# Bodycote (BOY.LSE)

Canonical: https://gigainvestors.com/s/BOY.LSE

Analysis as of: 2026-10-16T07:40:49.383Z. Financial observations: FY1996–FY2025.

Listing currency: GBX. Reporting currency: GBP.

## Verdict

Not a wonderful business

Quality tests for Buy: not passed (profit record: pass; earnings resilience is evidence only). Published buy qualification: no.

Share price: GBX 909.50 per share; close as of 2026-10-15.

Estimated value: low GBX 431.58 per share, central GBX 490.21 per share, high GBX 568.27 per share. Buy at or below the central value GBX 490.21 per share. Valuation as of 2026-10-16T07:40:49.383Z; scenarios are not confidence intervals.

Expected annual return: 6.7% at the stated quote. About 6.7% a year at today's price (required return 10.0%). required return 10.0% a year (10% floor; GB 10-year bond 5.4% + 4 points).

## Checklist

### understandable: fail

- 4 revenue declines in the last 10 years (informational)

- operating margin variation exceeds 0.35

- Financial history: 10 years

- Years with declining revenue: 4

- Years with a net loss: 0

- Operating margin variation: 0.41×

Chart: Operating margin; fiscal year observations.

- FY2016: 0.16×

- FY2017: 0.17×

- FY2018: 0.19×

- FY2019: 0.16×

- FY2020: 0.01×

- FY2021: 0.14×

- FY2022: 0.14×

- FY2023: 0.15×

- FY2024: 0.05×

- FY2025: 0.14×

### moat: fail

- ROIC median below threshold

- ROIC worst years below threshold (more than 1 bad year allowed)

- Recent gross margin fell 22.0pp below the typical margin (limit 4pp)

- ROIC, median of available years: 13.5%

- ROIC, second-lowest year: 4.7%

- Typical minus recent gross margin: 22.0 pp

- Typical gross margin (annual median): 36.5%

- Recent gross margin (lower of latest and 3-year median): 14.4%

- Years with nonpositive capital: 0

- Capital spending / revenue: 10.4%

- ROIC including acquisitions, ten-year median: 9.2%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2016: 14.8%

- FY2017: 19.7%

- FY2018: 17.7%

- FY2019: 14.9%

- FY2020: 0.7%

- FY2021: 11.0%

- FY2022: 12.2%

- FY2023: 14.9%

- FY2024: 4.7%

- FY2025: 12.2%

### economics: pass

- Owner earnings / net income, 5-yr: 1.02×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: GBP 299M

- Net income, five-year total: GBP 294M

- Return on incremental invested capital: >100%

- Working capital / revenue, annual change: -0.4 pp

- Working capital / revenue, change between three-year averages: -2.5 pp

- Working capital / revenue, final three-year average: 12.2%

Chart: Annual owner cash / profit; fiscal year observations.

- FY2021: 1.32×

- FY2022: 1.06×

- FY2023: 0.85×

- FY2024: 1.15×

- FY2025: 0.85×

### management: fail

- Historical market-dollar context (not the management verdict): 2016 to 2025 (9 years)

- buybacks leaned toward cheaper years (informational)

- ROIC first 3 years vs last 3 years: 17.7% vs 12.2%

- Per-share earnings: 0.35 to 0.32 (three-year endpoint medians)

- per-share value declined or ends nonpositive

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: -1.0%

- Ordinary dilution, 5-year annual growth: -2.0%

- Market cap gain: GBP -25M

- Cumulative retained earnings: GBP 41M

- Diluted shares, 10-year annual growth: -1.0%

- Diluted shares, 5-year annual growth: -2.0%

- $1 test, starting fiscal year: FY2016

- $1 test, ending fiscal year: FY2025

- Per-share value growth: -1.2%

- Per-share value change: GBP -0.03

- Per-share value, starting three-year median: GBP 0.35

- Per-share value, ending three-year median: GBP 0.32

- Buybacks concentrated in cheaper years (correlation): 0.09

- Average buyback yield: 2.0%

- Buyback history: 6 years

- Debt-funded buybacks: No

- Acquisition spending: GBP 406M

- Cumulative net income, 10 years: GBP 655M

- ROIC, first three-year median: 17.7%

- ROIC, last three-year median: 12.2%

Chart: Earnings per share; fiscal year observations.

