Hargreaves Services (HSP) AI Stock Analysis

• Market Cap: £192.73M
• Dividend Yield: 6.25%
• Average Volume (3M): 33.25K
• Price to Earnings (P/E): 13.1
• Beta (1Y): 0.67
• Revenue Growth: 10.32%
• EPS Growth: 14.32%
• Country: UK
• Employees: 1,346
• Sector: Industrials
• Sector Strength: 79
• Industry: Integrated Freight & Logistics
• EPS (TTM): 0.44
• Shares Outstanding: 33,002,310
• 10 Day Avg. Volume: 24,454
• 30 Day Avg. Volume: 33,253
• PEG Ratio: 0.92
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

Hargreaves Services scores well due to robust financial health, solid valuation metrics, and positive leadership actions. The technical analysis is mixed, with some indicators suggesting stability but others indicating caution. Overall, the company's strong financial base and strategic leadership decisions position it favorably in its industry.

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 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 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
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
7.54M	-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: Neutral
• Last Price: 584.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• 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 Neutral. The current price of 584 is above the 20-day moving average (MA) of 575.20, below the 50-day MA of 612.99, and above the 200-day MA of 573.80, indicating a neutral trend. The MACD of -6.24 indicates Negative momentum. The RSI at 48.37 is Neutral, neither overbought nor oversold. The STOCH value of 64.65 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for GB:HSP.

Hargreaves Services Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
GFRD	80 Outperform	£393.34M	9.99	35.97%	4.22%	22.39%	179.53%
COST	77 Outperform	£317.27M	10.32	13.45%	2.06%	-6.07%	41.18%
RNWH	77 Outperform	£616.63M	14.83	22.82%	2.44%	9.49%	-4.24%
BBY	72 Outperform	£2.36B	13.79	15.35%	2.50%	3.02%	-3.23%
HSP	70 Outperform	£192.73M	13.13	7.52%	6.25%	10.32%	14.32%
KIE	70 Outperform	£644.63M	15.10	10.20%	3.62%	8.04%	6.94%
Sector *	64 Neutral	$4.28B	11.80	5.33%	250.46%	4.10%	-9.26%

Hargreaves Services Corporate Events

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.

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. While technical indicators suggest caution with near-term trends, the overall outlook remains positive, bolstered by strong corporate events and a solid balance sheet.

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

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.

Spark’s Take on GB:HSP Stock

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

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.

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

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.

Spark’s Take on GB:HSP Stock

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

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.

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

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.

Spark’s Take on GB:HSP Stock

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

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.

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

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.