| Valuation method | Value, £ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 196.34 | -63 |
| Intrinsic value (DCF) | 226.23 | -57 |
| Graham-Dodd Method | n/a | |
| Graham Formula | 4.61 | -99 |
Galliford Try Holdings PLC is a leading UK-based construction company specializing in building, infrastructure, and public-private partnership (PPP) projects. Operating through its Building, Infrastructure, and PPP Investments segments, the company serves both public and private sector clients, with a strong focus on health, education, defense, and commercial markets. Galliford Try is known for its expertise in delivering complex construction and civil engineering projects, including highways and environmental infrastructure. The company also engages in co-development opportunities, leveraging PPP models to enhance project delivery. With a solid financial foundation, including £227 million in cash and equivalents, Galliford Try is well-positioned to capitalize on the growing demand for sustainable and innovative construction solutions in the UK. The company’s commitment to operational efficiency and strategic investments makes it a key player in the UK’s engineering and construction sector.
Galliford Try Holdings PLC presents a stable investment opportunity within the UK construction sector, supported by its diversified project portfolio and strong cash position. The company’s revenue of £1.77 billion and net income of £36.2 million reflect steady operational performance, while its low beta of 0.792 suggests lower volatility compared to the broader market. However, investors should be mindful of the cyclical nature of the construction industry and potential macroeconomic headwinds such as inflation and supply chain disruptions. The company’s dividend yield, supported by a £0.17 per share payout, adds to its appeal for income-focused investors. Overall, Galliford Try’s focus on high-growth sectors like health and education, combined with its PPP expertise, positions it well for long-term growth, though sector-specific risks remain.
Galliford Try Holdings PLC competes in the highly fragmented UK construction market, where differentiation is often driven by project execution capabilities, sector specialization, and financial stability. The company’s competitive advantage lies in its strong presence in public sector projects, particularly in health and education, which provide recurring revenue streams. Its PPP Investments segment further enhances profitability through long-term contracts. However, Galliford Try faces intense competition from larger peers with greater scale and international reach. The company’s focus on operational efficiency and selective bidding helps maintain margins, but it lacks the diversification of some competitors who operate in multiple geographies. Additionally, its reliance on the UK market exposes it to domestic economic fluctuations. Strengths include a robust balance sheet with low debt (£53 million) and significant cash reserves, enabling flexibility in project financing. Weaknesses include limited exposure to high-growth international markets and dependence on government spending, which can be volatile.