S&U plc (SUS) AI Stock Analysis

• Market Cap: £289.19M
• Dividend Yield: 5.33%
• Average Volume (3M): 15.59K
• Price to Earnings (P/E): 14.6
• Beta (1Y): 0.78
• Revenue Growth: -11.17%
• EPS Growth: 6.04%
• Country: UK
• Employees: 239
• Sector: Financial
• Sector Strength: 70
• Industry: Financial - Credit Services
• EPS (TTM): 0.95
• Shares Outstanding: 12,150,760
• 10 Day Avg. Volume: 29,155
• 30 Day Avg. Volume: 15,591
• PEG Ratio: -0.38
• Price to Book (P/B): 0.85
• Price to Sales (P/S): 2.07
• P/FCF Ratio: 3.14
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 74 Outperform
• Price Target: 2,666.00p ▲(35.33% Upside)

The score is driven primarily by improved financial strength in 2025 (revenue rebound, strong cash flow swing, and debt elimination). Valuation is supportive with a low P/E and high dividend yield. Technicals are positive but appear overbought (high RSI), and corporate updates are constructive despite ongoing regulatory complexity.

Positive Factors

Debt elimination / stronger balance sheet

Eliminating all debt materially improves financial flexibility and reduces interest burden, enabling the group to fund loan originations, absorb credit stress, and support dividends or opportunistic buybacks. This durable change lowers refinancing risk and strengthens capital resilience.

2025 revenue and cash flow recovery

A sharp revenue rebound alongside a swing to positive free cash flow in 2025 signals improved earnings quality and conversion to cash. Sustained cash generation supports lending capacity, provisioning buffers and reinvestment, improving the firm's ability to grow loans durably.

Specialist lending franchises

Concentrated expertise in motor hire-purchase and secured bridging loans creates niche competitive advantage: established underwriting, collateralized loan structures and recurring interest income across two complementary lending niches, supporting steady structural revenue streams.

Negative Factors

Volatile cash generation

Multi-year swings in operating and free cash flow reduce predictability of capacity to underwrite and pay dividends. Management faces a higher probability of cyclical funding stress or capital raises during troughs, complicating long-term planning and capital allocation decisions.

Inconsistent profitability signals

Divergent operating-line metrics and a deterioration in profitability over several years undermine confidence in margin sustainability. Persistent inconsistency raises risk that reported earnings include one-offs or accounting effects, making future return on equity and dividend coverage less certain.

Prior revenue decline

Negative revenue growth over the referenced period shows prior demand or origination pressure. Even with a 2025 rebound, re-establishing consistent loan volume growth is critical; otherwise structural top-line weakness could limit scale economies and long-term margin recovery.

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

2025 shows a meaningful improvement with a sharp revenue rebound, a major cash flow recovery, and a balance sheet strengthened by eliminating debt. Offsetting this, profitability trends were weaker in 2022–2024, cash flows were highly volatile prior to 2025, and there is a noted inconsistency in 2025 operating profitability line items that reduces confidence in margin signals.

Income Statement

Revenue has been broadly stable over 2020–2024, followed by a sharp jump in 2025 (+46% year-over-year). Profitability has been strong historically (high gross profit and solid net margins), but net income has trended down from 2022–2024 before partially rebounding in 2025. A key concern is the 2025 operating profit line appearing inconsistent (negative operating margin despite positive operating profit), which reduces confidence in the quality/consistency of the operating profitability signals.

Balance Sheet

Leverage improved materially in 2025 with total debt falling to zero (down from meaningful debt levels in prior years), which strengthens financial flexibility. Equity has grown steadily over time, supporting asset growth. Returns on equity are positive but have generally drifted lower versus the 2022 peak, indicating profitability on shareholder capital has moderated even as the balance sheet strengthened.

Cash Flow

Cash generation has been volatile: operating and free cash flow were negative in 2022–2024 (particularly weak in 2023), then swung sharply positive in 2025. In 2025, free cash flow nearly matches net income, which is a constructive sign of earnings converting to cash in the most recent period. However, the multi-year inconsistency and large year-to-year swings increase risk and reduce predictability.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	107.00M	97.49M	100.38M	102.71M	87.89M	83.76M
Gross Profit	85.61M	97.49M	92.11M	78.51M	68.59M	68.98M
EBITDA	45.05M	0.00	49.14M	49.43M	51.32M	22.20M
Net Income	19.95M	17.91M	25.44M	33.72M	37.98M	14.65M
Balance Sheet
Total Assets	434.47M	445.06M	466.85M	428.17M	327.23M	284.84M
Cash, Cash Equivalents and Short-Term Investments	3.51M	5.22M	1.00K	3.14M	1.00K	1.00K
Total Debt	183.95M	0.00	225.25M	196.54M	114.44M	99.80M
Total Liabilities	193.30M	206.98M	232.68M	203.29M	120.48M	103.81M
Stockholders Equity	241.17M	238.08M	234.16M	224.88M	206.75M	181.03M
Cash Flow
Free Cash Flow	62.70M	64.27M	-711.00K	-63.59M	-2.47M	31.73M
Operating Cash Flow	63.84M	64.99M	-446.00K	-62.76M	-2.09M	32.94M
Investing Cash Flow	7.96M	-685.00K	-189.00K	-660.00K	-284.00K	-1.11M
Financing Cash Flow	-68.29M	-59.09M	-2.50M	66.56M	2.38M	-32.48M

S&U plc Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1970.00
• 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:SUS, the sentiment is Positive. The current price of 1970 is below the 20-day moving average (MA) of 2311.00, below the 50-day MA of 2109.10, and above the 200-day MA of 1780.72, indicating a bullish trend. The MACD of 77.30 indicates Positive momentum. The RSI at 66.48 is Neutral, neither overbought nor oversold. The STOCH value of 70.10 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:SUS.

S&U plc Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TIME	80 Outperform	£49.96M	8.16	8.50%	―	11.71%	31.15%
ORCH	75 Outperform	£12.81M	4.18	15.17%	3.33%	8.91%	94.32%
SUS	74 Outperform	£289.19M	14.62	8.41%	5.33%	-11.17%	6.04%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
IPF	67 Neutral	£515.29M	7.10	14.70%	4.39%	-7.52%	50.23%
ASAI	61 Neutral	£221.00M	6.64	39.40%	4.74%	―	―
VANQ	49 Neutral	£300.31M	-3.88	-16.30%	―	-3.77%	-147.20%

S&U plc Corporate Events

S&U plc Reports Strong Financial Turnaround and Growth Prospects

S&U plc has reported a significant turnaround in its financial performance, with group profits exceeding budget expectations. The motor finance division, Advantage, has shown robust growth in new business volumes and quality, aided by regulatory changes and a favorable market environment. Aspen Bridging continues to grow its loan book despite challenges in the residential property market. The company’s strong performance is supported by increased net receivables and a strategic plan to expand funding facilities, ensuring continued growth and shareholder rewards.

The most recent analyst rating on (GB:SUS) stock is a Hold with a £1700.00 price target. To see the full list of analyst forecasts on S&U plc stock, see the GB:SUS Stock Forecast page.