DB:10J

Stock Analysis Report

Howden Joinery Group

Executive Summary

Howden Joinery Group Plc engages in the manufacture, sourcing, sale, and distribution of kitchens and joinery products in the United Kingdom, France, Belgium, the Netherlands, and Germany.


Snowflake Analysis

Flawless balance sheet with proven track record.


Similar Companies

Share Price & News

How has Howden Joinery Group's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 10J has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-0.7%

10J

-1.7%

DE Trade Distributors

-0.9%

DE Market


1 Year Return

49.5%

10J

8.5%

DE Trade Distributors

12.8%

DE Market

Return vs Industry: 10J exceeded the German Trade Distributors industry which returned 8.5% over the past year.

Return vs Market: 10J exceeded the German Market which returned 12.8% over the past year.


Shareholder returns

10JIndustryMarket
7 Day-0.7%-1.7%-0.9%
30 Day6.2%0.7%-0.4%
90 Day21.4%0.3%2.3%
1 Year52.9%49.5%11.8%8.5%16.3%12.8%
3 Year88.8%76.0%-5.9%-12.6%15.8%5.7%
5 Year53.0%36.7%0.8%-10.1%19.7%3.3%

Price Volatility Vs. Market

How volatile is Howden Joinery Group's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Howden Joinery Group undervalued compared to its fair value and its price relative to the market?

19.2%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 10J (€8.71) is trading below our estimate of fair value (€10.78)

Significantly Below Fair Value: 10J is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: 10J is poor value based on its PE Ratio (22.3x) compared to the Trade Distributors industry average (15.7x).

PE vs Market: 10J is poor value based on its PE Ratio (22.3x) compared to the German market (21x).


Price to Earnings Growth Ratio

PEG Ratio: 10J is poor value based on its PEG Ratio (2.7x)


Price to Book Ratio

PB vs Industry: 10J is overvalued based on its PB Ratio (7.9x) compared to the DE Trade Distributors industry average (1.3x).


Next Steps

Future Growth

How is Howden Joinery Group forecast to perform in the next 1 to 3 years based on estimates from 10 analysts?

8.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 10J's forecast earnings growth (8.2% per year) is above the savings rate (-0.4%).

Earnings vs Market: 10J's earnings (8.2% per year) are forecast to grow slower than the German market (13% per year).

High Growth Earnings: 10J's earnings are forecast to grow, but not significantly.

Revenue vs Market: 10J's revenue (5.6% per year) is forecast to grow faster than the German market (5.2% per year).

High Growth Revenue: 10J's revenue (5.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 10J's Return on Equity is forecast to be high in 3 years time (29%)


Next Steps

Past Performance

How has Howden Joinery Group performed over the past 5 years?

7.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 10J has high quality earnings.

Growing Profit Margin: 10J's current net profit margins (12.8%) are higher than last year (12.7%).


Past Earnings Growth Analysis

Earnings Trend: 10J's earnings have grown by 7.1% per year over the past 5 years.

Accelerating Growth: 10J's earnings growth over the past year (5.5%) is below its 5-year average (7.1% per year).

Earnings vs Industry: 10J earnings growth over the past year (5.5%) underperformed the Trade Distributors industry 20.1%.


Return on Equity

High ROE: 10J's Return on Equity (35.7%) is considered high.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Howden Joinery Group's financial position?


Financial Position Analysis

Short Term Liabilities: 10J's short term assets (£667.9M) exceed its short term liabilities (£323.9M).

Long Term Liabilities: 10J's short term assets (£667.9M) exceed its long term liabilities (£15.3M).


Debt to Equity History and Analysis

Debt Level: 10J is debt free.

Reducing Debt: 10J had no debt 5 years ago.

Debt Coverage: 10J has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: 10J has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet

Inventory Level: 10J has a high level of physical assets or inventory.

Debt Coverage by Assets: Insufficient data to determine if 10J's debt is covered by short term assets.


Next Steps

Dividend

What is Howden Joinery Group's current dividend yield, its reliability and sustainability?

1.58%

Current Dividend Yield


Dividend Yield vs Market

company1.6%marketbottom25%1.3%markettop25%3.6%industryaverage2.7%forecastin3Years2.0%

Current dividend yield vs market & industry

Notable Dividend: 10J's dividend (1.58%) is higher than the bottom 25% of dividend payers in the German market (1.31%).

High Dividend: 10J's dividend (1.58%) is low compared to the top 25% of dividend payers in the German market (3.63%).


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, 10J has been paying a dividend for less than 10 years.

