James Halstead (JHD) AI Stock Analysis

• Market Cap: £659.39M
• Dividend Yield: 256.48%
• Average Volume (3M): 277.51K
• Price to Earnings (P/E): 15.4
• Beta (1Y): 0.74
• Revenue Growth: -7.53%
• EPS Growth: -4.50%
• Country: UK
• Employees: 851
• Sector: Industrials
• Sector Strength: 89
• Industry: Construction
• EPS (TTM): 0.10
• Shares Outstanding: 416,786,440
• 10 Day Avg. Volume: 259,868
• 30 Day Avg. Volume: 277,509
• PEG Ratio: 6.27
• Price to Book (P/B): 5.05
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 18.77
• 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

• Rating: 70 Neutral
• Price Target: 1.50p ▼(-5.06%Downside)

The most significant factor influencing the score is the company's strong financial performance, characterized by solid profitability and a robust balance sheet. Technical analysis suggests a neutral to slightly bearish outlook, which tempers the overall score. The valuation is reasonable but does not significantly enhance the score. Without notable earnings call insights or corporate events, the overall assessment remains centered on financial stability and market technicals.

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 primarily generates revenue through the production and sale of commercial floor coverings. Key revenue streams include direct sales of their branded products like Polyflor to sectors such as healthcare, education, and retail. The company benefits from a robust distribution network that extends its reach internationally, ensuring access to a diverse customer base. Partnerships with suppliers and distributors, combined with a focus on innovation and quality, further bolster its earnings. Additionally, James Halstead invests in maintaining strong customer relationships and expanding its product offerings to meet evolving market demands, which contributes to sustained revenue growth.

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	TTM	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement
Total Revenue	268.52M	274.88M	303.56M	291.86M	266.36M	238.63M
Gross Profit	-15.33M	121.12M	115.46M	113.50M	111.64M	100.37M
EBITDA	61.81M	63.63M	58.88M	59.16M	58.12M	50.21M
Net Income	42.41M	41.52M	42.40M	40.33M	39.86M	34.35M
Balance Sheet
Total Assets	233.79M	247.00M	245.51M	269.68M	234.49M	216.38M
Cash, Cash Equivalents and Short-Term Investments	63.68M	74.28M	63.22M	52.14M	83.26M	67.44M
Total Debt	6.02M	6.39M	7.48M	5.91M	6.38M	6.14M
Total Liabilities	58.12M	65.72M	71.30M	96.42M	77.99M	78.90M
Stockholders Equity	175.67M	181.28M	174.21M	173.26M	156.49M	137.47M
Cash Flow
Free Cash Flow	38.80M	46.02M	46.84M	3.31M	53.10M	26.94M
Operating Cash Flow	42.65M	49.33M	49.70M	6.56M	55.91M	31.16M
Investing Cash Flow	-3.65M	-563.00K	-2.72M	-2.97M	-2.68M	-4.11M
Financing Cash Flow	-38.57M	-37.59M	-35.52M	-34.85M	-37.22M	-28.28M

James Halstead Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.58
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 1.58 is below the 20-day moving average (MA) of 1.58, below the 50-day MA of 1.59, and below the 200-day MA of 1.65, indicating a bearish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 49.38 is Neutral, neither overbought nor oversold. The STOCH value of 58.78 is Neutral, 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
EPWN	78 Outperform	£140.76M	8.85	16.03%	423.56%	-6.20%	83.31%
ECEL	74 Outperform	£162.37M	16.28	9.56%	357.11%	-1.81%	15.19%
GEN	73 Outperform	£927.39M	27.63	5.24%	433.29%	-4.30%	-13.09%
Sector *	71 Outperform	¥252.71B	13.12	8.49%	3.08%	6.31%	13.02%
JHD	70 Neutral	£659.39M	15.42	24.63%	256.48%	-7.53%	-4.50%
NXR	67 Neutral	£244.31M	69.57	1.63%	507.35%	-6.12%	-86.98%
ALU	65 Neutral	£127.00M	13.36	29.95%	197.18%	19.86%	19.09%

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.