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James Halstead PLC (GB:JHD)
LSE:JHD

James Halstead (JHD) AI Stock Analysis

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GB

James Halstead

(LSE:JHD)

Rating:77Outperform
Price Target:
178.00p
▲(12.66%Upside)
James Halstead’s overall score of 77 is driven by its strong financial stability and attractive valuation, particularly its high dividend yield. The company has shown resilience in profitability despite revenue challenges, and recent corporate events have positively influenced stakeholder confidence. Technical analysis presents mixed indicators, requiring cautious optimism.

James Halstead (JHD) vs. iShares MSCI United Kingdom ETF (EWC)

James Halstead Business Overview & Revenue Model

Company DescriptionJames 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 MoneyJames 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
75
Positive
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
82
Very Positive
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
78
Positive
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
TTMJun 2024Jun 2023Jun 2022Jun 2021Jun 2020
Income StatementTotal Revenue
268.52M274.88M303.56M291.86M266.36M238.63M
Gross Profit
-15.33M121.12M115.46M113.50M111.64M100.37M
EBIT
54.76M53.91M51.53M51.95M51.71M44.09M
EBITDA
61.81M63.63M58.88M59.16M58.12M50.21M
Net Income Common Stockholders
42.41M41.52M42.40M40.33M39.86M34.35M
Balance SheetCash, Cash Equivalents and Short-Term Investments
63.68M74.28M63.22M52.14M83.26M67.44M
Total Assets
233.79M247.00M245.51M269.68M234.49M216.38M
Total Debt
6.02M6.39M7.48M5.91M6.38M6.14M
Net Debt
-57.66M-67.89M-55.74M-46.23M-76.88M-61.31M
Total Liabilities
58.12M65.72M71.30M96.42M77.99M78.90M
Stockholders Equity
175.67M181.28M174.21M173.26M156.49M137.47M
Cash FlowFree Cash Flow
38.80M46.02M46.84M3.31M53.10M26.94M
Operating Cash Flow
42.65M49.33M49.70M6.56M55.91M31.16M
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 Price158.00
Price Trends
50DMA
152.29
Positive
100DMA
155.45
Positive
200DMA
166.04
Negative
Market Momentum
MACD
0.75
Positive
RSI
49.15
Neutral
STOCH
34.55
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 158 is below the 20-day moving average (MA) of 161.05, above the 50-day MA of 152.29, and below the 200-day MA of 166.04, indicating a neutral trend. The MACD of 0.75 indicates Positive momentum. The RSI at 49.15 is Neutral, neither overbought nor oversold. The STOCH value of 34.55 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

Overall Rating
UnderperformOutperform
Sector (66)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
78
Outperform
£161.37M16.139.56%4.84%-1.81%15.19%
GBJHD
77
Outperform
£659.39M15.4224.63%3.50%-7.53%-4.50%
77
Outperform
£144.38M9.0616.03%5.63%-6.20%83.31%
GBALU
77
Outperform
£135.94M14.3029.95%1.84%19.86%19.09%
GBNXR
76
Outperform
£240.71M27.021.63%2.62%-10.36%-41.41%
GBGEN
73
Outperform
£992.12M29.565.24%4.12%-4.30%-13.09%
66
Neutral
$4.52B12.345.41%3.62%4.15%-12.18%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
GB:JHD
James Halstead
158.00
-25.65
-13.97%
GB:ALU
Alumasc
380.00
192.78
102.97%
GB:EPWN
Epwin Group plc
106.00
15.45
17.06%
GB:ECEL
Eurocell
157.50
28.71
22.29%
GB:NXR
Norcros
265.00
67.78
34.37%
GB:GEN
Genuit Group
394.50
-30.98
-7.28%

James Halstead Corporate Events

Other
James Halstead PLC Announces Change in Major Holdings
Neutral
Apr 9, 2025

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.

Other
James Halstead Executive Increases Stake with Share Purchase
Positive
Apr 7, 2025

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.

DividendsBusiness Operations and StrategyFinancial Disclosures
James Halstead PLC Reports Strong Profitability Amid Revenue Decline
Positive
Mar 27, 2025

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.

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.