olivLaw · European equity research
Bodycote plc BOY.L
United Kingdom · London Stock Exchange · ISIN GB00B3FLWH99 · Vertical: Listed companies from United Kingdom
Bodycote plc is a global provider of heat treatment and thermal processing services for metal parts, serving customers across industries in 22 countries. The company is in the middle of its Optimise programme, focusing on cost control, governance and emissions reduction, which makes it relevant to investors as macroeconomic pressures and climate transition continue.
At the close of 05 Nov 2026, Bodycote plc (BOY.L) stock was 9.18 GBP (−0.05% on the day), with market capitalisation 1.6 bn GBP, P/E 29.6 on diluted EPS of 0.31 GBP over the last 12 months, dividend yield 2.52%, beta 1.01, 52-week range 6.01–9.61 GBP.
Data as of · AI analysis dated · Source: ESEF annual reports and closing prices, computed by olivLaw.
Price history
Loading chart…
Technical reading
- RSI (14)
- 55.5
- strong (55–70)
- Bollinger (20, 2)
- 9.06 – 9.19
- in the upper half of the band · %B 0.86 · band width 1.4%
- SMA 50 / 200
- 9.27 / 7.81
- mixed trend
- MACD (12, 26, 9)
- 0.00 / -0.01
- MACD above signal
Indicators describe past prices; on their own they do not predict direction. On our history the RSI ≤ 40 filter added no return (see the signals methodology).
Performance
| Company | EURO STOXX 50 | vs EURO STOXX 50 | Vertical median | |
|---|---|---|---|---|
| 1 month | +0.8% | −0.6% | +1.5 pp | — |
| 3 months | +0.4% | −4.2% | +4.6 pp | — |
| 6 months | +30.1% | +4.3% | +25.8 pp | — |
| Year to date | +31.4% | +7.5% | +23.9 pp | — |
| 1 year | +46.9% | +9.9% | +37.0 pp | +5.8% |
| 3 years | +57.2% | +49.8% | +7.4 pp | +26.3% |
| 5 years | +9.0% | +42.8% | −33.8 pp | — |
Price returns, dividends excluded.
Quarterly results
ESEF annual reports carry no quarters: the results are annual (below).
E/P over time
E/P = trailing-12-month diluted EPS / price at quarter end. E/P is the inverse of P/E and stays defined when earnings are negative.
Today's P/E sits at the 67 percentile of its own 3-quarter history (min 13.3, median 22.5, max 59.2; quarters with earnings only).
Fiscal years
| Fiscal year | 2023 | 2024 | 2025 |
|---|---|---|---|
| Revenue | 802.5 m | 757.1 m | 727.1 m |
| Revenue YoY | unavailable | −5.7% | −4.0% |
| Net income | 85.6 m | 20.0 m | 54.9 m |
| Net income YoY | unavailable | −76.6% | +174.5% |
| Diluted EPS | 0.45 | 0.11 | 0.31 |
| Diluted EPS YoY | unavailable | −76.1% | +189.7% |
| net % | 10.7% | 2.6% | 7.6% |
| Free cash flow | 117.5 m | 82.5 m | 67.1 m |
Balance sheet & financial health
Fiscal year 2025 · 31 Dec 2025
- Cash
- 24.4 m GBP
- Financial debt
- 130.0 m GBP
- Net debt
- 105.6 m GBP
- Equity
- 641.9 m GBP
- Total assets
- 1.1 bn GBP
- Debt / equity
- 0.20x
- Current ratio
- 1.15x
- ROE
- 8.4%
- ROA
- 5.2%
- FCF margin
- 9.2%
Financial statements (source on every figure)
Revenue and net income (GBP)
Margins
Income statement · GBP
| Line | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|
| Revenue | 802.5 m | 757.1 m | 727.1 m | esef· 21 Apr 2026verified |
| Operating income | 119.2 m | 37.9 m | 83.6 m | esef· 21 Apr 2026verified |
| Interest expense | 8.3 m | 10.3 m | 9.5 m | esef· 21 Apr 2026verified |
| Pre-tax income | 111.7 m | 28.4 m | 74.5 m | esef· 21 Apr 2026verified |
| Income tax | 24.9 m | 7.7 m | 19.1 m | esef· 21 Apr 2026verified |
| Net income | 85.6 m | 20.0 m | 54.9 m | esef· 21 Apr 2026verified |
| Diluted EPS | 0.45 | 0.11 | 0.31 | esef· 21 Apr 2026verified |
| Dividend per share | 0.16 | 0.16 | 0.23 | esef· 21 Apr 2026derived |
Balance sheet · GBP
