Hardide (HDD) AI Stock Analysis

• Market Cap: £6.11M
• Dividend Yield: N/A
• Average Volume (3M): 66.78K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.15
• 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: 59,669
• 30 Day Avg. Volume: 66,781
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: £8.00
• Price Target Upside: 3.23% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 52 Neutral
• Price Target: 8.00p ▲(3.23% Upside)

The overall score reflects significant financial challenges, including declining revenues and operational inefficiencies, which are partially offset by positive corporate events and strategic growth initiatives. Technical indicators suggest bearish momentum, and valuation concerns persist due to negative earnings.

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

Hardide faces challenges with declining revenues and persistent losses, as reflected in negative profit margins and weak cash flows. Moderate leverage is a positive aspect, but operational inefficiencies and poor cash management need immediate attention.

Income Statement

The company's income statement shows declining revenue growth with a negative trend in profitability. The gross profit margin has decreased over the years. Net profit margins remain negative, indicating challenges in achieving profitability. EBIT and EBITDA margins also reflect operational inefficiencies and a need for improved cost management.

Balance Sheet

The balance sheet reveals a moderate debt-to-equity ratio, which suggests manageable leverage but indicates potential debt-related risks. The equity ratio has been decreasing, reflecting a shrinking proportion of equity in total assets. Additionally, return on equity remains negative due to ongoing net losses.

Cash Flow

Cash flow analysis highlights negative free cash flow and a significant decline in operating cash flow, pointing to liquidity pressures. The free cash flow to net income ratio is unfavorable, indicating a need for better cash management. Despite occasional financing inflows, cash generation from operations is weak.

Breakdown	Sep 2024	Sep 2023	Sep 2022	Sep 2021	Sep 2020
Income Statement
Total Revenue	4.73M	5.50M	5.01M	3.60M	4.76M
Gross Profit	2.28M	2.61M	1.88M	1.31M	2.32M
EBITDA	-363.00K	-165.00K	-937.00K	-1.69M	-579.00K
Net Income	-1.32M	-1.12M	-2.19M	-2.80M	-1.29M
Balance Sheet
Total Assets	7.75M	8.40M	9.73M	10.76M	12.75M
Cash, Cash Equivalents and Short-Term Investments	700.00K	740.00K	1.14M	1.99M	3.11M
Total Debt	2.81M	3.05M	1.94M	2.11M	2.24M
Total Liabilities	4.09M	4.11M	4.21M	3.84M	3.91M
Stockholders Equity	3.66M	4.29M	5.53M	6.91M	8.84M
Cash Flow
Free Cash Flow	-486.00K	56.00K	-1.31M	-2.25M	-4.59M
Operating Cash Flow	-422.00K	166.00K	-1.01M	-1.94M	-504.00K
Investing Cash Flow	-64.00K	-110.00K	-292.00K	-299.00K	-4.09M
Financing Cash Flow	434.00K	-98.00K	322.00K	943.00K	2.48M

Hardide Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 7.75
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Positive
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:HDD, the sentiment is Neutral. The current price of 7.75 is below the 20-day moving average (MA) of 7.84, below the 50-day MA of 8.02, and above the 200-day MA of 6.37, indicating a neutral trend. The MACD of -0.07 indicates Positive momentum. The RSI at 28.13 is Positive, neither overbought nor oversold. The STOCH value of 58.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for GB:HDD.

Hardide Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HAYD	55 Neutral	£24.86M	―	-92.35%	―	-27.64%	―
DCTA	54 Neutral	£12.01M	―	-82.21%	―	-38.36%	-4.92%
HDD	52 Neutral	£6.11M	―	-11.10%	―	14.51%	77.27%
ITX	50 Neutral	£17.46M	―	-17.98%	―	-19.70%	-15.81%
Sector *	44 Neutral	AU$1.51B	-7.20	-27.95%	4.55%	-2.91%	-36.73%
VRS	39 Underperform	£1.14M	―	-235.32%	―	-38.73%	96.64%

Hardide Corporate Events

Hardide Director Increases Stake with Share Purchase

Hardide plc announced that Dr. Bryan Allcock, a Non-Executive Director, purchased 63,451 ordinary shares of the company at a price of 7.88 pence per share. This transaction increases Dr. Allcock’s stake to 0.1% of the company’s issued share capital. The purchase reflects confidence in the company’s market position and its advanced coating technology, which is crucial for industries requiring durable and efficient component solutions.

Hardide Directors Increase Shareholdings, Signaling Confidence

Hardide plc announced that its CEO, Matt Hamblin, and Non-Executive Chair, Andrew Magson, have purchased additional ordinary shares in the company. This move signifies a strong vote of confidence in the company’s future prospects and may positively influence stakeholder perceptions, potentially impacting the company’s market position and investor relations.

Hardide PLC Reports Strong Financial Turnaround and Strategic Growth Initiatives

Hardide PLC reported a significant financial turnaround for the six months ending March 31, 2025, with a 32% increase in revenue and improved gross margins. The company became EBITDA profitable and cash generative, driven by strong demand in the aerospace sector and operational efficiencies. The completion of operational harmonization between its US and UK plants and the introduction of new service offerings are expected to enhance customer service and drive further growth. The company is also engaged in several innovative projects, including applications in carbon capture and green hydrogen production, positioning it well for future growth.