James Halstead (JHD) AI Stock Analysis

• Market Cap: £592.19M
• Dividend Yield: 4.54%
• Average Volume (3M): 233.28K
• Price to Earnings (P/E): 13.8
• Beta (1Y): 0.86
• Revenue Growth: -7.53%
• EPS Growth: -4.50%
• Country: UK
• Employees: 851
• Sector: Industrials
• Sector Strength: 79
• Industry: Construction
• EPS (TTM): 0.10
• Shares Outstanding: 416,786,440
• 10 Day Avg. Volume: 242,762
• 30 Day Avg. Volume: 233,284
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: £166.00
• Price Target Upside: 17.73% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 64 Neutral
• Price Target: 166.00p ▲(17.73% Upside)

The overall score reflects strong financial stability and profitability as the primary strengths, bolstered by a robust balance sheet. However, technical analysis indicates weak near-term momentum, and while valuation appears reasonable, the dividend yield anomaly requires attention. The absence of recent earnings call data and notable corporate events limits further insights.

James Halstead Business Overview & Revenue Model

Company Description

James Halstead plc is a leading manufacturer and international distributor of commercial floor coverings. Established in the UK, the company operates in the industrial and consumer sectors, specializing in producing high-quality, resilient vinyl flooring under renowned brands such as Polyflor and Karndean. Their products are utilized in a variety of settings, including healthcare, education, retail, and residential spaces, where durability and design flexibility are paramount.

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. Despite a recent revenue decline, profitability margins remain resilient, supported by a robust balance sheet with low leverage. The company's financial health is strong, but future growth may be limited 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	Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
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: 141.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Positive

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 141 is below the 20-day moving average (MA) of 144.98, below the 50-day MA of 151.64, and below the 200-day MA of 160.12, indicating a bearish trend. The MACD of -2.88 indicates Negative momentum. The RSI at 35.07 is Neutral, neither overbought nor oversold. The STOCH value of 17.08 is Positive, 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	77 Outperform	£160.39M	10.04	16.03%	4.32%	-6.20%	83.31%
NXR	70 Outperform	£246.46M	70.08	1.63%	3.80%	-6.12%	-86.98%
GEN	69 Neutral	£839.01M	17.09	7.68%	3.08%	5.88%	107.36%
ECEL	68 Neutral	£140.81M	14.20	9.56%	3.22%	-1.81%	15.19%
JHD	64 Neutral	£592.19M	13.85	24.63%	4.54%	-7.53%	-4.50%
Sector *	64 Neutral	$10.84B	16.10	8.24%	1.99%	2.74%	-14.89%
ALU	64 Neutral	£121.45M	12.77	29.95%	3.18%	19.86%	19.09%

James Halstead Corporate Events

James Halstead PLC Reports Mixed Market Performance Amid Global Challenges

James Halstead PLC reports a trading update indicating a mixed performance across its markets. While the company has seen growth in the UK market and maintained its market share due to its reputation for quality and sustainability, it faces challenges in Europe due to muted consumer spending and government budget reallocations. Despite these challenges, the company has managed to protect its margins through manufacturing efficiency and cost control. Sales in other global regions, particularly the Americas and South Asia, have shown positive growth. The company anticipates sales and profits to be slightly below last year’s levels but remains confident in its solid prospects.