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Hill & Smith Holdings (GB:HILS)
LSE:HILS

Hill & Smith Holdings (HILS) AI Stock Analysis

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GB

Hill & Smith Holdings

(LSE:HILS)

Rating:75Outperform
Price Target:
2,030.00p
▲(12.65%Upside)
Hill & Smith Holdings scores well due to its strong financial performance and positive corporate events. The stock's technical indicators present a mixed outlook, and its valuation is fair. Overall, the stock is positioned positively, with corporate activities and financial stability driving confidence.
Positive Factors
Earnings Growth
Ongoing momentum in the group's margin expansion and a well-placed Balance Sheet support additional EPS growth through M&A.
Financial Performance
The group is on track to meet consensus EBITA for FY25F, which is encouraging despite adverse FX conditions.
Market Confidence
The company has not seen any evidence of delays or market softening in the US despite broader concerns.
Negative Factors
Leadership Transition
The search to find a replacement CFO has commenced, which suggests proactive management in maintaining leadership stability.
Revenue Challenges
Organic revenue growth of 1% was held back by tough comparisons and adverse weather.

Hill & Smith Holdings (HILS) vs. iShares MSCI United Kingdom ETF (EWC)

Hill & Smith Holdings Business Overview & Revenue Model

Company DescriptionHill & Smith Holdings PLC manufactures and supplies infrastructure products in the United Kingdom, rest of Europe, North America, the Middle East, rest of Asia, and internationally. It operates through Roads & Security; Utilities; and Galvanizing Services segments. The Roads & Security segment designs, manufactures, and installs temporary and permanent safety products for the roads market, as well as provides range of security products to protect people, buildings, and infrastructure from attacks, including hostile vehicle mitigation solutions, high security fencing, and automated gate solutions. This segment also offers permanent road safety barriers, renewable energy lighting and power solutions, temporary work zone protection products, perimeter security, pedestrian protection products, intelligent traffic solutions, street lighting columns, and car park and bridge parapets. The Utilities segment supplies engineered steel and composite solutions for a range of infrastructure markets, including energy generation and distribution, marine, rail, and housing sectors; and supplies engineered pipe supports for the water, power, and liquid natural gas markets, as well as offers seismic protection solutions. This segment also produces steel products for construction industries, such as residential construction and data centers. The Galvanizing Services segment provides corrosion protection services in the form of hot-dip zinc galvanizing and other coatings for steel products, which includes steel works, lighting columns, bridges, agricultural equipment, and other products for the industrial and infrastructure markets. Hill & Smith Holdings PLC was founded in 1824 and is headquartered in Solihull, the United Kingdom.
How the Company Makes MoneyHill & Smith Holdings generates revenue primarily through its diverse portfolio of infrastructure products and galvanizing services. The Infrastructure Products sector contributes significantly to the company's income by offering safety barriers, bridges, and street lighting solutions for roads and other public spaces. The Galvanizing Services sector adds to the revenue by providing corrosion protection services essential for extending the lifespan of metal products, serving various sectors such as construction and agriculture. Additionally, the Engineered Solutions segment supports earnings through custom-engineered products tailored to specific customer needs, often involving complex engineering and manufacturing capabilities. The company benefits from long-term contracts, government infrastructure spending, and strategic partnerships that ensure a steady demand for its products and services.