| Line | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|
| Cash | 44.7 m | 16.0 m | 24.4 m | esef· 21 Apr 2026verified |
| Receivables | 148.4 m | 141.3 m | 145.2 m | esef· 21 Apr 2026verified |
| Inventories | 29.5 m | 28.1 m | 28.7 m | esef· 21 Apr 2026verified |
| Current assets | 236.7 m | 198.6 m | 212.1 m | esef· 21 Apr 2026verified |
| Property, plant & equipment, net | 504.9 m | 481.2 m | 477.7 m | esef· 21 Apr 2026verified |
| Goodwill | 221.5 m | 207.0 m | 200.5 m | esef· 21 Apr 2026verified |
| Total assets | 1.1 bn | 1.1 bn | 1.1 bn | esef· 21 Apr 2026verified |
| Short-term debt | 32.6 m | 3.1 m | 800.0 k | esef· 21 Apr 2026verified |
| Long-term debt | — | 84.3 m | 129.2 m | esef· 21 Apr 2026verified |
| Current liabilities | 225.1 m | 207.0 m | 184.0 m | esef· 21 Apr 2026verified |
| Total liabilities | 344.4 m | 397.5 m | 411.7 m | esef· 21 Apr 2026verified |
| Equity | 792.3 m | 669.9 m | 641.9 m | esef· 21 Apr 2026verified |
| Shares outstanding at year end | 189.8 m | 185.2 m | 177.1 m | esef· 21 Apr 2026derived |
Cash flow · GBP
| Line | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|
| Operating cash flow | 191.6 m | 152.6 m | 143.5 m | esef· 21 Apr 2026verified |
| Capex | 74.1 m | 70.1 m | 76.4 m | esef· 21 Apr 2026verified |
| Free cash flow | 117.5 m ≈ | 82.5 m ≈ | 67.1 m ≈ | esef· 21 Apr 2026derived |
| Investing cash flow | -71.2 m | -112.8 m | -55.6 m | esef· 21 Apr 2026verified |
| Financing cash flow | -110.2 m | -67.6 m | -79.6 m | esef· 21 Apr 2026verified |
| Dividends paid | 40.6 m | 42.9 m | 40.9 m | esef· 21 Apr 2026verified |
| Share repurchases | 13.2 m | 0 | — | esef· 15 Apr 2025verified |
≈ computed by olivLaw from the reported lines of the same year: Operating cash flow − Capex.
Computed indicators
Growth
Profitability
Returns
Balance sheet
Liquidity
Cash
Efficiency
Market and valuation
1 indicators that do not apply to the sector.
Valuation
olivLaw classification
Score: 47 / 100
A scoring methodology on indicators and valuation, not investment advice.
Closing price
05 Nov 2026Source: olivLaw, closing series
Market cap: 1.6 bn GBP
Key indicators
Coverage and freshness
Score by group
- Quality50
- Returns55
- Balance sheet72
- Valuation26
Estimated value range
unavailable — no valuation assumptions for the reporting currency
Valuation assumptions are editorial choices, not measured; beta is not measured.
Valuation methods
Assumptions (illustrative, editorial)
- Risk-free rate
- 6.5%
- Equity risk premium
- 6.0%
- Beta (default)
- 1.00
- Cost of equity
- 12.5%
- Terminal growth
- 3.0%
Factor scorecard
Neutral profile · Score 47/100
| Factor | Value | Score | Weight used |
|---|---|---|---|
| ROIC · Quality | 8.4% | 25 (vs peers) | 17% |
| Net margin · Quality | 7.6% | 43 (vs peers) | 10% |
| FCF conversion · Quality | 122.2% | 100 (on a fixed band) | 10% |
| Revenue CAGR 3Y · Growth | unavailable | unavailable | — |
| EPS CAGR 3Y · Growth | unavailable | unavailable | — |
| Net debt / EBITDA · Balance sheet | unavailable | unavailable | — |
| Interest coverage · Balance sheet | 8.8x | 100 (on a fixed band) | 10% |
| Current ratio · Balance sheet | 1.2x | 29 (on a fixed band) | 7% |
| P/E (TTM) · Valuation | 29.6x | 6 (vs peers) | 17% |
| EV/EBITDA · Valuation | unavailable | unavailable | — |
| FCF yield · Valuation | 4.1% | 52 (on a fixed band) | 13% |
| Shareholder yield (distributions) · Returns | 2.5% | 36 (on a fixed band) | 10% |
| Payout ratio (FCF) · Returns | 61.0% | 84 (on a fixed band) | 7% |
Factors without a value were dropped; the remaining weights were renormalised.
