Halfords Group PLC (GB:HFD)
LSE:HFD
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Halfords
(LSE:HFD)
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Rating:57Neutral
Price Target:
149.00 p
▲(6.73% Upside)
Action:Reiterated
Date:04/30/26
The score is held back primarily by the sharp 2025 profitability decline despite continued revenue growth and solid cash generation. Valuation is a meaningful positive (low P/E and high dividend yield), but technical indicators point to weak momentum, and the earnings call balances strategic improvement plans against persistent margin and integration headwinds.
Positive Factors
Scale & Market Position
A dense physical and service network (stores, garages, vans and 12,000 colleagues) creates a durable competitive advantage for recurring service revenues, local market share and cross-sell opportunities. Scale supports bargaining power, geographic reach and long-term customer retention.
Negative Factors
Profitability Deterioration
A swing to operating losses and a negative net result signals durable margin pressure and potential structural cost or pricing issues. Sustained earnings weakness erodes return metrics and limits reinvestment capacity unless operational levers deliver consistent margin recovery.
Read all positive and negative factors
Positive Factors
Negative Factors
Scale & Market Position
A dense physical and service network (stores, garages, vans and 12,000 colleagues) creates a durable competitive advantage for recurring service revenues, local market share and cross-sell opportunities. Scale supports bargaining power, geographic reach and long-term customer retention.
Read all positive factors
Halfords (HFD) vs. iShares MSCI United Kingdom ETF (EWC)
Market Cap
£336.40M
Dividend Yield6.3%
Average Volume (3M)409.96K
Price to Earnings (P/E)5.5
Beta (1Y)1.29
Revenue Growth3.31%
EPS Growth-340.97%
CountryUK
Employees12,000
SectorConsumer Cyclical
Sector Strength84
IndustrySpecialty Retail
Share Statistics
EPS (TTM)-0.16
Shares Outstanding218,928,740
10 Day Avg. Volume400,024
30 Day Avg. Volume409,957
Financial Highlights & Ratios
PEG Ratio0.05
Price to Book (P/B)0.56
Price to Sales (P/S)0.16
P/FCF Ratio1.97
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
£167.50Price Target Upside19.99% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)0.16
Revenue Forecast (FY)£1.82B
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, scoot...
How the Company Makes Money
Halfords makes money through a combination of product sales and service revenues. (1) Retail product revenue: The company sells motoring and cycling products through its physical store estate and online channels, generating revenue from items such...
Halfords Earnings Call Summary
Earnings Call Date:Nov 27, 2025
(Q2-2026)
| % Change Since: |
Next Earnings Date:Jun 11, 2026
Earnings Call Sentiment Neutral
The earnings call reflects a company with strong market presence and potential for growth, particularly in its Cycling and Motoring Club segments. However, challenges such as weak tire market performance, integration issues from past acquisitions, and the need for better margin management are significant hurdles. The focus on optimizing existing operations and leveraging digital and service offerings presents a balanced outlook for the future.Positive Updates
Strong Interim Results
Halfords announced strong interim results for the 26 weeks to September 26, with significant contributions from various divisions.
Negative Updates
Weak Tire Market
The tire market has struggled over the past two years, impacting the company's performance in this segment.
Read all updates
Q2-2026 Updates
Positive
Negative
Strong Interim Results
Halfords announced strong interim results for the 26 weeks to September 26, with significant contributions from various divisions.
