tiprankstipranks
Trending News
More News >
Harworth Group PLC (GB:HWG)
LSE:HWG

Harworth (HWG) AI Stock Analysis

Compare
9 Followers

Top Page

GB

Harworth

(LSE:HWG)

Rating:72Outperform
Price Target:
194.00p
▲(4.86%Upside)
Harworth Group's stock score is strong due to robust financial performance and attractive valuation metrics. Challenges in cash flow generation slightly offset these positives. Technical indicators portray a balanced outlook, reinforcing the stock's potential attractiveness.

Harworth (HWG) vs. iShares MSCI United Kingdom ETF (EWC)

Harworth Business Overview & Revenue Model

Company DescriptionHarworth Group plc (HWG) is a leading land and property regeneration company in the United Kingdom, specializing in transforming former industrial sites and brownfield land into new residential, commercial, and industrial spaces. The company primarily operates in the real estate sector, focusing on acquiring, remediating, and developing land to create sustainable communities and business environments.
How the Company Makes MoneyHarworth Group plc generates revenue through the acquisition and development of land primarily for residential and commercial purposes. The company makes money by selling developed plots to homebuilders and businesses, leasing out commercial properties, and through the long-term management and rental of assets. Additionally, Harworth benefits from value appreciation of its land holdings as they are developed and brought to market. Strategic partnerships with local authorities and developers, as well as government initiatives for housing and regeneration, also contribute to the company's earnings by facilitating development opportunities and enhancing land value.

Harworth Financial Statement Overview

Summary
Harworth demonstrates strong revenue growth and robust profitability, as seen in its income statement. The balance sheet is stable with low leverage and healthy equity levels. However, the cash flow statement indicates challenges in generating free cash flow, which could be a focus for future improvement.
Income Statement
75
Positive
Harworth has shown a significant improvement in revenue over the past year, with a revenue growth rate of 150.72%. The gross profit margin stands at 17.11%, and the net profit margin is 31.53%, indicating strong profitability. The EBIT margin is also impressive at 41.10%. These metrics suggest a solid financial performance with strong profit generation capabilities.
Balance Sheet
70
Positive
The company's debt-to-equity ratio is 0.24, indicating a conservative approach to leveraging. The return on equity is a healthy 8.27%, showcasing effective use of shareholder's equity. The equity ratio of 65.72% implies a strong equity base relative to assets. Overall, the balance sheet reflects stability with manageable debt levels.
Cash Flow
60
Neutral
Harworth's free cash flow has declined, leading to a negative free cash flow growth rate. However, the operating cash flow to net income ratio is 0.60, which shows that a significant portion of net income is converted into cash. The free cash flow to net income ratio is negative, reflecting challenges in cash generation beyond operating activities.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue181.59M72.43M168.76M109.88M71.04M
Gross Profit31.08M12.35M85.31M48.47M11.37M
EBITDA77.73M54.31M63.27M30.75M-2.94M
Net Income57.24M37.96M27.84M93.99M25.80M
Balance Sheet
Total Assets1.05B824.44M781.32M766.51M666.38M
Cash, Cash Equivalents and Short-Term Investments117.38M27.18M11.58M12.04M12.71M
Total Debt165.59M64.13M60.23M37.88M84.06M
Total Liabilities360.84M186.72M178.66M188.53M177.66M
Stockholders Equity691.66M637.72M602.66M577.98M488.71M
Cash Flow
Free Cash Flow-13.07M2.46M37.28M50.01M20.99M
Operating Cash Flow34.54M2.85M37.39M50.04M21.10M
Investing Cash Flow-37.59M15.42M-53.61M1.89M-19.90M
Financing Cash Flow93.26M-2.68M15.77M-52.61M-324.00K

Harworth Technical Analysis

Technical Analysis Sentiment
Positive
Last Price185.00
Price Trends
50DMA
1.75
Positive
100DMA
1.70
Positive
200DMA
1.71
Positive
Market Momentum
MACD
0.03
Negative
RSI
64.85
Neutral
STOCH
87.28
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:HWG, the sentiment is Positive. The current price of 185 is above the 20-day moving average (MA) of 1.76, above the 50-day MA of 1.75, and above the 200-day MA of 1.71, indicating a bullish trend. The MACD of 0.03 indicates Negative momentum. The RSI at 64.85 is Neutral, neither overbought nor oversold. The STOCH value of 87.28 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:HWG.

