SEGRO Plc (SGRO.L) stock analysis

In our weekly check, SEGRO Plc is graded C (A to F). Of 24 checks on debt, profit, cash flow and trend: 13 pass, warnings: 7, red flags: 4.

About SEGRO Plc

SEGRO Plc is a Real Estate company (REIT - Industrial) based in the United Kingdom, listed on LSE as SGRO.L.

What our checks show for SGRO.L

Red flags

• Net debt is 7.3x a year of EBITDA (debt/equity 0.44). That limits room in a downturn and raises refinancing risk.
• The net margin fell by 668 points over 5 years, to 75.9%: the company keeps less of each sale as profit.
• The stock has fallen as much as 90% from a peak. Would you have held through that?
• Return on capital (ROCE) is only 3%.

Warning signs

• Operating cash flow is only 0.72x net profit: part of the reported profit does not arrive as cash.
• Analysts expect only about 2% a year of growth in revenue.
• Analysts expect the net margin to shrink by 0.5 points from today's 75.9%.
• Revenue grew only 2.8% a year over the last 3 years.
• Earnings per share fell 36.5% a year over the last 3 years.
• The stock is still below its previous peak.
• The share count grew by 10.9% in 2 years: each shareholder owns a smaller slice.

Strengths

• The company keeps 75.9% of its revenue as net profit.
• Free cash flow is 50.6% of revenue: cash for dividends, buybacks or growth.
• A large company: market value $16.43 billion.
• Actively traded: about 5 million shares a day.
• Pay in shares is only 1.4% of free cash flow.

Similar companies

EGP · CUBE · REXR · LINE · FR · TRNO

Questions

What grade does SEGRO Plc (SGRO.L) have?

In our weekly check, SEGRO Plc is graded C (A to F). Of 24 checks on debt, profit, cash flow and trend: 13 pass, warnings: 7, red flags: 4. The grade is a risk check, not a buy or sell recommendation.

What are the main risks of SGRO.L stock?

This week's biggest flags for SEGRO Plc: High debt, Margins falling, Deep past fall. In total 11 of 24 checks show a warning or a red flag.

What does SEGRO Plc do?

SEGRO Plc is a Real Estate company (REIT - Industrial) based in the United Kingdom, listed on LSE as SGRO.L.

The grade is a risk check, not a price forecast, and not investment advice. In our 10-year test (S&P 500, 2016-2026), stocks we graded A or B fell more than 30% 2-3 times less often than D or F, without a lower average return.

Updated 2026-10-24

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