Hill & Smith Holdings (HILS) AI Stock Analysis

• Market Cap: £1.73B
• Dividend Yield: 2.27%
• Average Volume (3M): 223.44K
• Price to Earnings (P/E): 21.5
• Beta (1Y): 1.27
• Revenue Growth: 3.05%
• EPS Growth: 10.64%
• Country: UK
• Employees: 4,559
• Sector: Industrials
• Sector Strength: 75
• Industry: Engineering & Construction
• EPS (TTM): 0.63
• Shares Outstanding: 80,494,490
• 10 Day Avg. Volume: 249,306
• 30 Day Avg. Volume: 223,441
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: £2,526.75
• Price Target Upside: 16.98% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 5

• Rating: 76 Outperform
• Price Target: 2,452.00p ▲(13.52% Upside)

Hill & Smith Holdings scores well due to its strong financial performance and positive corporate events, including a significant share buyback program. Technical analysis shows positive momentum, though caution is advised due to potential overbought conditions. Valuation is fair, offering a moderate dividend yield.

Positive Factors

Capital Return

A £100m share buyback provides a meaningful return of capital to shareholders.

Financial Performance

Confirmation of a £100m share buyback, alongside a good set of 1H25 results and reiteration of FY25F expectations, should see a healthy share price response after a volatile YTD performance.

Management Strategy

The new CEO's strategy focuses on ensuring that group operating companies pursue the right growth opportunities.

Negative Factors

Investor Concerns

Investors will likely be keen to understand his views on capital allocation and appetite for larger-scale M&A.

Operational Challenges

Hill & Smith's US Galvanizing volumes were held back by adverse weather, impacting growth.

Revenue Growth

Organic revenue growth of 1% was held back by tough comparisons and adverse weather.

Hill & Smith Holdings Business Overview & Revenue Model

Company Description

Hill & 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 Money

Hill & Smith Holdings generates revenue through multiple streams, primarily by manufacturing and supplying infrastructure products and services. The Infrastructure division contributes significantly to the company's earnings by providing road safety and traffic management solutions, which are in high demand due to government investments in transportation infrastructure. The Galvanizing division enhances revenue through the processing and coating of steel products, catering to industries such as construction and automotive. Additionally, the company benefits from strategic partnerships with government agencies and private sector firms, allowing it to secure long-term contracts and projects. Factors contributing to its earnings include ongoing infrastructure development initiatives, regulatory requirements for safety standards, and the growing emphasis on sustainable building practices.

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. While the balance sheet shows moderate leverage, the company's strong equity position and efficient operations position it well for future growth.

Income Statement

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

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

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.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	855.10M	829.80M	732.10M	705.00M	660.50M
Gross Profit	341.80M	316.70M	270.50M	262.30M	244.60M
EBITDA	158.10M	142.00M	110.20M	82.10M	82.10M
Net Income	76.40M	68.80M	56.70M	34.20M	24.00M
Balance Sheet
Total Assets	796.00M	715.00M	694.30M	673.30M	646.70M
Cash, Cash Equivalents and Short-Term Investments	55.00M	34.40M	24.80M	18.80M	22.00M
Total Debt	145.50M	142.80M	144.50M	161.80M	168.20M
Total Liabilities	320.30M	290.50M	299.30M	333.70M	326.20M
Stockholders Equity	475.70M	424.50M	395.00M	339.60M	320.50M
Cash Flow
Free Cash Flow	107.70M	99.70M	28.70M	46.50M	74.60M
Operating Cash Flow	129.00M	129.20M	49.60M	65.70M	91.90M
Investing Cash Flow	-69.00M	-77.10M	14.00M	-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 Price: 2160.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Neutral

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 2160 is above the 20-day moving average (MA) of 2029.70, above the 50-day MA of 1882.72, and above the 200-day MA of 1873.37, indicating a bullish trend. The MACD of 58.40 indicates Negative momentum. The RSI at 72.98 is Negative, neither overbought nor oversold. The STOCH value of 69.77 is Neutral, 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
RNWH	79 Outperform	£663.33M	14.66	22.62%	2.31%	3.23%	2.00%
MGNS	78 Outperform	£2.12B	13.87	24.19%	2.20%	6.93%	21.50%
BBY	78 Outperform	£2.76B	15.63	16.34%	2.20%	9.97%	-15.46%
HILS	76 Outperform	£1.73B	21.47	17.29%	2.27%	3.05%	10.64%
KIE	73 Outperform	£895.07M	21.08	10.20%	2.65%	8.04%	6.94%
KLR	73 Outperform	£923.14M	6.78	24.69%	1.39%	-1.17%	12.31%
Sector *	66 Neutral	£2.68B	13.05	3.30%	3.25%	2.40%	-22.21%

Hill & Smith Holdings Corporate Events

Hill & Smith PLC Launches £100 Million Share Buyback Program

Hill & Smith PLC has announced a £100 million share buyback program, set to be completed by March 2027, as part of its strategy to return capital to shareholders while maintaining its target leverage range. The program, which will be executed by joint brokers Deutsche Numis and Jefferies, reflects the company’s strong balance sheet and cash generation capabilities, and is expected to enhance shareholder value by reducing share capital.

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.

Hill & Smith PLC Reports Strong Half-Year Results and Announces £100m Share Buyback

Hill & Smith PLC reported positive unaudited half-year results for the six months ending June 30, 2025, with a 4% increase in revenue and an 11% rise in underlying operating profit on a constant currency basis. The company announced a £100m share buyback, reflecting its strong balance sheet and financial flexibility. The US Engineered Solutions and Galvanizing Services divisions performed well, driven by strong infrastructure demand in the US, while the UK market faced challenges, particularly in road infrastructure. The company remains confident in its medium-term growth prospects, supported by its strong positions in structurally growing infrastructure and built environment markets.

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.

Hill & Smith PLC Updates Share Capital Structure

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.

Hill & Smith Director Joins Chemring Group Board

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.

Hill & Smith PLC Announces Share Capital Details

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.

Hill & Smith PLC Announces Successful AGM Resolutions

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.

Hill & Smith PLC Reports Positive Start to 2025 with Strong Infrastructure Demand

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.