Hill & Smith Holdings Financial Statement Overview

Summary
Hill & Smith Holdings demonstrates robust financial health with consistent revenue growth, strong profitability margins, and sound cash flow management. The company maintains a stable balance sheet with moderate leverage and a strong equity position, positioning it well for future growth.
Income Statement
85
Very Positive
Hill & Smith Holdings shows strong revenue growth with the most recent year increasing by 3% from the previous year. The company also maintains solid profitability margins with a gross profit margin of approximately 40% and a net profit margin of roughly 9%. The EBIT and EBITDA margins have improved to around 13.5% and 18.8% respectively, indicating efficient operations and cost control.
Balance Sheet
78
Positive
The company's balance sheet reflects a stable financial position with an improving equity base. The debt-to-equity ratio stands at 0.31, suggesting moderate leverage, while the return on equity is robust at approximately 16.1%. An equity ratio of around 59.7% indicates a strong equity position relative to total assets.
Cash Flow
80
Positive
Hill & Smith Holdings demonstrates healthy cash flow management with a significant increase in free cash flow by about 8% over the last year. The operating cash flow to net income ratio is strong at approximately 1.69, and the free cash flow to net income ratio stands at 1.41, indicating efficient conversion of earnings into cash.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue855.10M829.80M732.10M705.00M660.50M
Gross Profit341.80M316.70M270.50M262.30M244.60M
EBITDA158.10M142.00M110.20M82.10M82.10M
Net Income76.40M68.80M56.70M34.20M24.00M
Balance Sheet
Total Assets796.00M715.00M694.30M673.30M646.70M
Cash, Cash Equivalents and Short-Term Investments55.00M34.40M24.80M18.80M22.00M
Total Debt145.50M142.80M144.50M161.80M168.20M
Total Liabilities320.30M290.50M299.30M333.70M326.20M
Stockholders Equity475.70M424.50M395.00M339.60M320.50M
Cash Flow
Free Cash Flow107.70M99.70M28.70M46.50M74.60M
Operating Cash Flow129.00M129.20M49.60M65.70M91.90M
Investing Cash Flow-69.00M-77.10M14.00M-25.10M-11.10M
Financing Cash Flow-43.50M-41.10M-58.80M-36.40M-92.90M

Hill & Smith Holdings Technical Analysis

Technical Analysis Sentiment
Positive
Last Price1802.00
Price Trends
50DMA
1787.43
Positive
100DMA
1790.30
Positive
200DMA
1871.12
Negative
Market Momentum
MACD
6.84
Negative
RSI
57.03
Neutral
STOCH
82.42
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:HILS, the sentiment is Positive. The current price of 1802 is above the 20-day moving average (MA) of 1731.30, above the 50-day MA of 1787.43, and below the 200-day MA of 1871.12, indicating a neutral trend. The MACD of 6.84 indicates Negative momentum. The RSI at 57.03 is Neutral, neither overbought nor oversold. The STOCH value of 82.42 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:HILS.

Hill & Smith Holdings Peers Comparison

Overall Rating
UnderperformOutperform
Sector (58)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
81
Outperform
£2.07B15.7121.67%3.03%10.41%11.04%
GBBBY
80
Outperform
£2.57B15.1615.35%3.41%3.02%-3.23%
GBKIE
79
Outperform
£854.63M20.0810.20%1.99%8.04%6.94%
77
Outperform
£645.13M14.2522.62%3.27%3.23%2.00%
75
Outperform
£1.45B18.9616.97%3.61%3.05%10.64%
GBKLR
73
Outperform
£966.36M7.0225.66%3.56%0.70%60.51%
58
Neutral
$1.34B4.24-2.93%7.38%3.67%-51.13%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
GB:HILS
Hill & Smith Holdings
1,802.00
-221.41
-10.94%
GB:BBY
Balfour Beatty
5.10
1.25
32.47%
GB:KLR
Keller Group plc
13.86
0.87
6.70%
GB:KIE
Kier Group plc
201.00
58.20
40.76%
GB:MGNS
Morgan Sindall
4,420.00
1,849.77
71.97%
GB:RNWH
Renew Holdings plc
815.00
-268.71
-24.80%

Hill & Smith Holdings Corporate Events

Regulatory Filings and Compliance
Hill & Smith PLC Updates Share Capital Structure
Neutral
Jul 1, 2025

Hill & Smith PLC has announced that as of June 30, 2025, its issued share capital comprises 80,487,354 Ordinary Shares, each with a nominal value of 25 pence and voting rights. This update is crucial for shareholders as it serves as the denominator for calculating their interest in the company’s share capital, in compliance with the FCA’s Disclosure Guidance and Transparency Rules.

The most recent analyst rating on (GB:HILS) stock is a Buy with a £2500.00 price target. To see the full list of analyst forecasts on Hill & Smith Holdings stock, see the GB:HILS Stock Forecast page.

