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SIG PLC (GB:SHI)
LSE:SHI
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SIG plc (SHI) AI Stock Analysis

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GB:SHI

SIG plc

(LSE:SHI)

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Neutral 48 (OpenAI - Gpt-5.6Sol)
Rating:48Neutral
Price Target:
9.50 p
▲(9.20% Upside)
Action:Reiterated
Date:08/06/26
The score is held back primarily by weak financial performance—sharp revenue contraction, ongoing losses, and elevated/rising leverage—despite positive (but slowing) free cash flow. Technicals provide only a modest offset with improving short-term momentum but an unrecovered longer-term trend. Valuation remains constrained by negative earnings and lack of dividend data.
Positive Factors
Positive Free Cash Flow
Sustained positive free cash flow provides SIG with internally generated funding for operations and obligations despite reported losses. This supports financial resilience and gives management some capacity to invest or reduce financial pressure, although the recent decline warrants monitoring.
Negative Factors
Sharp Revenue Contraction
The sharp revenue contraction signals a substantial reset in demand or transaction volumes across SIG’s construction-related markets. Lower sales reduce branch and distribution operating leverage, making it harder to spread fixed costs and restore profitability over the next several quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
Positive Free Cash Flow
Sustained positive free cash flow provides SIG with internally generated funding for operations and obligations despite reported losses. This supports financial resilience and gives management some capacity to invest or reduce financial pressure, although the recent decline warrants monitoring.
Read all positive factors

SIG plc (SHI) vs. iShares MSCI United Kingdom ETF (EWC)

SIG plc Business Overview & Revenue Model

Company Description
SIG plc, originally known as Sheffield Insulations Limited and founded in 1957, is headquartered in Sheffield, United Kingdom. The company functions as a prominent distributor and merchant, supplying specialized insulation and construction materia...
How the Company Makes Money
SIG primarily makes money by purchasing building-product materials from manufacturers and reselling them to professional customers (e.g., installers, contractors, and other trade buyers) through its branch network, earning a gross margin on each s...

SIG plc Financial Statement Overview

Summary
Core fundamentals are pressured: revenue fell ~32% YoY in 2025 and the company has been loss-making since 2023 with net margin around -2.5% in 2025. Balance-sheet risk is high with leverage rising to ~5.0x debt-to-equity and deeply negative ROE (~-53%). The main offset is positive free cash flow (~£52.7m in 2025), though it has cooled (~-18% in 2025) and durability should be monitored given accounting losses.
Income Statement
34
Negative
Balance Sheet
28
Negative
Cash Flow
56
Neutral
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue2.58B2.59B2.61B2.76B2.74B2.29B
Gross Profit619.40M625.00M640.00M699.60M706.30M597.40M
EBITDA105.00M105.00M78.90M87.20M138.50M83.10M
Net Income-51.10M-64.10M-48.60M-43.40M15.50M-28.30M
Balance Sheet
Total Assets1.21B1.14B1.18B1.27B1.33B1.20B
Cash, Cash Equivalents and Short-Term Investments64.20M81.30M86.80M132.20M130.10M145.10M
Total Debt596.40M601.40M585.70M590.60M574.60M510.70M
Total Liabilities1.11B1.02B998.40M1.04B1.07B937.00M
Stockholders Equity99.90M120.50M179.80M228.50M267.80M264.70M
Cash Flow
Free Cash Flow50.80M52.70M58.80M98.60M73.90M-57.20M
Operating Cash Flow64.50M68.80M75.50M114.40M89.20M-38.60M
Investing Cash Flow-9.30M-9.20M-16.60M-8.70M-42.00M-26.50M
Financing Cash Flow-74.60M-72.40M-98.60M-103.00M-65.50M-17.60M

SIG plc Technical Analysis

Technical Analysis Sentiment
Positive
Last Price8.70
Price Trends
50DMA
8.70
Positive
100DMA
8.45
Positive
200DMA
8.92
Positive
Market Momentum
MACD
0.33
Negative
RSI
62.05
Neutral
STOCH
51.33
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:SHI, the sentiment is Positive. The current price of 8.7 is below the 20-day moving average (MA) of 9.17, below the 50-day MA of 8.70, and below the 200-day MA of 8.92, indicating a bullish trend. The MACD of 0.33 indicates Negative momentum. The RSI at 62.05 is Neutral, neither overbought nor oversold. The STOCH value of 51.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:SHI.

SIG plc Peers Comparison

Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
73
Outperform
£1.76B14.037.94%3.98%8.57%0.74%
71
Outperform
£210.84M1.338.13%6.53%
63
Neutral
$10.79B15.437.44%2.01%2.89%-14.66%
59
Neutral
£52.67M-14.77-5.87%2.02%20.26%89.85%
57
Neutral
£152.42M114.630.71%7.47%1.30%-79.90%
48
Neutral
£113.42M-2.10-46.37%3.17%-0.75%25.17%
47
Neutral
£19.33M-4.43-10.04%4.43%8.27%-122.69%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
GB:SHI
SIG plc
9.30
-0.05
-0.53%
GB:FLO
Flowtech Fluidpower
63.50
-5.90
-8.50%
GB:GFTU
Grafton
954.10
99.40
11.63%
GB:LTHP
James Latham
122.50
7.87
6.87%
GB:BRCK
BRCK Group plc
47.00
-3.05
-6.09%
GB:LORD
Lords Group Trading PLC
11.75
-22.02
-65.21%

SIG plc Corporate Events

Business Operations and StrategyFinancial Disclosures
SIG steadies earnings in weak construction market as it accelerates Vision 2030 turnaround
Negative
Aug 4, 2026
SIG plc reported marginally lower first-half revenue of £1.29bn, as like-for-like sales fell 1.5% amid weak construction markets and poor first-quarter weather, with gross margin slipping to 23.9% and underlying operating profit declining to ...
Business Operations and StrategyFinancial Disclosures
SIG plc cuts 2026 profit outlook and launches £100m cash-generation plan
Negative
Jul 16, 2026
SIG plc reported a 1.5% like-for-like sales decline for the first half of 2026, hit by weak market conditions and adverse weather, with underlying operating profit expected at about £10m versus £15m a year earlier. Performance improved i...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Aug 06, 2026