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Senior PLC (GB:SNR)
LSE:SNR

Senior plc (SNR) AI Stock Analysis

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Senior plc

(LSE:SNR)

Rating:69Neutral
Price Target:
176.00p
▲(2.09%Upside)
Senior plc has a solid financial foundation with stable revenue growth and improving profitability metrics. The company's strategic initiatives, including significant contract wins, bolster its growth potential. However, technical analysis indicates caution due to potential bearish momentum, and the valuation suggests the stock may be relatively expensive. Overall, while the company is on a positive trajectory, investors should be mindful of potential overvaluation and technical signals.
Positive Factors
Business Sale
The market could react positively to the £200m valuation of the Aerostructures business.
Contract Wins
Senior has announced 2 contract wins for the Flexonics division, worth approximately EUR200 million over a period of 8 years.
Financial Performance
Senior's FY24 Prelims are nicely ahead of JEFe/cons, there was a good book-to-bill of 1.12x (both divisions contributing), and the sale process of Aerostructures is 'at an advanced stage'.
Negative Factors
Market Expectations
Mgmt's FY25F guidance at the group level is unchanged, and we still expect FY25F consensus to move lower, towards us.

Senior plc (SNR) vs. iShares MSCI United Kingdom ETF (EWC)

Senior plc Business Overview & Revenue Model

Company DescriptionSenior plc designs, manufactures, and markets high-technology components and systems for the principal original equipment producers in the aerospace, defense, land vehicle, and power and energy markets worldwide. The company operates in two divisions, Aerospace and Flexonics. The Aerospace division offers high-pressure and low-pressure engineered ducting systems, engineered control bellows, assemblies, and sensors; precision-machined and fabricated engine components; fluid systems ducting and control products; and precision-machined airframe components and assemblies. The Flexonics division provides exhaust gas recycling coolers, fuel mixing and distribution systems, and flexible couplings; and engineered expansion joints, dampers and diverters, flexible hose assemblies and control bellows, fuel cells and heat exchangers, and precision-machined components. The company was formerly known as Senior Engineering Group plc and changed its name to Senior plc in 1999. Senior plc was incorporated in 1933 and is based in Rickmansworth, the United Kingdom.
How the Company Makes MoneySenior plc generates revenue primarily through the sale of its engineered products and solutions across multiple sectors. In the aerospace sector, the company supplies components and systems to major aircraft manufacturers and their suppliers. In the defense sector, it provides similar solutions to defense contractors. For the land vehicle sector, Senior plc manufactures components used in trucks and other vehicles. Additionally, the power & energy sector contributes to revenue through the provision of equipment used in energy generation and distribution. The company's earnings are bolstered by long-term contracts, strategic partnerships with key OEMs, and a focus on operational efficiency and innovation to meet the evolving needs of its clients.

Senior plc Financial Statement Overview

Summary
Senior plc demonstrates a solid financial position with stable revenue growth and improving profitability metrics. The balance sheet is well-managed, maintaining a healthy equity base and reasonable leverage. Cash flow analysis reveals stable cash generation, enabling ongoing investment while maintaining financial flexibility. The company is on a positive trajectory, though it should continue to focus on enhancing profitability and cash flow efficiency.
Income Statement
75
Positive
Senior plc has shown consistent revenue growth over the years, with a significant increase from 2021 to 2022. The gross profit margin has remained stable, indicating good cost management. However, the net profit margin has seen some fluctuations, reflecting variability in net income. The EBIT and EBITDA margins have been recovering since 2020, showing improved operational efficiency.
Balance Sheet
68
Positive
The company maintains a moderate debt-to-equity ratio, suggesting balanced leverage. The return on equity has been positive but modest, indicating room for improvement in generating returns on shareholders' equity. The equity ratio signifies a solid capital structure with a substantial portion of assets financed by equity.
Cash Flow
72
Positive
Operating cash flow has been stable, supporting the company's investment activities. Free cash flow growth has been positive, although there have been fluctuations. The operating cash flow to net income ratio indicates adequate cash generation relative to reported earnings, while the free cash flow to net income ratio shows a conservative cash position.
Breakdown
TTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
982.60M977.10M963.50M848.40M658.70M733.60M
Gross Profit
176.50M173.70M170.30M148.00M101.50M95.80M
EBIT
37.30M40.30M42.70M32.40M8.90M-145.00M
EBITDA
88.00M100.30M94.00M82.40M79.80M-119.40M
Net Income Common Stockholders
30.40M25.90M31.10M20.20M24.20M-158.50M
Balance SheetCash, Cash Equivalents and Short-Term Investments
17.20M45.50M47.60M43.20M51.10M23.60M
Total Assets
1.02B1.02B985.30M976.90M827.80M814.70M
Total Debt
170.20M275.10M251.40M222.10M204.20M229.50M
Net Debt
153.00M229.60M203.80M178.90M153.10M205.90M
Total Liabilities
452.90M545.90M528.20M527.50M402.70M421.40M
Stockholders Equity
571.80M469.90M457.10M449.40M425.10M393.30M
Cash FlowFree Cash Flow
21.40M6.20M5.50M27.90M5.80M22.30M
Operating Cash Flow
59.90M49.40M41.40M58.40M27.10M49.10M
Investing Cash Flow
-68.70M-44.20M-54.80M-55.30M30.60M-25.90M
Financing Cash Flow
9.90M-4.80M17.60M-14.40M-29.50M-15.10M

