SIG plc (SHI) AI Stock Analysis

• Market Cap: £138.24M
• Dividend Yield: N/A
• Average Volume (3M): 1.84M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.45
• Revenue Growth: -2.08%
• EPS Growth: -9.83%
• Country: UK
• Employees: 6,700
• Sector: Industrials
• Sector Strength: 84
• Industry: Industrial - Distribution
• EPS (TTM): -0.01
• Shares Outstanding: 1,181,557,000
• 10 Day Avg. Volume: 1,032,849
• 30 Day Avg. Volume: 1,839,614
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: £15.00
• Price Target Upside: 27.99% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 50 Neutral
• Price Target: 15.00p ▲(27.99% 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

Market Share

The group has been winning share but management says 'there have been signs of further volume stabilisation in the majority of our markets'.

Potential Upside

We calculate that SIG's shares could trade at 63p if the operating margin is brought back to 5% as management is targeting, which is around 5x the current level.

Valuation

The shares trade at 0.26x EV/Sales 2025E, which prices in some recovery from the margin of 1.3% expected, but still leaves significant upside if SIG can hit management's 5% operating margin target.

Negative Factors

Leverage Concerns

SIG's leverage looks high, at 4.7x net debt / EBITDA (IFRS 16), and we believe that leverage concerns are the major driver of bringing the shares down around 40% since October 2024.

Margins

SIG's margins remain depressed, with adjusted EBITA margin 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 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

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: Negative
• Last Price: 11.72
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

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 11.72 is below the 20-day moving average (MA) of 13.57, below the 50-day MA of 14.46, and below the 200-day MA of 15.31, indicating a bearish trend. The MACD of -0.80 indicates Positive momentum. The RSI at 27.64 is Positive, neither overbought nor oversold. The STOCH value of 8.02 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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	£1.70B	14.41	7.50%	4.22%	-1.59%	-12.46%
Sector *	71 Outperform	¥268.19B	15.08	8.32%	2.78%	6.19%	11.06%
LTHP	64 Neutral	£223.77M	―		6.53%	―	―
LORD	63 Neutral	£69.81M	―	-4.13%	1.98%	-5.60%	-238.37%
BRCK	56 Neutral	£195.86M	29.80	3.43%	5.59%	7.23%	-59.68%
SHI	50 Neutral	£138.24M	―	-37.89%	―	-2.08%	-9.83%

SIG plc Corporate Events

SIG plc Announces General Meeting to Approve CEO’s Share Award

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.

The most recent analyst rating on (GB:SHI) stock is a Hold with a £22.00 price target. To see the full list of analyst forecasts on SIG plc stock, see the GB:SHI Stock Forecast page.

SIG plc Reports Resilient H1 2025 Results Amid Market Challenges

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.

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 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.