Halfords (HFD) AI Stock Analysis

• Market Cap: £280.63M
• Dividend Yield: 6.3%
• Average Volume (3M): 409.96K
• Price to Earnings (P/E): 5.5
• Beta (1Y): 1.35
• Revenue Growth: 3.31%
• EPS Growth: -340.97%
• Country: UK
• Employees: 12,000
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Specialty Retail
• EPS (TTM): 0.08
• Shares Outstanding: 218,928,740
• 10 Day Avg. Volume: 400,024
• 30 Day Avg. Volume: 409,957
• PEG Ratio: 0.54
• Price to Book (P/B): 0.62
• Price to Sales (P/S): 0.20
• P/FCF Ratio: 2.81
• 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): 0.13
• Revenue Forecast (FY): £1.75B

• Rating: 67 Neutral
• Price Target: 139.00 p ▼(-0.43% Downside)
• Action: Reiterated Date: 12/07/25
• Date: Action: Reiterated 12/07/25

Halfords' overall stock score reflects stable financial performance with profitability challenges, positive technical momentum, and strategic growth initiatives. The attractive dividend yield provides some valuation support, but the negative P/E ratio is a concern. Strategic initiatives and market presence offer growth potential, though margin management and integration issues remain hurdles.

Positive Factors

Debt-free balance sheet

A debt-free balance sheet materially strengthens financial flexibility over the medium term, allowing Halfords to fund recurring capex, invest in digital and service expansion, and pursue bolt-on acquisitions without raising leverage. This reduces interest risk and supports durable capital allocation.

Large physical and service network

Scale across 370 stores, 500 garages and a large customer base creates a durable competitive advantage for in-person services, local market coverage and supply-chain leverage. The network supports recurring service demand and cross-sell, helping sustain revenues through different economic cycles.

Shift to higher-margin services

A structural move to services (now >50% of revenue) increases recurring, steadier-margin income versus one-off retail sales. Services and loyalty (Motoring Club) improve customer retention, utilization of garages/vans and provide a more resilient revenue mix across 2–6 months and beyond.

Negative Factors

Margin improvement lag

Persistent underperformance in garage margins suggests operational inefficiencies or pricing and cost pressures that undermine the service-led strategy. If margins remain constrained, return on capital and ability to reinvest profitably will be impaired over the medium term.

Acquisition integration issues

Poor integration of acquisitions undermines expected synergies, distracts management and increases operating complexity. Long-term value creation from M&A is at risk unless structural integration processes improve, limiting growth and margin benefits from deals.

Declining free cash flow

A decline in free cash flow growth constrains the firm’s ability to sustain dividends, fund strategic capex or pursue acquisitions despite a debt-free balance sheet. Persistent FCF erosion would force tougher trade-offs on investment, returns and resiliency to shocks.

Halfords Business Overview & Revenue Model

Company Description

Halfords Group plc, through its subsidiaries, provides motoring and cycling products and services in the United Kingdom and the Republic of Ireland. Its Retail segment is involved in the retail of automotive, cars, leisure, cycling products, scooters, and parts, as well as clothing and accessories through its stores. The company's Car Servicing segment provides car servicing and repair services from Autocentres and mobile vans. As of June 23, 2021, it operated 404 Halfords stores, 3 Performance Cycling stores, 374 garages, and 143 mobile service vans, as well as 192 commercial vans. The company also sells its products to customers through halfords.com and tredz.co.uk for pick up at their local stores or direct home delivery, as well as provides garage-booking services online at halfords.com. Halfords Group plc was founded in 1892 and is based in Redditch, the United Kingdom.

How the Company Makes Money

Halfords makes money through a mix of product sales and service revenues across its motoring and cycling activities. Key revenue streams include: (1) Retail product sales: revenue from selling cycling products (e.g., bikes and bike accessories) and motoring products (e.g., parts, consumables, accessories, and in-car technology) through its physical stores and online channels. (2) Service and fitting: fees earned from fitting and maintenance services associated with products sold (for example, installation/fitting services linked to motoring accessories and bike-related servicing). (3) Vehicle servicing, maintenance, and repair: revenue generated by servicing and repair work delivered via its garage network and mobile service operations, including routine servicing and other repair jobs. Earnings are influenced by factors such as consumer demand for discretionary cycling purchases, ongoing vehicle parc/age and maintenance needs in the UK, and the scale and utilisation of its store, garage, and mobile service footprint. Specific material partnerships or customer contracts: null.