Senior plc Technical Analysis

Technical Analysis Sentiment
Positive
Last Price172.40
Price Trends
50DMA
146.42
Positive
100DMA
153.55
Positive
200DMA
150.91
Positive
Market Momentum
MACD
7.31
Negative
RSI
72.44
Negative
STOCH
88.84
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:SNR, the sentiment is Positive. The current price of 172.4 is above the 20-day moving average (MA) of 163.28, above the 50-day MA of 146.42, and above the 200-day MA of 150.91, indicating a bullish trend. The MACD of 7.31 indicates Negative momentum. The RSI at 72.44 is Negative, neither overbought nor oversold. The STOCH value of 88.84 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:SNR.

Senior plc Peers Comparison

Overall Rating
UnderperformOutperform
Sector (66)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
GBSNR
69
Neutral
£706.47M27.235.59%1.41%1.41%-16.76%
66
Neutral
$4.49B12.285.32%248.53%4.08%-12.00%
$77.80B31.9717.85%1.59%
$102.41B30.90
0.64%
GBQQ
78
Outperform
£2.89B17.97-23.92%1.58%10.36%32.77%
76
Outperform
£601.43M12.1614.06%5.67%-1.26%6.56%
GBCHG
74
Outperform
£1.40B35.8411.62%1.41%8.00%674.47%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
GB:SNR
Senior plc
172.40
16.56
10.63%
BAESF
BAE Systems
27.14
9.32
52.30%
RYCEF
Rolls-Royce Holdings
11.86
6.04
103.78%
GB:CHG
Chemring
574.00
203.44
54.90%
GB:MGAM
Morgan Advanced Materials
214.50
-81.03
-27.42%
GB:QQ
QinetiQ
572.00
121.68
27.02%

Senior plc Corporate Events

Product-Related AnnouncementsBusiness Operations and Strategy
Senior plc Secures €200 Million Contracts for High-Tech Engine Components
Positive
May 20, 2025

Senior plc has secured two significant contracts valued at approximately €200 million over eight years for supplying high-technology components for internal combustion and hybrid engines, as well as exhaust gas recirculation systems for heavy-duty trucks. These contracts, involving production in facilities across the Czech Republic, China, South Africa, and Mexico, bolster Senior’s momentum in order intake and affirm its strong market position in fluid conveyance and thermal management solutions, supporting its growth trajectory.

The most recent analyst rating on (GB:SNR) stock is a Buy with a £215.00 price target. To see the full list of analyst forecasts on Senior plc stock, see the GB:SNR Stock Forecast page.

Executive/Board Changes
Senior plc Appoints Graham Oldroyd as Non-Executive Director
Positive
May 14, 2025

Senior plc has announced the appointment of Graham Oldroyd as a non-executive director, effective from 28 May 2025. With a strong engineering background and extensive private equity experience in industrial and manufacturing sectors, Oldroyd is expected to bring valuable insights to the board, enhancing Senior’s development and strategic positioning in the market.

The most recent analyst rating on (GB:SNR) stock is a Buy with a £215.00 price target. To see the full list of analyst forecasts on Senior plc stock, see the GB:SNR Stock Forecast page.

