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1. Company Snapshot

1.a. Company Description

SIG plc engages in the distribution and merchanting of specialist insulation and building products for the construction and related markets in the United Kingdom, Germany, France, Benelux, Poland, Ireland, and Mainland Europe.It offers insulation and interiors products, such as structural and technical insulations, dry linings, construction accessories and fixings, cladding and façade systems, ceiling tiles and grids, partition walls and door sets, and floor coverings.The company also provides roofing and exterior products, including tiles, slates, membranes, and battens for pitched roofs; single-ply flat roofing systems; industrial roofing and cladding systems; and room-in-roof panel systems, as well as industrial painting, coating, and repair services.


It operates 426 trading sites.The company serves developers, contractors, specialist installers, and independent merchants.SIG plc was formerly known as Sheffield Insulations Limited.


The company was founded in 1957 and is headquartered in Sheffield, the United Kingdom.

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1.b. Last Insights on SHI

Recent research on SIG has trimmed the implied fair value from 14.1% to 12.1%, indicating a more cautious approach to revenue growth assumptions, which have been reset from 3.28% to 2.88%. This shift towards more resilient modelling still assumes current earnings hold up, providing a positive narrative for the company. The slight lift in the discount rate from 9.20% to 9.24% suggests a more conservative outlook, but analysts remain optimistic about SIG's prospects.

1.c. Company Highlights

2. Transcript Summary

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3. NewsRoom

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What The Latest Valuation Reset Means For The SIG (LSE:SHI) Story

Feb -09

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SIG CEO & Director Acquires 17% More Stock

Jan -18

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SIG Q4 Earnings Call Highlights

Jan -13

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How Analysts See the SIG Story Shifting Amid Lower Targets and Recovery Hopes

Dec -06

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How Analyst Views Are Shaping the Evolving Story for SIG

Nov -22

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How Recent Developments Are Rewriting the Story for SIG

Nov -07

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How Recent Shifts Are Rewriting the Story for SIG

Oct -23

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Form 8.3 - IQE Plc

Sep -09

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4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (1.94%)

6. Segments

Interiors

Expected Growth: 1.8%

SIG plc's Interiors segment growth of 1.8% is driven by increasing demand for energy-efficient solutions, rising renovation activities, and growing popularity of sustainable building materials. Additionally, the segment benefits from SIG's strong distribution network, strategic partnerships, and innovative product offerings, enabling it to capitalize on the growing trend towards interior design and refurbishment.

Exteriors

Expected Growth: 2.2%

SIG plc's Exteriors segment growth of 2.2% is driven by increasing demand for energy-efficient roofing and cladding solutions, government initiatives promoting sustainable construction, and rising renovation activities in the UK and European markets.

7. Detailed Products

Roofing Solutions

SIG plc provides a wide range of roofing solutions including tiles, slates, and roofing membranes for both residential and commercial buildings.

Insulation Solutions

SIG plc offers a variety of insulation products including fiberglass, foam board, and reflective insulation for walls, floors, and ceilings.

Exterior Finishing Solutions

SIG plc provides exterior finishing products such as cladding, render, and exterior wall insulation to protect buildings from weathering and improve aesthetics.

Dry Lining Solutions

SIG plc offers dry lining products including plasterboards, jointing compounds, and finishing plasters for interior walls and ceilings.

Civils Solutions

SIG plc provides civil engineering products including geosynthetics, drainage systems, and erosion control solutions for infrastructure projects.

8. SIG plc's Porter Forces

Forces Ranking

Threat Of Substitutes

SIG plc operates in the building materials industry, where substitutes are limited. However, there is a growing trend towards sustainable and eco-friendly products, which could pose a threat to the company's traditional offerings.

Bargaining Power Of Customers

SIG plc's customers are primarily construction companies and builders, who have limited bargaining power due to the company's strong market position and wide range of products.

Bargaining Power Of Suppliers

SIG plc relies on a diverse range of suppliers for its products, which reduces the bargaining power of individual suppliers. However, the company is still vulnerable to supply chain disruptions and price fluctuations.

Threat Of New Entrants

The building materials industry has high barriers to entry, including significant capital requirements and regulatory hurdles, which limits the threat of new entrants.

Intensity Of Rivalry

The building materials industry is highly competitive, with several established players competing for market share. SIG plc faces intense rivalry from companies such as Travis Perkins and Wolseley.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 58.77%
Debt Cost 4.64%
Equity Weight 41.23%
Equity Cost 13.43%
WACC 8.27%
Leverage 142.54%

11. Quality Control: SIG plc passed 2 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
OEM International

A-Score: 5.5/10

Value: 1.1

Growth: 7.6

Quality: 7.9

Yield: 4.4

Momentum: 7.5

Volatility: 4.7

1-Year Total Return ->

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Bufab

A-Score: 4.8/10

Value: 1.9

Growth: 8.1

Quality: 5.8

Yield: 2.5

Momentum: 6.0

Volatility: 4.7

1-Year Total Return ->

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Bossard

A-Score: 4.4/10

Value: 4.2

Growth: 4.3

Quality: 4.8

Yield: 4.4

Momentum: 2.0

Volatility: 7.0

1-Year Total Return ->

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Alligo

A-Score: 4.3/10

Value: 6.5

Growth: 5.2

Quality: 5.1

Yield: 2.5

Momentum: 3.5

Volatility: 3.0

1-Year Total Return ->

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Teqnion

A-Score: 3.4/10

Value: 2.8

Growth: 6.9

Quality: 4.8

Yield: 0.0

Momentum: 4.0

Volatility: 1.7

1-Year Total Return ->

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Stock-Card
SIG

A-Score: 2.4/10

Value: 8.5

Growth: 2.8

Quality: 1.2

Yield: 0.0

Momentum: 0.0

Volatility: 1.7

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

0.1$

Current Price

0.1$

Potential

-0.00%

Expected Cash-Flows