Score groups
- Balance sheet72/100 · 2/3 factors with a value
- Growth· partialunavailable · 0/2 factors with a value
- Quality50/100 · 3/3 factors with a value
- Returns55/100 · 2/2 factors with a value
- Valuation26/100 · 2/3 factors with a value
A «partial» group is computed from under half of its weight or from one factor: it is not a full assessment of the group.
Memo
BODYCOTE PLC (BOY.L). Latest full fiscal year: 2025; data up to 2025-12-31.
Figures computed from the financial statements: revenue 727.1 m GBP in 2025; YoY growth -4.0%; net margin 7.6%; ROE 8.4%.
The estimated value range is 2.96–4.21 GBP per share (median of 3 methods, agreement: low); assumptions are illustrative. Against the central value of 3.48 GBP, the price of 9.18 GBP leaves a potential of -62.0% (value / price − 1) and a margin of safety of -163.5% (1 − price / value). The range is the median of the methods' low, central and high values, not a probability interval.
olivLaw score 47/100, methodological classification: neutral profile (score, margin of safety and method agreement together; not a judgement of the right price). Groups assessed only in part: growth. Not investment advice.
Text generated deterministically from the figures shown; no language model. Not investment advice.
What supports the thesis
- FCF conversion: 122.2%
- Interest coverage: 8.8x
- Payout ratio (FCF): 61.0%
What contradicts it
- ROIC: 8.4%
- Current ratio: 1.2x
- P/E (TTM): 29.6x
- The price is above the estimated value range
- The valuation methods diverge
Not assessed (insufficient data or a ratio without meaning): Revenue CAGR 3Y, EPS CAGR 3Y, Net debt / EBITDA, EV/EBITDA.
Versus the vertical median
Listed companies from United Kingdom · same country · compared with 39 companies
Multiples and returns vs the median
Price rebased to 100 (monthly, 5 years)
Companies in the vertical
| Market cap | P/E | ROE | Net margin | Revenue YoY | 1A / 3A | |
|---|---|---|---|---|---|---|
| BATS.LBritish American Tobacco P.L.C. | 104.3 bn | 13.5 | 16.5% | 30.3% | −1.0% | +7% / +88% |
| ABF.LAssociated British Foods PLC | 14.7 bn | 14.3 | 9.2% | 5.3% | −3.1% | −5% / −15% |
| 0EV1.LCarnival PLC | 5.5 bn | 4.1 | 46.7% | 13.4% | +6.4% | unavailable / unavailable |
| BAB.LBabcock International Group PLC | 5.1 bn | 24.7 | 34.7% | 4.1% | +7.2% | −10% / +158% |
| AUTO.LAutotrader Group PLC | 4.8 bn | 16.4 | 60.2% | 47.1% | +3.9% | −13% / −23% |
| BBY.LBalfour Beatty PLC | 4.2 bn | 16.3 | 23.2% | 2.8% | +15.2% | +20% / +160% |
| ABDN.LAberdeen Group PLC | 4.1 bn | 10.8 | 8.0% | 28.9% | −2.1% | +11% / +41% |
| BKG.LThe Berkeley Group Holdings PLC | 3.6 bn | 11.3 | 8.8% | 13.4% | −4.2% | −0% / −22% |
| BME.LB&M European Value Retail PLC | 2.9 bn | 17.4 | 21.2% | 2.8% | +3.7% | +68% / −51% |
| AJB.LAj Bell PLC | 2.4 bn | 22.8 | 49.9% | 33.1% | +18.0% | +8% / +128% |
| BOY.LBodycote PLC | 1.6 bn | 29.6 | 8.4% | 7.6% | −4.0% | +45% / +60% |
| ASHM.LAshmore Group PLC | 1.4 bn | 13.9 | 13.1% | 71.6% | −0.1% | +28% / +18% |
| BCG.LBaltic Classifieds Group PLC | 1.2 bn | 23.2 | 15.8% | 57.6% | +6.9% | −99% / −99% |
| APN.LApplied Nutrition PLC | 763.6 m | 36.2 | 41.2% | 19.7% | +24.2% | +71% / unavailable |
| BAG.LA.G. Barr P.L.C. | 671.9 m | 14.4 | 14.4% | 10.8% | +4.0% | −7% / +26% |
| ASC.LAsos PLC | 494.5 m | — | -81.3% | -12.0% | −14.7% | +71% / +8% |
| ALFA.LAlfa Financial Software Holdings PLC | 486.8 m | 16.3 | 61.5% | 23.8% | +15.3% | −28% / +10% |
