges highlight operational inefficiencies and market pressures, which may hinder the company's ability to sustain growth and improve shareholder value over time.

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 insulation, roofing, and interior products in the United Kingdom and Europe. The company operates across various sectors, including construction and building materials, supplying a wide range of products such as thermal insulation, acoustic products, and roofing materials. With a strong focus on sustainability and customer service, SIG plc serves contractors, builders, and construction firms, helping them meet their project needs efficiently.
How the Company Makes MoneySIG plc generates revenue primarily through the distribution of building materials to construction and contracting businesses. Its key revenue streams include sales of insulation products, roofing solutions, and interior systems. The company benefits from a diversified customer base, which helps stabilize its revenue in varying market conditions. Additionally, strategic partnerships with manufacturers and suppliers enhance its product offerings and allow for competitive pricing. The company's focus on value-added services, such as logistics and technical support, also contributes to its earnings by attracting and retaining customers.

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
Negative
Last Price9.72
Price Trends
50DMA
11.59
Negative
100DMA
13.41
Negative
200DMA
13.78
Negative
Market Momentum
MACD
-0.53
Negative
RSI
40.17
Neutral
STOCH
60.01
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:SHI, the sentiment is Negative. The current price of 9.72 is below the 20-day moving average (MA) of 9.74, below the 50-day MA of 11.59, and below the 200-day MA of 13.78, indicating a bearish trend. The MACD of -0.53 indicates Negative momentum. The RSI at 40.17 is Neutral, neither overbought nor oversold. The STOCH value of 60.01 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GB:SHI.

SIG plc Peers Comparison

Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
77
Outperform
1.73B13.287.64%4.18%5.75%5.86%
64
Neutral
209.85M8.23%6.53%
63
Neutral
52.36M-21.88-4.30%2.67%0.10%-32.11%
56
Neutral
182.98M27.843.46%6.09%7.23%-59.68%
50
Neutral
£115.08M-37.89%-2.08%-9.83%
63
Neutral
$10.79B15.437.44%2.01%2.89%-14.66%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
GB:SHI
SIG plc
9.72
-9.78
-50.15%
GB:GFTU
Grafton
890.30
-126.68
-12.46%
GB:LTHP
James Latham
122.50
7.87
6.87%
GB:BRCK
Brickability Group PLC
57.60
-2.58
-4.29%
GB:LORD
Lords Group Trading PLC
31.50
-8.03
-20.31%

SIG plc Corporate Events

Executive/Board ChangesShareholder Meetings
SIG plc Announces General Meeting to Approve CEO’s Share Award
Neutral
Aug 8, 2025

SIG plc has announced the publication of a shareholder circular and notice of a general meeting to be held on 28 August 2025. The meeting aims to seek shareholder approval for a one-off recruitment restricted share award to the newly appointed CEO, Pim Vervaat, which falls outside the company’s current remuneration policy. This move signifies a strategic shift in the company’s leadership and compensation approach, potentially impacting its operational and market positioning.

Business Operations and StrategyFinancial Disclosures
SIG plc Reports Resilient H1 2025 Results Amid Market Challenges
Neutral
Aug 5, 2025

SIG plc reported its half-year results for 2025, showing a slight decline in revenue compared to the previous year but achieving a 1% like-for-like sales growth, indicating market outperformance. The company continues to focus on cost savings and productivity initiatives, resulting in a £15.4 million underlying operating profit, despite ongoing market demand softness. SIG’s strategic initiatives, including product range extensions and restructuring actions, have led to significant cost savings and improved operational performance, particularly in the UK Interiors segment. The company remains cautious about market improvement in the near term but is well-positioned to benefit from a market recovery.

Executive/Board ChangesBusiness Operations and Strategy
SIG plc Appoints New CEO and Chair Designate
Positive
Jul 8, 2025

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.

Executive/Board ChangesBusiness Operations and StrategyFinancial Disclosures
SIG plc Reports Modest Growth Amid Market Challenges
Positive
Jul 8, 2025

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.

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: Jul 22, 2025