Hardide (HDD) AI Stock Analysis

• Market Cap: £19.31M
• Dividend Yield: N/A
• Average Volume (3M): 232.92K
• Price to Earnings (P/E): 104.5
• Beta (1Y): -0.47
• Revenue Growth: 14.51%
• EPS Growth: 77.27%
• Country: UK
• Employees: 38
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals - Specialty
• EPS (TTM): <0.01
• Shares Outstanding: 78,812,750
• 10 Day Avg. Volume: 107,940
• 30 Day Avg. Volume: 232,917
• PEG Ratio: -0.29
• Price to Book (P/B): 1.50
• Price to Sales (P/S): 0.96
• P/FCF Ratio: 9.78
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 57 Neutral
• Price Target: 21.50p ▲(21.13% Upside)

The score is driven primarily by improving financial performance (FY2025 turnaround with positive profits and free cash flow), supported by strong technical uptrend signals. This is meaningfully offset by a very high P/E valuation and elevated balance-sheet risk from increased leverage, which leaves limited room for execution missteps.

Positive Factors

Turnaround Revenue & Profitability

A clear FY2025 inflection with strong revenue growth and restored operating profitability indicates the core coating services are regaining traction. Durable demand recovery and scalable service economics can support sustainable earnings if growth and execution persist.

Resilient Gross Margins

Consistently robust gross margins reflect pricing power or process advantages in tungsten carbide coatings. High gross margins provide scope to invest in capacity, R&D or technical support while still absorbing SG&A and help the business maintain profitability through cost cycles.

Improved Cash Generation

Return to positive operating and free cash flow, with FCF growth and FCF roughly 0.9x net income, supports earnings quality and lowers reliance on external funding. Sustained cash generation would fund working capital and reinvestment in a capital-light service model.

Negative Factors

Elevated Leverage

Leverage increased materially during the recovery, reducing financial flexibility and raising refinancing and covenant risk. With limited equity buffer and modest profits, higher debt magnifies downside if revenue growth slows or margin pressure emerges.

Thin Net Profitability

Net margin near 3% offers a narrow cushion against cost inflation or pricing pressure. The prior multi-year loss history shows profit volatility; sustaining durable net profitability will require consistent top-line growth and disciplined cost control.

Uneven Cash-Flow Consistency

While FY2025 cash flow improved, historical volatility and lower conversion of operating cash versus operating profit point to working-capital or timing risks. Persistent swings could force external funding or constrain investment during downturns.

Hardide Business Overview & Revenue Model

Company Description

Hardide plc manufactures and sells advanced tungsten carbide/tungsten metal matrix composite coatings in the United Kingdom, Europe, North America, and internationally. Its products are used in various industries, including energy, aerospace, flow control, power generation, and precision engineering. The company was founded in 2000 and is headquartered in Bicester, the United Kingdom.

How the Company Makes Money

Hardide generates revenue primarily through the sale of its specialized coating services and products to clients in various industries, including oil and gas, aerospace, and manufacturing. The company operates on a business-to-business (B2B) model, where it charges clients for coating treatments applied to their components, often on a contractual basis. Key revenue streams include direct sales of coated components, service agreements, and long-term contracts with major industrial players. Additionally, Hardide benefits from strategic partnerships and collaborations with manufacturers and engineering firms, which can lead to increased contract opportunities and access to new markets, thus contributing to its overall earnings.

Hardide Financial Statement Overview

Summary

Turnaround momentum is clear in FY2025 (revenue +50.2% YoY and a return to positive EBIT/EBITDA/net income) with improved operating and free cash flow. However, profitability remains thin (~3% net margin), cash-flow consistency has been uneven historically, and higher leverage (debt-to-equity ~1.06) increases downside risk if growth slows.

Income Statement

Hardide shows a clear earnings inflection in FY2025, with revenue up strongly (+50.2% YoY) and a return to profitability (positive EBIT, EBITDA, and net income) after multiple years of losses (FY2020–FY2024). Gross margin has stayed relatively resilient over time (mid-to-high 30s to high 40s), supporting the turnaround. The main weakness is that profitability is still thin (net margin ~3% in FY2025), and the prior-year loss history highlights that results can be volatile if growth slows or costs rise.

Balance Sheet

Leverage has increased alongside the recovery: debt-to-equity moved up to ~1.06 in FY2025 from ~0.77 in FY2024, reducing balance-sheet flexibility. Equity remains positive, but has trended down versus earlier years, and returns on equity were deeply negative through FY2024 before turning modestly positive in FY2025 (~4.6%). Overall, the balance sheet is workable, but the higher debt load raises risk if profitability stalls.

