Somero Enterprises Inc (SOM) AI Stock Analysis

• Market Cap: £118.94M
• Dividend Yield: 5.89%
• Average Volume (3M): 96.64K
• Price to Earnings (P/E): 11.9
• Beta (1Y): 0.60
• Revenue Growth: -16.86%
• EPS Growth: -45.98%
• Country: UK
• Employees: 216
• Sector: Industrials
• Sector Strength: 72
• Industry: Agricultural - Machinery
• EPS (TTM): 0.04
• Shares Outstanding: 54,065,490
• 10 Day Avg. Volume: 77,095
• 30 Day Avg. Volume: 96,644
• PEG Ratio: -0.38
• Price to Book (P/B): 2.66
• Price to Sales (P/S): 2.05
• P/FCF Ratio: 14.77
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 15.63
• Revenue Forecast (FY): £6.68B

• Rating: 77 Outperform
• Price Target: 257.00p ▲(10.78% Upside)

Somero Enterprises Inc. demonstrates a strong financial foundation with low debt and attractive valuation metrics. The recent share buy-backs further enhance shareholder value. However, the decline in revenue and cash flow generation poses a risk that needs to be addressed. Technical indicators are mixed, showing no strong trend direction.

Positive Factors

Balance Sheet Health

A strong balance sheet with low debt levels provides financial stability and flexibility, supporting long-term strategic initiatives and resilience against market fluctuations.

Profitability Margins

Robust profitability margins indicate efficient operations and pricing power, which can sustain competitive advantage and shareholder returns over time.

Cash Management

Positive operating cash flow reflects the company's ability to generate sufficient cash from operations, supporting reinvestment and dividend payouts.

Negative Factors

Revenue Decline

Decreasing revenue indicates challenges in market demand or competitive pressures, potentially impacting long-term growth and profitability.

Profitability Decline

A decline in net income suggests reduced efficiency or increased costs, which may hinder future investment and shareholder value creation.

Cash Flow Challenges

Reduced cash generation can limit the company's ability to fund operations, invest in growth opportunities, and maintain dividend payments.

Somero Enterprises Inc Business Overview & Revenue Model

Company Description

Somero Enterprises Inc (SOM) is a leading manufacturer of laser-guided concrete leveling and placement equipment. The company primarily operates in the construction and heavy equipment sectors, providing innovative solutions designed to enhance the efficiency and accuracy of concrete construction processes. Somero's core products include its line of laser-guided screeds and other concrete placement equipment, which are utilized globally in the construction of commercial, industrial, and infrastructure projects.

How the Company Makes Money

Somero Enterprises generates revenue primarily through the sale of its specialized concrete leveling and placement equipment. The company's revenue model is built on direct sales to contractors and construction companies, as well as through a network of distributors and dealers worldwide. Key revenue streams include new equipment sales, rental services, and the sale of replacement parts and accessories. Additionally, Somero benefits from service agreements and training programs for equipment operators, which provide ongoing revenue opportunities. Strategic partnerships with construction firms and industry associations also enhance its market reach and contribute to its earnings, as these collaborations often lead to increased demand for its innovative solutions.

Somero Enterprises Inc Financial Statement Overview

Summary

Somero Enterprises Inc. presents a generally strong financial position with robust profitability margins and a stable balance sheet with low debt levels. However, the recent decline in revenue and profitability has impacted cash flow generation, which is a concern that needs addressing to sustain financial performance.

Income Statement

Somero Enterprises Inc. has shown a consistent ability to generate profits with strong gross and net profit margins. However, a notable decline in revenue and profitability was observed in the most recent year, with total revenue falling from $120.7M to $109.2M, leading to a decrease in net income from $27.98M to $18.6M. The gross profit margin remains robust at 53.9%, but the revenue growth rate has turned negative, reflecting a challenge in maintaining top-line growth.

Balance Sheet

The company maintains a solid balance sheet characterized by low leverage, with a debt-to-equity ratio of 0.03, indicating minimal reliance on debt financing. The equity ratio is strong at 85.9%, highlighting the company's reliance on equity over debt. Return on equity is healthy at 22.1%, though it has declined from the previous year, reflecting the decrease in net income.

