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1. Company Snapshot

1.a. Company Description

Severfield plc, a structural steelwork company, engages in the designing, manufacturing, fabrication, construction, and erection of steelwork activities in the United Kingdom, Republic of Ireland, Mainland Europe, and India.The company manufactures metal decking products; plate girder sections, rectangular and/or circular apertures, optimal section profiles, and intumescent coating products.It also provides steel-framed modular equipment rooms and housing; steelworks, including the main structure, mezzanines, stairs, balustrade, and platforms; staircase fabrication; composite and non-composite plain and cellular beams; and offload and edge protection systems, as well as delivers constructional steel products.


The company provides its services for various projects, such as industrial and distribution, nuclear, health and education, commercial offices, power and energy, stadia and leisure, retail, transport, data centers, and process industries.It serves contractors, developers, engineers, and architects.The company was formerly known as Severfield–Rowen plc and changed its name to Severfield plc in May 2014.


The company was founded in 1978 and is headquartered in Thirsk, the United Kingdom.

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1.b. Last Insights on SFR

Severfield's recent performance has been impacted by challenging market conditions. A year ago, shareholders were optimistic, but current market dynamics have led to decreased investor confidence. Although specific recent earnings data is not available, the company's overall financial health appears to be under pressure. Any potential share buyback initiatives could provide some support, but market headwinds and sector challenges are likely to persist. According to recent reports, investors are cautious, and Severfield's prospects seem uncertain.

1.c. Company Highlights

2. Transcript Summary

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3. NewsRoom

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Is Severfield plc (LON:SFR) Trading At A 29% Discount?

Dec -04

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Shareholders in Severfield (LON:SFR) are in the red if they invested a year ago

Oct -02

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Is Severfield plc (LON:SFR) Trading At A 37% Discount?

Nov -03

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With 84% ownership, Severfield plc (LON:SFR) boasts of strong institutional backing

Oct -13

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June 2024 Insight Into Three UK Stocks Estimated Below Value

Jun -25

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Severfield plc's (LON:SFR) Has Been On A Rise But Financial Prospects Look Weak: Is The Stock Overpriced?

Jun -21

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A Look At The Intrinsic Value Of Severfield plc (LON:SFR)

May -11

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Is It Too Late To Consider Buying Severfield plc (LON:SFR)?

Apr -23

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4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (5.00%)

6. Segments

Construction Contracts

Expected Growth: 5%

Severfield plc's 5% growth in Construction Contracts is driven by increasing demand for infrastructure development, government investments in transportation and energy projects, and a growing trend towards sustainable and eco-friendly construction practices. Additionally, the company's strategic expansion into new markets and its focus on operational efficiency have contributed to its growth momentum.

7. Detailed Products

Structural Steel Frames

Design, fabrication, and installation of structural steel frames for buildings and infrastructure projects

Bridge Construction

Design, fabrication, and installation of steel bridges and bridge components

Industrial Cladding and Roofing

Design, supply, and installation of industrial cladding and roofing systems

Stadium and Arena Construction

Design, fabrication, and installation of structural steelwork for stadiums and arenas

Power and Process Plant Construction

Design, fabrication, and installation of structural steelwork for power and process plants

High-Rise Building Construction

Design, fabrication, and installation of structural steelwork for high-rise buildings

8. Severfield plc's Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for Severfield plc is medium due to the availability of alternative materials and construction methods. However, the company's focus on high-quality steel products and its strong relationships with customers mitigate this threat to some extent.

Bargaining Power Of Customers

The bargaining power of customers is low for Severfield plc due to the company's strong market position and its ability to negotiate prices with its customers. Additionally, the company's focus on long-term relationships with customers helps to reduce the bargaining power of customers.

Bargaining Power Of Suppliers

The bargaining power of suppliers is medium for Severfield plc due to the company's dependence on a few large suppliers for raw materials. However, the company's strong relationships with suppliers and its ability to negotiate prices help to mitigate this threat.

Threat Of New Entrants

The threat of new entrants is low for Severfield plc due to the high barriers to entry in the steel construction industry. The company's strong market position, high capital requirements, and regulatory hurdles make it difficult for new entrants to enter the market.

Intensity Of Rivalry

The intensity of rivalry is high for Severfield plc due to the competitive nature of the steel construction industry. The company faces intense competition from established players, and the market is characterized by low switching costs and high product differentiation.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 4.86%
Debt Cost 7.97%
Equity Weight 95.14%
Equity Cost 7.97%
WACC 7.97%
Leverage 5.11%

11. Quality Control: Severfield plc passed 7 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
Rai Way

A-Score: 7.2/10

Value: 3.1

Growth: 5.7

Quality: 8.5

Yield: 8.8

Momentum: 7.5

Volatility: 10.0

1-Year Total Return ->

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Stock-Card
San José

A-Score: 6.4/10

Value: 7.8

Growth: 7.2

Quality: 5.4

Yield: 3.1

Momentum: 8.5

Volatility: 6.3

1-Year Total Return ->

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Stock-Card
PORR

A-Score: 6.0/10

Value: 8.7

Growth: 4.4

Quality: 4.5

Yield: 5.0

Momentum: 10.0

Volatility: 3.3

1-Year Total Return ->

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Stock-Card
Peab

A-Score: 5.7/10

Value: 7.1

Growth: 5.2

Quality: 3.5

Yield: 7.5

Momentum: 4.0

Volatility: 7.0

1-Year Total Return ->

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Stock-Card
Hill & Smith

A-Score: 5.5/10

Value: 3.8

Growth: 6.7

Quality: 7.0

Yield: 3.8

Momentum: 5.5

Volatility: 6.3

1-Year Total Return ->

View Full Report
Stock-Card
Severfield

A-Score: 4.3/10

Value: 10.0

Growth: 2.8

Quality: 4.6

Yield: 7.5

Momentum: 0.0

Volatility: 0.7

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

0.29$

Current Price

0.29$

Potential

-0.00%

Expected Cash-Flows