Hargreaves Services (HSP) AI Stock Analysis

• Market Cap: £224.42M
• Dividend Yield: 5.37%
• Average Volume (3M): 31.63K
• Price to Earnings (P/E): 15.3
• Beta (1Y): 0.68
• Revenue Growth: 10.32%
• EPS Growth: 14.32%
• Country: UK
• Employees: 1,346
• Sector: Industrials
• Sector Strength: 90
• Industry: Integrated Freight & Logistics
• EPS (TTM): 0.44
• Shares Outstanding: 33,002,310
• 10 Day Avg. Volume: 36,530
• 30 Day Avg. Volume: 31,631
• PEG Ratio: 0.71
• Price to Book (P/B): 1.04
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 17.45
• 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

• Rating: 76 Outperform
• Price Target: 768.00p ▲(12.94%Upside)

Hargreaves Services scores well due to strong financial health and positive technical indicators. The stock's valuation is attractive, supported by a solid dividend yield. Recent corporate events further bolster confidence in its strategic direction and growth potential.

Hargreaves Services Business Overview & Revenue Model

Company Description

Hargreaves Services (HSP) is a diversified group based in the United Kingdom, operating primarily in the industrial and property sectors. The company engages in a range of activities including the provision of logistics and materials handling services, the production and distribution of carbon-based products, and the development and management of land and property. Hargreaves Services leverages its expertise to deliver solutions across multiple industries, contributing to infrastructure and industrial projects.

How the Company Makes Money

Hargreaves Services generates revenue through several key streams. Its industrial services segment provides essential logistics, materials handling, and mechanical and electrical services to a variety of sectors, including energy and infrastructure. The company also earns income from its carbon-based products division, which involves the production and distribution of speciality coal products and other carbon materials. Additionally, Hargreaves Services benefits from its property and land development operations, which include the management, sale, and leasing of real estate assets. These diversified activities, combined with strategic partnerships and a focus on operational efficiency, contribute to the company's overall earnings.

Hargreaves Services Financial Statement Overview

Summary

Hargreaves Services demonstrates strong financial health with stable revenue and margins, a sturdy balance sheet with low leverage, and strong cash flow generation. While net profit margins have decreased recently, operational improvements are evident. The company is well-positioned within its industry, with a balanced approach to growth and risk management.

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
TTM	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement		Total Revenue
226.32M	211.15M	211.46M	177.91M	204.80M	223.18M
	Gross Profit
46.63M	43.38M	39.06M	29.45M	25.53M	26.96M
	EBIT
10.80M	15.87M	6.88M	4.71M	930.00K	1.70M
	EBITDA
15.30M	35.77M	27.97M	13.98M	5.10M	21.39M
	Net Income Common Stockholders
14.56M	12.28M	27.91M	34.72M	16.43M	4.32M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
15.74M	22.70M	21.86M	13.77M	28.30M	18.50M
	Total Assets
308.68M	298.89M	305.83M	265.46M	219.71M	237.82M
	Total Debt
34.21M	34.15M	40.44M	18.80M	11.77M	46.62M
	Net Debt
18.46M	11.45M	18.58M	5.03M	-16.54M	28.12M
	Total Liabilities
119.74M	106.80M	104.84M	85.61M	75.41M	107.76M
	Stockholders Equity
189.21M	192.37M	201.20M	180.07M	144.31M	130.04M
Cash Flow		Free Cash Flow
11.23M	28.14M	27.98M	-6.25M	42.50M	-10.11M
	Operating Cash Flow
13.11M	30.39M	31.51M	-4.61M	45.23M	-7.06M
	Investing Cash Flow
7.16M	7.54M	-3.85M	1.57M	5.80M	9.12M
	Financing Cash Flow
-31.07M	-29.21M	-19.42M	-11.77M	-40.41M	-5.21M

Hargreaves Services Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 680.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:HSP, the sentiment is Positive. The current price of 680 is above the 20-day moving average (MA) of 653.50, above the 50-day MA of 612.48, and above the 200-day MA of 584.23, indicating a bullish trend. The MACD of 17.56 indicates Positive momentum. The RSI at 55.56 is Neutral, neither overbought nor oversold. The STOCH value of 77.78 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:HSP.

Hargreaves Services Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
COST	79 Outperform	£351.08M	11.40	13.45%	1.93%	-6.07%	41.18%
KIE	77 Outperform	£719.57M	16.88	10.20%	3.24%	8.04%	6.94%
GFRD	77 Outperform	£401.04M	10.19	35.97%	4.14%	22.39%	179.53%
HSP	76 Outperform	£224.42M	15.29	7.52%	5.37%	10.32%	14.32%
Sector *	66 Neutral	$4.50B	12.29	5.40%	248.66%	4.13%	-12.33%
RWI	64 Neutral	£701.90M	―	6.50%	0.58%	-14.90%	-232.50%
SHI	55 Neutral	£169.67M	―	-23.81%	―	-5.41%	-11.73%

Hargreaves Services Corporate Events

Hargreaves Services Announces Board Changes with New COO Appointment

Hargreaves Services plc has announced changes to its Board of Directors, with Simon Hicks joining as an Executive Director and Chief Operating Officer, effective June 1, 2025. Hicks brings extensive experience from infrastructure, energy, utilities, and construction sectors, and will focus on enhancing value within the Group’s Services business unit. Concurrently, David Anderson, the Group Property Director, has retired after contributing significantly to the growth of Hargreaves Land since 2018. He will continue to support the company as a consultant on select projects. These changes are expected to drive growth and innovation at Hargreaves, strengthening its operational and strategic capabilities.

Hargreaves Services Transfers Treasury Shares to Employee

Hargreaves Services plc announced the transfer of 15,777 ordinary shares from treasury to fulfill an employee’s exercise under the Deferred Share Bonus Scheme. This transaction leaves 136,444 shares in treasury and adjusts the total voting rights to 33,002,312. This move is part of the company’s ongoing management of its share capital, potentially impacting shareholder calculations under the Disclosure and Transparency Rules.

Hargreaves Services Announces Insider Share Transaction

Hargreaves Services plc announced a transaction involving Rebecca Craigen, the wife of Stephen Craigen, a person discharging managerial responsibilities. Rebecca sold 2,849 ordinary shares and repurchased 2,842 shares into an ISA, slightly altering Stephen Craigen’s beneficial holding to 20,708 shares, representing 0.06% of the company’s total issued share capital. This transaction, conducted on the London Stock Exchange, reflects routine financial management by company insiders and is unlikely to significantly impact the company’s operations or market position.

Hargreaves Services Director Conducts Routine Share Transaction

Hargreaves Services plc announced that David Anderson, Group Property Director, sold 2,448 ordinary shares at 580 pence each, which were immediately repurchased into an ISA at 581 pence each, maintaining his total shareholding at 113,653 shares. This transaction is part of routine dealings by persons discharging managerial responsibilities and does not alter Anderson’s overall stake in the company, reflecting typical financial management practices within the firm.

Hargreaves Services Announces Share Option Exercise and Voting Rights Update

Hargreaves Services plc announced that Sean Hager, a person discharging managerial responsibilities, exercised options over 8,760 ordinary shares at 10 pence per share under the company’s 2021 Executive Share Option Scheme. Following the exercise, 4,117 shares were sold at 583 pence each to cover tax liabilities, and the remaining shares were transferred from treasury, leaving 152,221 shares in treasury and a total of 33,006,535 voting rights in the company. This transaction impacts the company’s share distribution and voting rights, which shareholders may need to consider for their interests under the Disclosure and Transparency Rules.

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.

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.

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.