James Latham (LTHM) AI Stock Analysis

• Market Cap: £210.84M
• Dividend Yield: 3.62%
• Average Volume (3M): 15.37K
• Price to Earnings (P/E): 5.5
• Beta (1Y): 0.44
• Revenue Growth: 4.03%
• EPS Growth: -13.76%
• Country: UK
• Employees: 565
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Paper, Lumber & Forest Products
• EPS (TTM): 0.48
• Shares Outstanding: 20,160,000
• 10 Day Avg. Volume: 12,884
• 30 Day Avg. Volume: 15,373
• PEG Ratio: -0.59
• Price to Book (P/B): 0.98
• Price to Sales (P/S): 0.59
• P/FCF Ratio: 60.87
• 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
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 61 Neutral
• Price Target: 1,134.00 p ▲(15.13% Upside)
• Action: Downgraded Date: 10/23/25
• Date: Action: Downgraded 10/23/25

James Latham's overall stock score is primarily influenced by its strong balance sheet and reasonable valuation. However, bearish technical indicators and challenges in profitability and cash flow generation weigh down the score. The absence of earnings call data and corporate events means these factors do not contribute to the score.

Positive Factors

Strong balance sheet / low leverage

The very low debt-to-equity ratio (0.054) and healthy equity base indicate a conservative capital structure that reduces refinancing and interest-rate risk. This balance-sheet strength supports supplier credit, selective capex for depots and cushions the business through cyclical demand swings over the next several months.

Distribution footprint & value-added services

A national depot network plus specialist divisions and in-house cutting/sizing/machining create customer stickiness and differentiated service. These value-added capabilities drive repeat business, support higher-value product mix and raise switching costs, sustaining revenue base and margins over the medium term.

Modest revenue growth with positive operating margins

The company has delivered modest top-line growth (~4% most recent) while sustaining positive EBIT/EBITDA margins, showing the distribution model can cover fixed costs. Continued operating profitability provides a foundation for durable cash generation and reinvestment if margins stabilise or recover.

Negative Factors

Declining gross margins

A multi-year decline in gross margin from 23.35% to 16.76% materially reduces the safety buffer to absorb input cost increases or pricing pressure. Persistent margin erosion weakens long-term profitability, limits reinvestment capacity and raises the risk that the business must seek structural changes to restore margins.

Weakened cash conversion

Falling free cash flow growth and a lower operating-cashflow-to-net-income ratio point to deteriorating cash conversion. Over a 2–6 month horizon this limits available funds for working capital, depot maintenance, and discretionary initiatives, increasing sensitivity to seasonal or demand shocks.

Earnings per share contraction

Negative EPS growth (~-13.8%) signals underlying profitability pressure from margin compression or adverse mix. Continued EPS declines reduce retained earnings and the company's ability to self-fund initiatives, potentially forcing trade-offs between dividends, capex and inventory financing.

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 primarily makes money by buying timber, panel products and other material surfaces from producers and selling them on to trade customers at a markup, generating revenue from product sales. A key driver of earnings is volume through its distribution network (fulfilling orders across many SKUs and customer accounts) combined with product mix (higher-value specialist or decorative materials can carry different margins than commodity timber). The company also generates revenue where it provides value-added services alongside distribution—such as cutting, sizing, machining, and other processing/finishing services performed to customer specification—either as separately priced services or embedded in the delivered product price. Profitability is influenced by procurement terms with suppliers, inventory management (holding stock to provide availability), logistics/fulfilment efficiency, and pricing discipline as input costs and demand conditions change. Specific material on named major partnerships, customer concentration, or a quantified breakdown of revenue streams is null.

James Latham Financial Statement Overview

Summary

James Latham has a stable financial position with a strong balance sheet and low leverage, reflected in a high balance sheet score. However, challenges in profitability and cash flow generation, as indicated by declining margins and cash flow metrics, lower the overall financial performance score.

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	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement
Total Revenue	376.81M	366.61M	366.51M	408.37M	385.37M	250.16M
Gross Profit	63.05M	61.45M	62.10M	78.50M	90.00M	43.62M
EBITDA	29.79M	30.11M	34.73M	48.94M	62.30M	22.84M
Net Income	17.65M	18.15M	22.66M	35.92M	45.64M	14.98M
Balance Sheet
Total Assets	278.63M	275.45M	269.70M	250.36M	224.81M	167.99M
Cash, Cash Equivalents and Short-Term Investments	59.84M	69.12M	75.88M	62.61M	37.03M	28.62M
Total Debt	8.62M	12.02M	8.67M	6.60M	5.00M	4.85M
Total Liabilities	53.42M	54.97M	54.47M	54.78M	60.84M	48.91M
Stockholders Equity	225.21M	220.48M	215.23M	195.57M	163.97M	119.08M
Cash Flow
Free Cash Flow	906.00K	3.56M	17.98M	33.83M	16.38M	16.18M
Operating Cash Flow	19.10M	17.02M	23.57M	37.13M	20.69M	18.14M
Investing Cash Flow	-17.95M	-9.80M	-1.97M	-3.23M	-6.50M	-1.96M
Financing Cash Flow	-8.77M	-17.61M	-8.33M	-8.32M	-5.79M	-4.51M

