SigmaRoc (SRC) AI Stock Analysis

• Market Cap: £1.67B
• Dividend Yield: N/A
• Average Volume (3M): 3.60M
• Price to Earnings (P/E): 37.4
• Beta (1Y): 0.76
• Revenue Growth: 32.27%
• EPS Growth: N/A
• Country: UK
• Employees: 3,100
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Construction Materials
• EPS (TTM): 0.04
• Shares Outstanding: 1,114,854,500
• 10 Day Avg. Volume: 3,653,084
• 30 Day Avg. Volume: 3,598,677
• PEG Ratio: 6.19
• Price to Book (P/B): 1.10
• Price to Sales (P/S): 0.83
• P/FCF Ratio: 19.05
• 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: £173.00
• Price Target Upside: 33.69% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 74 Outperform
• Price Target: 161.00p ▲(24.42% Upside)

SigmaRoc's strong financial performance and positive technical indicators are the primary drivers of its stock score. The company's robust revenue growth and operational efficiency are complemented by a stable balance sheet. However, the high P/E ratio and recent project setbacks slightly temper the overall outlook.

Positive Factors

Revenue Growth

Sustained and significant revenue growth signals expanding market share and successful commercial execution in aggregates/asphalt/concrete. This growth supports economies of scale, funds reinvestment in plants and logistics, and underpins 2-6 month resilience through diversified public and private infrastructure demand.

Cash Generation

Consistently growing operating cash flow and positive free cash flow provide durable internal funding for operations, maintenance capex and debt servicing. Robust cash conversion supports financial flexibility over months, enabling investment in efficiency and buffering cyclical downturns in construction activity.

Balance Sheet Stability

A stable equity base and moderate leverage give SigmaRoc financial resilience and optionality. This balanced capital structure reduces refinancing risk and supports selective M&A or capex spending, preserving the company's ability to execute strategy across a 2-6 month horizon without overexposure to credit shocks.

Negative Factors

Low Net Profit Margin

Relatively low net margins limit the firm's ability to translate top-line growth into retained earnings and return on invested capital. Over several months this makes SigmaRoc more sensitive to input cost inflation or pricing pressure, constraining cash available for expansion or debt reduction if margins don't improve.

High Capital Expenditures

Substantial capex reduces near-term free cash flow and ties up capital in long-lived assets. If capex remains high relative to operating cash generation, it can constrain shareholder returns and debt paydown over months and raise execution risk if projected returns on these investments are delayed or lower than expected.

Project Execution Risk

Withdrawal of a major partner from a named project increases execution and revenue risk for that venture and may force re-contracting or cost reallocation. This structural disruption can reduce expected future backlog, delay strategic initiatives and require management time to replace partner capabilities over the medium term.

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 generates revenue through multiple streams, primarily by selling construction materials such as aggregates, asphalt, and concrete. The company benefits from a diverse customer base, including contractors, builders, and government entities involved in infrastructure projects. Key revenue streams include direct sales of construction materials, contract work for large-scale infrastructure projects, and strategic partnerships with other construction firms that allow for joint ventures and collaborative projects. Additionally, SigmaRoc's operations are supported by its ability to leverage economies of scale, optimize production efficiency, and maintain a strong focus on quality and sustainability, which further enhances its competitive position in the market.

SigmaRoc Financial Statement Overview

Summary

SigmaRoc demonstrates strong financial performance with consistent revenue growth and improved operational efficiency. The balance sheet is stable with a moderate debt-to-equity ratio, and cash flows are positive, supporting operational needs. However, there is room for improvement in net profit margins and managing capital expenditures.

