S&U plc (SUS) AI Stock Analysis

• Market Cap: £256.99M
• Dividend Yield: 5.33%
• Average Volume (3M): 15.59K
• Price to Earnings (P/E): 5.1
• Beta (1Y): 0.71
• 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: £2,350.00
• Price Target Upside: 19.29% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1
• EPS Forecast (FY): 2.28
• Revenue Forecast (FY): £125.90M

• Rating: 74 Outperform
• Price Target: 2,531.00p ▲(28.48% Upside)
• Action: Reiterated Date: 12/30/25
• Date: Action: Reiterated 12/30/25

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

Balance Sheet Strength

Elimination of total debt in 2025 materially strengthens financial flexibility, reduces funding and refinancing risk, and frees cash flow for lending, buybacks or dividends. A zero-debt position improves resilience to rate shocks and supports strategic reinvestment in core lending franchises.

Cash Flow Recovery

The sharp revenue rebound and major cash flow recovery in 2025 signal the business can convert earnings to cash when conditions normalize. Strong cash conversion supports sustainable loan book growth, funding of provisions and dividends, improving long-term financial self-sufficiency if maintained.

Specialist Business Model

A focused motor finance and property bridging model relies on asset-backed lending and recurring interest/fee income, offering predictable cash yields and lower loss severity via collateral. Niche expertise and product diversification enhance competitive defensibility and revenue stability over time.

Negative Factors

Volatile Cash Generation

Multi-year swings in operating and free cash flow reduce earnings predictability and complicate capital allocation. Volatile cash generation can constrain sustainable lending capacity, increase reliance on external funding in stress periods, and raise uncertainty over the repeatability of 2025 improvements.

Weaker Profitability Trend

A decline in net income and drifting returns on equity despite balance sheet improvement suggests margin pressure, elevated credit costs, or competitive pricing. Persistently weaker profitability reduces retained earnings, limits self-funding for growth, and lowers the buffer against future credit losses.

Regulatory Complexity

Ongoing regulatory complexity in consumer and bridging finance raises compliance costs and execution risk. Potential rule changes or heightened supervision could constrain product design, underwriting flexibility and pricing, requiring operational investment or capital adjustments that pressure long-term margins.

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	Jan 2025	Jan 2024	Jan 2023	Jan 2022	Jan 2021
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: Negative
• Last Price: 1970.00
• 50DMA: Negative
• 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 Negative. The current price of 1970 is below the 20-day moving average (MA) of 2299.15, below the 50-day MA of 2245.74, and above the 200-day MA of 1843.35, indicating a neutral trend. The MACD of -21.16 indicates Positive momentum. The RSI at 36.52 is Neutral, neither overbought nor oversold. The STOCH value of 23.12 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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	£43.94M	3.46	8.50%	―	11.71%	31.15%
ORCH	75 Outperform	£12.81M	4.32	15.17%	3.33%	8.91%	94.32%
SUS	74 Outperform	£256.99M	5.11	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	£539.45M	9.42	14.70%	4.39%	-7.52%	50.23%
ASAI	61 Neutral	£215.00M	2.44	39.40%	4.74%	―	―
VANQ	53 Neutral	£280.52M	34.92	-16.30%	―	-3.77%	-147.20%

S&U plc Corporate Events

S&U rides trading upturn as motor and property units hit record performance

S&U plc reported a strong continuation of the upturn flagged in December, with group net receivables rising to about £495m from £436m, a 20% share price gain since the last update, and a proposed higher second interim dividend of 35p per share. Management highlighted buoyant trading at both core divisions, robust funding arrangements to support around £100m of additional borrowing needs, and a strategy geared to growth despite regulatory uncertainty.

Advantage Finance delivered a sharp revival, with annual loan advances more than 65% ahead of last year, receivables at roughly £385m, improved arrears and collections at 93% of due, and a sale of written-off accounts generating £3.4m. Aspen Bridging posted its best year since launch with 267 deals and £212m of lending, receivables up 21% to about £188m, record £188m recoveries, minimal historic capital losses, and positioning for further expansion as the UK housing market slowly revives.

The group has expanded its revolving credit facilities from £230m to £280m and is arranging longer-term funding to underpin its five-year growth plans, under the guidance of new CFO Chris Freckelton. Governance has been strengthened by appointing Advantage CEO Karl Werner to the S&U board, as the company navigates ongoing FCA scrutiny and potential redress schemes while arguing for more proportionate regulation through industry channels.

The most recent analyst rating on (GB:SUS) stock is a Buy with a £2666.00 price target. To see the full list of analyst forecasts on S&U plc stock, see the GB:SUS Stock Forecast page.

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.