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1. Company Snapshot

1.a. Company Description

Stelrad Group PLC manufactures and distributes radiators in the United Kingdom, Ireland, Europe, Turkey, and internationally.It provides steel panel radiators, low surface temperature radiators, towel warmers, decorative steel tubular radiators, and other steel column radiators under the Stelrad, Henrad, Termo Teknik, and Hudevad brands.Stelrad Group PLC was founded in 1936 and is headquartered in Newcastle Upon Tyne, the United Kingdom.

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1.b. Last Insights on SRAD

Stelrad Group PLC faced negative drivers, including a challenging UK market environment marked by weak global cues and faltering trade data from China, which pressured the FTSE 100 index. The company's recent dividend announcement of £0.0304 per share, while indicative of shareholder returns, did not outweigh broader market concerns. Amidst uncertain conditions, investors focused on undervalued stocks with potential for growth when market conditions stabilize. There were no recent earnings releases or share buyback announcements that could have positively influenced the stock.

1.c. Company Highlights

2. Transcript Summary

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3. NewsRoom

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4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (3.00%)

6. Segments

Radiators

Expected Growth: 3.0%

Stelrad Group PLC's radiator segment growth of 3.0% is driven by increasing demand for energy-efficient heating solutions, government incentives for eco-friendly products, and rising construction activities in the UK and Europe. Additionally, the company's strategic expansion into new markets and product innovation also contribute to the growth.

7. Detailed Products

Radiators

Stelrad Group PLC offers a wide range of radiators, including steel panel radiators, designer radiators, and towel rails, designed to provide efficient and cost-effective heating solutions for residential and commercial buildings.

Heat Pumps

Stelrad Group PLC's heat pumps are designed to provide efficient and environmentally friendly heating and cooling solutions for residential and commercial buildings, using renewable energy sources.

Underfloor Heating

Stelrad Group PLC's underfloor heating systems provide efficient and comfortable heating solutions for residential and commercial buildings, using hydronic or electric systems.

Thermal Interface Materials

Stelrad Group PLC's thermal interface materials are designed to improve the efficiency of heat transfer in various applications, including electronics, automotive, and industrial processes.

Heat Recovery Systems

Stelrad Group PLC's heat recovery systems are designed to recover waste heat from industrial processes, providing a cost-effective and environmentally friendly solution for energy efficiency.

8. Stelrad Group PLC's Porter Forces

Forces Ranking

Threat Of Substitutes

Stelrad Group PLC operates in the heating industry, where substitutes are limited. However, there is a growing trend towards renewable energy sources, which could pose a threat to the company's traditional heating products.

Bargaining Power Of Customers

Stelrad Group PLC sells its products to a large customer base, which reduces the bargaining power of individual customers. Additionally, the company's products are often customized, making it difficult for customers to switch to alternative suppliers.

Bargaining Power Of Suppliers

Stelrad Group PLC relies on a few large suppliers for its raw materials. While the company has some bargaining power due to its size, suppliers may still have some leverage due to the specialized nature of the materials required.

Threat Of New Entrants

The heating industry has high barriers to entry, including significant capital requirements and regulatory hurdles. Additionally, Stelrad Group PLC has a strong brand presence and established distribution networks, making it difficult for new entrants to compete.

Intensity Of Rivalry

The heating industry is highly competitive, with several established players competing for market share. Stelrad Group PLC faces intense competition from rivals such as Vaillant, Worcester Bosch, and Ideal Boilers.

9. SWOT Analysis

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 60.14%
Debt Cost 4.80%
Equity Weight 39.86%
Equity Cost 4.80%
WACC 4.80%
Leverage 150.91%

11. Quality Control: Stelrad Group PLC passed 5 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
Deceuninck

A-Score: 5.3/10

Value: 7.2

Growth: 4.8

Quality: 4.2

Yield: 5.6

Momentum: 2.0

Volatility: 8.0

1-Year Total Return ->

Stock-Card
Stelrad

A-Score: 5.2/10

Value: 4.6

Growth: 5.6

Quality: 3.5

Yield: 6.9

Momentum: 6.5

Volatility: 4.3

1-Year Total Return ->

Stock-Card
Volution

A-Score: 5.1/10

Value: 2.0

Growth: 7.6

Quality: 6.7

Yield: 2.5

Momentum: 5.0

Volatility: 6.7

1-Year Total Return ->

Stock-Card
Norcros

A-Score: 4.6/10

Value: 5.1

Growth: 2.2

Quality: 4.0

Yield: 6.9

Momentum: 6.0

Volatility: 3.3

1-Year Total Return ->

Stock-Card
Genuit

A-Score: 4.4/10

Value: 5.3

Growth: 3.6

Quality: 6.1

Yield: 5.0

Momentum: 1.5

Volatility: 5.0

1-Year Total Return ->

Stock-Card
Lindab

A-Score: 3.5/10

Value: 3.0

Growth: 5.3

Quality: 3.8

Yield: 3.8

Momentum: 1.5

Volatility: 3.7

1-Year Total Return ->

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

1.35$

Current Price

1.35$

Potential

-0.00%

Expected Cash-Flows