Halfords (HFD) AI Stock Analysis

• Market Cap: £299.80M
• Dividend Yield: 6.4%
• Average Volume (3M): 613.41K
• Price to Earnings (P/E): 26.7
• Beta (1Y): 1.48
• 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: 487,244
• 30 Day Avg. Volume: 613,410
• 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: £157.50
• Price Target Upside: 16.32% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 2

• Rating: 57 Neutral
• Price Target: 142.00p ▲(4.87% Upside)

Halfords faces significant challenges with profitability and cash flow management, reflected in its financial performance score. Technical indicators suggest bearish momentum, and the negative P/E ratio raises valuation concerns. The high dividend yield offers some compensation, but overall, the stock's outlook is constrained by these financial and technical weaknesses.

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 generates revenue through various streams, primarily from the sale of products in its retail stores and online platforms. The company offers a diverse range of automotive components, cycling equipment, and leisure accessories, which are sold at competitive prices. Additionally, Halfords earns significant income from its car maintenance services, including vehicle repairs, MOT testing, and installation services for products like car stereos and sat-nav systems. Strategic partnerships with leading brands in the automotive and cycling sectors also bolster its product offerings and market position. Seasonal promotions, loyalty programs, and an expanding online presence further contribute to its revenue by enhancing customer engagement and driving sales growth.

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 2022	Dec 2021	Dec 2020
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: 135.40
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 135.4 is below the 20-day moving average (MA) of 138.02, below the 50-day MA of 138.89, and below the 200-day MA of 137.46, indicating a bearish trend. The MACD of -0.94 indicates Negative momentum. The RSI at 44.49 is Neutral, neither overbought nor oversold. The STOCH value of 48.68 is Neutral, 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	73 Outperform	1.01B	11.82	8.88%	5.78%	0.37%	14.78%
CURY	69 Neutral	1.47B	13.48	4.81%	1.11%	2.71%	-34.19%
AO	59 Neutral	541.05M	51.97	7.27%	―	9.45%	-57.24%
HFD	57 Neutral	£299.80M	26.73	-6.38%	6.40%	1.10%	-333.08%
SMWH	55 Neutral	848.88M	132.07	16.11%	4.10%	4.46%	-89.55%
MOON	49 Neutral	657.60M	-68.35	33.36%	0.49%	2.62%	-129.82%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%

Halfords Corporate Events

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.

Halfords Releases Annual Financial Report and Announces AGM Details

Halfords Group PLC has released its Annual Financial Report for the period ending March 28, 2025, and announced the details of its upcoming Annual General Meeting (AGM) scheduled for September 3, 2025. The company encourages shareholders to participate in the AGM through proxy voting and to submit questions in advance, ensuring transparency and engagement. The report and AGM notice have been made available on the company’s website and the National Storage Mechanism, reflecting Halfords’ commitment to regulatory compliance and shareholder communication.

The most recent analyst rating on (GB:HFD) stock is a Hold with a £160.00 price target. To see the full list of analyst forecasts on Halfords stock, see the GB:HFD Stock Forecast page.

Halfords Group PLC Announces Director Shareholding Update

Halfords Group PLC announced a director shareholding update involving Chris McShane, who holds significant roles within the company as MD Business to Business and CEO and President of Avayler. The transaction involved the exercise of a 2022 Performance Share Plan award, with the purchase of 7,767 ordinary shares at a price of £1.453923 each, conducted on the London Stock Exchange. This transaction highlights the company’s ongoing commitment to aligning executive interests with shareholder value, potentially impacting investor confidence and market perception.

The most recent analyst rating on (GB:HFD) stock is a Hold with a £160.00 price target. To see the full list of analyst forecasts on Halfords stock, see the GB:HFD Stock Forecast page.

Halfords Group PLC Announces Director Shareholding Transaction

Halfords Group PLC announced a transaction involving the exercise of a 2022 Performance Share Plan award by Tim O’Gorman, the Company Secretary. The transaction involved the purchase of 6,265 ordinary shares at a price of £1.50864 per share, conducted on the London Stock Exchange. This transaction reflects the company’s ongoing commitment to aligning management incentives with shareholder interests.

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.

Halfords Grants Shares to Key Executives Under Bonus Plan

Halfords Group PLC has announced the grant of shares under its Deferred Bonus Plan to two of its key executives. Jo Hartley, the Chief Finance Officer, received 104,436 shares, while Karen Bellairs, the Chief Customer Officer, was granted 79,267 shares. Both transactions were conducted on the London Stock Exchange at a price of £1.55 per share. This move is part of the company’s strategy to incentivize and retain top management, potentially impacting its operational focus and stakeholder confidence.

The most recent analyst rating on (GB:HFD) stock is a Hold with a £160.00 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

Halfords Group PLC announced its total voting rights, stating that its share capital consists of 218,928,736 ordinary shares, each with equal voting rights. This disclosure, in line with the FCA’s Disclosure Guidance and Transparency Rules, allows shareholders to calculate their interests in the company, impacting how they manage their investments and comply with regulatory requirements.

The most recent analyst rating on (GB:HFD) stock is a Hold with a £160.00 price target. To see the full list of analyst forecasts on Halfords stock, see the GB:HFD Stock Forecast page.

Halfords Chair Appointed to Serco Group

Halfords Group PLC, a company listed on the UK stock exchange, has announced a significant change in its leadership. Keith Williams, the current Chair of Halfords Group PLC, has been appointed as a Non-Executive Director and Chair designate of Serco Group plc, effective from August 1, 2025. This move is part of the company’s compliance with UK Listing Rules and may impact its strategic direction and governance structure.

The most recent analyst rating on (GB:HFD) stock is a Hold with a £160.00 price target. To see the full list of analyst forecasts on Halfords stock, see the GB:HFD Stock Forecast page.