SigmaRoc (SRC) AI Stock Analysis

• Market Cap: £1.21B
• Dividend Yield: N/A
• Average Volume (3M): 5.68M
• Price to Earnings (P/E): 51.8
• Beta (1Y): 0.72
• Revenue Growth: 65.87%
• EPS Growth: 3.47%
• Country: UK
• Employees: 3,100
• Sector: Basic Materials
• Sector Strength: 64
• Industry: Construction Materials
• EPS (TTM): 0.02
• Shares Outstanding: 1,114,854,500
• 10 Day Avg. Volume: 5,800,684
• 30 Day Avg. Volume: 5,680,390
• PEG Ratio: 4.43
• Price to Book (P/B): 1.52
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 216.08
• 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: £125.00
• Price Target Upside: 15.53% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 76 Outperform
• 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 Business Overview & Revenue Model

Company Description

SigmaRoc 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 Money

SigmaRoc 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

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

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

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 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
962.51M	541.65M	537.99M	271.99M	124.23M
	Gross Profit
228.57M	100.58M	115.94M	61.92M	34.20M
	EBIT
82.95M	40.76M	51.03M	5.06M	9.55M
	EBITDA
163.86M	77.86M	89.69M	22.93M	20.17M
	Net Income Common Stockholders
23.26M	13.53M	31.24M	-6.97M	6.51M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
131.36M	55.87M	68.62M	69.92M	27.45M
	Total Assets
2.15B	1.02B	966.93M	769.32M	257.22M
	Total Debt
641.83M	238.30M	262.48M	233.92M	71.30M
	Net Debt
510.48M	182.42M	193.85M	164.01M	43.85M
	Total Liabilities
1.39B	500.38M	497.08M	358.16M	133.66M
	Stockholders Equity
724.77M	500.74M	458.12M	400.26M	123.56M
Cash Flow		Free Cash Flow
42.01M	9.08M	35.01M	6.92M	21.86M
	Operating Cash Flow
117.02M	52.12M	87.73M	29.54M	28.47M
	Investing Cash Flow
-584.63M	-64.56M	-84.92M	-375.16M	-14.06M
	Financing Cash Flow
547.89M	957.00K	2.88M	388.54M	3.11M

SigmaRoc Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 108.20
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MBH	78 Outperform	£104.26M	17.15	6.47%	3.96%	-9.35%	-35.39%
SRC	76 Outperform	£1.21B	51.77	3.68%	―	65.87%	3.47%
BREE	74 Outperform	£1.55B	15.94	8.44%	3.24%	5.97%	-9.81%
MSLH	72 Outperform	£682.05M	22.10	4.76%	3.06%	-7.75%	66.58%
FORT	69 Neutral	£408.59M	23.35	8.09%	1.55%	-0.61%	34.19%
IBST	63 Neutral	£743.53M	49.06	3.80%	2.12%	-9.77%	-28.49%
Sector *	51 Neutral	$2.02B	-1.14	-21.36%	3.64%	2.88%	-30.57%

SigmaRoc Corporate Events

SigmaRoc Director Increases Stake Through Option Exercise and Share Purchase

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.

SigmaRoc Unveils Growth Strategy and 2030 Financial Targets at Capital Markets Day

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.

SigmaRoc Secures Strong Shareholder Support at AGM

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.

SigmaRoc Reports Strong Q1 Performance Amid Economic Volatility

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.

SigmaRoc Partners with Adaptavate to Scale Low-Carbon Construction Technology

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.

SigmaRoc Allocates Shares to Directors Under Incentive Plan

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.

SigmaRoc Announces AGM and Releases Annual Report

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.

SigmaRoc Announces Change in Major Shareholder Holdings

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.

SigmaRoc to Host Capital Markets Day for Strategic Updates

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.

SigmaRoc Achieves Strong Growth Through Strategic Acquisitions in 2024

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.