Halfords (HFD) AI Stock Analysis

• Market Cap: £314.18M
• Dividend Yield: 6.48%
• Average Volume (3M): 409.96K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.64
• Revenue Growth: 1.10%
• EPS Growth: -333.08%
• Country: UK
• Employees: 12,000
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Specialty Retail
• EPS (TTM): -0.22
• 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: £160.00
• Price Target Upside: 17.82% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 63 Neutral
• Price Target: 159.00p ▲(17.08% Upside)

The overall stock score of 63 reflects a mixed outlook for Halfords. The company's financial performance is stable but challenged by profitability issues, which is a significant concern. Technical analysis shows positive momentum, suggesting potential short-term gains. However, the negative P/E ratio indicates underlying earnings challenges, partially offset by a high dividend yield. Investors should be cautious and consider the company's ability to improve profitability and cash flow management.

Halfords Business Overview & Revenue Model

Company Description

Halfords Group plc is a UK-based retailer and service provider specializing in automotive and cycling products. Established in 1892, the company operates through two main sectors: Halfords Retail and Halfords Autocentres. Halfords Retail offers a wide range of products including car parts, accessories, tools, and bicycles, while Halfords Autocentres provides vehicle servicing, repairs, and MOT testing services. The company aims to support customers in their mobility needs, whether through cycling or automotive solutions.

How the Company Makes Money

Halfords generates revenue primarily through the sale of products and services across its Retail and Autocentres segments. Key revenue streams include the sale of automotive parts and accessories, bicycles, and related products in its retail stores and online. The Autocentres division earns revenue from vehicle servicing, repairs, and MOTs, which are essential for vehicle maintenance and compliance. Additionally, Halfords benefits from partnerships with various automotive manufacturers and suppliers, enhancing its product offerings and availability. The company's online presence, including e-commerce sales, also contributes significantly to its revenue, especially in the context of changing consumer shopping behaviors.

Halfords Financial Statement Overview

Summary

Halfords demonstrates stable revenue and gross profit margins, but faces profitability challenges with negative net income and EBIT margins. The balance sheet shows improved leverage, yet the negative return on equity is concerning. Cash flow management needs attention due to declining free cash flow. Overall, the company must focus on enhancing profitability and cash flow efficiency to strengthen its financial position.

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	Dec 2024	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	1.72B	1.70B	1.72B	1.59B	1.38B	1.29B
Gross Profit	852.90M	822.60M	869.10M	757.20M	701.10M	635.30M
EBITDA	75.60M	177.20M	111.00M	174.60M	213.90M	183.00M
Net Income	-33.60M	16.90M	-33.60M	28.10M	77.70M	53.20M
Balance Sheet
Total Assets	1.18B	1.28B	1.18B	1.36B	1.29B	1.07B
Cash, Cash Equivalents and Short-Term Investments	19.10M	13.30M	19.10M	41.90M	46.30M	67.20M
Total Debt	280.40M	328.60M	280.40M	390.60M	391.20M	344.50M
Total Liabilities	675.10M	725.70M	675.10M	796.40M	739.20M	655.60M
Stockholders Equity	500.10M	553.80M	500.10M	562.80M	551.00M	417.80M
Cash Flow
Free Cash Flow	160.60M	121.80M	141.50M	97.90M	71.60M	239.10M
Operating Cash Flow	192.50M	167.40M	194.70M	152.30M	118.90M	266.60M
Investing Cash Flow	-57.20M	-46.50M	-57.20M	-87.00M	-98.30M	-39.00M
Financing Cash Flow	-129.50M	-139.80M	-131.70M	-79.20M	-41.50M	-275.90M

Halfords Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 135.80
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• 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 135.8 is below the 20-day moving average (MA) of 144.22, below the 50-day MA of 141.91, and below the 200-day MA of 140.38, indicating a bearish trend. The MACD of -1.60 indicates Positive momentum. The RSI at 35.49 is Neutral, neither overbought nor oversold. The STOCH value of 10.91 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
PETS	74 Outperform	£939.87M	11.04	8.90%	6.39%	0.37%	14.78%
HFD	63 Neutral	£314.18M	-9.35	-6.38%	6.48%	1.10%	-333.08%
AO	63 Neutral	£577.26M	55.74	6.87%	―	9.45%	-57.24%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
CURY	60 Neutral	£1.39B	13.21	5.01%	1.17%	2.71%	-34.19%
SMWH	55 Neutral	£812.13M	126.36	2.46%	4.55%	4.46%	-89.55%
MOON	47 Neutral	£668.98M	-70.37	―	1.47%	2.62%	-129.82%

Halfords Corporate Events

Halfords Group Reports Positive Sales Growth and Margin Expansion in H1 FY26

Halfords Group plc reported a positive trading update for the first half of FY26, with like-for-like sales growth of 4.1% and gross margin expansion year-on-year. The company has strengthened its balance sheet through strong cash generation and disciplined stock management, maintaining its full-year outlook. The interim results, scheduled for release on 27 November, will include a detailed update on the Group’s strategy.

The most recent analyst rating on (GB:HFD) stock is a Hold with a £147.00 price target. To see the full list of analyst forecasts on Halfords stock, see the GB:HFD Stock Forecast page.

Halfords Group PLC Announces Total Voting Rights Update

Halfords Group PLC announced that its registered share capital consists of 218,928,736 ordinary shares, each with equal voting rights. This disclosure is significant for shareholders as it provides the necessary information for compliance with the FCA’s Disclosure Guidance and Transparency Rules, ensuring transparency and regulatory adherence.

The most recent analyst rating on (GB:HFD) stock is a Hold with a £147.00 price target. To see the full list of analyst forecasts on Halfords stock, see the GB:HFD Stock Forecast page.

Halfords Executives Increase Shareholdings Through Dividend Reinvestment

Halfords Group PLC announced the purchase of shares by several key executives, including the Chief Financial Officer, Chief Customer Officer, and others, following dividend reinvestment plans. These transactions, conducted on the London Stock Exchange, reflect the company’s ongoing commitment to aligning executive interests with shareholder value, potentially impacting its market perception and stakeholder confidence.

The most recent analyst rating on (GB:HFD) stock is a Hold with a £147.00 price target. To see the full list of analyst forecasts on Halfords stock, see the GB:HFD Stock Forecast page.

Halfords Group PLC Successfully Passes All Resolutions at 2025 AGM

Halfords Group PLC announced that all resolutions were successfully passed at its 2025 Annual General Meeting, held on September 3, 2025. The resolutions included the approval of financial statements, director elections, and the authorization of various company actions, such as political donations and share repurchases. These outcomes reflect strong shareholder support and are likely to impact the company’s strategic decisions and market operations positively.

The most recent analyst rating on (GB:HFD) stock is a Hold with a £142.00 price target. To see the full list of analyst forecasts on Halfords stock, see the GB:HFD Stock Forecast page.

Halfords Announces Total Voting Rights Update

Halfords Group PLC has announced its total voting rights, with a registered share capital consisting of 218,928,736 ordinary shares, each with equal voting rights. This disclosure, in line with the FCA’s Disclosure Guidance and Transparency Rules, assists shareholders in determining their interest in the company, impacting how they engage with their shareholdings.

The most recent analyst rating on (GB:HFD) stock is a Hold with a £151.00 price target. To see the full list of analyst forecasts on Halfords stock, see the GB:HFD Stock Forecast page.