Cash Flow

Operating cash flow is positive, showcasing effective cash management, although it has decreased from $24.45M to $17.63M. The free cash flow to net income ratio is favorable, demonstrating the company's efficiency in converting income into cash. However, the free cash flow growth rate is negative year-over-year, indicating a reduction in cash generation capabilities.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	97.11M	109.15M	120.70M	133.59M	133.33M	88.57M
Gross Profit	52.85M	58.80M	67.36M	76.16M	76.88M	48.81M
EBITDA	22.08M	25.68M	34.82M	42.28M	45.99M	25.77M
Net Income	13.05M	18.60M	27.98M	31.12M	34.83M	18.77M
Balance Sheet
Total Assets	90.64M	98.12M	98.55M	98.99M	97.36M	78.85M
Cash, Cash Equivalents and Short-Term Investments	24.63M	29.49M	33.31M	33.70M	42.15M	35.39M
Total Debt	2.76M	2.77M	1.96M	1.38M	1.93M	1.73M
Total Liabilities	11.71M	13.81M	15.31M	21.86M	21.69M	15.32M
Stockholders Equity	78.92M	84.30M	83.23M	77.13M	75.67M	63.53M
Cash Flow
Free Cash Flow	17.57M	15.18M	22.71M	22.43M	30.67M	26.90M
Operating Cash Flow	18.87M	17.63M	24.45M	27.80M	36.92M	30.64M
Investing Cash Flow	-1.30M	-2.45M	-1.74M	-5.22M	-6.20M	-3.65M
Financing Cash Flow	-13.71M	-19.33M	-22.58M	-31.68M	-24.31M	-15.25M

Somero Enterprises Inc Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 232.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:SOM, the sentiment is Negative. The current price of 232 is above the 20-day moving average (MA) of 228.22, above the 50-day MA of 228.21, and above the 200-day MA of 230.06, indicating a bearish trend. The MACD of -1.00 indicates Positive momentum. The RSI at 32.31 is Neutral, neither overbought nor oversold. The STOCH value of 21.18 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GB:SOM.

Somero Enterprises Inc Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SOM	77 Outperform	£118.94M	11.89	16.92%	5.89%	-16.86%	-45.98%
EPWN	77 Outperform	―	―	16.23%	4.27%	4.67%	93.06%
AVG	70 Outperform	£159.03M	24.22	5.87%	1.02%	14.49%	76.33%
ALU	66 Neutral	£84.96M	9.25	25.06%	4.67%	12.60%	6.64%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
MPAC	61 Neutral	£93.68M	-7.50	-17.46%	―	21.17%	-237.25%
SFR	54 Neutral	£85.19M	-5.50	-8.04%	12.76%	-19.13%	-581.31%

Somero Enterprises Inc Corporate Events

Somero Enterprises Executes Share Buy-Back to Optimize Capital Structure

Somero Enterprises Inc. announced the repurchase of 34,042 ordinary shares as part of its share buy-back program initiated earlier in the year. This transaction, completed on December 3, 2025, will result in the cancellation of these shares, adjusting the company’s total voting rights to 54,223,333. This move is part of Somero’s strategy to optimize its capital structure and potentially enhance shareholder value.

Somero Enterprises Executes Share Buy-Back to Enhance Shareholder Value

Somero Enterprises Inc. has executed a share buy-back program, purchasing 9,304 ordinary shares at a price of 232.00 pence per share, which will be canceled. This action reduces the company’s total issued share capital to 54,257,375 shares, all with equal voting rights, potentially increasing shareholder value and reflecting confidence in the company’s financial health.

Somero Enterprises Executes Share Buy-Back, Reducing Issued Share Capital

Somero Enterprises Inc. announced the repurchase of 8,271 ordinary shares as part of its ongoing share buy-back program, with all shares purchased at a price of 223.60 pence each. This transaction reduces the company’s issued share capital to 54,266,679 shares, all carrying equal voting rights, which may enhance shareholder value and reflect confidence in the company’s financial health.

Somero Enterprises Inc. Executes Share Buy-Back to Optimize Capital Structure

Somero Enterprises Inc. announced the repurchase of 10,000 ordinary shares as part of its ongoing share buy-back program, which was initially announced in March 2025. This transaction, completed on November 19, 2025, will result in the cancellation of these shares, thereby reducing the company’s total issued share capital to 54,274,950 shares, all carrying equal voting rights. This move is likely aimed at optimizing the company’s capital structure and potentially enhancing shareholder value.

Somero Enterprises Executes Share Buy-Back to Enhance Shareholder Value

Somero Enterprises Inc. has executed a share buy-back transaction, purchasing 32,868 ordinary shares at a price of 216.10 pence each, as part of its previously announced program. This move reduces the company’s issued share capital to 54,284,950 shares, all with equal voting rights, potentially enhancing shareholder value and consolidating its market position.

Somero Enterprises Executes Share Buy-Back to Enhance Shareholder Value

Somero Enterprises Inc. announced the repurchase of 23,148 ordinary shares as part of its share buy-back program, with the shares set to be cancelled. This move reduces the company’s issued share capital to 54,317,818 shares, all with equal voting rights, potentially enhancing shareholder value and reflecting confidence in the company’s financial health.