Halfords Financial Statement Overview

Summary

Halfords shows stable revenue and gross profit margins but faces profitability challenges with negative net income and EBIT margins. Improved leverage is noted, yet the negative return on equity and declining free cash flow highlight financial inefficiencies.

Income Statement

Halfords shows a stable gross profit margin around 50%, indicating efficient cost management. However, recent negative net profit and EBIT margins highlight profitability challenges. Revenue growth is modest, suggesting limited expansion. The company needs to address its declining profitability to improve its financial health.

Balance Sheet

The debt-to-equity ratio has improved over time, indicating better leverage management. However, the recent negative return on equity suggests inefficiencies in generating returns from shareholders' equity. The equity ratio remains stable, reflecting a balanced asset structure.

Cash Flow

Operating cash flow remains strong, but free cash flow has decreased recently, indicating potential cash management issues. The free cash flow to net income ratio is healthy, but the decline in free cash flow growth suggests the need for better cash flow management.

Breakdown	TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2019
Income Statement
Total Revenue	1.74B	1.72B	1.59B	1.38B	1.29B	1.16B
Gross Profit	870.60M	869.10M	757.20M	701.10M	635.30M	565.40M
EBITDA	112.20M	111.00M	174.60M	213.90M	183.00M	142.60M
Net Income	-33.80M	-33.60M	28.10M	77.70M	53.20M	17.50M
Balance Sheet
Total Assets	1.17B	1.18B	1.36B	1.29B	1.07B	1.20B
Cash, Cash Equivalents and Short-Term Investments	18.80M	19.10M	41.90M	46.30M	67.20M	115.50M
Total Debt	251.50M	280.40M	390.60M	391.20M	344.50M	595.30M
Total Liabilities	675.70M	675.10M	796.40M	739.20M	655.60M	833.40M
Stockholders Equity	495.90M	500.10M	562.80M	551.00M	417.80M	365.80M
Cash Flow
Free Cash Flow	155.50M	141.50M	97.90M	71.60M	239.10M	144.70M
Operating Cash Flow	199.00M	194.70M	152.30M	118.90M	266.60M	178.30M
Investing Cash Flow	-61.40M	-57.20M	-87.00M	-98.30M	-39.00M	-44.50M
Financing Cash Flow	-153.90M	-131.70M	-79.20M	-41.50M	-275.90M	-11.10M

Halfords Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 139.60
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:HFD, the sentiment is Negative. The current price of 139.6 is below the 20-day moving average (MA) of 139.91, below the 50-day MA of 145.11, and below the 200-day MA of 141.75, indicating a bearish trend. The MACD of -4.06 indicates Positive momentum. The RSI at 24.94 is Positive, neither overbought nor oversold. The STOCH value of 7.74 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GB:HFD.

Halfords Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CURY	73 Outperform	£1.42B	23.58	5.88%	1.18%	9.51%	-31.96%
JD	71 Outperform	£3.33B	26.72	17.89%	1.21%	14.60%	58.84%
HFD	67 Neutral	£280.63M	5.52	-6.79%	6.30%	3.31%	-340.97%
DNLM	65 Neutral	£1.63B	6.72	121.78%	3.99%	3.78%	3.29%
AO	63 Neutral	£485.99M	11.70	7.52%	―	13.21%	-54.35%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
MRK	53 Neutral	£48.80M	-28.65	-10.09%	2.09%	-5.97%	14.75%

Halfords Corporate Events

Halfords Confirms Total Voting Rights and Share Capital

Halfords Group plc has confirmed that its registered share capital currently comprises 218,928,736 ordinary shares of 1p each, all carrying equal voting rights and with no treasury shares held. The disclosure, made in line with the FCA’s Disclosure Guidance and Transparency Rules, sets the official share count that shareholders must use when calculating notification thresholds for changes in their holdings.