James Latham Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 985.00
• 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 985 is below the 20-day moving average (MA) of 1081.50, below the 50-day MA of 1025.80, and below the 200-day MA of 1053.10, indicating a neutral trend. The MACD of 8.64 indicates Positive momentum. The RSI at 49.97 is Neutral, neither overbought nor oversold. The STOCH value of 35.71 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
SRC	74 Outperform	£1.42B	12.13	6.07%	―	32.27%	―
BREE	69 Neutral	£1.17B	5.07	7.90%	4.47%	7.83%	-7.40%
MSLH	68 Neutral	£361.91M	38.43	2.91%	4.18%	1.31%	10.19%
FORT	62 Neutral	£344.99M	23.01	6.91%	2.13%	15.99%	96.05%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
LTHM	61 Neutral	£210.84M	5.50	8.10%	3.62%	4.03%	-13.76%
IBST	48 Neutral	£413.66M	179.13	3.10%	2.39%	5.58%	66.49%

James Latham Corporate Events

James Latham Employee Trust Increases Shareholding to Support Incentive Plans

James Latham plc has disclosed that the Trustees of its Employee Benefits Trust have acquired 20,000 ordinary shares between 10 and 12 March at an average price of 1,070.7p per share, taking the trust’s total holding to 26,347 shares, or 0.13% of total voting rights. These shares, which are not yet allocated to specific employees, will be used to satisfy future awards under the company’s share incentive schemes, with further market purchases possible at the trustee’s discretion to support ongoing employee equity participation.

The most recent analyst rating on (GB:LTHM) stock is a Hold with a £1129.00 price target. To see the full list of analyst forecasts on James Latham stock, see the GB:LTHM Stock Forecast page.

James Latham Employee Trust Boosts Shareholding to Support Incentive Schemes

James Latham has disclosed that the trustees of its Employee Benefits Trust have purchased 10,000 ordinary shares in the company at an average price of 1080.5p per share, with 6,347 shares now held by the trust, representing 0.03% of total voting rights. The shares are intended to support the firm’s share incentive and SIP schemes for employees, and further market purchases may be made at the independent trustee’s discretion to satisfy future awards, underscoring the company’s ongoing use of equity-based remuneration to incentivise staff and potentially directors.

The EBT’s role is to hold ordinary shares for the benefit of James Latham employees and to satisfy the vesting of awards under its incentive plans, which can enhance retention and alignment of interests between staff and shareholders. While the current holding is small relative to total voting rights, the continuation of market purchases signals a stable, structured approach to employee share ownership that may support longer-term corporate governance and engagement objectives.

The most recent analyst rating on (GB:LTHM) stock is a Hold with a £1171.00 price target. To see the full list of analyst forecasts on James Latham stock, see the GB:LTHM Stock Forecast page.

James Latham Increases Senior Executives’ Stakes via Share Incentive Plan

James Latham plc has issued new 25p ordinary shares at an exercise price of 980p per share under its Share Incentive Plan Scheme to several persons discharging managerial responsibilities, including Chairman Nick Latham, Finance Director David Dunmow and Executive Directors Piers Latham and Andrew Wright. The allocations marginally increase these executives’ individual shareholdings, with the chairman and an executive director now each holding just over 3% of the company, reinforcing equity-based alignment between senior management and shareholders but without materially altering the overall ownership structure.

The most recent analyst rating on (GB:LTHM) stock is a Hold with a £1076.00 price target. To see the full list of analyst forecasts on James Latham stock, see the GB:LTHM Stock Forecast page.

James Latham Buys Back 166,615 Preference Shares for Treasury

James Latham plc has repurchased 166,615 of its £1 preference shares at a price of £1.30 per share, with the repurchased shares to be held in treasury. Following this transaction, the company has 423,863 preference shares in issue excluding those held in treasury, a move that modestly reshapes its capital structure and may signal management’s ongoing attention to balance sheet optimisation and shareholder capital management.

The most recent analyst rating on (GB:LTHM) stock is a Hold with a £1076.00 price target. To see the full list of analyst forecasts on James Latham stock, see the GB:LTHM Stock Forecast page.

James Latham Issues CSOP Shares to Managing Director Andrew Wright

James Latham plc has issued 486 ordinary shares under its Company Share Option Plan (CSOP) to Managing Director Andrew Wright at a price of 925 pence per share, increasing his holding to 31,690 ordinary shares, equivalent to 0.16% of the company’s total voting rights. The transaction, conducted outside a trading venue, forms part of the company’s established executive incentive arrangements and marginally raises insider equity ownership, aligning senior management interests more closely with those of shareholders without materially altering the overall capital structure.

The most recent analyst rating on (GB:LTHM) stock is a Hold with a £1002.00 price target. To see the full list of analyst forecasts on James Latham stock, see the GB:LTHM Stock Forecast page.

James Latham Grants New CSOP Options and Issues Shares to Senior Executives

James Latham plc has granted new share options under its Company Share Option Plan to five senior executives, including the chairman, finance director and managing director, over ordinary shares at an exercise price of 980p, exercisable between December 2030 and December 2035. Separately, the CSOP trustees have issued 999 ordinary shares at 925p to three PDMRs, marginally increasing their direct shareholdings, with the chairman and an executive director each now holding just over 3% of the company’s equity, underscoring continued alignment of senior management incentives with shareholder interests.

The most recent analyst rating on (GB:LTHM) stock is a Hold with a £1002.00 price target. To see the full list of analyst forecasts on James Latham stock, see the GB:LTHM Stock Forecast page.