James Halstead (JHD) AI Stock Analysis

• Market Cap: £625.79M
• Dividend Yield: 5.84%
• Average Volume (3M): 416.79K
• Price to Earnings (P/E): 14.3
• Beta (1Y): 0.67
• Revenue Growth: -7.53%
• EPS Growth: -4.50%
• Country: UK
• Employees: 851
• Sector: Industrials
• Sector Strength: 70
• Industry: Construction
• EPS (TTM): 0.10
• Shares Outstanding: 416,786,440
• 10 Day Avg. Volume: 282,715
• 30 Day Avg. Volume: 416,788
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 2.29
• Price to Cash Flow (P/CF): 13.10
• P/FCF Ratio: 13.80
• 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

James Halstead demonstrates strong financial health and profitability, supported by a solid balance sheet. However, the stock is experiencing bearish technical indicators, and a decline in revenue poses a challenge to future growth. Valuation appears fair with an attractive dividend yield, while recent corporate events signal management confidence and strategic improvements.

James Halstead Business Overview & Revenue Model

Company Description

James Halstead plc manufactures and supplies flooring products for commercial and domestic uses in the United Kingdom, rest of Europe, Scandinavia, Australasia, Asia, and internationally. The company offers its products under the Polyflor, Palettone, Camaro, Polysafe, Recofloor, and Expona names. James Halstead plc was founded in 1914 and is based in Manchester, the United Kingdom.

How the Company Makes Money

James Halstead makes money primarily through the manufacturing and sale of its commercial flooring products. The company generates revenue by distributing its products to a broad network of customers and clients across various industries, such as healthcare facilities, educational institutions, retail spaces, and transportation hubs. Their revenue model also includes a focus on exporting products to international markets, leveraging a global distribution network. Key revenue streams include direct sales to businesses and partnerships with contractors and distributors who specify and install their flooring products. Additionally, innovation and development of new products and designs help maintain a competitive edge in the market, contributing to sustained earnings.

James Halstead Financial Statement Overview

Summary

James Halstead demonstrates strong financial stability with solid profitability and efficient cash management. While revenue has recently declined, profitability margins remain resilient, supported by a robust balance sheet with low leverage. The company is well-positioned to manage financial obligations and sustain operations, but future growth may face challenges without revenue expansion.

Income Statement

The company's income statement reveals a stable yet declining revenue trajectory with a recent drop from £303.6 million to £274.9 million. However, gross and net profit margins remain strong at 44.1% and 15.1%, respectively. The EBIT and EBITDA margins are also healthy, indicating efficient cost management despite revenue challenges.

Balance Sheet

The balance sheet is robust with a low debt-to-equity ratio of 0.04 and a high equity ratio of 73.4%, reflecting strong financial health. Return on equity stands at a solid 22.9%, indicating effective use of shareholder funds. The company maintains substantial cash reserves, further enhancing financial stability.

Cash Flow

Cash flow analysis shows consistent free cash flow with a slight increase to £46 million. The operating cash flow to net income ratio of 1.19 implies efficient cash generation relative to earnings. However, the free cash flow growth rate is negligible, indicating limited expansion in cash generation capacity.

Breakdown
Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement		Total Revenue
274.88M	303.56M	291.86M	266.36M	238.63M
	Gross Profit
121.12M	115.46M	113.50M	111.64M	100.37M
	EBIT
53.91M	51.53M	51.95M	51.71M	44.09M
	EBITDA
63.63M	58.88M	59.16M	58.12M	50.21M
	Net Income Common Stockholders
41.52M	42.40M	40.33M	39.86M	34.35M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
74.28M	63.22M	52.14M	83.26M	67.44M
	Total Assets
247.00M	245.51M	269.68M	234.49M	216.38M
	Total Debt
6.39M	7.48M	5.91M	6.38M	6.14M
	Net Debt
-67.89M	-55.74M	-46.23M	-76.88M	-61.31M
	Total Liabilities
65.72M	71.30M	96.42M	77.99M	78.90M
	Stockholders Equity
181.28M	174.21M	173.26M	156.49M	137.47M
Cash Flow		Free Cash Flow
46.02M	46.84M	3.31M	53.10M	26.94M
	Operating Cash Flow
49.33M	49.70M	6.56M	55.91M	31.16M
	Investing Cash Flow
-563.00K	-2.72M	-2.97M	-2.68M	-4.11M
	Financing Cash Flow
-37.59M	-35.52M	-34.85M	-37.22M	-28.28M

James Halstead Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 149.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:JHD, the sentiment is Negative. The current price of 149 is above the 20-day moving average (MA) of 141.68, below the 50-day MA of 150.20, and below the 200-day MA of 171.60, indicating a neutral trend. The MACD of -1.25 indicates Negative momentum. The RSI at 50.67 is Neutral, neither overbought nor oversold. The STOCH value of 80.89 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GB:JHD.

