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Halfords
(LSE:HFD)
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Rating:70Outperform
Price Target:
260.00 p
▲(10.17% Upside)
Action:Upgraded
Date:07/25/26
The score is driven primarily by improving fundamentals and strong, consistent free-cash-flow generation alongside reduced leverage. Technicals add support via a clear uptrend and healthy (not overstretched) momentum. Valuation is fair with an attractive dividend yield, but the overall score is capped by recent earnings volatility and still-thin margins.
Positive Factors
Free cash flow generation
Consistently positive free cash flow (~£145m in 2026) provides durable internal funding for dividends, reinvestment in stores and service capacity, and debt paydown. This cash generation reduces reliance on external finance and supports strategic flexibility over the medium term.
Negative Factors
Thin, volatile profitability
Profitability remains thin and volatile—after a 2025 loss margins recovered to low single digits in 2026—leaving little buffer against cost inflation, pricing pressure or demand slumps. Limited operating leverage constrains ability to absorb shocks and sustain discretionary spending long term.
Read all positive and negative factors
Positive Factors
Negative Factors
Free cash flow generation
Consistently positive free cash flow (~£145m in 2026) provides durable internal funding for dividends, reinvestment in stores and service capacity, and debt paydown. This cash generation reduces reliance on external finance and supports strategic flexibility over the medium term.
Read all positive factors
Halfords (HFD) vs. iShares MSCI United Kingdom ETF (EWC)
Market Cap
£517.46M
Dividend Yield3.79%
Average Volume (3M)409.96K
Price to Earnings (P/E)15.7
Beta (1Y)1.35
Revenue Growth5.04%
EPS GrowthN/A
CountryUK
Employees12,429
SectorConsumer Cyclical
Sector Strength84
IndustrySpecialty Retail
Share Statistics
EPS (TTM)0.15
Shares Outstanding218,928,740
10 Day Avg. Volume400,024
30 Day Avg. Volume409,957
Financial Highlights & Ratios
PEG Ratio-0.04
Price to Book (P/B)0.54
Price to Sales (P/S)0.15
P/FCF Ratio1.92
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
£222.50Price Target Upside-5.72% Downside
Rating ConsensusStrong Buy
Number of Analyst Covering5
EPS Forecast (FY)0.17
Revenue Forecast (FY)£1.82B
Halfords Business Overview & Revenue Model
Company Description
Halfords Group plc specializes in offering a wide array of products and services for motorists and cyclists throughout the United Kingdom and the Republic of Ireland. Its Retail division distributes a diverse range of automotive, leisure, and cycl...
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:Dec 02, 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
62
Positive
Balance Sheet
68
Positive
Cash Flow
74
Positive
| Breakdown | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 1.80B | 1.72B | 1.70B | 1.59B | 1.38B |
| Gross Profit | 927.30M | 869.10M | 822.60M | 757.20M | 701.10M |
| EBITDA | 189.50M | 111.00M | 177.20M | 174.60M | 213.90M |
| Net Income | 32.90M | -33.60M | 16.90M | 28.10M | 77.70M |
Balance Sheet | |||||
| Total Assets | 1.17B | 1.18B | 1.28B | 1.36B | 1.29B |
| Cash, Cash Equivalents and Short-Term Investments | 19.30M | 19.10M | 13.30M | 41.90M | 46.30M |
| Total Debt | 248.00M | 280.40M | 328.60M | 390.60M | 391.20M |
| Total Liabilities | 654.70M | 675.10M | 725.70M | 796.40M | 739.20M |
| Stockholders Equity | 513.60M | 500.10M | 553.80M | 562.80M | 551.00M |
Cash Flow | |||||
| Free Cash Flow | 145.00M | 141.50M | 121.80M | 97.90M | 71.60M |
| Operating Cash Flow | 185.10M | 194.70M | 167.40M | 152.30M | 118.90M |
| Investing Cash Flow | -58.10M | -57.20M | -46.50M | -87.00M | -98.30M |
| Financing Cash Flow | -126.80M | -131.70M | -139.80M | -79.20M | -41.50M |
Halfords Technical Analysis
Positive
236.00
Price Trends
218.36
Positive
181.85
Positive
160.42
Positive
Market Momentum
4.60
Positive
61.05
Neutral
0.66
Positive