Executive/Board Changes
Hill & Smith Director Joins Chemring Group Board
Neutral
Jun 3, 2025

Hill & Smith PLC has announced that Pete Raby, a Non-Executive Director of the company, will join the Board of Chemring Group plc as a Non-Executive Director starting 1 September 2025. This move may influence the company’s strategic direction and stakeholder interests as Pete Raby will also be part of the Audit, Nomination, and Remuneration committees at Chemring Group.

The most recent analyst rating on (GB:HILS) stock is a Buy with a £2500.00 price target. To see the full list of analyst forecasts on Hill & Smith Holdings stock, see the GB:HILS Stock Forecast page.

Regulatory Filings and Compliance
Hill & Smith PLC Announces Share Capital Details
Neutral
Jun 2, 2025

Hill & Smith PLC has announced that as of May 30, 2025, its issued share capital consists of 80,483,965 Ordinary Shares, each with a nominal value of 25 pence and voting rights. The company does not hold any shares as Treasury Shares, and this figure can be used by shareholders to determine their interest in the company’s share capital under the FCA’s Disclosure Guidance and Transparency Rules.

The most recent analyst rating on (GB:HILS) stock is a Buy with a £2500.00 price target. To see the full list of analyst forecasts on Hill & Smith Holdings stock, see the GB:HILS Stock Forecast page.

Shareholder MeetingsDividendsBusiness Operations and Strategy
Hill & Smith PLC Announces Successful AGM Resolutions
Positive
May 22, 2025

Hill & Smith PLC, a company involved in infrastructure products and galvanizing services, announced the successful passing of all resolutions at its Annual General Meeting held on May 22, 2025. The resolutions included the approval of the company’s annual report, directors’ remuneration report, and the declaration of a final dividend, among others. This outcome reflects strong shareholder support and positions the company for continued strategic initiatives and governance practices.

The most recent analyst rating on (GB:HILS) stock is a Buy with a £2350.00 price target. To see the full list of analyst forecasts on Hill & Smith Holdings stock, see the GB:HILS Stock Forecast page.

Business Operations and StrategyFinancial Disclosures
Hill & Smith PLC Reports Positive Start to 2025 with Strong Infrastructure Demand
Positive
May 22, 2025

Hill & Smith PLC reported a positive start to the year with trading in line with expectations, driven by strong demand for infrastructure solutions in the US and resilient performance in the UK. The company saw a 3% revenue increase on a constant currency basis and maintained a strong balance sheet, supporting growth opportunities. Despite tariff concerns, the impact has been minimal due to local sourcing, and the company remains confident in the US infrastructure growth outlook.

The most recent analyst rating on (GB:HILS) stock is a Buy with a £2350.00 price target. To see the full list of analyst forecasts on Hill & Smith Holdings stock, see the GB:HILS Stock Forecast page.

Executive/Board ChangesBusiness Operations and Strategy
Hill & Smith Appoints New CFO to Drive Growth Strategy
Positive
Apr 30, 2025

Hill & Smith PLC has announced the appointment of Chris McLeish as the new Chief Financial Officer, effective 13 October 2025. McLeish, who brings over 30 years of international finance experience from his previous role at Ibstock PLC, is expected to contribute significantly to Hill & Smith’s growth strategy. The appointment is seen as a strategic move to bolster the company’s leadership team and drive its growth ambitions.

Shareholder MeetingsBusiness Operations and StrategyFinancial Disclosures
Hill & Smith PLC Releases 2024 Annual Report and Prepares for 2025 AGM
Neutral
Apr 11, 2025

Hill & Smith PLC has released its 2024 Annual Report and announced its 2025 Annual General Meeting. The company highlights several risks, including potential reductions in US infrastructure spending, changes in the global economic outlook, and increased competitive pressures. Hill & Smith remains confident in its strategic planning and mitigation measures, which include maintaining a diverse portfolio and strong financial performance monitoring. The company is also addressing climate change risks and IT system vulnerabilities to ensure continued operational resilience.

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.Date of analysis: Jun 28, 2025