tiprankstipranks
Trending News
More News >
James Latham PLC (GB:LTHM)
LSE:LTHM
UK Market
Advertisement

James Latham (LTHM) AI Stock Analysis

Compare
7 Followers

Top Page

GB

James Latham

(LSE:LTHM)

Rating:72Outperform
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 (LTHM) vs. iShares MSCI United Kingdom ETF (EWC)

James Latham Business Overview & Revenue Model

Company DescriptionJames 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 MoneyJames 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
75
Positive
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
80
Positive
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
70
Positive
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.
BreakdownMar 2024Mar 2023Mar 2022Mar 2021Mar 2020
Income Statement
Total Revenue366.51M408.37M385.37M250.16M247.10M
Gross Profit62.10M78.50M90.00M43.62M41.98M
EBITDA34.73M48.94M62.30M22.84M19.69M
Net Income22.66M35.92M45.64M14.98M12.48M
Balance Sheet
Total Assets269.70M250.36M224.81M167.99M154.08M
Cash, Cash Equivalents and Short-Term Investments75.88M62.61M37.03M28.62M16.95M
Total Debt8.67M6.60M5.00M4.85M5.63M
Total Liabilities54.47M54.78M60.84M48.91M49.81M
Stockholders Equity215.23M195.57M163.97M119.08M104.28M
Cash Flow
Free Cash Flow17.98M33.83M16.38M16.18M5.87M
Operating Cash Flow23.57M37.13M20.69M18.14M9.76M
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 Price1145.00
Price Trends
50DMA
1127.20
Positive
100DMA
1088.92
Positive
200DMA
1160.89
Negative
Market Momentum
MACD
4.95
Positive
RSI
54.45
Neutral
STOCH
61.10
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

Overall Rating
UnderperformOutperform
Sector (44)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
GBKIE
78
Outperform
£879.75M20.6810.20%1.93%8.04%6.94%
72
Outperform
£227.75M12.708.33%1.39%-6.27%-30.09%
CRCRH
70
Outperform
£64.38B20.1515.72%1.56%2.11%3.37%
69
Neutral
£415.33M23.738.09%2.03%-0.61%34.19%
68
Neutral
£817.61M15.4910.13%1.45%-61.69%
57
Neutral
£600.67M39.643.80%2.41%-9.77%-28.49%
44
Neutral
C$978.68M-6.65-13.73%2.44%17.55%-32.57%
* Basic Materials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
GB:LTHM
James Latham
1,145.00
-113.87
-9.05%
GB:IBST
Ibstock
151.20
-32.22
-17.57%
GB:KIE
Kier Group plc
203.00
52.31
34.71%
GB:FORT
Forterra
196.20
10.78
5.81%
GB:WOSG
Watches of Switzerland Group PLC
352.60
-50.00
-12.42%
CRH
CRH plc
94.19
14.63
18.38%

James Latham Corporate Events

Executive/Board ChangesPrivate Placements and Financing
James Latham Issues Shares to Managing Director
Neutral
Apr 1, 2025

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.

Financial Disclosures
James Latham PLC Reports Steady Revenue and Strong Financial Position
Positive
Mar 27, 2025

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.

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.Date of analysis: Apr 30, 2025