By clarifying the total number of voting shares in issue, Halfords provides investors and regulators with an updated denominator for transparency reporting requirements. This routine corporate governance announcement supports accurate monitoring of significant shareholdings and helps maintain compliance with U.K. market disclosure standards.

The most recent analyst rating on (GB:HFD) stock is a Hold with a £157.00 price target. To see the full list of analyst forecasts on Halfords stock, see the GB:HFD Stock Forecast page.

Halfords Confirms Total Voting Rights and Share Capital

Halfords Group plc has confirmed that, as of 30 January 2026, its issued share capital comprises 218,928,736 ordinary shares of 1 pence each, all carrying equal voting rights and with no shares held in treasury. The company stated that this total share count should be used by investors as the denominator for calculating whether they must disclose holdings or changes in holdings under the FCA’s Disclosure Guidance and Transparency Rules, reaffirming regulatory transparency around its capital structure and voting rights.

The most recent analyst rating on (GB:HFD) stock is a Hold with a £154.00 price target. To see the full list of analyst forecasts on Halfords stock, see the GB:HFD Stock Forecast page.

Halfords Executives Boost Shareholdings Through Dividend Reinvestment

Halfords has disclosed a series of share transactions by its senior management team under the UK Market Abuse Regulation, detailing dividend reinvestment purchases of ordinary shares by several persons discharging managerial responsibilities. Chief executive Henry Birch, chief financial officer Johanna Hartley, chief customer officer Karen Bellairs, chief people and property officer Paul O’Hara, and general counsel and company secretary Tim O’Gorman all increased their holdings through dividend reinvestment into Performance Share Plan and Deferred Bonus Plan awards at around £1.46 per share, consolidating management’s equity exposure and further aligning executives’ interests with those of shareholders.

The most recent analyst rating on (GB:HFD) stock is a Hold with a £161.00 price target. To see the full list of analyst forecasts on Halfords stock, see the GB:HFD Stock Forecast page.

Halfords Confirms Total Voting Rights and Share Capital Structure

Halfords Group plc has confirmed that its registered share capital currently consists of 218,928,736 ordinary shares of 1p each, all carrying equal voting rights and with no shares held in treasury. The disclosure, made in line with UK financial reporting rules, sets the official share count that investors and other stakeholders must use when calculating voting rights and determining whether they need to notify the company and regulators of changes in their shareholdings, reinforcing transparency around Halfords’ ownership structure.

The most recent analyst rating on (GB:HFD) stock is a Hold with a £161.00 price target. To see the full list of analyst forecasts on Halfords stock, see the GB:HFD Stock Forecast page.

Halfords Grants Restricted Share Award to Retail Managing Director

Halfords Group plc has disclosed a director/PDMR shareholding change, confirming that Jessica Frame, Managing Director of Retail, has been granted 103,590 ordinary 1p shares under the company’s Restricted Share Plan. The award, executed on 15 December 2025 at a reference price of £1.448 per share on the London Stock Exchange’s Main Market, underscores Halfords’ ongoing use of equity-based incentives to align senior retail leadership with shareholder interests and support long-term performance.

The most recent analyst rating on (GB:HFD) stock is a Hold with a £161.00 price target. To see the full list of analyst forecasts on Halfords stock, see the GB:HFD Stock Forecast page.

Halfords CIO Receives Share Grant Under Company Sharesave Scheme

Halfords Group has reported that its Chief Information Officer, Sarah Haywood, has received a grant of 16,294 ordinary 1p shares under the company’s Sharesave Scheme, at an exercise price of £1.12 per share. The award, disclosed under UK Market Abuse Regulation, reinforces the alignment of senior management incentives with shareholder interests and signals ongoing use of employee share schemes as part of Halfords’ remuneration and retention strategy.

The most recent analyst rating on (GB:HFD) stock is a Hold with a £161.00 price target. To see the full list of analyst forecasts on Halfords stock, see the GB:HFD Stock Forecast page.