Cash Flow

Cash generation improved materially in FY2025 with positive operating cash flow (£0.66m) and positive free cash flow (£0.59m), following negative free cash flow in FY2024 and FY2022 and weak consistency across the period. Free cash flow growth is strong in FY2025 (+87.7%), and free cash flow is broadly in line with reported earnings (about 0.90x net income), which supports earnings quality. The key weakness is the uneven cash-flow track record and a relatively low conversion of operating cash flow versus reported operating profit in FY2025, suggesting working-capital or timing effects remain a swing factor.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	6.03M	6.03M	4.73M	5.50M	5.01M	3.60M
Gross Profit	2.69M	2.69M	2.28M	2.61M	1.88M	1.31M
EBITDA	1.03M	1.03M	-363.00K	-165.00K	-937.00K	-1.69M
Net Income	210.50K	178.00K	-1.32M	-1.12M	-2.19M	-2.80M
Balance Sheet
Total Assets	7.61M	7.61M	7.75M	8.40M	9.73M	10.76M
Cash, Cash Equivalents and Short-Term Investments	827.00K	827.00K	700.00K	740.00K	693.00K	1.54M
Total Debt	4.09M	4.09M	2.81M	3.05M	2.96M	2.95M
Total Liabilities	3.73M	3.73M	4.09M	4.11M	4.21M	3.84M
Stockholders Equity	3.88M	3.88M	3.66M	4.29M	5.53M	6.91M
Cash Flow
Free Cash Flow	329.50K	594.00K	-486.00K	56.00K	-1.31M	-2.25M
Operating Cash Flow	394.50K	663.00K	-422.00K	166.00K	-1.01M	-1.94M
Investing Cash Flow	-69.00K	-69.00K	-64.00K	-110.00K	-292.00K	-299.00K
Financing Cash Flow	-449.00K	-449.00K	434.00K	-98.00K	322.00K	943.00K

Hardide Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 17.75
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:HDD, the sentiment is Positive. The current price of 17.75 is above the 20-day moving average (MA) of 17.73, above the 50-day MA of 15.59, and above the 200-day MA of 9.55, indicating a bullish trend. The MACD of 1.43 indicates Negative momentum. The RSI at 70.87 is Negative, neither overbought nor oversold. The STOCH value of 77.63 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:HDD.

Hardide Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ELM	64 Neutral	£950.26M	-16.79	3.37%	1.34%	-11.78%	-92.61%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
HDD	57 Neutral	£19.31M	104.55	-11.10%	―	14.51%	77.27%
HAYD	55 Neutral	£32.27M	-1.12	―	―	-27.64%	35.09%
DCTA	53 Neutral	£15.66M	-4.32	-78.76%	―	-24.85%	40.28%
SYNT	51 Neutral	£93.23M	-1.09	-7.26%	―	-4.41%	2.29%
VRS	39 Underperform	£601.00K	-0.07	-235.32%	―	-38.73%	96.64%

Hardide Corporate Events

Hardide Wins $1m North American Order and Plans Martinsville Upgrade

Hardide has secured a follow-on order worth $1.0 million from a North American customer, building on a previous contract announced in December 2025 and strengthening its position in that regional market. The order, to be delivered in the second half of the 2026 financial year, is expected to lift the company’s performance above prior expectations and will help fund planned infrastructure upgrades at its Martinsville plant to boost operational efficiency and support rising demand in North America, underlining the strategic importance of this customer relationship and the growth potential in the region.

The most recent analyst rating on (GB:HDD) stock is a Hold with a £18.00 price target. To see the full list of analyst forecasts on Hardide stock, see the GB:HDD Stock Forecast page.

Hardide Returns to Profit as Revenue Jumps and Trading Momentum Builds

Hardide reported a strong turnaround for the year to 30 September 2025, with revenue up 27% to £6.0m, gross margin rising to 57%, EBITDA improving to £1.0m at a 17% margin and the company returning to positive earnings per share for the first time in many years. The group cut net debt, increased cash, fully harmonised its UK and US plants, and is now generating cash thanks to higher volumes, better commercial discipline and operational efficiencies. Trading momentum has carried into the new financial year, with first-quarter FY26 revenue up nearly 40% and a £1.75m order from a major new North American energy customer underpinning expectations of further significant progress as Hardide targets at least doubling FY24 revenues to £10m and leveraging spare capacity for margin and profit growth.

The most recent analyst rating on (GB:HDD) stock is a Hold with a £7.50 price target. To see the full list of analyst forecasts on Hardide stock, see the GB:HDD Stock Forecast page.

Hardide Sets Date to Publish Full-Year 2025 Results

Hardide plc has announced it will publish its annual results for the year ended 30 September 2025 on 22 January 2026, signalling an upcoming update on the company’s financial and operational performance. The forthcoming results will be closely watched by stakeholders in the industrial coatings and engineering supply chain, given Hardide’s role in providing performance-enhancing surface treatments to critical components in demanding sectors such as energy and aerospace.

The most recent analyst rating on (GB:HDD) stock is a Hold with a £8.00 price target. To see the full list of analyst forecasts on Hardide stock, see the GB:HDD Stock Forecast page.

Hardide Secures Major Orders from New North American Energy Customer

Hardide plc has secured significant orders worth £1.75 million from a major new North American customer in the energy sector, reflecting strategic efforts to expand in the US market. This development is expected to boost Hardide’s revenues in the first half of the fiscal year ending September 2026, surpassing initial forecasts. The company’s facility in Martinsville, USA, will service these orders, highlighting its enhanced value proposition. The orders align with Hardide’s strategy to double its FY24 revenues, leveraging existing capacity for better margins. The company’s unique coatings, which extend component life in harsh environments, are gaining interest from major oil and gas companies.

The most recent analyst rating on (GB:HDD) stock is a Hold with a £8.00 price target. To see the full list of analyst forecasts on Hardide stock, see the GB:HDD Stock Forecast page.