A great update from BOY which should start a reversal in trend.. I hope.. |
hTTps://think.ing.com/articles/eus-final-decision-on-tariffs-for-evs-from-china/Chinese EV makers are likely to move production to Europe due to EU tariffs on imports. A monster opportunity for BOY over the next couple of years.The slow down in China will be temporary. The recovery will be explosive.Western car manufacturers are restructuring to adapt to a dynamic market. Car sales are expected to grow more than 8% per annum over the next few years. So more cars produced more efficiently using greater automation at less cost.More component parts will require coatings and processing. BOY set to capitalise. |
rogue is correct to highlight the auto sector with China.
This is a development I completely underestimated.
BOY was a very reliable, all be it cyclical stock previously, but the changing auto market dynamics would cause me to pause.
Will have a look in more detail over the weekend. |
This one looks to have bottomed imo. Will be watching Monday 8am if it dips on low volume. |
Some positive news for the Aerospace industry |
Good points rogue. I disagree on aero
Airbus and Boing had a stronger order intake month in September over August and both deliveries and orders are up YTD over 2023. Air travel is booming, people want and need to travel. Boing has the strike issues granted but looking at the latest voting on a potential package it is getting closer to a resolution.
Auto is struggling a little yes but lower interest rates will drive demand for the next auto cycle. I'm comfortable at 550, a 10% swing won't bother me as I'm targeting a 100% upside by mid to late 2025. Bodycote are towards the front of the production cycle so revenues will ramp quickly as the manufacturers begin to see a recovery. |
two main depts here auto and aero. aero which has always been a bright spot is possibly heading for troubled waters with the boeing fiasco (prev they talked about uaw/stellantis strike in the auto sector affecting them). while on auto side youve seen the headlines things are getting worse for western manufacturers but big clients gm results seemed to be taken well and cat will report this week and those results are supposed to be strong so we will see. but share price on strong decline and you tend not to want to step into these without reason. with more than half revs in europe its exposed to some tough trends. theres some key support around 510/515 which exposes a 450 and lower if not held as it would mean breaking key trendline from covid low. |
I have been watching this too and am worried by the decline since May - I think it may re-test 500 which is where I will be tempted. |
Fridays Director purchase gives me some confidence that all is well at Bodycote. I've wanted to own BOY since the run up starting in 2017. I missed the 2020 run as I was fully invested elsewhere. 550 seems like a good entry price, I'm following the chair in. |
Airbus profits warning |
Did I miss some news thats driven this down over last few days? Cheers |
Tipped today in The Times.
'Stephan Klepp, the HSBC’s analyst, sees Bodycote as “an early cyclical beneficiary of an improving macroeconomic environment. It is one of the most underestimated UK industrials, much more resilient than investors are currently appreciating. We reiterate our view that it is a very interesting investment proposition at this point in the cycle.” He expects the price-earnings ratio on the present 727p share price to fall to 10.5 for 2026 and the dividend yield to rise to 3.7 per cent. His target price is 950p.
Advice Buy
Why This looks like the bottom of the cycle, generating exciting prospects' |
 I'm hoping the share buybacks and relatively good trading news should eventually push this share to a price range between 700 and 800...
Would that be too optimistic a target? in that the share price in the past is not relevant as company is quite different now or is it still relevant?
And views?
People tell me the best way of telling if a business is doing well is to look at its CASH. If its getting bigger its potentially a good sign, if its getting smaller its potentially a bad sign.
This is what Bodycote say about CASH:
Improving cash flow conversion has been a significant focus during 2023 and reflecting this, cash generation improved
materially in the year. Headline operating cash flow rose to £139.5m (2022: £112.6m), as a result of higher headline
operating profit and improved working capital control through better receivables collection. Headline operating cash flow
conversion improved to 109% (2022: 100%). The statutory measure, net cash from operating activities, rose to £191.6m
(2022: £142.9m).
