Hargreaves Services (HSP) AI Stock Analysis

• Market Cap: £250.16M
• Dividend Yield: 3.6%
• Average Volume (3M): 30.32K
• Price to Earnings (P/E): 17.0
• Beta (1Y): 0.77
• Revenue Growth: 10.32%
• EPS Growth: 14.32%
• Country: UK
• Employees: 1,346
• Sector: Industrials
• Sector Strength: 91
• Industry: Integrated Freight & Logistics
• EPS (TTM): 0.44
• Shares Outstanding: 33,002,310
• 10 Day Avg. Volume: 43,657
• 30 Day Avg. Volume: 30,322
• PEG Ratio: -0.31
• Price to Book (P/B): 0.64
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 4.58
• 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: £768.00
• Price Target Upside: 1.32% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 73 Outperform
• Price Target: 758.00p ▲(0.00%Upside)

Hargreaves Services is well-positioned with strong financial performance and positive technical indicators. Valuation metrics suggest reasonable pricing with an attractive dividend yield. Corporate events highlight confidence and strategic growth potential, supporting an above-average stock rating.

Hargreaves Services Business Overview & Revenue Model

Company Description

Hargreaves Services plc, together with its subsidiaries, provides materials handling and processing, mechanical and electrical contracting, logistics, and bulk earthmoving services for energy, environmental, infrastructure, and industrial sectors. It also engages in the production and distribution of solid fuels and kiln dried logs; provision of logistics services, which include a fleet of approximately 450 vehicles; technical, professional, and advisory services for a range of dormant site management topics, such as source material for land remediation, site restoration, geotechnical assessment, water and soil analysis, site inspections, planning and liaison services, and safety assessment; and soil and overburden stripping, load and haul, and geotechnical advice and quarry development consultancy services. In addition, the company offers earthmoving advisory and contracting services, which include soils stabilization and treatment services under the Geofirma brand name; develops brownfield site for residential and commercial purposes; industrial services, including outsourced bulk materials handling, mechanical and electrical maintenance, project engineering and mining, facilities management, scaffolding and safe access, and transmission and distribution services; and supplies raw materials for steel, foundry, smelting, non-ferroalloy, sugar, limestone, insulation, refractory, and ceramic industries. It serves in the United Kingdom, Europe, Hong Kong, and internationally. The company was founded in 1994 and is headquartered in Durham, the United Kingdom.

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 shows strong financial health, with stable revenue and robust profit margins. Despite a slight decrease in net profit margin, operational efficiency has improved, supported by a sturdy balance sheet with low leverage and efficient cash flow generation.

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
EBITDA	15.30M	35.77M	27.97M	13.98M	5.10M	21.39M
Net Income	14.56M	12.28M	27.91M	34.72M	16.43M	4.32M
Balance Sheet
Total Assets	308.68M	298.89M	305.83M	265.46M	219.71M	237.82M
Cash, Cash Equivalents and Short-Term Investments	15.74M	22.70M	21.86M	13.77M	28.30M	18.50M
Total Debt	34.21M	34.15M	40.44M	18.80M	11.77M	46.62M
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: 758.00
• 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:HSP, the sentiment is Positive. The current price of 758 is above the 20-day moving average (MA) of 715.20, above the 50-day MA of 669.80, and above the 200-day MA of 601.70, indicating a bullish trend. The MACD of 26.96 indicates Negative momentum. The RSI at 70.82 is Negative, neither overbought nor oversold. The STOCH value of 69.53 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
KIE	80 Outperform	£867.07M	20.38	10.20%	1.96%	8.04%	6.94%
GFRD	78 Outperform	£442.42M	11.17	35.97%	1.82%	22.39%	179.53%
COST	77 Outperform	£404.12M	13.23	13.45%	2.68%	-6.07%	41.18%
HSP	73 Outperform	£250.16M	17.05	7.52%	3.60%	10.32%	14.32%
Sector *	65 Neutral	$10.85B	15.47	5.22%	1.89%	3.09%	-26.84%
RWI	64 Neutral	$701.90M	―	6.50%	0.58%	-14.90%	-232.50%
SHI	48 Neutral	£186.69M	―	-23.81%	―	-5.41%	-11.73%

Hargreaves Services Corporate Events

Hargreaves Services Expects Strong Financial Performance Ahead of Market Expectations

Hargreaves Services plc anticipates reporting revenue and profit before tax ahead of market expectations for the year ended 31 May 2025, driven by strong performance in its Services segment and the German joint venture HRMS. The Services business has secured additional contracts, particularly in earthmoving activities, and continues progress on major projects like HS2 and Sizewell C. HRMS has seen significant profitability growth due to improved steel waste recycling operations. The company maintains a solid financial position with cash reserves of £23.3m and minimal debt, positioning it well for future growth.

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.