Executive/Board ChangesBusiness Operations and Strategy
Senior plc Grants Share Options to Key Executives
Neutral
May 1, 2025

Senior plc announced the granting of share options to several key executives under its 2006 Savings-Related Share Option Scheme. This move is part of the company’s strategy to align the interests of its management with those of its shareholders, potentially impacting the company’s operational focus and stakeholder engagement.

Shareholder MeetingsBusiness Operations and Strategy
Senior plc’s AGM Sees All Resolutions Passed with Strong Shareholder Support
Positive
Apr 25, 2025

Senior plc successfully held its Annual General Meeting on April 25, 2025, where all proposed resolutions were passed. The meeting saw a significant participation rate, with electronic poll votes representing approximately 80.6% of the issued share capital. The approval of resolutions, including special resolutions, reflects strong shareholder support for the company’s strategic direction and governance practices.

M&A TransactionsBusiness Operations and StrategyFinancial Disclosures
Senior plc Reports Strong Q1 2025 Performance and Positive Outlook
Positive
Apr 24, 2025

Senior plc reported a strong start to 2025 with a 3% revenue growth in Q1, driven by a 4% increase in aerospace revenue, while Flexonics revenue remained stable. The company is progressing well with the sale of its Aerostructures business and expects good growth for the year, despite manageable impacts from tariffs. The outlook for 2025 remains positive, with anticipated growth in aerospace due to increasing aircraft build rates and improved contract pricing.

Other
Senior plc Announces Share Transaction by HR Director
Neutral
Apr 16, 2025

Senior plc, a company involved in the manufacturing sector, announced the release of a tranche of ordinary shares to Silvia Schwark, the Group HR Director, under its Restricted Share Award Plan. On April 15, 2025, Schwark sold a portion of these shares on the London Stock Exchange at a price of £1.2808 per share. This transaction reflects the company’s ongoing management of its share awards and the involvement of its directors in such financial activities.

Other
Senior plc Announces Managerial Share Transaction
Neutral
Apr 10, 2025

Senior plc announced a transaction involving Andrew Bodenham, the Group Company Secretary, who executed a Bed & ISA transaction and share purchase. The transaction involved selling 16,145 shares at £1.242 per share and purchasing 16,989 shares at £1.244 per share, resulting in a net purchase of 844 shares. This activity, conducted on the London Stock Exchange, reflects ongoing management engagement with the company’s equity, potentially signaling confidence in the company’s market position.

Executive/Board ChangesBusiness Operations and Strategy
Senior plc Announces Share Awards to New Executives
Neutral
Apr 4, 2025

Senior plc announced the granting of conditional rights to acquire shares to its Group Chief Financial Officer-designate, Alpna Amar, and Group HR Director, Silvia Schwark, as part of their recruitment packages. These awards are structured under the company’s Long Term Incentive Plan and Restricted Share Award Plan, respectively, and are intended to compensate for benefits lost from their previous employment. The awards are subject to specific performance criteria and vesting conditions, highlighting the company’s strategic approach to talent acquisition and retention.

Shareholder MeetingsFinancial Disclosures
Senior plc Releases 2024 Annual Report and Announces 2025 AGM
Neutral
Mar 28, 2025

Senior plc has released its 2024 Annual Report, which is now accessible through the National Storage Mechanism and the company’s website. The company has also announced its 2025 Annual General Meeting, scheduled for April 25, 2025, emphasizing the importance of shareholder engagement and proxy voting.

Executive/Board ChangesBusiness Operations and Strategy
Senior plc Grants Long-Term Incentive Awards to Key Executives
Neutral
Mar 11, 2025

Senior plc has announced the granting of conditional awards of ordinary shares to its executive directors and other key managerial personnel under its 2024 Long-Term Incentive Plan and deferred bonus plan. These awards, which do not require any consideration upon vesting, are part of the company’s strategy to align management incentives with long-term performance goals. The awards are set to vest in three years, contingent on performance criteria and continued employment, reflecting Senior plc’s commitment to retaining and motivating its leadership team.

Executive/Board ChangesFinancial Disclosures
Senior plc Releases Shares to Key Executives Under Incentive Plans
Neutral
Mar 11, 2025

Senior plc announced the release of ordinary shares to key managerial personnel under its 2014 Long-Term Incentive Plan and Deferred Bonus awards, following the fulfillment of performance conditions. Some of these shares were subsequently sold on the London Stock Exchange, impacting the shareholdings of several directors and executives, including David Squires and Bindi Foyle, who continue to hold significant stakes in the company.

Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

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.