Segro plc (REIT) (SGRO) AI Stock Analysis

• Market Cap: £8.62B
• Dividend Yield: 4.6%
• Average Volume (3M): 2.36M
• Price to Earnings (P/E): 13.9
• Beta (1Y): 1.18
• Revenue Growth: -4.77%
• EPS Growth: N/A
• Country: UK
• Employees: 466
• Sector: Real Estate
• Sector Strength: 53
• Industry: REIT - Industrial
• EPS (TTM): 0.18
• Shares Outstanding: 1,353,493,000
• 10 Day Avg. Volume: 3,285,330
• 30 Day Avg. Volume: 2,361,129
• PEG Ratio: -0.05
• Price to Book (P/B): 0.76
• Price to Sales (P/S): 13.59
• P/FCF Ratio: 29.97
• 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: £738.75
• Price Target Upside: 14.11% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 10

• Rating: 71 Outperform
• Price Target: 700.00p ▲(8.12% Upside)

Segro plc's overall score reflects its robust financial foundation and attractive valuation, bolstered by positive earnings call insights. However, technical indicators suggest caution due to bearish trends. The company's strategic initiatives and strong dividend yield provide additional support for the stock's potential.

Positive Factors

Strong Portfolio Performance

The robust growth in net rental income indicates strong demand for Segro's properties, enhancing revenue stability and supporting long-term financial health.

Development Prospects

Improving development prospects with advanced negotiations suggest future revenue growth, expanding Segro's asset base and market presence.

Resilient Balance Sheet

A strong balance sheet with low leverage and high liquidity provides financial flexibility, supporting strategic investments and weathering economic uncertainties.

Negative Factors

Slow European Pre-let Market

Slower pre-let markets in Europe may delay revenue realization from new projects, impacting short-to-medium term growth and cash flow.

Delay in Development Projects

Delays in project starts can hinder growth momentum and delay potential revenue streams, affecting Segro's development strategy execution.

Limited Contribution from Development

Low contribution from development activities suggests challenges in converting projects to revenue, potentially impacting future income growth.

Segro plc (REIT) Business Overview & Revenue Model

Company Description

SEGRO is a UK Real Estate Investment Trust (REIT), and a leading owner, manager and developer of modern warehouses and light industrial property. It owns or manages 8.1 million square metres of space (88 million square feet) valued at £13.3 billion serving customers from a wide range of industry sectors. Its properties are located in and around major cities and at key transportation hubs in the UK and in seven other European countries.

How the Company Makes Money

Segro generates revenue primarily through rental income from its extensive portfolio of properties leased to various tenants. The company employs a long-term leasing strategy, often entering into agreements that provide stable cash flows. Key revenue streams include rents from logistics and industrial properties, which benefit from the increasing demand for last-mile delivery solutions and e-commerce growth. Additionally, Segro engages in property development, creating new facilities that can be leased out once completed, thereby enhancing its income potential. Strategic partnerships and joint ventures with other property developers and institutional investors further contribute to its earnings, allowing Segro to leverage additional capital for development projects.

Segro plc (REIT) Financial Statement Overview

Summary

Segro plc shows a stable financial position with strong gross margins and a robust balance sheet. Despite some volatility in profitability and revenue, the company maintains a solid financial footing with potential for further stability.

Income Statement

Segro plc has experienced a mixed trajectory in recent years. The gross profit margin is strong at approximately 78.7% for 2024, indicating efficient cost management. However, there has been significant volatility in EBIT and net income, particularly in 2023, where both metrics were negative. Revenue has shown fluctuating growth patterns, with a notable decrease in 2024 compared to 2023. The company's ability to recover from previous losses in net income is promising, but the inconsistencies suggest potential risks in financial performance.

Balance Sheet

The balance sheet of Segro plc demonstrates a solid equity base, with an equity ratio of 68.6% in 2024, indicating a strong financial foundation. The debt-to-equity ratio is relatively moderate at 0.39, which shows a reasonable level of leverage. Return on Equity (ROE) improved significantly in 2024 after a negative performance in 2023, reflecting a return to profitability. While the balance sheet is robust, attention should be paid to the fluctuations in total liabilities and equity over time.

Cash Flow

Segro plc's cash flow statement shows positive trends, with a strong free cash flow generation in 2024 and a solid operating cash flow to net income ratio. The company has maintained a positive free cash flow, indicating its ability to generate cash after capital expenditures. Although there was a decline in free cash flow in 2024 compared to the previous year, the company has shown resilience in maintaining sufficient cash generation capabilities.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	523.50M	675.00M	749.00M	669.00M	546.00M	431.70M
Gross Profit	406.00M	531.00M	588.00M	451.00M	401.00M	323.80M
EBITDA	369.00M	763.00M	-134.00M	-1.88B	270.00M	280.00M
Net Income	497.50M	594.00M	-253.00M	-1.93B	4.06B	1.43B
Balance Sheet
Total Assets	17.81B	17.57B	17.31B	17.35B	17.78B	12.67B
Cash, Cash Equivalents and Short-Term Investments	141.00M	292.00M	376.00M	162.00M	45.00M	89.00M
Total Debt	4.96B	4.68B	5.42B	4.96B	3.48B	2.50B
Total Liabilities	5.74B	5.53B	6.40B	5.97B	4.35B	3.00B
Stockholders Equity	12.07B	12.05B	10.90B	11.37B	13.44B	9.66B
Cash Flow
Free Cash Flow	245.50M	306.00M	402.00M	204.00M	304.00M	194.40M
Operating Cash Flow	264.50M	330.00M	431.00M	213.00M	311.00M	199.30M
Investing Cash Flow	-319.00M	-369.00M	-526.00M	-1.25B	-1.28B	-1.11B
Financing Cash Flow	-426.00M	26.00M	309.00M	1.12B	930.00M	862.50M

Segro plc (REIT) Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 647.40
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:SGRO, the sentiment is Positive. The current price of 647.4 is above the 20-day moving average (MA) of 627.67, above the 50-day MA of 635.19, and below the 200-day MA of 661.01, indicating a neutral trend. The MACD of 1.58 indicates Negative momentum. The RSI at 57.59 is Neutral, neither overbought nor oversold. The STOCH value of 74.60 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:SGRO.

Segro plc (REIT) Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BBOX	79 Outperform	3.54B	8.30	9.75%	5.49%	35.06%	127.62%
LMP	74 Outperform	4.20B	10.56	8.50%	6.78%	122.74%	60.58%
SGRO	71 Outperform	£8.62B	13.89	5.20%	4.60%	-4.77%	―
BLND	69 Neutral	3.50B	9.90	5.92%	6.51%	-20.83%	―
LAND	68 Neutral	4.31B	10.80	6.08%	5.72%	0.97%	―
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%

Segro plc (REIT) Corporate Events

SEGRO plc Announces Total Voting Rights Update

SEGRO plc has announced its total issued ordinary share capital as of 29 August 2025, which comprises 1,353,493,002 ordinary shares, each with one voting right. This figure is crucial for shareholders to determine their notification obligations under the Financial Conduct Authority’s Disclosure Guidance and Transparency Rules, impacting how they manage their interests in the company.

The most recent analyst rating on (GB:SGRO) stock is a Buy with a £696.00 price target. To see the full list of analyst forecasts on Segro plc (REIT) stock, see the GB:SGRO Stock Forecast page.