James Halstead Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
GFRD	75 Outperform	£357.33M	9.07	35.97%	4.66%	22.39%	179.53%
JHD	73 Outperform	£625.79M	14.29	24.63%	5.84%	-7.53%	-4.50%
KLR	73 Outperform	£969.11M	6.90	25.66%	3.47%	0.70%	60.51%
Sector *	63 Neutral	$4.28B	11.33	5.43%	214.88%	4.12%	-8.65%
IWG	61 Neutral	£1.83B	115.35	29.10%	0.74%	-2.37%	―

James Halstead Corporate Events

James Halstead PLC Announces Change in Major Holdings

James Halstead PLC has announced a change in its major holdings, with Octopus Investments Limited adjusting its voting rights from 6.01% to 5.99%. This notification reflects a slight decrease in the voting rights held by Octopus Investments, indicating a minor shift in shareholder dynamics that could influence future decision-making processes within the company.

Spark’s Take on GB:JHD Stock

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

James Halstead’s strong financial stability and profitability, coupled with a robust balance sheet, are the primary strengths. However, bearish technical indicators and recent revenue decline present notable risks. The fair valuation and positive corporate events offer some support, but challenges in revenue growth and market momentum hinder a higher score.

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

James Halstead Executive Increases Stake with Share Purchase

James Halstead plc announced that Gordon Richard Oliver, an Executive Director and Chief Executive, along with Susan Podesta-Oliver, purchased a total of 8,200 ordinary shares of the company. This transaction increases Oliver’s beneficial interest in the company to 463,770 shares, representing approximately 0.11% of the company’s issued share capital. This move reflects confidence in the company’s future prospects and may positively influence stakeholder perception.

Spark’s Take on GB:JHD Stock

According to Spark, TipRanks’ AI Analyst, (GB:JHD) is a Neutral.

James Halstead’s overall score reflects strong financial stability and profitability, supported by a robust balance sheet. The stock exhibits bearish technical indicators, suggesting potential further downside. Valuation appears fair with an attractive dividend yield, though revenue decline poses a risk to future growth. Corporate events indicate strong profitability and strategic improvements, but challenges in certain regions remain.

To see Spark’s full report on (GB:JHD) stock, click here.

James Halstead PLC Reports Strong Profitability Amid Revenue Decline

James Halstead PLC reported strong profitability for the first half of the fiscal year ending December 31, 2024, despite a 4.7% drop in revenue to £130.1 million. The company achieved a 3.9% increase in pre-tax profit to £28.5 million, driven by improved margins and reduced overheads. The interim dividend was raised to 2.75p per share. Operational highlights included completed upgrades at Teesside and Radcliffe sites and participation in South American trade exhibitions. The company faced challenges in Europe and Australia due to reduced government spending and consumer confidence but saw growth in North America and Southeast Asia. The company remains optimistic about medium-term prospects despite short-term challenges in Europe.

James Halstead to Announce Interim Results for 2024

James Halstead plc has announced that it will release its interim results for the six months ending 31 December 2024 on 27 March 2025. This announcement is significant as it provides stakeholders with insights into the company’s financial performance and strategic direction, potentially impacting its market positioning and investor relations.

James Halstead PLC Maintains Profit Levels Amid Varied Global Sales Performance

James Halstead PLC reported that while overall sales slightly lagged behind last year, profits before tax were comparable to the first half of 2024. The UK market showed caution due to economic policies affecting capital spending, although prospects remain positive due to a backlog in health and education sectors. Overseas, the company experienced growth in the Americas, the Middle East, and Mediterranean regions, though sales in Australia and New Zealand declined. The company maintains a stable cash position and expects full-year profits to align with market expectations.

James Halstead Announces Share Transaction by Non-Executive Director

James Halstead plc, a company listed on the AIM market, announced a share transaction involving its Non-Executive Director, Michael James Halstead. The transaction, reported in compliance with the EU Market Abuse Regulation, involved the transfer of 11,314 ordinary shares from Michael James Halstead’s nominee account to Katherine Clare Halstead’s personal ISA, both individuals being closely associated.