Growing Dividend: 10J's dividend payments have increased, but the company has only paid a dividend for 8 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (36%), 10J's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 10J's dividends in 3 years are forecast to be well covered by earnings (36.9% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

5.8yrs

Average management tenure


CEO

Andrew Livingston (51yo)

1.8yrs

Tenure

UK£2,613,724

Compensation

Mr. Andrew Livingston has been Director and Chief Executive Officer at Howden Joinery Group Plc since April 02, 2018. He served as the Chief Executive Officer at Screwfix Direct Ltd. since 2013. Mr. Living ...


CEO Compensation Analysis

Compensation vs Market: Andrew's total compensation ($USD3.39M) is about average for companies of similar size in the German market ($USD3.37M).

Compensation vs Earnings: Insufficient data to compare Andrew's compensation with company performance.


Leadership Team

NamePositionTenureCompensationOwnership
Andrew Livingston
CEO & Director1.8yrsUK£2.61m0.019% £1.0m
Mark P. Robson
CFO, Deputy CEO & Executive Director14.8yrsUK£1.17m0.027% £1.4m
Clive Cockburn
Chief Information Officer4.1yrsno data0.0019% £98.9k
Paul Sharma
Head of Investor Relations0yrsno datano data
Gareth Hopkins
Interim Group Human Resources Director4.8yrsno data0.0011% £56.5k
Robert Fenwick
Chief Operating Officer of Howden Joinery Supply Division0yrsno data0.00071% £37.1k
Andy Witts
Chief Operating Officer of Howden Joinery Trade Division6.1yrsno data0.083% £4.4m
Theresa Keating
Group Financial Controller & Finance Director13.1yrsno data0.032% £1.7m
Forbes McNaughton
Company Secretary5.8yrsno datano data
David Boyle
Regional Manager0yrsno datano data

5.8yrs

Average Tenure

Experienced Management: 10J's management team is seasoned and experienced (5.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Andrew Livingston
CEO & Director1.8yrsUK£2.61m0.019% £1.0m
Mark P. Robson
CFO, Deputy CEO & Executive Director14.8yrsUK£1.17m0.027% £1.4m
Geoffrey Drabble
Senior Independent Director0.4yrsno data0.00050% £26.2k
Richard Pennycook
Non Executive Chairman of the Board3.8yrsno data0.0091% £477.6k
Andrew Cripps
Non Executive Director4.2yrsno data0.00050% £26.2k
Louise Fowler
Independent Non-Executive Director0.3yrsno datano data
Karen Caddick
Non Executive Director1.4yrsno data0.0010% £52.3k
Debra White
Non Executive Director3yrsno data0.00076% £39.8k

2.4yrs

Average Tenure

57.5yo

Average Age

Experienced Board: 10J's board of directors are not considered experienced ( 2.4 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Howden Joinery Group Plc's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Howden Joinery Group Plc
  • Ticker: 10J
  • Exchange: DB
  • Founded: 1987
  • Industry: Trading Companies and Distributors
  • Sector: Capital Goods
  • Market Cap: UK£4.382b
  • Listing Market Cap: UK£5.231b
  • Shares outstanding: 598.65m
  • Website: https://www.howdenjoinerygroupplc.com

Number of Employees


Location

  • Howden Joinery Group Plc
  • 40 Portman Square
  • London
  • Greater London
  • W1H 6LT
  • United Kingdom

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
HWDNLSE (London Stock Exchange)YesOrdinary SharesGBGBPJul 1992
HWDJ.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJul 1992
10JDB (Deutsche Boerse AG)YesOrdinary SharesDEEURJul 1992
HWDNLBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBGBPJul 1992
HWDJ.YOTCPK (Pink Sheets LLC)UNSPONSORED ADRUSUSDDec 2012

Biography

Howden Joinery Group Plc engages in the manufacture, sourcing, sale, and distribution of kitchens and joinery products in the United Kingdom, France, Belgium, the Netherlands, and Germany. The company offers kitchen cabinets, doors and worktops, breakfast bars, ovens, dishwashers, fridge-freezers, built-under fridges, frontals, sinks, taps, flooring, hardware products, lighting products, joinery doors, and skirting and architrave products. It serves trade professionals, owner-occupiers, private landlords, local authorities, housing trusts, and small developers. As of December 31, 2018, the company operated 694 depots. The company was formerly known as Galiform Plc and changed its name to Howden Joinery Group Plc in September 2010. Howden Joinery Group Plc was incorporated in 1987 and is headquartered in London, the United Kingdom. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/23 22:45
End of Day Share Price2020/02/21 00:00
Earnings2019/06/15
Annual Earnings2018/12/29


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.