Harworth Peers Comparison

Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
GBESP
81
Outperform
£668.10M17.654.48%3.69%4.60%-35.59%
GBWHR
77
Outperform
£472.45M11.327.68%5.75%0.17%
76
Outperform
£589.90M5.3815.17%4.10%16.81%89.02%
GBHWG
72
Outperform
£600.22M10.468.61%0.90%155.24%50.43%
64
Neutral
$417.59M11.627.04%3.55%2.51%
63
Neutral
$6.99B18.83-1.16%6.86%4.65%-25.28%
* Real Estate Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
GB:HWG
Harworth
1.85
0.26
16.35%
GB:ESP
Empiric Student Property
100.40
9.71
10.71%
GB:WHR
Warehouse REIT PLC
1.11
0.34
44.16%
GB:PRSR
PRS REIT Plc
107.40
33.00
44.35%
GB:PCTN
Picton Property Income
79.70
14.67
22.56%

Harworth Corporate Events

Executive/Board ChangesBusiness Operations and Strategy
Harworth Group Grants Performance-Based Share Awards to Executives
Neutral
Jun 30, 2025

Harworth Group PLC announced the granting of awards under its 2019 Restricted Share Plan (RSP) to key executives, including a performance-flexed RSP award and an additional share award. These awards are structured as nil-cost options and are contingent on performance criteria assessed over three years, with a subsequent two-year holding period. The announcement underscores Harworth’s commitment to aligning executive incentives with long-term company performance, potentially impacting its operational focus and stakeholder engagement.

The most recent analyst rating on (GB:HWG) stock is a Buy with a £2.10 price target. To see the full list of analyst forecasts on Harworth stock, see the GB:HWG Stock Forecast page.

Business Operations and Strategy
Harworth Group Enhances Employee Engagement with Share Incentive Plan
Positive
Jun 17, 2025

Harworth Group plc announced the acquisition of ‘Partnership Shares’ and the award of ‘Matching Shares’ under its 2019 Share Incentive Plan to eligible employees, including key managerial personnel. This initiative, which allows employees to acquire shares tax-free if held for five years, aims to align employee interests with company performance, potentially enhancing employee engagement and retention.

Private Placements and FinancingRegulatory Filings and Compliance
Harworth Group Expands Share Issuance Under Incentive Plan
Neutral
Jun 17, 2025

Harworth Group plc has issued 14,096 new ordinary shares at a nominal price of 10 pence each as part of its 2019 Share Incentive Plan, increasing the total number of shares to 325,756,773. This issuance allows shareholders to assess their interests in the company under the Financial Conduct Authority’s rules, potentially impacting their stake and the company’s market positioning.

Delistings and Listing Changes
Harworth Group Expands Share Capital with New Issuance
Neutral
Jun 12, 2025

Harworth Group plc has issued 9,030 new ordinary shares at a nominal price of 10 pence each, following the exercise of share options under its Save As You Earn Scheme. These shares have been admitted to trading, increasing the total number of ordinary shares to 325,742,677. This update is significant for shareholders as it affects the calculations for notifying changes in their interests under the Financial Conduct Authority’s rules.

Regulatory Filings and Compliance
Harworth Group Expands Share Issuance Under Save As You Earn Scheme
Neutral
Jun 3, 2025

Harworth Group plc has issued 2,580 new ordinary shares at a nominal price of 10 pence each, following the exercise of share options under its Save As You Earn Scheme. This issuance brings the total number of ordinary shares in circulation to 325,733,647, which shareholders can use as a reference for calculating their interest in the company under the Financial Conduct Authority’s rules.

Private Placements and FinancingRegulatory Filings and Compliance
Harworth Group Expands Share Issuance Under Employee Incentive Plan
Neutral
May 20, 2025

Harworth Group plc has issued an additional 12,340 new ordinary shares at a nominal price of 10 pence each, as part of its 2019 Share Incentive Plan for employees. This issuance brings the total number of ordinary shares to 325,731,067, which shareholders can use to assess their interests under the Financial Conduct Authority’s rules. This move reflects Harworth’s ongoing commitment to employee incentives and could influence shareholder calculations and transparency obligations.

Business Operations and Strategy
Harworth Group Enhances Employee Share Ownership
Positive
May 20, 2025

Harworth Group plc has announced the acquisition of ‘Partnership Shares’ and the awarding of ‘Matching Shares’ to eligible employees under its 2019 Share Incentive Plan. This initiative allows employees to acquire shares from their gross salaries and receive additional shares tax-free if held for five years, potentially enhancing employee engagement and aligning interests with company performance.

Shareholder MeetingsBusiness Operations and Strategy
Harworth Group Secures Shareholder Approval at AGM Amid Remuneration Policy Scrutiny
Neutral
May 19, 2025

Harworth Group plc announced the successful passage of all resolutions at its Annual General Meeting held on 19 May 2025. While most resolutions received overwhelming support, the Directors’ Remuneration Policy was approved with a 75.67% majority, indicating some shareholder dissent. The company has been actively engaging with shareholders regarding this policy and plans to continue this dialogue, with an update expected within six months. This engagement reflects Harworth’s commitment to aligning its governance practices with shareholder interests and the UK Corporate Governance Code.

