Somero Enterprises Inc (SOM) AI Stock Analysis

• Market Cap: £109.75M
• Dividend Yield: 6%
• Average Volume (3M): 96.64K
• Price to Earnings (P/E): 15.5
• Beta (1Y): 0.35
• Revenue Growth: -16.86%
• EPS Growth: -45.98%
• Country: UK
• Employees: 216
• Sector: Industrials
• Sector Strength: 72
• Industry: Agricultural - Machinery
• EPS (TTM): 0.11
• Shares Outstanding: 54,065,490
• 10 Day Avg. Volume: 77,095
• 30 Day Avg. Volume: 96,644
• PEG Ratio: -0.35
• Price to Book (P/B): 1.96
• Price to Sales (P/S): 1.78
• P/FCF Ratio: 9.34
• 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): N/A
• Revenue Forecast (FY): N/A

• Rating: 68 Neutral
• Price Target: 229.00 p ▼(-1.29% Downside)
• Action: Downgraded Date: 03/12/26
• Date: Action: Downgraded 03/12/26

The score is supported by strong financial resilience (low leverage and solid cash generation) and a shareholder-friendly valuation profile (mid P/E with a high dividend yield). These positives are partly offset by deteriorating recent operating trends (multi-year revenue decline and 2025 margin compression) and weak technicals with the stock trading below key moving averages and negative MACD.

Positive Factors

Conservative balance sheet

Very low leverage and a large equity base give Somero durable financial flexibility. This conservatism supports capital spending, dividend and service continuity, and resilience through industry cyclicality, reducing bankruptcy and refinancing risk over the next several quarters.

Strong cash generation

Operating cash conversion is healthy and closely tracks earnings, enabling internal funding of working capital, maintenance capex and shareholder returns. Reliable cash flow supports reinvestment in product support and aftermarket services over the medium term.

High gross and solid operating margins

Persistently strong gross margins indicate durable product differentiation and aftermarket revenue mix. Even with demand headwinds, 16% EBIT margin shows structural profitability that can sustain service networks and R&D to defend market position over the coming months.

Negative Factors

Multi-year revenue decline

Sustained top-line contraction across multiple years signals weakening end-market demand for core screeding equipment. Falling unit sales reduce operating leverage and constrain growth initiatives, making medium-term recovery and margin stabilization more challenging.

Margin compression

Meaningful net margin erosion over several years suggests either pricing pressure, mix shift, or rising costs. Lower margins reduce retained cash and returns, limiting the company's ability to invest in product development or expand service capability without sacrificing profitability.

Weakened returns and earnings growth

Material step-down in ROE reflects lower profitability and slower growth; coupled with steep EPS decline historically, this reduces the firm's capacity to generate shareholder value and may constrain strategic investments or dividend sustainability if trends persist.

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 makes money primarily by selling concrete leveling/screeding equipment to contractors and construction customers. A second, recurring revenue stream comes from aftermarket sales and support tied to the installed base of machines, including replacement parts and consumables, maintenance/repair services, and customer training and technical support. Revenue is driven by demand for high-flatness/large-area concrete floors (e.g., warehouses, distribution centers, industrial facilities) where laser-guided screeding improves productivity and floor quality; sales are executed through a combination of direct sales and distributors/dealers depending on geography. Specific partner names, customer concentration, pricing, or segment-level revenue breakdowns are null.

Somero Enterprises Inc Financial Statement Overview

Summary

Strong overall financial quality led by a very conservative balance sheet (very low leverage) and healthy cash conversion. The main offset is weakening operating performance: revenue has declined across 2023–2025 with notable margin compression in 2025, pressuring profitability and returns versus prior peaks.

Income Statement

Somero remains solidly profitable with strong gross profitability (about 52% in 2025) and still-healthy operating profitability (EBIT margin ~16% in 2025). However, performance has clearly cooled versus prior years: revenue declined in 2023–2025 and 2025 revenue was down ~6.6% year over year, with margins compressing meaningfully from the 2021–2023 peak period (net margin down to ~11.5% in 2025 from ~17.0% in 2024 and ~23% in 2022–2023). Overall: good profitability, but a weakening top-line and margin trajectory is the main drag.

Balance Sheet

The balance sheet is a major strength. Leverage is very low (debt-to-equity ~0.035 in 2025), supported by a large equity base (~82.4m in 2025) and sizable assets (~99.9m). Returns on equity remain positive (~12.7% in 2025), though they have stepped down materially from earlier years (above 20% in 2023–2024), reflecting the recent earnings slowdown rather than balance-sheet stress.

