S&U plc (SUS) AI Stock Analysis

• Market Cap: £180.74M
• Dividend Yield: 7.73%
• Average Volume (3M): 3.71K
• Price to Earnings (P/E): 10.1
• Beta (1Y): 0.53
• Revenue Growth: 0.15%
• EPS Growth: -29.58%
• Country: UK
• Employees: 239
• Sector: Financial
• Sector Strength: 83
• Industry: Financial - Credit Services
• EPS (TTM): 0.69
• Shares Outstanding: 12,150,760
• 10 Day Avg. Volume: 3,844
• 30 Day Avg. Volume: 3,711
• PEG Ratio: -2.28
• Price to Book (P/B): 0.78
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 3.31
• 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: £1,700.00
• Price Target Upside: 14.29% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 76 Outperform
• Price Target: ―

S&U plc's strong financial stability and profitability, alongside promising corporate events, support a positive outlook. The stock's valuation is attractive, and technical indicators suggest stability. However, challenges in revenue consistency and cash flow volatility remain key risks.

S&U plc Business Overview & Revenue Model

Company Description

S&U plc (SUS) is a UK-based financial services company that primarily operates in the non-standard consumer credit sector. The company focuses on providing motor finance and home credit services to individuals who may not have access to traditional banking facilities. Its core products include hire purchase motor finance through its subsidiary Advantage Finance, and home credit services via Loans at Home.

How the Company Makes Money

S&U plc generates revenue through interest and fee income from its motor finance and home credit operations. In the motor finance segment, the company provides hire purchase agreements to customers for used vehicles, earning interest on the financed amount over the life of the loan. The home credit segment involves providing small, unsecured, short-term loans to consumers, with income generated from repayments including interest and service fees. Key factors contributing to earnings include effective risk management, strong customer relationships, and a robust collections process. The company's partnerships with car dealerships and brokers also play a crucial role in customer acquisition and revenue generation.

S&U plc Financial Statement Overview

Summary

S&U plc demonstrates strong profitability and financial stability, with a robust equity position and improved cash flow. However, the company faces challenges in maintaining consistent growth due to fluctuating revenue and cash flow figures.

Income Statement

S&U plc shows strong profitability with high Gross Profit and EBIT margins. However, the company has experienced fluctuating revenue, with a recent decline in net income, indicating potential challenges in sustaining growth.

Balance Sheet

The company's balance sheet is solid with no current debt, leading to a healthy equity position. The equity ratio is strong, reflecting financial stability, although past leverage levels were significantly higher.

Cash Flow

The cash flow situation shows improvement with positive free cash flow in the latest period. However, inconsistent operating cash flows in previous years highlight potential volatility in cash generation.

Breakdown
Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement		Total Revenue
97.49M	100.38M	102.71M	87.89M	83.76M
	Gross Profit
97.49M	92.11M	78.51M	68.59M	68.98M
	EBIT
62.28M	48.65M	62.78M	54.91M	58.39M
	EBITDA
0.00	49.14M	49.43M	51.32M	22.20M
	Net Income Common Stockholders
17.91M	25.44M	33.72M	37.98M	14.65M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
5.22M	1.00K	3.14M	1.00K	1.00K
	Total Assets
445.06M	466.85M	428.17M	327.23M	284.84M
	Total Debt
0.00	225.25M	196.54M	114.44M	99.80M
	Net Debt
-5.22M	225.25M	193.40M	114.43M	99.80M
	Total Liabilities
206.98M	232.68M	203.29M	120.48M	103.81M
	Stockholders Equity
238.08M	234.16M	224.88M	206.75M	181.03M
Cash Flow		Free Cash Flow
64.27M	-711.00K	-63.59M	-2.47M	31.72M
	Operating Cash Flow
64.99M	-446.00K	-62.76M	-2.09M	32.94M
	Investing Cash Flow
-685.00K	-189.00K	-660.00K	-284.00K	-1.11M
	Financing Cash Flow
-59.09M	-2.50M	66.56M	2.38M	-32.48M

S&U plc Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 1487.50
• 50DMA: Positive
• 100DMA: Positive
• 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:SUS, the sentiment is Neutral. The current price of 1487.5 is below the 20-day moving average (MA) of 1496.13, above the 50-day MA of 1441.65, and below the 200-day MA of 1530.59, indicating a neutral trend. The MACD of 18.84 indicates Positive momentum. The RSI at 49.91 is Neutral, neither overbought nor oversold. The STOCH value of 29.76 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for GB:SUS.

S&U plc Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CNC	78 Outperform	£172.73M	36.43	12.72%	0.50%	27.38%	10.24%
SUS	76 Outperform	£180.74M	10.09	7.59%	7.73%	0.15%	-29.58%
Sector *	64 Neutral	$12.64B	9.78	7.67%	17015.08%	12.23%	-6.02%
VANQ	61 Neutral	£213.05M	―	-23.29%	9.29%	1.10%	-1831.40%

S&U plc Corporate Events

S&U plc Reports 2025 Results Amidst Regulatory Challenges and Aspen’s Record Performance

S&U plc reported its preliminary results for the year ending January 31, 2025, showing stable revenue but a decline in profit before tax due to challenges faced by its motor finance subsidiary, Advantage. Regulatory and legal challenges impacted Advantage’s performance, leading to increased impairment charges and reduced profit. However, the company anticipates a rebound in Advantage’s results following the resolution of these issues and a more supportive regulatory environment. Meanwhile, Aspen Bridging achieved record profits and revenue, contributing positively to the group’s overall performance. The company remains optimistic about future growth and recovery in its motor finance operations.

Spark’s Take on GB:SUS Stock

According to Spark, TipRanks’ AI Analyst, GB:SUS is a Neutral.

S&U plc’s overall stock score reflects a mixed performance. Strong profitability and operational efficiency are overshadowed by significant challenges in cash flow generation and weak technical indicators. However, the company benefits from a relatively low valuation and positive corporate events, indicating potential recovery and growth. Investors should weigh the attractive dividend yield against the risks posed by financial stability concerns and technical weaknesses.

To see Spark’s full report on GB:SUS stock, click here.

S&U plc Announces Upcoming Financial Results and Presentations

S&U plc has announced that it will release its financial results for the year ending 31 January 2025 on 15 April 2025. The company will host an analyst presentation and an investor presentation on the same day, providing an opportunity for stakeholders to engage with the company’s leadership and gain insights into its financial performance.

S&U plc Navigates Challenges with Optimism for Future Growth

S&U plc has issued a trading update indicating a challenging yet optimistic outlook for the company. While Advantage Finance continues to face difficulties due to past regulatory pressures, improvements in collections and new advances suggest a potential recovery in profitability. Aspen Bridging, on the other hand, reports a record year, with significant growth in net receivables and profits, driven by rising demand for residential properties. The anticipated deregulatory agenda and positive economic signals offer a promising environment for S&U’s financial services operations, bolstering its future growth and shareholder returns.

S&U plc Projects Optimistic Future Amid Regulatory Changes and Leadership Transition

S&U plc’s recent trading update indicates a positive outlook despite challenges faced by its Advantage Finance division due to regulatory constraints. An easing of these restrictions has led to improvements in collections rates and new advance volumes, signaling a potential recovery in profitability. Furthermore, the company’s Aspen Bridging division has experienced a record year with significant growth in net receivables and profits, driven by increased demand and effective cost control. The company anticipates continued growth supported by a more balanced regulatory environment and changes in leadership.