- FY2016: GBP 0.35

- FY2017: GBP 0.51

- FY2018: GBP 0.53

- FY2019: GBP 0.49

- FY2020: GBP 0.00

- FY2021: GBP 0.31

- FY2022: GBP 0.38

- FY2023: GBP 0.45

- FY2024: GBP 0.11

- FY2025: GBP 0.32

### accounting: pass

- Sloan accruals: -7.6%

- Receivables to sales index (DSRI): 1.27×

- Restructuring years, last five: 0

- Stock compensation / operating cash flow: 2.5%

- Earnings backed by cash: Yes

- Operating cash / earnings: 2.46×

- Accounting red flags: 0

- Goodwill and intangibles / equity: 0.47×

Chart: Sloan accruals; fiscal year observations.

- FY2016: -6.4%

- FY2017: -6.5%

- FY2018: -8.3%

- FY2019: -8.1%

- FY2020: -12.5%

- FY2021: -7.9%

- FY2022: -5.9%

- FY2023: -9.3%

- FY2024: -12.4%

- FY2025: -7.6%

## Holders

## Price story

Price needs cash profits to grow 8.7% a year for ten years · sales -4%

Story as of 2026-10-16T10:00:11.667Z; price observation 2026-10-15.

Price needs cash profits to grow 8.7% a year for ten years

### Sales · FY2024–2025

sales -4%; source https://filings.xbrl.org/213800V93QFW53NB7Y29/2025-12-31/ESEF/GB/0/213800V93QFW53NB7Y29-2025-12-31/reports/213800V93QFW53NB7Y29-2025-12-31-T01.xhtml; observed 2026-04-21.

- FY2016: GBP 601M 

- FY2017: GBP 690M 

- FY2018: GBP 729M 

- FY2019: GBP 720M 

- FY2020: GBP 598M 

- FY2021: GBP 616M 

- FY2022: GBP 744M 

- FY2023: GBP 803M 

- FY2024: GBP 757M 

- FY2025: GBP 727M 

### Gross margin · FY2025

gross margin 38.6%; source https://filings.xbrl.org/213800V93QFW53NB7Y29/2025-12-31/ESEF/GB/0/213800V93QFW53NB7Y29-2025-12-31/reports/213800V93QFW53NB7Y29-2025-12-31-T01.xhtml; observed 2026-04-21.

- FY2016: 37.0% 

- FY2017: 37.7% 

- FY2018: 38.5% 

- FY2019: 36.3% 

- FY2020: 31.3% 

- FY2021: 36.7% 

- FY2022: 36.3% 

- FY2023: 13.5% 

- FY2024: 14.4% 

- FY2025: 38.6% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in specialty industrial machinery; annual sales are GBP 727.1 million.