Cash Flow

Cash generation is healthy and well-aligned with earnings. In 2025, cash from operations (~18.3m) exceeded net income (cash-from-operations-to-net-income ~1.44), and free cash flow (~17.3m) covered most reported profit (free-cash-flow-to-net-income ~0.95). The weakness is growth: free cash flow was slightly down in 2025 and has been uneven across years, consistent with the broader demand/margin normalization.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	90.72M	109.15M	120.70M	133.59M	133.33M
Gross Profit	47.17M	58.80M	67.36M	76.16M	76.88M
EBITDA	17.02M	25.68M	34.82M	42.28M	45.99M
Net Income	10.43M	18.60M	27.98M	31.12M	34.83M
Balance Sheet
Total Assets	99.93M	98.12M	98.55M	98.99M	97.36M
Cash, Cash Equivalents and Short-Term Investments	33.18M	29.49M	33.31M	33.70M	42.15M
Total Debt	2.88M	2.77M	1.96M	1.38M	1.93M
Total Liabilities	17.49M	13.81M	15.31M	21.86M	21.69M
Stockholders Equity	82.44M	84.30M	83.23M	77.13M	75.67M
Cash Flow
Free Cash Flow	17.31M	15.18M	22.71M	22.43M	30.67M
Operating Cash Flow	18.30M	17.63M	24.45M	27.80M	36.92M
Investing Cash Flow	-984.22K	-2.45M	-1.74M	-5.22M	-6.20M
Financing Cash Flow	-12.89M	-19.33M	-22.58M	-31.68M	-24.31M

Somero Enterprises Inc Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 232.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• 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 213.32, above the 50-day MA of 215.76, and above the 200-day MA of 224.68, indicating a bearish trend. The MACD of -2.92 indicates Positive momentum. The RSI at 26.93 is Positive, neither overbought nor oversold. The STOCH value of 21.67 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
TPK	75 Outperform	£1.23B	12.17	-2.81%	2.12%	-4.34%	-220.12%
ASY	69 Neutral	£213.48M	7.49	38.39%	5.18%	-3.57%	-0.80%
SOM	68 Neutral	£109.75M	15.49	16.92%	6.00%	-16.86%	-45.98%
GFTU	68 Neutral	£1.72B	13.32	8.38%	3.99%	5.75%	5.86%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
SDY	56 Neutral	£102.17M	-2.27	-7.68%	8.43%	0.38%	-273.53%
PRO	42 Neutral	£55.90M	-1.79	-89.16%	―	―	―

Somero Enterprises Inc Corporate Events

Somero launches US$4m 2026 share buyback to cancel stock

Somero Enterprises Inc. has launched a 2026 share buyback programme authorizing the repurchase of up to US$4.0m of ordinary shares, with the stated intention of cancelling all shares bought to reduce the company’s share capital. The board says the move reflects Somero’s strong cash generation and balance sheet, positioning the buyback as an additional capital return alongside dividends while maintaining its existing capital allocation policy.

The company has appointed Cavendish Capital Markets to execute the buyback on a non-discretionary basis within pre-set parameters, with the programme running from now until no later than 30 June 2027. Somero cautions that daily repurchases could represent a significant portion of trading volume on the London Stock Exchange, and notes that while it aims to operate within market abuse regulation safe-harbour rules, trading volumes may at times exceed standard thresholds.

The most recent analyst rating on (GB:SOM) stock is a Buy with a £257.00 price target. To see the full list of analyst forecasts on Somero Enterprises Inc stock, see the GB:SOM Stock Forecast page.

Somero cushions 2025 revenue slump with strong H2, cash generation and new products

Somero Enterprises, the global specialist in laser‑guided concrete leveling systems and related training services, continues to leverage proprietary technology and a service‑led model to support commercial construction customers worldwide. The company has expanded its product suite with electric and next‑generation boomed screeds and ride‑on machines that broaden its addressable market and reinforce its position in high‑specification industrial flooring.

For 2025, Somero reported a 19% decline in revenue to $88.9 million and lower margins, but a stronger second half, disciplined cost control and solid cash generation underpinned what management described as a resilient performance. New and upgraded products generated $13 million of sales, regional revenue improved markedly in the second half, and operating cash flow held steady, allowing the group to maintain dividends, execute buybacks and enter 2026 expecting revenue, profitability and cash generation broadly in line with last year.

The most recent analyst rating on (GB:SOM) stock is a Buy with a £257.00 price target. To see the full list of analyst forecasts on Somero Enterprises Inc stock, see the GB:SOM Stock Forecast page.

Somero Enterprises Schedules Virtual Investor Presentation After Full-Year Results

Somero Enterprises will host a live virtual presentation and Q&A for investors on 17 March 2026, following the release of its full-year results on 10 March 2026. The event, led by Chief Executive Officer Tim Averkamp and Chief Financial Officer Enzo LiCausi, is open to existing and potential shareholders and will be recorded for later viewing on the company’s website.

The scheduled presentation underscores Somero’s efforts to enhance transparency and engagement with the investment community around its annual performance. By offering live questions and a publicly accessible replay, the company is providing stakeholders with broader access to management’s outlook and operational commentary, which may help inform market perceptions of its strategy and trading prospects.

The most recent analyst rating on (GB:SOM) stock is a Buy with a £257.00 price target. To see the full list of analyst forecasts on Somero Enterprises Inc stock, see the GB:SOM Stock Forecast page.

