H&T Group plc (HAT) AI Stock Analysis

• Market Cap: £277.48M
• Dividend Yield: 3.44%
• Average Volume (3M): 538.04K
• Price to Earnings (P/E): 12.5
• Beta (1Y): 0.49
• Revenue Growth: 20.20%
• EPS Growth: 6.12%
• Country: UK
• Employees: 1,149
• Sector: Financial
• Sector Strength: 82
• Industry: Financial - Credit Services
• EPS (TTM): 0.51
• Shares Outstanding: 43,987,934
• 10 Day Avg. Volume: 415,414
• 30 Day Avg. Volume: 538,041
• PEG Ratio: 0.09
• Price to Book (P/B): 1.17
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -7.05
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: £559.00
• Price Target Upside: -12.66% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 76 Outperform
• Price Target: 720.00p ▲(12.50%Upside)

H&T Group plc stands out for its solid financial performance and positive corporate events, both of which underscore its strategic position and growth potential. The technical analysis suggests strong momentum, although caution is advised due to overbought signals. The valuation indicates a potentially undervalued stock, offering a compelling investment opportunity.

H&T Group plc Business Overview & Revenue Model

Company Description

H&T Group plc (HAT) is a leading UK-based pawnbroking and financial services company. Established in 1897, the company operates through a network of retail outlets across the United Kingdom, offering a range of products and services including pawnbroking, personal loans, retail of pre-owned jewelry and watches, gold purchasing, and foreign currency exchange. H&T Group plc serves a diverse customer base by providing accessible financial solutions and quality retail offerings.

How the Company Makes Money

H&T Group plc generates revenue through multiple streams, primarily from its pawnbroking services, where customers pledge personal assets as collateral for secured loans. The interest earned on these loans constitutes a significant portion of the company's income. Additionally, H&T Group plc earns revenue from the retail sale of pre-owned jewelry and watches, which are often sourced from unredeemed pawned items. The company also offers personal loans, generating income through interest and fees associated with these financial products. Furthermore, H&T Group plc profits from gold purchasing, where they buy precious metals from customers and resell them at a margin. Another revenue stream comes from currency exchange services, where the company earns from the spread between buying and selling foreign currencies. Strategic partnerships with financial institutions and a strong retail presence contribute to the company's earnings by expanding its customer reach and service offerings.

H&T Group plc Financial Statement Overview

Summary

H&T Group plc demonstrates solid financial performance with strong revenue growth and profitability margins. The balance sheet is robust with a healthy equity ratio and moderate leverage, supporting long-term financial stability. While cash flow performance has improved, some volatility persists.

Income Statement

The company has shown significant revenue growth of 20.2% year-over-year from 2023 to 2024. Gross profit margin is strong at 58.6%, and net profit margin improved slightly to 8.4%. Both EBIT and EBITDA margins are healthy at 13.4% and 17.4%, respectively, indicating effective cost management and operational efficiency.

Balance Sheet

The equity ratio stands at 66.1%, reflecting a strong equity base. The debt-to-equity ratio is 0.46, suggesting moderate leverage. Return on equity (ROE) is stable at 11.6%, indicating effective use of equity to generate profits, although there is room for improvement.

Cash Flow

The operating cash flow turned positive, showing improvement from a negative figure in 2023. Free cash flow growth rate is positive, bouncing back to a positive 4.57 million. The operating cash flow to net income ratio indicates improving cash conversion efficiency. However, cash flow volatility remains a concern.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	265.37M	220.78M	173.94M	122.00M	129.12M
Gross Profit	155.39M	122.15M	101.92M	76.36M	82.80M
EBITDA	46.17M	40.34M	29.86M	17.84M	25.64M
Net Income	22.23M	21.08M	14.91M	6.04M	12.56M
Balance Sheet
Total Assets	290.66M	252.10M	211.37M	169.96M	169.62M
Cash, Cash Equivalents and Short-Term Investments	14.65M	11.39M	12.23M	17.64M	34.45M
Total Debt	88.88M	64.97M	35.07M	18.98M	20.64M
Total Liabilities	98.53M	74.73M	47.25M	33.34M	35.07M
Stockholders Equity	192.13M	177.37M	164.12M	136.62M	134.55M
Cash Flow
Free Cash Flow	4.57M	-18.21M	-27.31M	-12.51M	49.18M
Operating Cash Flow	11.86M	-3.31M	-13.25M	-3.04M	55.35M
Investing Cash Flow	-19.69M	-18.06M	-18.14M	-9.46M	-6.22M
Financing Cash Flow	11.10M	20.52M	25.98M	-4.32M	-26.68M

H&T Group plc Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 640.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Negative
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:HAT, the sentiment is Positive. The current price of 640 is above the 20-day moving average (MA) of 637.70, above the 50-day MA of 578.44, and above the 200-day MA of 411.64, indicating a bullish trend. The MACD of 13.86 indicates Positive momentum. The RSI at 73.48 is Negative, neither overbought nor oversold. The STOCH value of 66.67 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:HAT.