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 236 is above the 20-day moving average (MA) of 235.23, above the 50-day MA of 218.36, and above the 200-day MA of 160.42, indicating a bullish trend. The MACD of 4.60 indicates Positive momentum. The RSI at 61.05 is Neutral, neither overbought nor oversold. The STOCH value of 0.66 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 | £4.44B | 10.51 | 15.14% | 1.35% | 10.51% | -9.26% | |
70 Outperform | £517.46M | 15.73 | 6.52% | 3.73% | 5.04% | ― | |
70 Outperform | £536.44M | 15.09 | 21.65% | ― | 11.35% | 247.54% | |
68 Neutral | £1.65B | 10.35 | 7.10% | 1.37% | 6.29% | 55.06% | |
65 Neutral | £1.80B | 12.05 | 105.88% | 8.75% | 4.39% | -1.37% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
45 Neutral | £47.75M | -113.75 | -4.18% | 2.11% | -7.46% | 71.01% |
* Consumer Cyclical Sector Average
GB:HFD
Halfords
237.50
106.62
81.46%
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92.42
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GB:MRK
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45.50
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-24.79%
Halfords Corporate Events
Executive/Board ChangesRegulatory Filings and Compliance
Halfords Discloses Share Award Exercise by General Counsel
Neutral
Jul 24, 2026
Halfords Group has disclosed a director dealing under UK Market Abuse Regulation, reporting that General Counsel and Company Secretary Tim O’Gorman exercised an award under the 2023 Performance Share Plan. The transaction involved the exerci...
Executive/Board ChangesRegulatory Filings and Compliance
Halfords Discloses Executive Share Award Exercise Under Performance Plans
Neutral
Jul 20, 2026
Halfords Group plc has disclosed a director dealing under the UK Market Abuse Regulation involving Paul O’Hara, its Chief People and Property Officer. O’Hara exercised awards granted under the company’s 2022 and 2023 Performance ...
Executive/Board ChangesRegulatory Filings and Compliance
Halfords awards deferred bonus share grants to senior executives
Positive
Jul 10, 2026
Halfords has granted ordinary shares to three senior executives under its Deferred Bonus Plan, in a move that further aligns management incentives with shareholder interests. Chief executive Henry Birch received 113,491 shares, chief finance offic...
Regulatory Filings and Compliance
Halfords Confirms Total Voting Rights and Share Capital Structure
Neutral
Jul 2, 2026
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. This total share figure serves as the official d...
Executive/Board ChangesRegulatory Filings and Compliance
Halfords Executive Exercises Deferred Bonus Share Award
Neutral
Jun 29, 2026
Halfords Group plc disclosed that its Chief Customer Officer, Karen Bellairs, exercised an award under the company’s Deferred Bonus Plan. The transaction involved acquiring 89,735 ordinary shares at a price of £2.15 per share on 25 June...
Executive/Board Changes
Halfords appoints Jock Lennox as chair designate in planned board succession
Positive
Jun 25, 2026
Halfords Group plc has announced a planned leadership transition, confirming that current chair Keith Williams will step down from the board at the company’s annual general meeting on 10 September 2026, in line with governance best practice....
Business Operations and StrategyExecutive/Board ChangesDividendsFinancial DisclosuresShareholder Meetings
Halfords lifts profit and margins as ‘Optimise’ strategy gains momentum
Positive
Jun 25, 2026
Halfords reported like-for-like sales growth of 4.8% for the 52 weeks to 27 March 2026, with gross margin rising 210 basis points to a decade-high 52.8% and underlying profit before tax up more than 8% on a comparable accounting basis. Free cash f...
Business Operations and Strategy
Halfords Plans Live Investor Presentation to Boost Retail Engagement
Positive
Jun 19, 2026
Halfords Group PLC will host a live interactive presentation for retail investors on the Engage Investor platform on 25 June at 12:00 BST, inviting both existing shareholders and prospective investors to attend. The event underscores the company&#...
Regulatory Filings and Compliance
Halfords Confirms Total Voting Rights and Share Capital Structure
Neutral
May 29, 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 shares held in treasury. This clarification sets the official denominator s...
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.