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SigmaRoc PLC (GB:SRC)
LSE:SRC

SigmaRoc (SRC) AI Stock Analysis

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GB

SigmaRoc

(LSE:SRC)

Rating:76Outperform
Price Target:
117.00p
▲(8.13%Upside)
SigmaRoc's strong financial performance and strategic corporate actions are its primary strengths, with robust revenue growth and effective management strategies. While technical indicators show positive momentum, the high valuation is a notable concern. Recent corporate events enhance market perception, contributing positively to the overall score.
Positive Factors
Financial Performance
Results were ahead of expectations, beating consensus by 2% at EBITDA and 10% at EPS.
Investment Potential
SigmaRoc's shares look attractive on a 9% FCF yield, given a strong record for capital deployment.
Market Opportunities
Exposure to German fiscal expansion and potential Ukraine rebuilding offer significant further upside.
Negative Factors
Environmental Concerns
The market appears overly concerned about the Group's carbon intensity.

SigmaRoc (SRC) vs. iShares MSCI United Kingdom ETF (EWC)

SigmaRoc Business Overview & Revenue Model

Company DescriptionSigmaRoc plc, through its subsidiaries, invests in and/or acquires projects in the construction materials sector in the United Kingdom, Northern Europe, the Channel Islands, and Belgium. The company also produces aggregates and pre-cast concrete; supplies value-added construction materials; and provides shipping logistics, road contracting, and waste recycling services. In addition, it offers international marketing and financing services. The company was formerly known as Messaging International Plc and changed its name to SigmaRoc plc in August 2016. SigmaRoc plc was founded in 1999 and is headquartered in London, the United Kingdom.
How the Company Makes MoneySigmaRoc makes money through the extraction and sale of construction materials such as aggregates, dimension stones, and concrete products. These materials are essential components in building projects, enabling the company to earn revenue from both public and private sector projects. SigmaRoc's revenue streams are diversified across different geographical regions and include direct sales to construction companies, partnerships with contractors, and long-term supply agreements with infrastructure developers. The company's focus on sustainability and efficient production processes also plays a role in its competitive pricing strategy, contributing to its profitability and market position.

SigmaRoc Financial Statement Overview

Summary
SigmaRoc exhibits strong financial performance with notable revenue growth and improved operational efficiency. The company shows a stable balance sheet and positive cash flows, although improvements in net margins and careful management of capital expenditures are needed.
Income Statement
85
Very Positive
SigmaRoc has demonstrated strong revenue growth over the years, with a significant increase from 2023 to 2024. The gross profit margin has been consistently healthy, and the company has improved its EBIT and EBITDA margins, indicating enhanced operational efficiency. However, the net profit margin is relatively low, suggesting areas for improvement in cost management or pricing strategies.
Balance Sheet
78
Positive
The balance sheet reflects a robust equity base with the equity ratio remaining stable. The debt-to-equity ratio is moderate, indicating a balanced approach to leverage. Return on equity has shown positive trends, though there's room for improvement in leveraging the equity base for higher returns. Overall, the balance sheet is stable, but attention should be paid to managing liabilities effectively.
Cash Flow
80
Positive
SigmaRoc's cash flow statement shows a healthy operating cash flow, which has grown significantly. The free cash flow has been positive, indicating good cash management. The operating cash flow to net income ratio suggests effective conversion of income to cash, which is a positive sign. However, the capital expenditures are substantial, which may impact future free cash flows if not managed carefully.
Breakdown
Dec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
962.51M541.65M537.99M271.99M124.23M
Gross Profit
228.57M100.58M115.94M61.92M34.20M
EBIT
82.95M40.76M51.03M5.06M9.55M
EBITDA
163.86M77.86M89.69M22.93M20.17M
Net Income Common Stockholders
23.26M13.53M31.24M-6.97M6.51M
Balance SheetCash, Cash Equivalents and Short-Term Investments
131.36M55.87M68.62M69.92M27.45M
Total Assets
2.15B1.02B966.93M769.32M257.22M
Total Debt
641.83M238.30M262.48M233.92M71.30M
Net Debt
510.48M182.42M193.85M164.01M43.85M
Total Liabilities
1.39B500.38M497.08M358.16M133.66M
Stockholders Equity
724.77M500.74M458.12M400.26M123.56M
Cash FlowFree Cash Flow
42.01M9.08M35.01M6.92M21.86M
Operating Cash Flow
117.02M52.12M87.73M29.54M28.47M
Investing Cash Flow
-584.63M-64.56M-84.92M-375.16M-14.06M
Financing Cash Flow
547.89M957.00K2.88M388.54M3.11M

