S4 Capital Plc (SFOR) AI Stock Analysis

• Market Cap: £146.19M
• Dividend Yield: 4.59%
• Average Volume (3M): 4.07M
• Price to Earnings (P/E): 99.9
• Beta (1Y): 2.60
• Revenue Growth: -14.27%
• EPS Growth: -15466.67%
• Country: UK
• Employees: 7,044
• Sector: Communication Services
• Sector Strength: 97
• Industry: Advertising Agencies
• EPS (TTM): -0.03
• Shares Outstanding: 639,587,600
• 10 Day Avg. Volume: 7,560,662
• 30 Day Avg. Volume: 4,073,992
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: £29.00
• Price Target Upside: 28.89% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 5

• Rating: 49 Neutral
• Price Target: 17.50p ▼(-22.22% Downside)

S4 Capital Plc faces significant financial and operational challenges, reflected in its low financial performance and technical analysis scores. The company's high leverage and negative profitability are major concerns. However, the earnings call provides some optimism with debt reduction, new business wins, and AI initiatives, which could improve future performance. The valuation is weak due to negative earnings, but the dividend yield offers some support.

S4 Capital Plc Business Overview & Revenue Model

Company Description

S4 Capital plc, together with its subsidiaries, operates as a digital advertising and marketing services company in the Americas, Europe, the Middle East, Africa, and the Asia Pacific. It operates through three segments: Content, Data & Digital Media, and Technology Services. The company offers contents, campaigns, and assets for paid, social, and earned media, such as digital platforms and apps, as well as brand activations. It also provides campaign management analytics, creative production and ad serving, platform and systems integration and transition, and training and education services. In addition, the company offers digital transformation services in delivering digital product design, engineering services, and delivery services. S4 Capital plc is headquartered in London, the United Kingdom.

How the Company Makes Money

S4 Capital generates revenue primarily through its digital advertising and marketing services. The company's key revenue streams consist of fees charged for media buying, content production, and consulting services. By leveraging a data-driven approach, S4 Capital creates targeted advertising campaigns that maximize return on investment for clients, which is a significant factor in driving its earnings. Additionally, the company benefits from strategic partnerships with technology and media companies, enhancing its service offerings and expanding its client base. The focus on agile, digital-first strategies allows S4 Capital to respond quickly to market changes, further contributing to its revenue growth.

S4 Capital Plc Financial Statement Overview

Summary

S4 Capital Plc is facing financial instability with declining revenues and profitability challenges. The company has high leverage and negative net income, although it has shown some ability to generate cash flow recently.

Income Statement

S4 Capital Plc's revenue has shown significant volatility, with a decrease from 2023 to 2024. The gross profit margin has deteriorated, and the company is facing challenges with profitability, evidenced by negative net income and EBITDA margins. The consistent negative net profitability over the years indicates ongoing operational challenges.

Balance Sheet

The company's balance sheet shows a declining equity position and high leverage, with a debt-to-equity ratio that has been increasing over the years. Although the equity ratio remains reasonable, the high debt level poses a risk to financial stability. Return on equity is negative, reflecting the company's struggles with profitability.

Cash Flow

S4 Capital Plc's cash flow from operations has been inconsistent, with a return to positive free cash flow in 2024 after a negative figure in 2023. The operating cash flow to net income ratio is volatile, and the free cash flow to net income ratio indicates challenges in translating profits into cash flow.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	848.20M	1.01B	1.07B	686.60M	342.69M
Gross Profit	754.60M	873.20M	126.22M	91.27M	53.03M
EBITDA	-232.30M	94.00M	-54.10M	14.09M	45.85M
Net Income	-306.90M	-6.00M	-159.63M	-56.72M	-3.93M
Balance Sheet
Total Assets	1.45B	1.72B	1.94B	1.69B	1.17B
Cash, Cash Equivalents and Short-Term Investments	168.40M	145.70M	223.57M	301.02M	142.05M
Total Debt	349.90M	370.10M	385.30M	353.06M	119.40M
Total Liabilities	867.80M	854.00M	1.09B	884.43M	454.61M
Stockholders Equity	577.40M	865.80M	849.51M	801.14M	715.68M
Cash Flow
Free Cash Flow	53.10M	-18.70M	46.20M	34.52M	53.50M
Operating Cash Flow	57.10M	-10.70M	64.10M	49.09M	60.93M
Investing Cash Flow	-14.40M	-13.30M	-139.79M	-106.62M	-130.71M
Financing Cash Flow	-15.40M	-43.00M	-18.22M	213.96M	146.59M

S4 Capital Plc Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 22.50
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:SFOR, the sentiment is Neutral. The current price of 22.5 is above the 20-day moving average (MA) of 21.18, above the 50-day MA of 22.07, and below the 200-day MA of 27.51, indicating a neutral trend. The MACD of -0.24 indicates Negative momentum. The RSI at 56.09 is Neutral, neither overbought nor oversold. The STOCH value of 85.83 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for GB:SFOR.