Read all positive updates
Company Guidance
During the recent call, Halfords' CEO Henry Birch outlined the company's strategic vision, emphasizing optimized use of existing assets and services to drive growth and shareholder value. The company operates 370 retail stores and 500 garages across the UK and Ireland, supplemented by a fleet of 800 vans and over 12,000 trained colleagues. Halfords' annual sales are approximately GBP 1 billion, with one-third derived from B2B services. The company's strategic focus includes enhancing category management, expanding digital and service offerings, and leveraging its robust data platform for predictive analytics. The Halfords Motoring Club, a loyalty program with over 6 million members, serves as a key component in driving customer engagement. Financially, Halfords aims for like-for-like sales growth, margin expansion, and improved return on capital. Investments in technology and supply chain efficiency are planned, with capital expenditures maintained at GBP 55 million to GBP 65 million annually. The company's debt-free balance sheet supports these initiatives, while future growth is targeted through potential acquisitions and digital expansion.Halfords Financial Statement Overview
Summary
Income Statement
38
Negative
Balance Sheet
56
Neutral
Cash Flow
63
Positive
| Breakdown | TTM | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 | Mar 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.74B | 1.72B | 1.70B | 1.59B | 1.38B | 1.29B |
| Gross Profit | 870.60M | 869.10M | 822.60M | 757.20M | 701.10M | 635.30M |
| EBITDA | 112.20M | 111.00M | 177.20M | 174.60M | 213.90M | 183.00M |
| Net Income | -33.80M | -33.60M | 16.90M | 28.10M | 77.70M | 53.20M |
Balance Sheet | ||||||
| Total Assets | 1.17B | 1.18B | 1.28B | 1.36B | 1.29B | 1.07B |
| Cash, Cash Equivalents and Short-Term Investments | 18.80M | 19.10M | 13.30M | 41.90M | 46.30M | 67.20M |
| Total Debt | 251.50M | 280.40M | 328.60M | 390.60M | 391.20M | 344.50M |
| Total Liabilities | 675.70M | 675.10M | 725.70M | 796.40M | 739.20M | 655.60M |
| Stockholders Equity | 495.90M | 500.10M | 553.80M | 562.80M | 551.00M | 417.80M |
Cash Flow | ||||||
| Free Cash Flow | 155.50M | 141.50M | 121.80M | 97.90M | 71.60M | 239.10M |
| Operating Cash Flow | 199.00M | 194.70M | 167.40M | 152.30M | 118.90M | 266.60M |
| Investing Cash Flow | -61.40M | -57.20M | -46.50M | -87.00M | -98.30M | -39.00M |
| Financing Cash Flow | -153.90M | -131.70M | -139.80M | -79.20M | -41.50M | -275.90M |
Halfords Technical Analysis
Neutral
139.60
Price Trends
139.80
Negative
141.50
Negative
139.60
Negative
Market Momentum
-0.36
Negative
58.56
Neutral
69.86
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:HFD, the sentiment is Neutral. The current price of 139.6 is above the 20-day moving average (MA) of 132.10, below the 50-day MA of 139.80, and above the 200-day MA of 139.60, indicating a neutral trend. The MACD of -0.36 indicates Negative momentum. The RSI at 58.56 is Neutral, neither overbought nor oversold. The STOCH value of 69.86 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for GB:HFD.
Halfords Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | £1.28B | 23.58 | 5.88% | 1.18% | 9.51% | -31.96% | |
68 Neutral | £3.36B | 9.49 | 15.14% | 1.21% | 10.51% | -7.47% | |
65 Neutral | £1.46B | 6.72 | 105.88% | 3.99% | 4.39% | -1.37% | |
63 Neutral | £483.37M | 11.70 | 7.92% | ― | 13.21% | -54.35% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
57 Neutral | £336.40M | 5.52 | -6.79% | 6.30% | 3.31% | -340.97% | |
53 Neutral | £51.43M | -28.65 | -10.09% | 2.09% | -5.97% | 14.75% |
* Consumer Cyclical Sector Average
GB:HFD
Halfords
158.60
4.56
2.96%
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GB:JD
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GB:MRK
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Halfords Corporate Events
Regulatory Filings and Compliance
Halfords discloses PDMR share deal as executive exercises Sharesave award
Neutral
Apr 8, 2026
Halfords Group has disclosed a director dealing under UK Market Abuse Regulation after Chief People and Property Officer Paul O’Hara exercised an award under the company’s Sharesave scheme. O’Hara acquired 15,477 ordinary shares ...
Regulatory Filings and Compliance
Halfords Confirms Total Voting Rights and Share Capital
Neutral
Feb 27, 2026
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 Dis...
Regulatory Filings and Compliance
Halfords Confirms Total Voting Rights and Share Capital
Neutral
Jan 30, 2026
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 ...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.