James Latham (LTHM) AI Stock Analysis

• Market Cap: £223.77M
• Dividend Yield: 3.13%
• Average Volume (3M): 8.55K
• Price to Earnings (P/E): 12.5
• Beta (1Y): 0.29
• Revenue Growth: 0.03%
• EPS Growth: -19.94%
• Country: UK
• Employees: 565
• Sector: Basic Materials
• Sector Strength: 60
• Industry: Paper, Lumber & Forest Products
• EPS (TTM): 0.40
• Shares Outstanding: 20,160,000
• 10 Day Avg. Volume: 5,629
• 30 Day Avg. Volume: 8,547
• 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: £1,238.00
• Price Target Upside: 10.04% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 70 Outperform
• Price Target: 1,238.00p ▲(10.04% Upside)

James Latham's overall stock score reflects a strong balance sheet and reasonable valuation, with technical indicators suggesting a stable to slightly positive outlook. However, challenges in profitability and cash flow generation are notable risks. The absence of earnings call data limits insights into future guidance and sentiment.

James Latham Business Overview & Revenue Model

Company Description

James Latham plc, together with its subsidiaries, engages in the importing and distribution of timber, panels, and decorative surfaces in the United Kingdom, the Republic of Ireland, rest of Europe, and internationally. The company offers panels, melamine, veneer, laminates, solid surface products, door blanks, plastics, hardwoods, engineered timber products, softwoods, flooring products, decking and cladding products, modified timbers and panels, fire retardant panels, advanced technical panels, and treatments, as well as architectural moldings and components. It serves the construction/housing, retail, transport, exhibition, and other sectors. The company was founded in 1757 and is based in Hemel Hempstead, the United Kingdom.

How the Company Makes Money

James Latham generates revenue primarily through the wholesale distribution of timber and panel products. The company operates a multi-channel revenue model, selling directly to businesses in sectors such as construction, furniture manufacturing, and joinery. Key revenue streams include the sale of various wood products, including hardwoods, softwoods, and specialty panels. Additionally, the company benefits from partnerships with leading manufacturers, allowing it to offer exclusive products and competitive pricing. Factors contributing to its earnings include a strong market presence, a diverse product range, and the ability to meet custom orders, which enhances customer loyalty and repeat business.

James Latham Financial Statement Overview

Summary

James Latham shows a stable financial position with a strong balance sheet and low leverage. However, challenges exist in profitability and cash flow generation, with declining margins and cash flow metrics indicating areas for improvement.

Income Statement

James Latham has shown a mixed performance in its income statement. The company experienced a slight revenue growth in the latest year, but this was preceded by a decline. Margins have generally decreased over the years, with the gross profit margin dropping from 23.35% in 2022 to 16.76% in 2025. The net profit margin has also declined, indicating pressure on profitability. However, the company maintains a positive EBIT and EBITDA margin, reflecting operational efficiency.

Balance Sheet

The balance sheet of James Latham is strong, with a low debt-to-equity ratio of 0.054, indicating low financial leverage and a conservative capital structure. The return on equity has decreased over the years but remains positive, suggesting the company is generating returns for shareholders. The equity ratio is healthy, showing a solid equity base relative to total assets.

Cash Flow

Cash flow performance has been challenging, with a significant decline in free cash flow growth in the latest year. The operating cash flow to net income ratio has decreased, indicating less cash generation from operations relative to net income. The free cash flow to net income ratio also shows a downward trend, suggesting potential issues in converting income into cash.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	366.61M	366.61M	366.51M	408.37M	385.37M	250.16M
Gross Profit	61.45M	61.45M	62.10M	78.50M	90.00M	43.62M
EBITDA	27.68M	30.11M	34.73M	48.94M	62.30M	22.84M
Net Income	18.15M	18.15M	22.66M	35.92M	45.64M	14.98M
Balance Sheet
Total Assets	275.45M	275.45M	269.70M	250.36M	224.81M	167.99M
Cash, Cash Equivalents and Short-Term Investments	69.12M	69.12M	75.88M	62.61M	37.03M	28.62M
Total Debt	12.02M	12.02M	8.67M	6.60M	5.00M	4.85M
Total Liabilities	54.97M	54.97M	54.47M	54.78M	60.84M	48.91M
Stockholders Equity	220.48M	220.48M	215.23M	195.57M	163.97M	119.08M
Cash Flow
Free Cash Flow	5.02M	3.56M	17.98M	33.83M	16.38M	16.18M
Operating Cash Flow	18.48M	17.02M	23.57M	37.13M	20.69M	18.14M
Investing Cash Flow	-13.24M	-9.80M	-1.97M	-3.23M	-6.50M	-1.96M
Financing Cash Flow	-17.61M	-17.61M	-8.33M	-8.32M	-5.79M	-4.51M

James Latham Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 1125.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• 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 Neutral. The current price of 1125 is below the 20-day moving average (MA) of 1129.53, above the 50-day MA of 1121.16, and above the 200-day MA of 1111.14, indicating a neutral trend. The MACD of 2.14 indicates Positive momentum. The RSI at 50.77 is Neutral, neither overbought nor oversold. The STOCH value of 56.06 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for GB:LTHM.

James Latham Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	70 Outperform	¥179.96B	11.27	5.69%	3.08%	2.68%	-12.79%
LTHM	70 Outperform	£223.77M	12.48	8.33%	3.13%	0.03%	-19.94%
MBH	70 Outperform	£95.43M	15.71	6.47%	4.07%	-9.35%	-35.39%
WYN	69 Neutral	£83.05M	22.18	2.74%	4.79%	-10.03%	-41.77%
FORT	66 Neutral	£410.70M	26.17	7.03%	1.54%	15.99%	96.05%
IBST	59 Neutral	£573.05M	47.14	3.10%	2.04%	5.58%	66.49%
CRPR	57 Neutral	£24.84M	―	-22.92%	―	-3.52%	-31.82%

James Latham Corporate Events

James Latham Issues Shares to Key Personnel Under SIPS Scheme

James Latham plc announced the issuance of 25p Ordinary shares under its SIPS scheme to key personnel, including the Chairman, Finance Director, and Executive Director. This move reflects the company’s strategy to align management interests with shareholder value, potentially strengthening its market position and stakeholder confidence.

James Latham Releases Annual Report and Schedules AGM

James Latham plc has announced the posting of its Annual Report for the year ending March 31, 2025, which includes the Notice of the 2025 Annual General Meeting. The AGM is scheduled for August 20, 2025, in Hemel Hempstead, Hertfordshire. This announcement underscores the company’s commitment to transparency and shareholder engagement, potentially impacting its market perception positively.

James Latham PLC Reports Stable Financial Performance Amid Market Challenges

James Latham PLC reported stable trading results for the financial year ending 31 March 2025, despite challenging market conditions and a competitive environment. Revenue slightly increased to £366.6m, while profit before tax decreased to £24.3m due to a shift towards lower-value products and a one-off pension charge. The company is focusing on strategic investments, including a potential National Distribution Centre, to enhance its supply chain and maintain market leadership. The final dividend per share increased to 27.3p, reflecting confidence in future trading conditions, although geopolitical risks and fluctuating container rates pose potential challenges.