Somero Delivers Solid H2 on New Products as 2025 Sales Slide but Cash Strengthens

Somero Enterprises reported that trading improved in the second half of 2025, helped by normal seasonality and successful launches of new and next-generation products such as the S-15EZ and Hammerhead Laser Screed, which together generated about $13m and broadened its reach into the low- to mid-range contractor market. Full-year 2025 revenue is expected to be around $88.9m, down from $109.2m a year earlier but in line with guidance, with regional performance mixed: North America and Europe both declined amid macroeconomic and geopolitical headwinds, Australia normalized after a period of exceptional growth, and Rest of World remained relatively steady. Parts and service revenue fell less sharply than overall sales, underlining Somero’s push to grow recurring income, while adjusted EBITDA is forecast at $17.5m and year-end cash at a stronger-than-expected $33.2m, reinforcing its financial resilience. Management signalled that 2026 trading and profitability are likely to be broadly similar to 2025 amid ongoing market volatility and weaker demand for larger boomed screeds, but argued that strategic initiatives under its ‘Fortify, Innovate, Amplify’ framework, expanded product range and strong balance sheet position the group to defend its global market leadership and capture upside when construction markets recover.

The most recent analyst rating on (GB:SOM) stock is a Buy with a £257.00 price target. To see the full list of analyst forecasts on Somero Enterprises Inc stock, see the GB:SOM Stock Forecast page.

Somero Tightens Share Capital with Latest Buyback and Cancellation

Somero Enterprises, Inc. has repurchased 16,407 of its own ordinary shares on 19 December 2025 at a price of 225.50 pence per share under its ongoing share buyback programme and intends to cancel these shares. Following this transaction and the planned cancellation, the company’s issued share capital will stand at 54,065,489 ordinary shares with equal voting rights and no shares held in treasury, effectively consolidating existing shareholders’ stakes and modestly adjusting the company’s capital structure.

The most recent analyst rating on (GB:SOM) stock is a Buy with a £257.00 price target. To see the full list of analyst forecasts on Somero Enterprises Inc stock, see the GB:SOM Stock Forecast page.

Somero Enterprises Executes Share Buyback and Updates Voting Rights

Somero Enterprises, Inc. has executed a share buyback of 7,000 ordinary shares as part of its previously announced repurchase program. Following the transaction, the company’s updated issued share capital includes 54,081,896 ordinary shares, all of which possess equal voting rights, streamlining its capital structure and potentially signaling confidence in its market position to stakeholders.

The most recent analyst rating on (GB:SOM) stock is a Buy with a £257.00 price target. To see the full list of analyst forecasts on Somero Enterprises Inc stock, see the GB:SOM Stock Forecast page.

Somero Enterprises Executes Share Buy-Back to Enhance Shareholder Value

Somero Enterprises, Inc. announced the purchase and cancellation of 34,984 ordinary shares as part of its ongoing share buy-back program. This transaction reduces the company’s issued share capital to 54,088,896 ordinary shares, maintaining equal voting rights across all shares and reinforcing shareholder value.

The most recent analyst rating on (GB:SOM) stock is a Buy with a £257.00 price target. To see the full list of analyst forecasts on Somero Enterprises Inc stock, see the GB:SOM Stock Forecast page.

Somero Enterprises Executes Share Buy-Back, Reduces Share Capital

Somero Enterprises, Inc. has executed a share buy-back program, purchasing 33,432 ordinary shares at a price of 228.03 pence each, which will be cancelled. This transaction reduces the company’s issued share capital to 54,123,880 shares, all with equal voting rights, potentially impacting shareholder value and market perception positively by signaling confidence in the company’s financial health.

The most recent analyst rating on (GB:SOM) stock is a Buy with a £257.00 price target. To see the full list of analyst forecasts on Somero Enterprises Inc stock, see the GB:SOM Stock Forecast page.

Somero Enterprises Executes Share Buy-Back to Optimize Capital Structure

Somero Enterprises Inc. announced the repurchase of 13,680 ordinary shares as part of its share buy-back program, which was initially announced in March 2025. This transaction will reduce the company’s issued share capital to 54,157,312 ordinary shares, all with equal voting rights, potentially enhancing shareholder value and optimizing capital structure.

The most recent analyst rating on (GB:SOM) stock is a Buy with a £257.00 price target. To see the full list of analyst forecasts on Somero Enterprises Inc stock, see the GB:SOM Stock Forecast page.

Somero Enterprises Executes Share Buy-Back, Adjusts Voting Rights

Somero Enterprises Inc. announced the repurchase of 11,742 ordinary shares as part of its ongoing share buy-back program, initially declared in March 2025. This transaction reduces the company’s total issued share capital to 54,170,992 shares, maintaining equal voting rights for all shares and potentially signaling confidence in the company’s financial health and future prospects.

The most recent analyst rating on (GB:SOM) stock is a Buy with a £257.00 price target. To see the full list of analyst forecasts on Somero Enterprises Inc stock, see the GB:SOM Stock Forecast page.