- Source: https://filings.xbrl.org/213800V93QFW53NB7Y29/2025-12-31/ESEF/GB/0/213800V93QFW53NB7Y29-2025-12-31/reports/213800V93QFW53NB7Y29-2025-12-31-T01.xhtml (filed 2026-04-21); FY2025: revenue 727100000; grossProfit 280800000; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); BOY.LSE: Bodycote plc provides heat treatment and thermal processing services worldwide. It operates in Specialist Technologies and Precision Heat Treatment divisions. The company offers heat treatment services, including altering the microstructure of metals and alloys, which include steel and aluminum to impart properties comprising surface hardness, temperature resistance, ductility, and strength; metal joining services consisting of electron beam welding, HIP diffusion bonding, hydrogen brazing, induction brazing, and furnace/vacuum brazing; and hot isostatic pressing (HIP) services, such as isostatic pressing and HIP supporting services, as well as Powdermet technologies. It also provides surface technologies, which are used to prolong the working life of components and protect from environmental factors, such as corrosion and abrasion. The company's surface technologies include anodising, flame and combustion spraying, high-velocity oxygen fuel coatings, plasma spray, electric arc wire, vapor phase aluminide, liquid and ceramic coatings, and thermochemically formed ceramic coatings to enhance corrosion protection and wear resistance. It serves automotive, aerospace and defense, energy, and general industrial markets. Bodycote plc was founded in 1923 and is headquartered in Macclesfield, the United Kingdom.

### Why customers stay

Margins ranged from 13.5% to 38.6% during 2023–25; it earns 13.5% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-04-21); FY2023: grossProfit / revenue = 13.5%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-04-21); FY2024: grossProfit / revenue = 14.4%.

- Source: https://filings.xbrl.org/213800V93QFW53NB7Y29/2025-12-31/ESEF/GB/0/213800V93QFW53NB7Y29-2025-12-31/reports/213800V93QFW53NB7Y29-2025-12-31-T01.xhtml (filed 2026-04-21); FY2025: grossProfit / revenue = 38.6%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-04-21); 10-year return on capital observations [[2016,0.14834568496370884],[2017,0.19684095860566447],[2018,0.17680797803372758],[2019,0.14874503513689544],[2020,0.007014739833066951],[2021,0.11039206968664064],[2022,0.12187526383712655],[2023,0.14915959905255768],[2024,0.046591829608109106],[2025,0.1219922008832494]]; median 0.1351689429234791. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Where the cash goes

Paid dividends in 10 of 10 years; bought back GBP 57.6 million of shares.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-04-21); FY2016: growth capex 5000000; upkeep 59700000; owner earnings 67000000. Growth capex / owner earnings = 0.07462686567164178.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-04-21); FY2017: growth capex 9000000; upkeep 64300000; owner earnings 97100000. Growth capex / owner earnings = 0.09268795056642637.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-04-21); FY2018: growth capex 2300000; upkeep 80100000; owner earnings 103200000. Growth capex / owner earnings = 0.022286821705426358.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-04-21); FY2019: growth capex 0; upkeep 78700000; owner earnings 83420000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-04-21); FY2020: growth capex 0; upkeep 59900000; owner earnings 17280000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-04-21); FY2021: growth capex 0; upkeep 52000000; owner earnings 78300000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-04-21); FY2022: growth capex 0; upkeep 67000000; owner earnings 77800000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-04-21); FY2023: growth capex 300000; upkeep 82100000; owner earnings 72740000. Growth capex / owner earnings = 0.0041242782513060215.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-04-21); FY2024: growth capex 0; upkeep 70100000; owner earnings 22900000. Growth capex / owner earnings = 0.

- Source: https://filings.xbrl.org/213800V93QFW53NB7Y29/2025-12-31/ESEF/GB/0/213800V93QFW53NB7Y29-2025-12-31/reports/213800V93QFW53NB7Y29-2025-12-31-T01.xhtml (filed 2026-04-21); FY2025: growth capex 0; upkeep 76400000; owner earnings 46840000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-04-21); Dividend observations: [[2016,48100000],[2017,30600000],[2018,81800000],[2019,74900000],[2020,25100000],[2021,49000000],[2022,38500000],[2023,40600000],[2024,42900000],[2025,40900000]]. Zero only counted when supported by a complete cash-flow statement.

- Source: https://filings.xbrl.org/213800V93QFW53NB7Y29/2025-12-31/ESEF/GB/0/213800V93QFW53NB7Y29-2025-12-31/reports/213800V93QFW53NB7Y29-2025-12-31-T01.xhtml (filed 2026-04-21); FY2025: cash repurchases 57600000 GBP.