| AML.LAston Martin Lagonda Global Holdings PLC | 344.3 m | — | -93.4% | -39.2% | −20.6% | −45% / −85% |
| APTD.LAptitude Software Group PLC | 111.3 m | 28.5 | 7.2% | 6.2% | −7.3% | −30% / −23% |
| AMGO.LAmigo Holdings PLC | 9.9 m | — | — | — | −81.9% | +325% / +844% |
| ASBE.LAssociated British Engineering PLC | 605.3 k | — | -19.1% | — | unavailable | unavailable / unavailable |
| AMIF.LAmicorp Fs (uk) PLC | 221.6 k | 0.1 | 27.5% | 9.1% | +8.1% | unavailable / unavailable |
| AAF.LAirtel Africa PLC | — | — | 24.1% | 10.6% | +29.5% | −7% / +164% |
| AAL.LAnglo American PLC | — | — | -19.3% | -20.2% | +4.5% | +30% / +76% |
| ACG.LAcg Metals Limited | — | — | -80.3% | -32.0% | +134.8% | +60% / +63% |
1- and 3-year price returns: for BOY.L from daily closes (the same as the performance table), for the other companies from month-end closes.
olivLaw engine forecast
The world engine ran after the company's latest material disclosure. Probabilities are of TOUCHING a level within the horizon (not closing there) and sit next to the random walk (p_rw), the no-information benchmark.
The engine has no published run for this company yet.
Valuation scenarios (editable assumptions)
Illustrative scenarios
Illustrative: not forecasts and without probabilities. Each case is one coherent set of assumptions, computed on today's figures.
Estimated price (GBP)
| Estimated price | Bear | Base | Bull |
|---|---|---|---|
| 1 years | 4.96 Total return -44% · Per year -44% | 8.81 Total return -2% · Per year -2% | 13.33 Total return 48% · Per year 48% |
| 3 years | 4.03 Total return -51% · Per year -21% | 8.13 Total return -4% · Per year -2% | 13.60 Total return 57% · Per year 16% |
| 5 years | 3.28 Total return -57% · Per year -15% | 7.50 Total return -7% · Per year -1% | 13.89 Total return 66% · Per year 11% |
- Exit P/E± 2.03
- Net margin± 1.42
- Annual revenue growth± 1.27
- Annual dilution± 0.12
AI analysis
AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.
In brief
Bodycote plc is a global provider of heat treatment and thermal processing services for metal parts, serving customers across industries in 22 countries. The company is in the middle of its Optimise programme, focusing on cost control, governance and emissions reduction, which makes it relevant to investors as macroeconomic pressures and climate transition continue.
SWOT
Strengths
- Global facility network that allows work to be transferred and supports continuity of service for customers 1.
- Multiple industrial accreditations and strict quality systems, audited regularly by customers and accreditation bodies 1.
- Demonstrated ability to adjust the cost structure and protect profitability when demand varies 1.
Weaknesses
- High share of short-term fixed costs that magnifies the effect of sales declines on profitability 1.
- Reliance on critical operational equipment, where unplanned downtime can affect the ability to serve customers 1.
- Executive incentives tied to ROCE and adjusted EPS targets that were not met in the 2023 cycle, signalling pressure on returns 1.
Opportunities
- Decarbonisation goals could open commercial opportunities with customers seeking lower-emission processes 1.
- Broader investor engagement in new European regions and in the US could strengthen the company's profile 1.
- Strengthened governance and risk controls could support better capital and funding decisions 1.
