James Latham (LTHP) AI Stock Analysis

• Market Cap: £227.75M
• Dividend Yield: 4.8%
• Average Volume (3M): 6.00
• Price to Earnings (P/E): ―
• Beta (1Y): 0.00
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: UK
• Employees: 565
• Sector: Industrials
• Sector Strength: 87
• Industry: Industrial - Distribution
• EPS (TTM): N/A
• Shares Outstanding: 590,603
• 10 Day Avg. Volume: 0
• 30 Day Avg. Volume: 6
• PEG Ratio: 0.00
• Price to Book (P/B): 0.13
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.74
• 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: 71 Outperform
• Price Target: ―

The overall stock score for James Latham is driven primarily by strong financial stability, evidenced by a robust balance sheet and efficient cash flow management. However, declining revenue and profitability margins present significant concerns. Technical analysis suggests a neutral to slightly positive outlook, with market indicators lacking strong momentum. The absence of valuation metrics limits a comprehensive assessment, yet the company's low leverage offers potential resilience in economic downturns.

James Latham Business Overview & Revenue Model

Company Description

James Latham plc (LTHP) is a leading UK-based distributor of timber, panels, and decorative surfaces. Established in 1757, the company operates in the building materials sector, supplying an extensive range of products including hardwoods, softwoods, panels, and decorative surfaces to various industries such as construction, furniture manufacturing, and shopfitting. With a strong focus on sustainability and innovation, James Latham provides high-quality materials sourced from responsibly managed forests.

How the Company Makes Money

James Latham makes money primarily through the distribution and sale of timber and panel products. The company's revenue model is based on sourcing a diverse range of high-quality materials from suppliers around the world and distributing them to a wide customer base across the UK. Key revenue streams include sales of hardwoods, softwoods, and panel products such as plywood and MDF. The company also generates income from value-added services such as cutting, machining, and finishing. Significant partnerships with global suppliers and a strong logistics network contribute to its competitive edge, allowing efficient distribution and reliable supply of materials to meet customer demand. Additionally, James Latham invests in sustainable practices, which enhances its reputation and aligns with market trends favoring environmentally responsible sourcing.

James Latham Financial Statement Overview

Summary

James Latham demonstrates financial stability with strong balance sheet metrics and efficient cash flow management. However, the declining revenue and profit margins pose challenges to future profitability. The company's low leverage provides a cushion against economic fluctuations, but revitalizing revenue growth is essential for maintaining long-term financial health.

Income Statement

The company shows a declining trend in revenue, with a revenue growth rate of -10.25% from the previous year. Gross profit margin stands at 16.94%, indicating a moderate efficiency in production. The net profit margin is 6.18%, showing profitability but lower than previous years. EBIT and EBITDA margins are 7.13% and 9.47% respectively, which are decent but reflect shrinking operational efficiency.

Balance Sheet

The balance sheet is strong with a low debt-to-equity ratio of 0.04, indicating minimal leverage and potential for safe expansion. ROE is 10.53%, which is solid, reflecting good returns for equity holders. The equity ratio is high at 79.80%, suggesting a strong equity base and financial stability.

Cash Flow

Cash flow analysis shows a decrease in free cash flow growth rate by -34.78%. However, the company maintains a robust operating cash flow to net income ratio of 1.20, indicating efficient cash generation from operations. The free cash flow to net income ratio is 0.95, reflecting adequate cash flow generation relative to net income.

Breakdown	TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement
Total Revenue	362.22M	366.51M	408.37M	385.37M	250.16M	247.10M
Gross Profit	60.39M	62.10M	80.01M	91.53M	45.10M	43.44M
EBITDA	32.21M	34.73M	48.94M	62.30M	22.84M	19.69M
Net Income	20.45M	22.66M	35.92M	35.92M	14.98M	12.48M
Balance Sheet
Total Assets	268.88M	269.70M	250.36M	224.81M	167.35M	154.08M
Cash, Cash Equivalents and Short-Term Investments	67.46M	75.88M	62.61M	37.03M	28.62M	16.95M
Total Debt	11.46M	8.67M	6.60M	5.00M	4.85M	5.63M
Total Liabilities	58.48M	54.47M	54.78M	60.84M	45.53M	49.81M
Stockholders Equity	210.41M	215.23M	195.57M	163.97M	121.82M	104.28M
Cash Flow
Free Cash Flow	18.57M	21.54M	33.01M	16.35M	16.16M	5.79M
Operating Cash Flow	25.10M	27.13M	36.31M	20.66M	18.13M	9.67M
Investing Cash Flow	-6.43M	-1.97M	-2.41M	-6.47M	-1.95M	-4.23M
Financing Cash Flow	-17.17M	-8.33M	-8.32M	-5.79M	-4.51M	-4.04M

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 119.37, indicating a bullish trend. The MACD of 0.05 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
TW	72 Outperform	£4.33B	19.71	4.92%	5.59%	-3.22%	-37.21%
LTHP	71 Outperform	£227.75M	―		4.80%	―	―
CRH	70 Outperform	£61.87B	19.37	15.72%	1.61%	2.11%	3.37%
FORT	69 Neutral	£417.44M	23.85	8.09%	2.02%	-0.61%	34.19%
Sector *	62 Neutral	C$6.43B	7.67	3.30%	3.15%	6.91%	-13.05%
IBST	56 Neutral	£599.88M	39.58	3.80%	2.41%	-9.77%	-28.49%