Severfield (SFR): Positive start to FY22

Edison Investment Research Limited Severfield (SFR): Positive start to FY22 13-Sep-2021 / 07:00 GMT/BST London, UK, 13 September 2021 Severfield (SFR): Positive start to FY22 Severfield provided a pretty robust year-to-date trading update to coincide with its AGM, including a stronger UK order book position and, in our view, firmer pipeline sentiment than previously. The company's broad sector capability is serving it well and input cost challenges appear to being managed effectively. Severfield's share price has traded in a narrow range in recent months and its P/E dips below 10x next year on our slightly updated estimates. After a good start to the year, Severfield's share price has largely traded around 80p since the end of February (up c 16% ytd overall versus c 11% for the FTSE All Share Index). On our estimates, the company is now trading on FY22 P/E and EV/EBITDA multiples of 10.7x and 7.0x respectively, falling to 9.5x and 6.3x one year out and we contend that underlying UK earnings ratings are effectively below these levels. An FY22e dividend yield of 3.9% with the prospect of further growth adds interest for income investors.  Click here to view the full report or here to sign up to receive research as it is published. All reports published by Edison are available to download free of charge from its website www.edisongroup.com About Edison: Edison is a leading research and investor relations consultancy, connecting listed companies to the widest pool of global investors. By focusing on the volume and quality of investors reached - across institutions, family offices, wealth managers and retail investors - Edison can create and gauge intent to purchase, even in the darkest pools of capital, and then make introductions via non-deal roadshows, events or virtual meetings. Having been the first in-market 17 years ago, Edison now has more than 100 analysts covering every economic sector. Headquartered in London, Edison also has offices in New York, Frankfurt, Amsterdam and Tel Aviv and a presence in Athens, Johannesburg and Sydney. Edison is authorised and regulated by the Financial Conduct Authority. Edison is not an adviser or broker-dealer and does not provide investment advice. Edison's reports are not solicitations to buy or sell any securities. For more information, please contact Edison: Toby Thorrington [phone] [e-mail] Learn more at www.edisongroup.com and connect with Edison on:  LinkedIn  www.linkedin.com/company/edison-group-/ Twitter   www.twitter.com/Edison_Inv_Res YouTube  www.youtube.com/edisonitv Dissemination of a CORPORATE NEWS, transmitted by EQS Group. The issuer is solely responsible for the content of this announcement.

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