It’s not surprising that such a small firm such as Safestyle of the UK, with its £190m market cap, is paying attention to its online strategy. Our preliminary SEO audit signals that some minor changes could back a more effective online set-up, however.
Focus
Management has done a great job since the group was listed in December 2013.
Its website, which is rather small, presents some critical elements, according to our preliminary SEO audit, yet no major issue has been detected.
Safestyle focuses on the manufacturing and sale to the retail channel of uPVC windows and doors, which isn’t exactly a mass market but has its own attraction — this is a niche that promises high revenue growth but relatively low operating margins.
For a company that is growing fast and boasts a strong position in its core market, the right level of online investment is a critical variable that could help it raise brand awareness, while reaching more costumers domestically.
Preliminary SEO Audit
- Website: www.safestyle-windows.co.uk
- Technical: a relatively small website site (circa 17,000 URLs crawled), with a decent set-up, has been detected.
- Speed: Mobile and Desktop speed are below average (especially true for mobile)
- Hierarchy structure: the website is not fully optimised, and on-page needs some work
Our comprehensive SEO analysis will be published later today.
Value
According to consensus estimates from Thomson Reuters, more downside (24%) than upside (4%) is embedded in its current valuation on the stock market, although a 4% forward yield is attractive. Its half-year trading update shows a strong net cash position and a decent growth trajectory, but these elements are not reflected in its lowly trading multiples, which stand at about 14x and 13x its projected net earnings in 2015 and 2016, respectively.
Its interim results are due tomorrow.
If you want to discuss how Safestyle could boost its online returns please contact our team at info@hedgingbeta.com
(Alessandro Pasetti and Hedging Beta are not invested in any of the shares mentioned in this article.)