Risks
- Market and cost inflation riskhigh
Macroeconomic tensions, supply chain disruption and rising energy costs could squeeze profitability if not passed on to customers 1.
- Competitive pressuremedium
Existing or new competitors could win customers on price, lead times or quality, leading to lost revenue 1.
- Health and safetymedium
The nature of thermal activities creates risks for employees and the community, with possible penalties and reputational damage if poorly managed 1.
- Climate and decarbonisation riskmedium
Regulation, reporting requirements and physical climate risks could generate costs and business disruption 1.
- Operational continuitylow
Facility incidents or utility outages could disrupt customer service, although continuity plans and insurance are in place 1.
Investment thesis
What would need to be true (bull case)
- If the Optimise programme meets its cost goals, margins could recover, and the global network could support volume growth when demand improves 1.
- A position with multiple accreditations and high financial barriers to entry could help protect market share against competitors 1.
- Emissions reduction commitments could attract customers who prioritise lower-emission processes 1.
What would break the thesis
- A cost base with a large share of fixed costs could magnify losses if sales fall in the end markets served 1.
- Incentive targets tied to ROCE and EPS were not met in the 2023 cycle, suggesting returns could remain below expectations 1.
- Compliance costs for climate regulation and decarbonisation investment could limit financial flexibility 1.
What to watch
- Progress of the Optimise programme and realised cost savings2026
- Demand trends in end markets and volumes of parts treated2026
- Delivery against SBTi emissions targets and 2025-2027 incentive metrics2027
- Operation of the new Group Risk Committee and internal control frameworknext 10-K
Products, market & competition
AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.
The business
Bodycote provides heat treatment and thermal processing through a global network of 136 facilities, which allow work to be transferred between accredited sites 1. Its business rests on treating customers' parts to contractual specifications, so reputation for quality and on-time delivery is central 1. In fiscal 2025 the company ran its Optimise programme with monthly reporting and a strengthened governance framework 1.
Segments
Heat treatment services
The core segment is heat treatment of metal parts for customers in varied industries, backed by quality systems and accreditations such as ISO 9001, Nadcap and IATF 16949 1.
Thermal processing and engineering
The company also supplies specialised thermal processes supported by engineering and quality control teams that track compliance with customer specifications 1.
Market context
Trends
- Cost optimisation and footprint restructuringtailwind
The Optimise programme and recent restructuring have adapted the facilities footprint to end-market trends, which could support margins if cost reductions are sustained 1.
- Cost inflation and energy pressureheadwind
Rising energy prices, labour shortages and inflation could weigh on profitability if they are not passed on to customers 1.
- Decarbonisation and SBTi targetsmixed
Emissions reduction targets and emissions-linked incentive plans may create commercial opportunities, but also bring investment and compliance costs 1.
- Geopolitical instability and supply chainsmixed
Supply chain disruption and geopolitical instability could reduce volumes, although the global network gives the company some flexibility 1.
Competitive position
Thermal processing is competitive, with regional and global operators that can win or lose customers on price, lead times and quality 1. Bodycote aims to remain the supplier of choice through broad service offerings, control of proprietary knowledge and high financial barriers to entry 1.
- Regional heat treatment operators
Local suppliers competing on lead times and geographic proximity, cited in the source as a risk of market share loss 1.
- Global thermal processing providers
International groups that could take work when a facility's accreditations lapse, per the source 1.
- New market entrants
The source flags the risk that new entrants could erode market share, although financial barriers to entry are high 1.
- Surface engineering providers
Competition in adjacent finishing and surface treatment services, referenced within the general competitive pressure described 1.
News & filings
In the press
- Veritas Capital to Buy UK’s Bodycote for £1.65 BillionBloomberg Markets · 01 Sept 2026 · EN
- UK’s Bodycote Draws £1.6 Billion Bids From CVC and VeritasBloomberg Markets · 05 Aug 2026 · EN
Annual reports (ESEF)
- Annual report 202521 Apr 2026
- Annual report 202521 Apr 2026
- Annual report 202415 Apr 2025
Sources
- [1] Annual report, fiscal year ended 2025-12-31 (ESEF) · SEC / Bodycote plc · 31 Dec 2025
Figures computed by olivLaw from ESEF annual reports and closing prices; the qualitative analysis is AI-generated from cited sources. Not investment advice.