S4 Capital Plc Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
WPP	71 Outperform	3.86B	9.95	15.60%	11.01%	-4.54%	86.79%
NFG	70 Outperform	289.65M	7.11	21.72%	5.35%	-0.66%	-26.16%
CAU	60 Neutral	60.14M	-5.64	-29.50%	3.97%	-13.72%	―
SAA	59 Neutral	173.33M	22.78	36.80%	1.00%	-21.19%	-29.54%
YOU	59 Neutral	342.96M	257.08	―	3.09%	42.19%	-94.16%
SFOR	49 Neutral	£146.19M	99.88	-45.75%	4.59%	-14.27%	-15466.67%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%

S4 Capital Plc Corporate Events

S4 Capital Reports Revenue Decline but Eyes Growth with New Business Wins

S4 Capital Plc reported a 12.7% decline in net revenue for the first half of 2025, with operational EBITDA down by almost 31%. Despite these challenges, the company improved its net debt position by £37 million, reflecting strong cash flow management. The company remains confident in its strategy, focusing on AI-driven solutions to enhance productivity and client engagement. Significant new business wins, including partnerships with General Motors and Amazon, are expected to boost performance in the second half of the year. The board is considering an enhanced final dividend for 2025, contingent on improved second-half performance and liquidity targets.

The most recent analyst rating on (GB:SFOR) stock is a Hold with a £23.00 price target. To see the full list of analyst forecasts on S4 Capital Plc stock, see the GB:SFOR Stock Forecast page.

S4 Capital Announces Total Voting Rights and Capital Structure

S4 Capital Plc announced its total voting rights and capital structure, consisting of 639,587,561 ordinary shares and 1 B ordinary share. This information is crucial for shareholders to determine their interests under the FCA’s Disclosure Guidance and Transparency Rules, impacting how they manage their investments in the company.

The most recent analyst rating on (GB:SFOR) stock is a Hold with a £21.50 price target. To see the full list of analyst forecasts on S4 Capital Plc stock, see the GB:SFOR Stock Forecast page.

S4 Capital to Announce Interim Results on September 15, 2025

S4 Capital plc announced that it will release its interim results on September 15, 2025, with webcasts and conference calls scheduled to discuss the outcomes. This announcement is part of the company’s ongoing commitment to transparency and stakeholder engagement, potentially impacting its market positioning and stakeholder relations.

The most recent analyst rating on (GB:SFOR) stock is a Hold with a £22.00 price target. To see the full list of analyst forecasts on S4 Capital Plc stock, see the GB:SFOR Stock Forecast page.

S4 Capital Expands Latin American Operations with Share Issuance

S4 Capital Plc announced the issuance of 18,322,338 ordinary shares as part of a deferred consideration payment related to its acquisition of Raccoon Group, enhancing its data and digital media capabilities in Latin America. The shares are set to be admitted to the London Stock Exchange, with the move expected to strengthen S4 Capital’s market position and expand its operational footprint in the region.

The most recent analyst rating on (GB:SFOR) stock is a Hold with a £0.44 price target. To see the full list of analyst forecasts on S4 Capital Plc stock, see the GB:SFOR Stock Forecast page.

S4 Capital Explores Potential Acquisition of MSQ Partners

S4 Capital Plc has confirmed receiving a proposal from MSQ Partners for a potential combination, which would involve S4 Capital acquiring MSQ. The discussions are in early stages, and there is no certainty of a transaction. This move could impact S4 Capital’s operations and market positioning, potentially enhancing its service offerings and expanding its market reach.

The most recent analyst rating on (GB:SFOR) stock is a Hold with a £0.44 price target. To see the full list of analyst forecasts on S4 Capital Plc stock, see the GB:SFOR Stock Forecast page.