The Group generated a strong increase in free cash flow to £122.5m (2022: £84.0m) for the year with free cash flow
conversion of 96% compared to 75% for 2022. Net tax payments in 2023 were £9.0m (2022: £15.4m) with the reduction
reflecting receipt of tax refunds relating to prior years.
Closing net debt was £51.7m (2022: £99.4m). Excluding lease liabilities, the Group moved from a net debt position in
the prior year of £33.4m to a net cash position of £12.6m, an improvement of £46.0m. This improved balance sheet
position was achieved after paying £40.6m of dividends to shareholders and deploying £13.2m for the purchase of 2
million shares for the Employee Benefit Trust to satisfy future share-based payments under the Group’s share incentive
schemes (at an average price of £6.61). |
Thanks. This looks good.
SHARE BUYBACK...
GOOD RESULTS...
NICE CASH PILE...
AND TRENDY SECTORS.....
Could be good!!!
Thanks |
Why ask, you know the answer. |
Was it worth a top-up? |
Looks it the recent share price drop has brought it into top up territory |
 Looks like a good strategic purchase in the US.
Stephen Harris, Group Chief Executive of Bodycote plc, commented:
"These investments are an important and exciting enabler of our strategy to further enhance and grow our Specialist Technologies businesses. In addition, they will also expand our footprint in Aerospace and Medical heat treatment on the West Coast and in Indiana in the US. The acquisitions will enhance group margins, are accretive to earnings per share and allow us to further capitalise on the structural growth opportunities in the Space, Civil Aerospace and Medical markets.
The proposed new HIP plant in greater Los Angeles will allow Bodycote to take advantage of the burgeoning HIP market in Space and Civil Aerospace in the region. It will require only modest investment as it utilises an existing Bodycote site and existing HIP vessels that are immediately available for installation.
Optimal allocation of capital to drive shareholder value remains a top priority for the Group and these investments reflect this." |
Commenting, Stephen Harris, Group Chief Executive, said:
" We have delivered a strong performance in the first half, which was modestly ahead of our expectations and with broad-based growth across most of our end markets. In particular, we achieved good progress in our strategic focus areas of Specialist Technologies, Emerging Markets, Civil Aerospace and electric vehicles. We continue to manage inflationary cost pressures well through energy surcharges and price increases. The Group remains on track to achieve a margin in excess of 20% over the medium term.
Cash conversion improved and net debt reduced in the period. The strength of our balance sheet continues to provide options to drive shareholder value, in line with our disciplined capital allocation framework.
The strong first half performance underpins our confidence in delivering progress for the full year.
Looking beyond 2023, the Board remains confident in the Group's prospects for continued profitable growth. " |
Fantastic half year results.
Half Half year
year to to
30 June 30 June
2023 2022
Operating profit GBP58.7m GBP45.0m
------------------------------------ --------- ----------
Profit after tax GBP42.9m GBP32.5m
------------------------------------ --------- ----------
Net cash from operating activities GBP92.5m GBP61.0m
------------------------------------ --------- ----------
Basic earnings per share 22.2p 16.9p |
Nice and quite, good sign |
Buys showing as sells on ADVFN. They must have stock to sell. |
Bodycote Plc posted FY22 results titled “Strong growth; good prospects” this morning. Revenue increased by 20.8% to £743.6m, headline operating profit was up 18% to £112.2m, basic headline EPS was up 19% to 42.7p. The balance sheet strengthened with closing net debt down to £33.4m. Valuation is average for the sector with forward PE ratio of 13.6x and PS ratio near 1.7x. Share price is enjoying a 5 month rally off multi year lows. The business has recovered to pre-COVID levels, share price still has a fair way to go. BOY is a solid business, with solid b/s, decent profitability, ok valuation and some share price momentum. The dividend yield at 3.8% is even top quartile for the Machinery, Equipment & Components sector. BUY...
...from WealthOracle |
IMO a solid set of results and inline with forecasts or a bit ahead in certain areas.
Bodes well for 2023 and beyond. I like they have offset inflation by price increases as they have market leadership. |
I thought results were today. |
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