Somero Enterprises Executes Share Buy-Back to Optimize Capital Structure

Somero Enterprises Inc. announced the repurchase of 5,441 ordinary shares as part of its ongoing share buy-back program initiated in March 2025. This transaction, completed on November 12, 2025, reflects the company’s strategic initiative to manage its share capital, resulting in a total issued share capital of 54,340,966 ordinary shares with equal voting rights. The buy-back could enhance shareholder value and indicates a strong financial position, potentially impacting the company’s market perception positively.

Somero Enterprises Executes Share Buy-Back to Optimize Capital Structure

Somero Enterprises Inc. has executed a share buy-back program, purchasing 5,776 ordinary shares at a consistent price of 216.50 pence per share. This transaction, part of a previously announced buy-back initiative, results in a total issued share capital of 54,346,407 shares, all carrying equal voting rights. The cancellation of these shares reflects the company’s strategic financial management, potentially enhancing shareholder value and optimizing capital structure.

Somero Enterprises Executes Share Buy-Back to Boost Shareholder Value

Somero Enterprises Inc. announced a share buy-back transaction where it purchased 31,651 ordinary shares at a price of 221.16 pence each, as part of its ongoing buy-back program. This move reduces the company’s issued share capital to 54,352,183 ordinary shares, all with equal voting rights, potentially enhancing shareholder value and demonstrating confidence in the company’s financial health.

Somero Enterprises Executes Share Buy-Back to Optimize Capital Structure

Somero Enterprises, Inc. announced the purchase of 16,891 ordinary shares as part of its share buy-back program, with the shares set to be cancelled. This transaction, completed on November 3, 2025, was executed at a consistent price of 236.80 pence per share. Following this buy-back, the company’s total issued share capital stands at 54,383,834 ordinary shares, all with equal voting rights. This move is part of Somero’s strategic financial management to optimize shareholder value and reflects its commitment to maintaining a robust capital structure.

Somero Enterprises Executes Share Buy-Back to Optimize Capital Structure

Somero Enterprises Inc. announced the repurchase of 12,698 ordinary shares as part of its share buy-back program initiated earlier this year. This transaction, completed on October 13, 2025, will result in the cancellation of these shares, adjusting the company’s total voting rights to 54,400,725 shares. This move is likely aimed at enhancing shareholder value and optimizing the company’s capital structure.

Somero Enterprises Executes Share Buy-Back to Optimize Capital Structure

Somero Enterprises Inc. announced a purchase of 10,216 ordinary shares as part of its share buy-back program, with plans to cancel these shares. This transaction reduces the company’s total issued share capital to 54,413,423 shares, maintaining equal voting rights across all shares. The move is part of Somero’s strategic financial management, potentially enhancing shareholder value and optimizing capital structure.

Somero Enterprises Executes Share Buy-back, Cancels 14,585 Shares

Somero Enterprises Inc. announced the purchase and subsequent cancellation of 14,585 ordinary shares as part of its ongoing share buy-back program. This transaction reduces the company’s issued share capital to 54,423,639 shares, all of which have equal voting rights. The move is part of Somero’s strategy to optimize its capital structure and potentially enhance shareholder value.

Somero Enterprises Executes Share Buy-Back to Optimize Capital Structure

Somero Enterprises Inc. announced the purchase and cancellation of 9,793 ordinary shares as part of its share buy-back program. This transaction reduces the company’s total issued share capital to 54,438,224 shares, maintaining equal voting rights across all shares, which could strengthen shareholder value and optimize capital structure.

Somero Enterprises Executes Share Buy-Back to Optimize Capital Structure

Somero Enterprises Inc. announced the repurchase of 4,999 ordinary shares as part of its share buy-back program, which was initially announced in March 2025. This transaction, completed on September 15, 2025, will result in the cancellation of these shares, reducing the company’s total issued share capital to 54,448,017 shares. The move reflects the company’s strategy to manage its capital structure and potentially enhance shareholder value.

Somero Enterprises Announces Share Buy-Back and Capital Reduction

Somero Enterprises Inc. announced a recent transaction involving the purchase and subsequent cancellation of 14,266 ordinary shares as part of its share buy-back program. This move reduces the company’s issued share capital to 54,453,016 ordinary shares, all with equal voting rights, potentially impacting its market positioning by consolidating ownership and possibly enhancing shareholder value.

Somero Enterprises Faces H1 2025 Challenges but Remains Optimistic

Somero Enterprises Inc. reported a challenging first half of 2025, with revenue declining by 23% due to macroeconomic pressures, particularly in North America and Europe. Despite these challenges, the company remains optimistic about its long-term growth drivers, including onshoring, data infrastructure, and equipment electrification. The introduction of new products, such as the electric-powered laser screed, and strategic leadership appointments are expected to bolster future performance. The company has taken cost actions to offset lower revenues and expects trading to strengthen in the second half of the year, supported by seasonal uplift and contributions from new products.