SigmaRoc Technical Analysis

Technical Analysis Sentiment
Positive
Last Price108.20
Price Trends
50DMA
95.92
Positive
100DMA
88.20
Positive
200DMA
80.55
Positive
Market Momentum
MACD
3.81
Positive
RSI
67.86
Neutral
STOCH
83.95
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:SRC, the sentiment is Positive. The current price of 108.2 is above the 20-day moving average (MA) of 105.46, above the 50-day MA of 95.92, and above the 200-day MA of 80.55, indicating a bullish trend. The MACD of 3.81 indicates Positive momentum. The RSI at 67.86 is Neutral, neither overbought nor oversold. The STOCH value of 83.95 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:SRC.

SigmaRoc Peers Comparison

Overall Rating
UnderperformOutperform
Sector (51)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
GBMBH
78
Outperform
£104.26M17.156.47%3.96%-9.35%-35.39%
GBSRC
76
Outperform
£1.21B51.773.68%65.87%3.47%
74
Outperform
£1.55B15.948.44%3.24%5.97%-9.81%
72
Outperform
£682.05M22.104.76%3.06%-7.75%66.58%
69
Neutral
£408.59M23.358.09%1.55%-0.61%34.19%
63
Neutral
£743.53M49.063.80%2.12%-9.77%-28.49%
51
Neutral
$2.02B-1.14-21.36%3.64%2.88%-30.57%
* Basic Materials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
GB:SRC
SigmaRoc
108.20
41.60
62.46%
GB:FORT
Forterra
194.00
26.81
16.04%
GB:IBST
Ibstock
188.40
35.91
23.55%
GB:MSLH
Marshalls
271.00
-25.86
-8.71%
GB:MBH
Michelmersh Brick Holdings
116.00
22.97
24.69%
GB:BREE
Breedon
447.40
72.08
19.20%

SigmaRoc Corporate Events

Private Placements and FinancingBusiness Operations and Strategy
SigmaRoc Director Increases Stake Through Option Exercise and Share Purchase
Positive
May 15, 2025

SigmaRoc announced that Tim Hall, a Non-Executive Director, exercised 750,000 options under the company’s 2016 Share Option Plan and purchased an additional 80,884 shares. This transaction increases Mr. Hall’s total interest in the company to 750,000 shares, representing 0.067% of the total issued share capital. The exercise of options was completed on a cashless basis, with no new ordinary shares issued, maintaining the total number of shares with voting rights at 1,114,854,530. This move reflects confidence in the company’s strategy and could have implications for shareholder value and market perception.

The most recent analyst rating on (GB:SRC) stock is a Buy with a £115.00 price target. To see the full list of analyst forecasts on SigmaRoc stock, see the GB:SRC Stock Forecast page.

Business Operations and StrategyFinancial Disclosures
SigmaRoc Unveils Growth Strategy and 2030 Financial Targets at Capital Markets Day
Positive
May 7, 2025

SigmaRoc held a Capital Markets Day to update institutional investors and analysts on its strategic goals and business developments. The company highlighted its leading position in the lime and limestone industry, its commitment to decarbonization, and its disciplined M&A strategy. SigmaRoc announced updated 2030 financial targets, including revenue growth, EBITDA margin, and capital returns, which reflect its focus on innovation and value creation for stakeholders. The recent trading update showed positive financial performance, with revenue and EBITDA exceeding management expectations, indicating strong operational execution.

Shareholder MeetingsBusiness Operations and Strategy
SigmaRoc Secures Strong Shareholder Support at AGM
Positive
May 1, 2025

SigmaRoc PLC announced the successful passing of all resolutions at its Annual General Meeting, with more than 90% shareholder approval. This outcome underscores strong shareholder support for the company’s strategic direction in the lime and minerals industry, which is pivotal for sustainability initiatives such as lithium battery recycling and construction decarbonization.

