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Harworth Group PLC (GB:HWG)
LSE:HWG
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Harworth (HWG) AI Stock Analysis

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GB:HWG

Harworth

(LSE:HWG)

Rating:71Outperform
Price Target:
204.00p
▲(10.27%Upside)
Harworth Group scores well due to its strong financial performance and technical indicators. Valuation metrics suggest the stock may be undervalued, providing potential growth opportunities. While cash flow remains a concern, strategic initiatives to enhance employee engagement and a solid development pipeline bolster long-term prospects.

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

Harworth Business Overview & Revenue Model

Company DescriptionHarworth Group plc operates as a land and property regeneration company in the North of England and the Midlands. The company operates through two segments, Income Generation and Capital Growth. The Income Generation segment focuses on generating rental returns from the investment portfolio; rental returns and royalties from energy generation, environmental technologies, and the agricultural portfolio; and income-generating streams from recycled aggregates and secondary coal products. The Capital Growth segment is involved in the planning and development activity, value engineering, proactive asset management, and strategic land acquisitions. Its portfolio includes properties, including mixed-use, industrial, and retail, as well as residential properties. The company was formerly known as Coalfield Resources plc and changed its name to Harworth Group plc in March 2015. Harworth Group plc was incorporated in 1991 and is headquartered in Rotherham, the United Kingdom.
How the Company Makes MoneyHarworth Group generates revenue primarily through the acquisition, development, and sale of land and properties. The company's key revenue streams include the sale of residential plots to housebuilders, rental income from commercial properties, and proceeds from the development and sale of commercial land. Additionally, Harworth benefits from partnerships with local authorities and private sector entities to facilitate large-scale regeneration projects. The company also invests in renewable energy projects, contributing to its income through the generation and sale of energy. These diversified income streams enable Harworth to maintain a stable financial performance while supporting its growth strategy.

Harworth Financial Statement Overview

Summary
Harworth demonstrates strong revenue growth and robust profitability with impressive margins. The balance sheet is stable with low leverage and healthy equity levels. However, challenges in generating free cash flow highlight an area for 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
177.74
Positive
100DMA
173.85
Positive
200DMA
171.31
Positive
Market Momentum
MACD
1.66
Positive
RSI
56.80
Neutral
STOCH
39.14
Neutral
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 below the 20-day moving average (MA) of 185.10, above the 50-day MA of 177.74, and above the 200-day MA of 171.31, indicating a neutral trend. The MACD of 1.66 indicates Positive momentum. The RSI at 56.80 is Neutral, neither overbought nor oversold. The STOCH value of 39.14 is Neutral, 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 (54)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
81
Outperform
£654.82M17.304.48%380.71%4.60%-35.59%
77
Outperform
£486.04M11.657.68%560.42%0.17%
76
Outperform
£587.70M5.3615.17%394.74%16.81%89.02%
73
Outperform
$725.54M40.632.39%5.58%4.41%
71
Outperform
£592.14M10.328.61%87.24%155.24%50.43%
54
Neutral
$1.23B3.780.67%6.14%-2.39%-129.28%
$559.78M11.337.04%500.33%
* Real Estate Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
GB:HWG
Harworth
185.00
20.46
12.43%
GB:ESP
Empiric Student Property
98.50
6.46
7.02%
GB:SHED
Urban Logistics REIT plc
156.00
39.55
33.96%
PCTNF
Picton Property Income
0.99
0.09
10.00%
GB:WHR
Warehouse REIT PLC
114.20
33.56
41.62%
GB:PRSR
PRS REIT Plc
106.40
30.27
39.76%

Harworth Corporate Events

Business Operations and Strategy
Harworth Group Enhances Employee Engagement with Share Incentive Plan
Positive
Jul 16, 2025

Harworth Group plc announced the acquisition of Partnership Shares and the awarding of Matching Shares under its 2019 Share Incentive Plan to eligible employees, including key executives. This initiative aims to align employee interests with company performance, potentially enhancing stakeholder value and reinforcing Harworth’s commitment to employee engagement and long-term growth.

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.

Private Placements and FinancingBusiness Operations and Strategy
Harworth Group Expands Share Issuance to Support Employee Incentive Plan
Neutral
Jul 16, 2025

Harworth Group plc has issued 13,314 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 in issue to 325,773,488. This share issuance is part of Harworth’s strategy to incentivize employees and aligns with its ongoing efforts to enhance stakeholder value through sustainable land regeneration projects.

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.

Regulatory Filings and Compliance
Harworth Group Expands Share Capital
Neutral
Jul 9, 2025

Harworth Group plc has issued 3,401 new ordinary shares at a nominal price of 10 pence each as part of its Save As You Earn Scheme. This issuance brings the total number of ordinary shares to 325,760,174, which shareholders can use as a denominator for calculating changes in their interest under the Financial Conduct Authority’s rules.

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.

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.

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: Jul 17, 2025