James Latham (LTHP) AI Stock Analysis

• Market Cap: £223.77M
• Dividend Yield: 6.53%
• Average Volume (3M): 0.00
• Price to Earnings (P/E): ―
• Beta (1Y): 0.00
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: UK
• Employees: 565
• Sector: Basic Materials
• Sector Strength: 66
• Industry: Industrial - Distribution
• EPS (TTM): N/A
• Shares Outstanding: 590,603
• 10 Day Avg. Volume: 0
• 30 Day Avg. Volume: 0
• 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: £131.00
• Price Target Upside: 6.94% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 64 Neutral
• Price Target: 131.00p ▲(6.94% Upside)

James Latham's overall stock score reflects a solid financial foundation with strong profitability and a robust balance sheet. However, technical analysis indicates limited momentum, and the absence of a P/E ratio complicates valuation assessment. The high dividend yield is a positive aspect, but recent declines in free cash flow and profit margins require attention.

James Latham Business Overview & Revenue Model

Company Description

James Latham Plc engages in the importation and distribution of wood based panel products. Its products include panels, solid surface, door blanks, hardwoods, softwoods, melamines, laminates, decorative panels, architectural mouldings and components, veneered, engineered timber, flooring, advanced technical panels, modified timber and panels, decking, cladding, and fire retardant panels. The company was founded in 1757 and is headquartered in Hemel Hempstead, the United Kingdom.

How the Company Makes Money

James Latham generates revenue primarily through the sale of wood-based products to a diverse customer base, including builders, contractors, and manufacturers. The company's revenue model is heavily reliant on its distribution network, which allows it to serve a wide geographical area across the UK and Europe. Key revenue streams include direct sales of timber and panel products, value-added services such as cutting and machining, and specialized offerings in the form of bespoke solutions for clients. Additionally, strategic partnerships with leading manufacturers and suppliers enhance its product offerings and market reach, contributing to the company's earnings. The emphasis on sustainability and innovative product solutions further positions James Latham to capitalize on growing demand in eco-friendly construction and design sectors.

James Latham Financial Statement Overview

Summary

James Latham demonstrates a solid financial position with strong profitability and a robust balance sheet. The company has managed to grow its revenue over the years, although recent declines in free cash flow and profit margins warrant attention. Maintaining operational efficiency and improving cash flow generation will be crucial for sustaining growth and financial health.

Income Statement

James Latham has shown a stable revenue growth trajectory with a notable increase in revenue in recent years, although the latest year saw a slight decline. The company maintains healthy gross and net profit margins, indicating efficient cost management and profitability. However, there is a slight downward trend in margins over the past few years, which could be a concern if it continues.

Balance Sheet

The company exhibits a strong balance sheet with a low debt-to-equity ratio, reflecting prudent financial leverage. The return on equity is solid, although it has decreased slightly over the years. The equity ratio is robust, indicating a strong capital structure with a significant proportion of assets financed by equity.

Cash Flow

James Latham's cash flow position is mixed. While the operating cash flow to net income ratio is healthy, the free cash flow has seen a significant decline recently, which could impact future investments and growth. The free cash flow to net income ratio remains positive, suggesting some level of cash generation efficiency.

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	80.01M	91.53M	45.10M
EBITDA	30.15M	30.11M	34.73M	48.94M	62.30M	22.84M
Net Income	18.15M	18.15M	22.66M	35.92M	35.92M	14.98M
Balance Sheet
Total Assets	275.45M	275.45M	269.70M	250.36M	224.81M	167.35M
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	45.53M
Stockholders Equity	220.48M	220.48M	215.23M	195.57M	163.97M	121.82M
Cash Flow
Free Cash Flow	7.00M	3.56M	21.54M	33.01M	16.35M	16.16M
Operating Cash Flow	20.46M	17.02M	27.13M	36.31M	20.66M	18.13M
Investing Cash Flow	-13.24M	-9.80M	-1.97M	-2.41M	-6.47M	-1.95M
Financing Cash Flow	-17.61M	-17.61M	-8.33M	-8.32M	-5.79M	-4.51M

James Latham Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 122.50
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Negative
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:LTHP, the sentiment is Positive. The current price of 122.5 is above the 20-day moving average (MA) of 122.50, above the 50-day MA of 122.50, and above the 200-day MA of 120.32, indicating a bullish trend. The MACD of <0.01 indicates Positive momentum. The RSI at 100.00 is Negative, neither overbought nor oversold. The STOCH value of <0.01 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:LTHP.

James Latham Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
GFTU	72 Outperform	£1.70B	14.41	7.50%	4.22%	-1.59%	-12.46%
LTHP	64 Neutral	£223.77M	―		6.53%	―	―
LORD	63 Neutral	£69.81M	―	-4.13%	1.98%	-5.60%	-238.37%
BRCK	56 Neutral	£195.86M	29.80	3.43%	5.59%	7.23%	-59.68%
SHI	50 Neutral	£138.24M	―	-37.89%	―	-2.08%	-9.83%
Sector *	44 Neutral	AU$1.54B	-7.28	-22.76%	4.37%	-3.13%	-36.41%