Business Operations and Strategy
Harworth Group Advances Major Developments Amidst Economic Challenges
Positive
May 19, 2025

Harworth Group plc has made significant progress in 2025, with a focus on expanding its Industrial & Logistics and Residential developments amidst a challenging global economic backdrop. The company submitted one of the UK’s largest planning applications for 6.5 million sq ft of employment space at Northern Gateway, Greater Manchester. Despite economic uncertainties, Harworth continues to advance infrastructure works and maintain a robust development pipeline, supported by a strong balance sheet and strategic investments. The residential market in Yorkshire and Midlands shows improved affordability, while the recent UK-US trade deal is expected to stabilize markets, benefiting Harworth’s sector.

Business Operations and Strategy
Harworth Group PLC Issues Free Shares to Employees Under Incentive Plan
Positive
May 15, 2025

Harworth Group PLC has announced the issuance of free shares under its 2019 Share Incentive Plan to all eligible employees, including key managerial personnel. This initiative, which allows employees to acquire shares free of income tax or National Insurance contributions if held for five years, aims to enhance employee engagement and align their interests with the company’s long-term success.

Private Placements and FinancingRegulatory Filings and Compliance
Harworth Group Expands Share Issuance Under Incentive Plan
Neutral
May 15, 2025

Harworth Group plc has issued 272,712 new ordinary shares at a nominal price of 10 pence each under its 2019 Share Incentive Plan. This issuance increases the total number of ordinary shares to 325,718,727, impacting shareholder calculations under the Financial Conduct Authority’s Disclosure and Transparency Rules.

Delistings and Listing ChangesBusiness Operations and Strategy
Harworth Group Expands Share Listing to Support Growth Initiatives
Positive
Apr 25, 2025

Harworth Group plc has applied for the admission of 750,000 ordinary shares to the premium listing segment of the Financial Conduct Authority’s Official List and the main market of the London Stock Exchange. This move is intended to support the company’s share incentive and savings schemes, with the shares expected to be admitted on April 29, 2025. The issuance of these shares is part of Harworth’s strategy to enhance its financial flexibility and support its ongoing development projects, potentially strengthening its position in the property regeneration industry.

Other
Harworth Group’s Director Share Transaction Update
Neutral
Apr 24, 2025

Harworth Group PLC announced a transaction involving Chris Birch, the General Counsel & Company Secretary, who exercised nil cost options and sold a portion of shares under the company’s Restricted Share Plan. The transaction, conducted partly on the London Stock Exchange, reflects internal shareholding adjustments and may influence stakeholder perceptions of the company’s stock value.

Business Operations and Strategy
Harworth Group Enhances Employee Share Incentive Plan
Positive
Apr 17, 2025

Harworth Group PLC has announced the acquisition of ‘Partnership Shares’ and the awarding of ‘Matching Shares’ under its 2019 Share Incentive Plan. This initiative involves eligible employees, including key managerial figures, and allows for the acquisition of shares without income tax or National Insurance contributions if held for five years. This move is expected to enhance employee engagement and align their interests with the company’s long-term success, potentially strengthening Harworth’s market position and stakeholder relations.

Business Operations and Strategy
Harworth Group Expands Share Issuance Under Employee Incentive Plan
Positive
Apr 17, 2025

Harworth Group plc has issued 2,554 new ordinary shares at a nominal price of 10 pence each as part of its 2019 Share Incentive Plan, bringing the total number of ordinary shares in issue to 325,446,015. This move is part of Harworth’s ongoing efforts to engage employees and align their interests with the company’s long-term goals, potentially enhancing stakeholder value and reinforcing its position in the sustainable development sector.

Shareholder MeetingsBusiness Operations and StrategyFinancial Disclosures
Harworth Group Releases 2024 Annual Report and NZC Progress Update
Positive
Apr 15, 2025

Harworth Group plc has released its Annual Report for 2024, along with the Notice of the 2025 Annual General Meeting and the Net Zero Carbon (NZC) Pathway Progress Report for 2024. The company has reaffirmed its commitment to achieving operational net zero carbon by 2030 and full net zero carbon by 2040. The NZC Pathway Progress Report outlines the company’s progress and approach towards its decarbonization goals, providing a framework for measuring its advancements. This announcement underscores Harworth’s ongoing efforts to align its operations with sustainability goals, which is crucial for its industry positioning and stakeholder engagement.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jun 24, 2025