Hargreaves Services (HSP) AI Stock Analysis

• Market Cap: £180.63M
• Dividend Yield: 6.31%
• Average Volume (3M): 36.89K
• Price to Earnings (P/E): 12.3
• Beta (1Y): 0.77
• Revenue Growth: 10.32%
• EPS Growth: 14.32%
• Country: UK
• Employees: 1,346
• Sector: Industrials
• Sector Strength: 61
• Industry: Integrated Freight & Logistics
• EPS (TTM): 0.44
• Shares Outstanding: 32,961,777
• 10 Day Avg. Volume: 44,419
• 30 Day Avg. Volume: 36,893
• PEG Ratio: 0.86
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.99
• Price to Cash Flow (P/CF): 10.80
• P/FCF Ratio: 10.50
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

Hargreaves Services scores well due to its robust financial health, strong interim results, and strategic leadership changes that enhance growth prospects. Valuation metrics are attractive with a fair P/E ratio and a high dividend yield. However, technical indicators are neutral, reflecting some uncertainty in near-term price momentum. The overall score reflects a balanced view of strong fundamentals and leadership confidence against moderate technical outlook.

Hargreaves Services Business Overview & Revenue Model

Company Description

Hargreaves Services (HSP) is a diversified group delivering services to industrial and property sectors, with a focus on the UK and Europe. The company operates through various segments including industrial services, logistics, and land regeneration. Hargreaves Services provides essential support services across a range of sectors, including energy, environment, and infrastructure, leveraging its expertise in heavy industry operations and material handling.

How the Company Makes Money

Hargreaves Services generates revenue through a diversified model encompassing several key streams. The industrial services segment provides outsourced production and maintenance services, primarily to energy and manufacturing clients, contributing significantly to the company's earnings. Logistics operations deliver revenue by offering comprehensive transport and material handling solutions, addressing the needs of various industrial clients. Additionally, the land regeneration segment capitalizes on the redevelopment of former industrial sites for residential and commercial use, providing another significant revenue stream. The company's earnings are further supported by strategic partnerships and contracts within its core sectors, enhancing its ability to secure long-term and stable income.

Hargreaves Services Financial Statement Overview

Summary

Hargreaves Services demonstrates strong financial health with stable revenue and margins, a robust balance sheet with low leverage, and strong cash flow generation. Despite a decrease in net profit margins, operational efficiency has improved significantly.

Income Statement

Hargreaves Services shows a stable revenue with minor fluctuations over the years. The gross profit margin in the latest period is approximately 20.5%, indicating sound profitability, while the net profit margin has decreased to 5.8% from a stronger previous year. The EBIT and EBITDA margins have improved significantly, reflecting better operational efficiency.

Balance Sheet

The balance sheet is robust with a low debt-to-equity ratio of 0.18, indicating prudent financial leverage. ROE stands at 6.4%, which is a decent return for shareholders. The equity ratio is strong at 64.3%, showing a solid equity base against total assets.

Cash Flow

The company has a positive free cash flow, with a solid free cash flow to net income ratio of 2.29, indicating efficient cash generation relative to net income. Operating cash flow covers net income well, suggesting good cash earnings quality.

Breakdown
Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement		Total Revenue
211.15M	211.46M	177.91M	204.80M	223.18M
	Gross Profit
43.38M	39.06M	29.45M	25.53M	26.96M
	EBIT
15.87M	6.88M	4.71M	930.00K	1.70M
	EBITDA
35.77M	27.97M	13.98M	5.10M	21.39M
	Net Income Common Stockholders
12.28M	27.91M	34.72M	16.43M	4.32M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
22.70M	21.86M	13.77M	28.30M	18.50M
	Total Assets
298.89M	305.83M	265.46M	219.71M	237.82M
	Total Debt
34.15M	40.44M	18.80M	11.77M	46.62M
	Net Debt
11.45M	18.58M	5.03M	-16.54M	28.12M
	Total Liabilities
106.80M	104.84M	85.61M	75.41M	107.76M
	Stockholders Equity
192.37M	201.20M	180.07M	144.31M	130.04M
Cash Flow		Free Cash Flow
28.14M	27.98M	-6.25M	42.50M	-10.11M
	Operating Cash Flow
30.39M	31.51M	-4.61M	45.23M	-7.06M
	Investing Cash Flow
-264.00K	-3.85M	1.57M	5.80M	9.12M
	Financing Cash Flow
-29.21M	-19.42M	-11.77M	-40.41M	-5.21M

Hargreaves Services Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 548.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:HSP, the sentiment is Negative. The current price of 548 is below the 20-day moving average (MA) of 616.00, below the 50-day MA of 629.35, and below the 200-day MA of 568.83, indicating a bearish trend. The MACD of -1.90 indicates Positive momentum. The RSI at 41.39 is Neutral, neither overbought nor oversold. The STOCH value of 2.22 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GB:HSP.

