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1. Company Snapshot

1.a. 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.

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1.b. Last Insights on SUS

S&U plc's recent performance was marred by a 29% decline in profits, primarily due to the motor finance arm's vulnerability to regulatory fallout. The company's earnings were dampened by rising impairments, a direct consequence of ongoing industry scrutiny. Furthermore, the lender's ability to originate new business was likely hindered by the regulatory environment, exacerbating the decline in profits.

1.c. Company Highlights

2. Transcript Summary

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3. NewsRoom

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Discover 3 UK Stocks Estimated To Be Up To 48.7% Below Their Intrinsic Value

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UK Market: NIOX Group And 2 Other Stocks That May Be Trading Below Estimated Value

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S&U (LON:SUS) Is Due To Pay A Dividend Of £0.35

Oct -28

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S&U (LON:SUS) Will Pay A Dividend Of £0.35

Oct -13

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FTSE 100 at new high as gold rush boosts miners

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UK Market: NIOX Group And Two Other Stocks Estimated Below Intrinsic Value

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Form 8.3 - IQE Plc

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Taylor Wimpey (LSE:TW.): A Fresh Look at Valuation After a Year of Share Price Pressure

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4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (12.89%)

6. Segments

Motor Finance

Expected Growth: 12%

S&U plc's Motor Finance segment growth of 12% is driven by increasing demand for used cars, expansion of online platforms, and strategic partnerships with dealerships. Additionally, the company's focus on prime lending and robust underwriting practices have contributed to the growth. Furthermore, the rise of alternative financing options and growing consumer confidence have also supported the segment's growth.

Property Bridging Finance

Expected Growth: 18%

S&U plc's Property Bridging Finance growth is driven by increasing demand for short-term property financing, rising property prices, and a growing need for flexible financing solutions. Additionally, the company's strong brand reputation, efficient underwriting process, and competitive pricing strategy have contributed to its 18% growth.

7. Detailed Products

Advantage Motor Finance

A motor finance product that provides financing solutions for car buyers

Aspen Bridging

A bridging loan product that provides short-term financing solutions for property developers and investors

Grafitti Capital

A property-backed lending product that provides financing solutions for property investors and developers

8. S&U plc's Porter Forces

Forces Ranking

Threat Of Substitutes

S&U plc operates in the financial services industry, which has a moderate threat of substitutes. While there are alternative financial institutions, S&U plc's specialized services and strong brand reputation mitigate the threat of substitutes.

Bargaining Power Of Customers

S&U plc's customers have limited bargaining power due to the company's specialized services and strong brand reputation. Customers are also dispersed, reducing their collective bargaining power.

Bargaining Power Of Suppliers

S&U plc has a diversified supplier base, reducing the bargaining power of individual suppliers. The company's strong financial position also gives it negotiating power over suppliers.

Threat Of New Entrants

The financial services industry has high barriers to entry, including regulatory hurdles and capital requirements. This limits the threat of new entrants and gives S&U plc a competitive advantage.

Intensity Of Rivalry

The financial services industry is highly competitive, with many established players competing for market share. S&U plc must differentiate itself through its specialized services and strong brand reputation to maintain its market position.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 49.00%
Debt Cost 6.48%
Equity Weight 51.00%
Equity Cost 6.48%
WACC 6.48%
Leverage 96.09%

11. Quality Control: S&U plc passed 3 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
IPF

A-Score: 6.5/10

Value: 9.0

Growth: 3.4

Quality: 5.4

Yield: 8.8

Momentum: 8.5

Volatility: 3.7

1-Year Total Return ->

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H&T

A-Score: 6.3/10

Value: 5.2

Growth: 6.3

Quality: 6.4

Yield: 5.0

Momentum: 10.0

Volatility: 4.7

1-Year Total Return ->

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Stock-Card
S&U

A-Score: 6.1/10

Value: 7.7

Growth: 5.6

Quality: 7.6

Yield: 8.8

Momentum: 3.5

Volatility: 3.7

1-Year Total Return ->

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Stock-Card
BFF Bank

A-Score: 5.9/10

Value: 6.0

Growth: 4.8

Quality: 7.1

Yield: 5.0

Momentum: 6.0

Volatility: 6.3

1-Year Total Return ->

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Stock-Card
Resurs Holding

A-Score: 5.4/10

Value: 5.5

Growth: 5.2

Quality: 3.9

Yield: 5.0

Momentum: 9.0

Volatility: 4.0

1-Year Total Return ->

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Stock-Card
Intrum

A-Score: 4.4/10

Value: 9.1

Growth: 2.1

Quality: 2.8

Yield: 5.0

Momentum: 7.5

Volatility: 0.0

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

18.75$

Current Price

18.75$

Potential

-0.00%

Expected Cash-Flows