James Latham (LTHM) AI Stock Analysis

• Market Cap: £227.75M
• Dividend Yield: 1.39%
• Average Volume (3M): 10.88K
• Price to Earnings (P/E): 12.7
• Beta (1Y): 0.32
• Revenue Growth: -6.27%
• EPS Growth: -30.09%
• Country: UK
• Employees: 565
• Sector: Basic Materials
• Sector Strength: 69
• Industry: Paper, Lumber & Forest Products
• EPS (TTM): 0.40
• Shares Outstanding: 20,160,000
• 10 Day Avg. Volume: 12,728
• 30 Day Avg. Volume: 10,878
• PEG Ratio: -1.15
• Price to Book (P/B): 1.10
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 15.48
• 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: 72 Outperform
• Price Target: ―

James Latham's stock score reflects strong financial health and attractive valuation metrics, such as a low P/E ratio and high dividend yield. Although technical analysis suggests a potential bearish trend, the company's financial stability and positive corporate events strengthen investor confidence. The primary risks lie in the declining free cash flow growth and the need to improve revenue growth.

James Latham Business Overview & Revenue Model

Company Description

James Latham plc is one of the UK's oldest and largest independent distributors of timber, panels, and decorative surfaces. The company primarily operates in the timber and building materials sector, supplying a wide range of wood-based products to various industries, including construction, furniture manufacturing, and shopfitting. With a rich heritage dating back to 1757, James Latham has established itself as a reputable supplier known for quality and service.

How the Company Makes Money

James Latham makes money by sourcing timber and related products from a network of global suppliers and distributing them across the UK. The company's revenue model is based on the sale of these products to a diverse customer base, which includes construction companies, furniture makers, and other industrial clients. Key revenue streams include the sale of hardwoods, softwoods, panels, and decorative surfaces. Additionally, James Latham leverages its extensive warehouse and logistics infrastructure to efficiently manage inventory and ensure timely delivery to its customers. The company's earnings are also supported by its ability to adapt to market demands and trends, such as the increasing focus on sustainable and environmentally-friendly materials.

James Latham Financial Statement Overview

Summary

James Latham exhibits strong financial health, with a solid revenue base and profitability. The balance sheet is stable, with low leverage and strong equity. Cash flow management is sound, though attention to free cash flow growth is necessary. Overall, the company is well-positioned in the forestry industry, with some areas for improvement in revenue and cash flow growth.

Income Statement

The company has shown a stable revenue base with fluctuations in growth. The gross profit margin is healthy, and the net profit margin indicates profitability, although it has decreased over the recent period. EBIT and EBITDA margins remain strong, reflecting operational efficiency.

Balance Sheet

The company maintains a strong equity position with a low debt-to-equity ratio, indicating a conservative leverage approach. ROE is commendable, showing effective use of equity to generate profits. The equity ratio is robust, suggesting financial stability.

Cash Flow

Operating cash flow is positive and supports net income, though there is a noticeable decline in free cash flow growth. The company manages cash flow effectively, but the reduction in free cash flow indicates potential reinvestment challenges.

Breakdown	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement
Total Revenue	366.51M	408.37M	385.37M	250.16M	247.10M
Gross Profit	62.10M	78.50M	90.00M	43.62M	41.98M
EBITDA	34.73M	48.94M	62.30M	22.84M	19.69M
Net Income	22.66M	35.92M	45.64M	14.98M	12.48M
Balance Sheet
Total Assets	269.70M	250.36M	224.81M	167.99M	154.08M
Cash, Cash Equivalents and Short-Term Investments	75.88M	62.61M	37.03M	28.62M	16.95M
Total Debt	8.67M	6.60M	5.00M	4.85M	5.63M
Total Liabilities	54.47M	54.78M	60.84M	48.91M	49.81M
Stockholders Equity	215.23M	195.57M	163.97M	119.08M	104.28M
Cash Flow
Free Cash Flow	17.98M	33.83M	16.38M	16.18M	5.87M
Operating Cash Flow	23.57M	37.13M	20.69M	18.14M	9.76M
Investing Cash Flow	-1.97M	-3.23M	-6.50M	-1.96M	-4.31M
Financing Cash Flow	-8.33M	-8.32M	-5.79M	-4.51M	-4.04M

James Latham Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1145.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:LTHM, the sentiment is Positive. The current price of 1145 is above the 20-day moving average (MA) of 1143.50, above the 50-day MA of 1127.20, and below the 200-day MA of 1160.89, indicating a neutral trend. The MACD of 4.95 indicates Positive momentum. The RSI at 54.45 is Neutral, neither overbought nor oversold. The STOCH value of 61.10 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:LTHM.

James Latham Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
KIE	78 Outperform	£879.75M	20.68	10.20%	1.93%	8.04%	6.94%
LTHM	72 Outperform	£227.75M	12.70	8.33%	1.39%	-6.27%	-30.09%
CRH	70 Outperform	£64.38B	20.15	15.72%	1.56%	2.11%	3.37%
FORT	69 Neutral	£415.33M	23.73	8.09%	2.03%	-0.61%	34.19%
WOSG	68 Neutral	£817.61M	15.49	10.13%	―	1.45%	-61.69%
IBST	57 Neutral	£600.67M	39.64	3.80%	2.41%	-9.77%	-28.49%
Sector *	44 Neutral	C$978.68M	-6.65	-13.73%	2.44%	17.55%	-32.57%

James Latham Corporate Events

James Latham Issues Shares to Managing Director

James Latham plc announced the issuance of 2,813 ordinary shares to Managing Director Andrew Wright as part of the company’s Deferred Bonus Scheme 2012. This transaction, which took place on April 1, 2025, increases Mr. Wright’s shareholding to 31,043 shares, representing 0.15% of the company’s issued share capital.

James Latham PLC Reports Steady Revenue and Strong Financial Position

James Latham PLC announced that its revenue for the year ending 31 March 2025 aligns with market expectations, with a slight increase in volumes. The company maintains a strong balance sheet and cash position, and anticipates profit before tax to meet market forecasts, despite the competitive market conditions.