### Are managers owners

Insiders own 1.4% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); BOY.LSE SharesStats.PercentInsiders = 1.38 percentage points; cache date 2026-10-16.

### What the price says

The price assumes cash profits grow 8.7% yearly over ten years; actual growth was 0.8%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-04-21); Ten-year compound average after fade. Initial solved rate 0.11253351831999459. Price 909.5; FX 100; discount 0.1; same standard ten-year fade to terminal 0.03. FY2015 owner earnings/share 0.25264261544056926 → FY2025 0.27260135253104884. Closing-price date 2026-10-15.

## Monthly share-price history (GBX per share)

- 2016-10: GBX 592.50 per share

- 2016-11: GBX 573.00 per share

- 2016-12: GBX 644.00 per share

- 2017-01: GBX 666.00 per share

- 2017-02: GBX 790.00 per share

- 2017-03: GBX 796.50 per share

- 2017-04: GBX 833.50 per share

- 2017-05: GBX 777.50 per share

- 2017-06: GBX 753.50 per share

- 2017-07: GBX 910.00 per share

- 2017-08: GBX 956.00 per share

- 2017-09: GBX 916.50 per share

- 2017-10: GBX 937.00 per share

- 2017-11: GBX 867.00 per share

- 2017-12: GBX 913.00 per share

- 2018-01: GBX 967.00 per share

- 2018-02: GBX 923.00 per share

- 2018-03: GBX 895.00 per share

- 2018-04: GBX 900.00 per share

- 2018-05: GBX 993.50 per share

- 2018-06: GBX 979.50 per share

- 2018-07: GBX 1,000.00 per share

- 2018-08: GBX 949.00 per share

- 2018-09: GBX 906.00 per share

- 2018-10: GBX 795.50 per share

- 2018-11: GBX 736.00 per share

- 2018-12: GBX 726.50 per share

- 2019-01: GBX 760.50 per share

- 2019-02: GBX 759.00 per share

- 2019-03: GBX 823.00 per share

- 2019-04: GBX 857.00 per share

- 2019-05: GBX 778.00 per share

- 2019-06: GBX 826.50 per share

- 2019-07: GBX 736.50 per share

- 2019-08: GBX 716.50 per share

- 2019-09: GBX 716.50 per share

- 2019-10: GBX 716.00 per share

- 2019-11: GBX 872.00 per share

- 2019-12: GBX 952.00 per share

- 2020-01: GBX 856.50 per share

- 2020-02: GBX 764.00 per share

- 2020-03: GBX 564.50 per share

- 2020-04: GBX 583.50 per share

- 2020-05: GBX 605.00 per share

- 2020-06: GBX 627.50 per share

- 2020-07: GBX 563.00 per share

- 2020-08: GBX 561.00 per share

- 2020-09: GBX 582.50 per share

- 2020-10: GBX 650.50 per share

- 2020-11: GBX 713.00 per share

- 2020-12: GBX 745.50 per share

- 2021-01: GBX 703.50 per share

- 2021-02: GBX 723.00 per share

- 2021-03: GBX 826.50 per share

- 2021-04: GBX 756.00 per share

- 2021-05: GBX 866.50 per share

- 2021-06: GBX 846.50 per share

- 2021-07: GBX 902.50 per share

- 2021-08: GBX 964.50 per share

- 2021-09: GBX 877.50 per share

- 2021-10: GBX 799.50 per share

- 2021-11: GBX 826.50 per share

- 2021-12: GBX 865.50 per share

- 2022-01: GBX 794.50 per share

- 2022-02: GBX 745.50 per share

- 2022-03: GBX 632.50 per share

- 2022-04: GBX 623.50 per share

- 2022-05: GBX 648.50 per share

- 2022-06: GBX 526.50 per share

- 2022-07: GBX 599.50 per share

- 2022-08: GBX 550.50 per share

- 2022-09: GBX 465.20 per share

