Halfords (HFD) AI Stock Analysis

• Market Cap: £314.18M
• Dividend Yield: 5.92%
• Average Volume (3M): 409.96K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.64
• 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: £165.00
• Price Target Upside: 16.03% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 67 Neutral
• Price Target: 161.00p ▲(13.22% Upside)

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 enhances financial stability, providing flexibility for strategic investments and resilience against economic downturns.

Market Position

Strong market presence with extensive retail and service locations supports customer reach and competitive advantage in the automotive and cycling sectors.

Service Revenue Growth

Shift towards services indicates a strategic focus on higher-margin revenue streams, enhancing long-term profitability and business sustainability.

Negative Factors

Margin Improvement Challenges

Inability to improve margins despite strategic shifts could hinder profitability and limit reinvestment capacity, affecting long-term growth prospects.

Integration Issues with Acquisitions

Poor integration of acquisitions adds operational complexity and prevents realization of synergies, impacting efficiency and financial performance.

Underutilization of Data

Failure to leverage data analytics limits strategic decision-making and personalization, potentially reducing competitive edge and customer engagement.

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 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: Positive
• Last Price: 142.20
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• 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 Positive. The current price of 142.2 is above the 20-day moving average (MA) of 138.52, above the 50-day MA of 140.09, and above the 200-day MA of 138.27, indicating a bullish trend. The MACD of 1.43 indicates Negative momentum. The RSI at 54.40 is Neutral, neither overbought nor oversold. The STOCH value of 53.59 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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	7.90%	6.40%	-1.35%	-12.67%
CURY	71 Outperform	£1.39B	13.21	5.01%	1.15%	2.71%	-34.19%
HFD	67 Neutral	£314.18M	-9.35	-6.44%	5.92%	3.31%	-340.97%
AO	63 Neutral	£577.26M	55.74	7.52%	―	13.21%	-54.35%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
MOON	56 Neutral	£668.98M	-70.37	―	1.40%	3.94%	―
SMWH	55 Neutral	£812.13M	126.36	―	4.18%	4.46%	-89.55%

Halfords Corporate Events

Halfords Group PLC Announces Share Grants to Key Executives

Halfords Group PLC announced the grant of shares under its Performance Share Plan and Restricted Share Plan to several key executives, including the CEO, CFO, and other senior management. This move is part of the company’s strategy to align management incentives with shareholder interests and enhance long-term value creation. The transactions were conducted on the London Stock Exchange, reflecting the company’s commitment to transparent and regulated market practices.

Halfords CEO Invests in Company Shares

Halfords Group PLC has announced a share purchase by its CEO, Henry Birch, who acquired 71,500 ordinary shares at a price of £1.39825 each. This transaction, conducted on the London Stock Exchange, reflects a significant investment by the company’s leadership, potentially signaling confidence in the company’s future performance and stability.

Halfords Reports Strong First Half of 2025 with Robust Cycling Sales

Halfords Group plc reported a strong financial performance for the first half of 2025, with group revenue increasing by 4.1% on a like-for-like basis, driven by a significant 9% rise in cycling sales. The company achieved a gross margin expansion to 51.4% and maintained a stable interim dividend. Strategic initiatives like the rollout of Fusion garages and the growth of the Halfords Motoring Club contributed to operational progress. Despite inflationary pressures, Halfords generated substantial free cash flow, strengthening its balance sheet, and remains confident in meeting its full-year expectations.

Halfords to Announce Interim Results and Host Strategy Update

Halfords Group plc announced that it will release its interim results for the 26 weeks ended 26 September 2025 on 27 November 2025. The results will be presented in a pre-recorded video available online, and an in-person strategy update will be held for analysts and investors. A live Retail Investor Strategy Update will also be conducted on the Engage Investor platform, encouraging current and prospective investors to participate and submit questions. This announcement signifies Halfords’ commitment to transparency and engagement with its stakeholders, potentially impacting its market position and investor relations positively.

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.

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.

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.