S&U plc (SUS) AI Stock Analysis

• Market Cap: £171.93M
• Dividend Yield: 7.99%
• Average Volume (3M): 4.41K
• Price to Earnings (P/E): 9.1
• Beta (1Y): 0.49
• Revenue Growth: 0.15%
• EPS Growth: -29.58%
• Country: UK
• Employees: 239
• Sector: Financial
• Sector Strength: 85
• Industry: Financial - Credit Services
• EPS (TTM): 0.69
• Shares Outstanding: 12,150,760
• 10 Day Avg. Volume: 7,052
• 30 Day Avg. Volume: 4,405
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 1.71
• Price to Cash Flow (P/CF): 16.60
• P/FCF Ratio: 4.20
• 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: 16.84% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

S&U plc's strong financial stability and attractive valuation are key strengths, counterbalancing some concerns regarding revenue and cash flow volatility. Recent positive corporate developments further support a favorable outlook, suggesting potential growth and profitability improvements.

S&U plc Business Overview & Revenue Model

Company Description

S&U plc provides motor, property bridging, and specialist finance in the United Kingdom. The company was incorporated in 1938 and is headquartered in Solihull, the United Kingdom.

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 operational efficiency, as seen in its margins, but faces challenges with revenue growth and cash flow generation. The balance sheet reflects a well-managed capital structure with moderate leverage, though cash flow issues could pose risks to financial stability if not addressed.

Income Statement

The company's revenue has decreased significantly over the past year, showing a negative revenue growth rate. However, gross profit and net profit margins remain strong, indicating good cost control and profitability. The EBIT and EBITDA margins are also healthy, reflecting efficient operations despite the revenue decline.

Balance Sheet

The debt-to-equity ratio is moderate, indicating a balanced capital structure but a slight increase in leverage. Return on equity remains solid, showcasing profitability relative to shareholder investment. The equity ratio is stable, reflecting a reasonable proportion of equity financing.

Cash Flow

The company has experienced negative operating and free cash flows, raising concerns about cash generation capabilities. The operating cash flow to net income ratio is unfavorable, suggesting difficulties in converting income into cash. Free cash flow growth is also negative, pointing to potential liquidity issues.

Breakdown
Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement		Total Revenue
76.17M	102.71M	87.89M	83.76M	89.94M
	Gross Profit
92.11M	78.51M	68.59M	68.98M	69.62M
	EBIT
48.65M	62.78M	54.91M	58.39M	57.21M
	EBITDA
49.14M	49.43M	51.32M	22.20M	40.44M
	Net Income Common Stockholders
25.44M	33.72M	37.98M	14.65M	28.88M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
1.00K	3.14M	1.00K	1.00K	656.00K
	Total Assets
466.85M	428.17M	327.23M	284.84M	306.08M
	Total Debt
225.25M	196.54M	114.44M	99.80M	119.18M
	Net Debt
225.25M	193.40M	114.43M	99.80M	118.53M
	Total Liabilities
232.68M	203.29M	120.48M	103.81M	126.61M
	Stockholders Equity
234.16M	224.88M	206.75M	181.03M	179.47M
Cash Flow		Free Cash Flow
-711.00K	-63.59M	-2.47M	31.72M	4.64M
	Operating Cash Flow
-446.00K	-62.76M	-2.09M	32.94M	4.95M
	Investing Cash Flow
-189.00K	-660.00K	-284.00K	-1.11M	-265.00K
	Financing Cash Flow
-2.50M	66.56M	2.38M	-32.48M	-4.03M

S&U plc Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 1455.00
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• 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 1455 is above the 20-day moving average (MA) of 1428.00, above the 50-day MA of 1425.60, and below the 200-day MA of 1553.84, indicating a neutral trend. The MACD of 9.76 indicates Negative momentum. The RSI at 50.94 is Neutral, neither overbought nor oversold. The STOCH value of 39.68 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
SUS	76 Outperform	£171.93M	9.14	7.59%	7.99%	0.15%	-29.58%
CNC	76 Outperform	£128.68M	24.51	12.72%	0.54%	27.38%	10.24%
Sector *	64 Neutral	$12.65B	9.74	8.04%	17044.64%	12.65%	-5.11%
VANQ	61 Neutral	£163.84M	―	-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.