- 2022-10: GBX 495.60 per share

- 2022-11: GBX 590.00 per share

- 2022-12: GBX 568.50 per share

- 2023-01: GBX 651.00 per share

- 2023-02: GBX 664.00 per share

- 2023-03: GBX 652.50 per share

- 2023-04: GBX 690.50 per share

- 2023-05: GBX 638.50 per share

- 2023-06: GBX 641.00 per share

- 2023-07: GBX 692.00 per share

- 2023-08: GBX 664.00 per share

- 2023-09: GBX 652.50 per share

- 2023-10: GBX 574.00 per share

- 2023-11: GBX 574.00 per share

- 2023-12: GBX 594.50 per share

- 2024-01: GBX 637.50 per share

- 2024-02: GBX 618.50 per share

- 2024-03: GBX 696.50 per share

- 2024-04: GBX 696.00 per share

- 2024-05: GBX 754.00 per share

- 2024-06: GBX 682.00 per share

- 2024-07: GBX 698.00 per share

- 2024-08: GBX 661.00 per share

- 2024-09: GBX 602.00 per share

- 2024-10: GBX 554.00 per share

- 2024-11: GBX 620.00 per share

- 2024-12: GBX 633.00 per share

- 2025-01: GBX 643.00 per share

- 2025-02: GBX 641.00 per share

- 2025-03: GBX 556.00 per share

- 2025-04: GBX 476.00 per share

- 2025-05: GBX 566.00 per share

- 2025-06: GBX 584.50 per share

- 2025-07: GBX 636.50 per share

- 2025-08: GBX 626.00 per share

- 2025-09: GBX 644.00 per share

- 2025-10: GBX 617.00 per share

- 2025-11: GBX 634.50 per share

- 2025-12: GBX 698.00 per share

- 2026-01: GBX 745.50 per share

- 2026-02: GBX 780.00 per share

- 2026-03: GBX 610.50 per share

- 2026-04: GBX 681.00 per share

- 2026-05: GBX 810.00 per share

- 2026-06: GBX 664.00 per share

- 2026-07: GBX 722.50 per share

- 2026-08: GBX 913.00 per share

- 2026-09: GBX 917.00 per share

- 2026-10: GBX 909.50 per share

## Annual estimated value (GBX per share)

- FY2016: low GBX 395.78 per share, central GBX 450.35 per share, high GBX 522.99 per share

- FY2017: low GBX 482.82 per share, central GBX 547.42 per share, high GBX 633.42 per share

- FY2018: low GBX 542.76 per share, central GBX 615.89 per share, high GBX 713.24 per share

- FY2019: low GBX 486.66 per share, central GBX 561.61 per share, high GBX 652.11 per share

- FY2020: low GBX 408.12 per share, central GBX 463.03 per share, high GBX 536.13 per share

- FY2021: low GBX 461.93 per share, central GBX 523.67 per share, high GBX 605.86 per share

- FY2022: low GBX 503.13 per share, central GBX 570.89 per share, high GBX 661.10 per share

- FY2023: low GBX 496.60 per share, central GBX 562.96 per share, high GBX 651.31 per share

- FY2024: low GBX 407.93 per share, central GBX 463.88 per share, high GBX 538.36 per share

- FY2025: low GBX 425.44 per share, central GBX 483.25 per share, high GBX 560.20 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

Prior published observations retained from 2026-10-15T06:46:34.321Z where newer inputs omit a numeric field or fiscal period.

## Sources

[Original ESEF filing](https://filings.xbrl.org/213800V93QFW53NB7Y29/2025-12-31/ESEF/GB/0/213800V93QFW53NB7Y29-2025-12-31/reports/213800V93QFW53NB7Y29-2025-12-31-T01.xhtml); period 2025-12-31, filed 2026-04-21.

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.

## Reported holder observations