Hargreaves Services Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
COST	77 Outperform	£268.48M	8.73	13.45%	1.18%	-6.07%	41.18%
GFRD	77 Outperform	£321.38M	8.16	35.97%	5.09%	22.39%	179.53%
BBY	73 Outperform	£2.01B	11.67	15.35%	2.91%	3.02%	-3.23%
RNWH	73 Outperform	£501.85M	12.07	22.82%	2.97%	9.49%	-4.24%
HSP	69 Neutral	£180.63M	12.32	7.52%	6.31%	10.32%	14.32%
KIE	66 Neutral	£509.19M	11.91	10.20%	4.21%	8.04%	6.94%
Sector *	62 Neutral	$7.67B	13.25	3.04%	3.47%	3.63%	-13.99%

Hargreaves Services Corporate Events

Hargreaves Services Director Maintains Shareholding After Strategic Transaction

Hargreaves Services plc announced that David Anderson, Group Property Director, sold and repurchased 10,309 ordinary shares in the company, maintaining his holding at 113,653 shares, which represents 0.34% of the company’s total issued share capital. This transaction, conducted on the London Stock Exchange’s AIM, reflects a strategic move to manage personal investments without altering the overall shareholding structure, indicating stability in the company’s management and potential confidence in its market position.

Spark’s Take on GB:HSP Stock

According to Spark, TipRanks’ AI Analyst, GB:HSP is a Outperform.

Hargreaves Services scores well due to its robust financial health, strong interim results, and strategic leadership changes that enhance growth prospects. Valuation metrics are attractive with a fair P/E ratio and a high dividend yield. Technical indicators show neutral to positive momentum.

To see Spark’s full report on GB:HSP stock, click here.

Hargreaves Services Leadership Increases Shareholdings

Hargreaves Services plc announced that its CEO, Gordon Banham, and incoming COO, Simon Hicks, have purchased shares in the company, reflecting their confidence in its future prospects. Banham acquired 4,250 shares, increasing his stake to 8.47%, while Hicks also purchased 4,250 shares, holding a 0.01% stake. These transactions may signal strong leadership commitment and could positively influence stakeholder perceptions of the company’s stability and growth potential.

Spark’s Take on GB:HSP Stock

According to Spark, TipRanks’ AI Analyst, GB:HSP is a Outperform.

Hargreaves Services scores well due to its robust financial health, strong interim results, and strategic leadership changes that enhance growth prospects. Valuation metrics are attractive with a fair P/E ratio and a high dividend yield. Technical indicators show neutral to positive momentum.

To see Spark’s full report on GB:HSP stock, click here.

Hargreaves Services Transfers Treasury Shares to Employee

Hargreaves Services plc announced the transfer of 16,000 ordinary shares from treasury to satisfy an employee’s exercise under the Company’s Deferred Share Bonus Scheme. Following this transfer, the company retains 160,981 ordinary shares in treasury, with the total number of voting rights now at 32,977,775. This update is significant for shareholders as it affects the calculation of their interests under the Disclosure and Transparency Rules.

Hargreaves Services Appoints New COO to Drive Services Growth

Hargreaves Services plc has appointed Simon Hicks as the new Chief Operating Officer and Executive Director, effective from June 2025. Simon Hicks, with extensive experience in the infrastructure and energy markets, is expected to focus on enhancing the value of the company’s Services business unit. His appointment follows the retirement of David Anderson and is seen as a strategic move to bolster leadership and capitalize on the consistent growth in revenue and profit within the Services division.

Hargreaves Services Reports Strong Interim Results with 14% Revenue Growth

Hargreaves Services plc reported significant growth in its interim results for the six months ending November 2024, with a 14% increase in revenue to £125.3 million and a return to profitability for its joint venture HRMS. Strong performance in earthmoving activities bolstered the company’s Services segment, with expectations to exceed revenue forecasts by 10% for the fiscal year ending May 2025. Despite technical planning delays at Blindwells, the company completed a major sale and increased its interim dividend, reflecting robust growth and shareholder value commitment. Hargreaves is also marketing its renewable energy assets and remains optimistic about future performance despite economic challenges in Germany.