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.00B	962.51M	541.65M	537.99M	271.99M	124.23M
Gross Profit	241.36M	228.57M	123.56M	115.94M	61.92M	34.20M
EBITDA	189.91M	163.86M	77.86M	89.69M	22.93M	20.17M
Net Income	44.33M	23.26M	13.53M	31.24M	-7.56M	6.51M
Balance Sheet
Total Assets	2.23B	2.15B	1.02B	966.93M	769.32M	257.22M
Cash, Cash Equivalents and Short-Term Investments	172.77M	131.36M	55.87M	68.62M	69.92M	27.45M
Total Debt	671.15M	641.83M	238.30M	262.48M	233.92M	71.30M
Total Liabilities	1.45B	1.39B	500.38M	497.08M	358.16M	133.66M
Stockholders Equity	748.21M	724.77M	500.74M	458.12M	400.26M	123.56M
Cash Flow
Free Cash Flow	23.24M	42.01M	9.08M	35.01M	6.92M	21.86M
Operating Cash Flow	93.07M	117.02M	52.12M	87.73M	29.54M	28.47M
Investing Cash Flow	-32.35M	-584.63M	-64.56M	-85.53M	-375.16M	-14.06M
Financing Cash Flow	-39.58M	547.89M	957.00K	2.88M	388.54M	3.11M

SigmaRoc Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 129.40
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

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 129.4 is below the 20-day moving average (MA) of 145.10, below the 50-day MA of 135.83, and above the 200-day MA of 119.52, indicating a bullish trend. The MACD of 3.98 indicates Positive momentum. The RSI at 67.99 is Neutral, neither overbought nor oversold. The STOCH value of 79.56 is Neutral, 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
BREE	75 Outperform	£1.24B	13.75	7.90%	4.47%	7.83%	-7.40%
SRC	74 Outperform	£1.67B	37.41	6.07%	―	32.27%	―
MBH	72 Outperform	£83.73M	16.14	5.71%	5.35%	-0.29%	-33.41%
FORT	69 Neutral	£410.70M	26.17	7.03%	2.13%	15.99%	96.05%
MSLH	68 Neutral	£439.43M	18.55	3.57%	4.18%	1.31%	10.19%
IBST	67 Neutral	£531.27M	43.70	3.10%	2.39%	5.58%	66.49%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%

SigmaRoc Corporate Events

SigmaRoc Executives Exercise Options and Sell Shares, Insider Stakes Increase

SigmaRoc has announced that its Chairman, David Barrett, and Chief Executive, Max Vermorken, have exercised share options granted under the company’s 2016 Share Option Plan on a cashless basis, acquiring 3.9 million and 8.2 million shares respectively through the transfer of beneficial interests from the company’s Employee Benefit Trust. To meet employment tax obligations and provide net proceeds, the trust arranged the sale of 2.8 million Barrett shares and 6.0 million Vermorken shares to institutional investors, leaving Barrett with 5.16 million shares (0.46% of issued capital) and Vermorken with 3.24 million shares (0.29%). The total number of SigmaRoc shares in issue with voting rights remains unchanged at 1,114,854,530, indicating that while the transactions alter insider holdings and signal ongoing use of equity-based remuneration for senior management, they do not affect the company’s overall capital structure or shareholder voting base.

The most recent analyst rating on (GB:SRC) stock is a Buy with a £157.00 price target. To see the full list of analyst forecasts on SigmaRoc stock, see the GB:SRC Stock Forecast page.

SigmaRoc Set to Beat 2025 Guidance as Synergies Lift Profits and Margins

SigmaRoc reported that it expects to beat its 2025 earnings-per-share guidance by around 10%, as underlying EBITDA rose more than 16% to exceed about £262m on revenue of £1.04bn, with margins improving sharply due to cost discipline and synergy delivery from recent UK and Poland acquisitions. Despite softer volumes in construction and steel markets and deliberate volume reductions linked to network optimisation, the group lifted its underlying EBITDA margin to roughly 25%, cut covenant leverage to about 1.8x, and improved ROIC to over 12%, underpinned by achieving its €40m recurring synergy target two years early. Portfolio pruning through the sale of three non-core businesses, the launch of a refinancing to expand funding capacity for future M&A, progress on ESG metrics and kiln decarbonisation, and an active ventures arm all support SigmaRoc’s strategy to consolidate its position in European lime and limestone. Looking into 2026, management signals a cautiously optimistic outlook, expecting benefits from German infrastructure stimulus, a firmer European steel sector, increased defence and green-economy investment, and easing financial conditions, while maintaining a tight focus on costs amid weather and geopolitical risks.

The most recent analyst rating on (GB:SRC) stock is a Hold with a £134.00 price target. To see the full list of analyst forecasts on SigmaRoc stock, see the GB:SRC Stock Forecast page.