H&T Group plc Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SUS	76 Outperform	£222.36M	12.41	7.59%	4.37%	0.15%	-29.58%
HAT	76 Outperform	£277.48M	12.47	12.03%	3.44%	20.20%	6.12%
IPF	75 Outperform	£382.00M	6.40	12.58%	6.78%	-5.41%	27.41%
Sector *	67 Neutral	$17.01B	11.90	9.70%	3.76%	11.63%	-9.47%
FCH	67 Neutral	£374.66M	242.75	0.13%	―	-0.80%	―
VANQ	61 Neutral	£255.15M	―	-23.29%	9.29%	1.10%	-1831.40%

H&T Group plc Corporate Events

H&T Group Acquisition by FirstCash Subsidiary Approved

H&T Group plc has announced the approval of its acquisition by Chess Bidco Limited, a subsidiary of FirstCash Holdings, Inc., through a Court-sanctioned scheme of arrangement. The acquisition, which passed all necessary resolutions at the Court and General Meetings, is expected to enhance H&T’s market positioning by aligning with FirstCash’s extensive resources and expertise, pending final court approval and regulatory conditions.

H&T Group PLC Announces Change in Major Shareholder Holdings

H&T Group PLC has announced a change in its major holdings, with Artemis Investment Management LLP reducing its voting rights from 3.012% to 1.997%. This change reflects a disposal of voting rights, impacting the company’s shareholder structure and potentially influencing its decision-making processes.

H&T Group plc Shareholder Structure Update: Sand Grove Capital Management Increases Stake

H&T Group plc has announced a significant change in its shareholder structure, with Sand Grove Capital Management LLP increasing its voting rights from 5.07% to 10.65%. This acquisition of voting rights signals a strengthened position for Sand Grove Capital Management within the company, potentially impacting H&T Group’s strategic decisions and market positioning.

H&T Group plc Experiences Change in Major Shareholder Voting Rights

H&T Group plc has announced a significant change in its shareholder structure, with Artemis Investment Management LLP reducing its voting rights from 4.60417% to 3.012%. This adjustment reflects a disposal of voting rights, impacting the company’s governance dynamics and potentially influencing future shareholder decisions.

Artemis Investment Increases Stake in H&T Group

Artemis Investment Management LLP has increased its stake in H&T Group PLC, crossing a significant threshold of ownership. This change in holdings, now at 4.60417%, reflects a strategic move by Artemis, potentially impacting the company’s shareholder dynamics and indicating confidence in H&T’s market position.

Artemis Adjusts Stake in H&T Group plc

Artemis Investment Management LLP has adjusted its holdings in H&T Group plc, reducing its stake from 6.003098% to 5.967250% of the company’s outstanding shares. This change in shareholding reflects a minor adjustment in the investment strategy of Artemis, which may influence the perception of H&T Group’s market position among stakeholders.

H&T Group PLC Announces Change in Major Shareholder Holdings

H&T Group PLC has announced a change in its major holdings, as Octopus Investments Limited has adjusted its voting rights in the company. The notification reveals that Octopus Investments now holds 7.91% of the voting rights, down from a previous position of 8.93%. This shift in holdings may impact the company’s shareholder dynamics and influence its strategic decisions moving forward.

H&T Group Executives Exercise Share Options

H&T Group plc announced that its CEO, Chris Gillespie, and CFO, Diane Giddy, have exercised options over a total of 64,821 ordinary shares following the vesting of awards under the 2022 Performance Share Plan. This transaction, executed through the Company’s Employees Benefit Trust, does not alter the total number of voting rights in the company, maintaining it at 43,987,934 Ordinary Shares.

H&T Group PLC Announces Change in Voting Rights

H&T Group PLC has announced a change in its voting rights structure following an acquisition or disposal of voting rights by Sand Grove Capital Management LLP. As of May 15, 2025, Sand Grove Capital Management holds 5.07% of the voting rights in H&T Group, amounting to 2,231,734 shares. This change in holdings could impact the company’s governance and decision-making processes, reflecting a significant stake by an investment management firm.

H&T Group plc Successfully Passes All AGM Resolutions

H&T Group plc announced that all resolutions proposed at its Annual General Meeting were duly passed, reflecting shareholder support for the company’s current strategies and operations. This outcome may reinforce H&T’s position in the market as it continues to serve a niche customer base with limited access to traditional banking, potentially impacting its operational focus and stakeholder confidence positively.

H&T Group Launches 2025 Performance Share Plan for Executives

H&T Group plc has announced the adoption of its 2025 Performance Share Plan (PSP), which has been approved by the Remuneration Committee. This plan is designed for senior management and Executive Directors, allowing them to acquire a maximum number of Ordinary Shares at no cost, contingent upon the company meeting specific performance criteria over a 33-month period. The plan aims to align the interests of the management with those of the shareholders by setting performance targets based on total shareholder return and earnings per share growth. The scheme is expected to vest in April 2028, with a total value of shares granted under the plan estimated at £1.7 million. This initiative reflects H&T’s commitment to incentivizing its leadership team while potentially enhancing its market position and shareholder value.

H&T Group plc Releases Annual Report and Announces AGM Details

H&T Group plc has announced the posting of its Annual Report and Accounts for the year ending 31 December 2024, along with the Notice of Annual General Meeting (AGM) to shareholders. The AGM is scheduled for 15 May 2025 and will be held both in-person and digitally. Shareholders are encouraged to vote by proxy as virtual attendance does not constitute official attendance or voting rights. This announcement underscores H&T’s commitment to transparency and shareholder engagement, providing insights into its operational and financial performance, which could influence investor confidence and market positioning.