Business Operations and StrategyFinancial Disclosures
SigmaRoc Reports Strong Q1 Performance Amid Economic Volatility
Positive
May 1, 2025

SigmaRoc reported a strong start to 2025 with Q1 revenues and EBITDA surpassing expectations, driven by an 18.3% revenue increase to £252m and a 30.4% rise in underlying EBITDA. Despite a volatile political and economic environment, the company remains confident in its growth prospects, supported by a newly approved infrastructure fund in Germany and its diversified business model, which positions it well for future opportunities.

Private Placements and FinancingBusiness Operations and Strategy
SigmaRoc Partners with Adaptavate to Scale Low-Carbon Construction Technology
Positive
Apr 25, 2025

SigmaRoc has partnered with Adaptavate to advance low-carbon technology in the construction industry. This collaboration aims to industrially scale Adaptavate’s low-carbon wallboard technology, promoting sustainable building practices and reducing carbon emissions. The partnership includes a Memorandum of Understanding to collaborate on ‘Project Crystal’, an industrial demonstrator facility, and follows Adaptavate’s successful £2.7 million pre-Series A funding round. The initiative is expected to enhance SigmaRoc’s industry positioning by leveraging its infrastructure and market reach to support global scalability of Adaptavate’s innovations.

Business Operations and Strategy
SigmaRoc Allocates Shares to Directors Under Incentive Plan
Neutral
Apr 10, 2025

SigmaRoc PLC announced the allocation of ordinary shares under its Share Incentive Plan (SIP) to directors and persons discharging managerial responsibilities (PDMRs). The SIP allows eligible employees to purchase shares through salary contributions, with the recent transaction involving the purchase of 2,627 shares at 0.8566 pence each. This move is part of SigmaRoc’s strategy to engage its leadership in the company’s growth and align their interests with those of shareholders, potentially enhancing operational focus and commitment.

Shareholder MeetingsBusiness Operations and Strategy
SigmaRoc Announces AGM and Releases Annual Report
Neutral
Apr 1, 2025

SigmaRoc has announced its Annual General Meeting (AGM) will take place on May 1, 2025, in London, with relevant documents available to shareholders. This meeting underscores the company’s commitment to transparency and shareholder engagement, potentially impacting its operational strategies and market positioning.

Other
SigmaRoc Announces Change in Major Shareholder Holdings
Neutral
Mar 20, 2025

SigmaRoc PLC, a company involved in the construction materials industry, has announced a change in its major holdings. Rettig Oy Ab, based in Helsinki, Finland, has reduced its voting rights in SigmaRoc from 3.97% to 2.94% as of March 18, 2025. This change in holdings could impact SigmaRoc’s shareholder dynamics and influence its decision-making processes.

Business Operations and Strategy
SigmaRoc to Host Capital Markets Day for Strategic Updates
Positive
Mar 17, 2025

SigmaRoc PLC, a prominent player in the European lime and minerals industry, announced it will host a Capital Markets Day on May 7, 2025, in London. The event will provide institutional investors and analysts with updates on the company’s strategy and business development. This initiative underscores SigmaRoc’s commitment to transparency and engagement with stakeholders, potentially enhancing its market position and shareholder value.

M&A TransactionsBusiness Operations and StrategyFinancial Disclosures
SigmaRoc Achieves Strong Growth Through Strategic Acquisitions in 2024
Positive
Mar 17, 2025

SigmaRoc reported strong financial results for 2024, driven by strategic acquisitions of lime and limestone assets from CRH plc, which doubled the company’s size and diversified its operations. The company’s revenue increased by 72% to £997.6 million, and underlying EBITDA rose by 92% to £224.6 million, surpassing market expectations. The integration of these acquisitions has progressed well, with synergy programs delivering ahead of expectations, contributing to a robust financial performance. Additionally, SigmaRoc has made significant strides in ESG initiatives, including a 46% reduction in GHG emissions intensity and increased use of fossil-free electricity. Looking forward, the company remains focused on operational delivery and expects further synergies, while continuing to rationalize its non-core portfolio.

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.