DB:HG3

Stock Analysis Report

Executive Summary

HSS Hire Group plc offers tool and equipment hire, and related services in the United Kingdom and the Republic of Ireland.

Snowflake

Fundamentals

Adequate balance sheet and fair value.

Risks

  • HSS Hire Group has significant price volatility in the past 3 months.

Similar Companies

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

1.2%

DB:HG3

-3.1%

DE Trade Distributors

-0.7%

DE Market


1 Year Return

12.6%

DB:HG3

-21.7%

DE Trade Distributors

-10.8%

DE Market

HG3 outperformed the Trade Distributors industry which returned -20.4% over the past year.

HG3 outperformed the Market in Germany which returned -10% over the past year.


Share holder returns

HG3IndustryMarket
7 Day1.2%-3.1%-0.7%
30 Day-8.6%-4.4%-3.9%
90 Day-13.7%-8.7%-4.3%
1 Year12.6%12.6%-19.4%-21.7%-8.0%-10.8%
3 Year-60.8%-61.1%-11.5%-18.0%9.8%0.3%
5 Yearn/a5.3%-6.1%24.0%6.8%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

Is HSS Hire Group undervalued based on future cash flows and its price relative to the stock market?

>50%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

HSS Hire Group's share price is below the future cash flow value, and at a moderate discount (> 20%).

HSS Hire Group's share price is below the future cash flow value, and at a substantial discount (> 40%).


Price Based on Earnings

HSS Hire Group is loss making, we can't compare its value to the DE Trade Distributors industry average.

HSS Hire Group is loss making, we can't compare the value of its earnings to the Germany market.


Price Based on Expected Growth

Unable to calculate PEG ratio for HSS Hire Group, we can't assess if its growth is good value.


Price Based on Value of Assets

HSS Hire Group is good value based on assets compared to the DE Trade Distributors industry average.


Next Steps

Future Growth

How is HSS Hire Group expected to perform in the next 1 to 3 years based on estimates from 3 analysts?

117.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

HSS Hire Group's revenue is expected to grow by 3.4% yearly, however this is not considered high growth (20% yearly).

HSS Hire Group's earnings are expected to grow significantly at over 20% yearly.

HSS Hire Group's revenue growth is positive but not above the Germany market average.

HSS Hire Group's earnings growth is expected to exceed the Germany market average.

HSS Hire Group's earnings growth is expected to exceed the low risk savings rate of 0.2%.


Earnings per Share Growth Estimates


Future Return on Equity

HSS Hire Group is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


Next Steps

Past Performance

How has HSS Hire Group performed over the past 5 years?

-50.1%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

HSS Hire Group does not make a profit and their year on year earnings growth rate was negative over the past 5 years.

Unable to compare HSS Hire Group's 1-year earnings growth to the 5-year average as it is not currently profitable.

Unable to compare HSS Hire Group's 1-year growth to the DE Trade Distributors industry average as it is not currently profitable.


Return on Equity

It is difficult to establish if HSS Hire Group has efficiently used shareholders’ funds last year (Return on Equity greater than 20%) as it is loss-making.


Return on Assets

HSS Hire Group used its assets more efficiently than the DE Trade Distributors industry average last year based on Return on Assets.


Return on Capital Employed

It is difficult to establish if HSS Hire Group improved its use of capital last year versus 3 years ago (Return on Capital Employed) as it is currently loss-making.


Next Steps

Financial Health

How is HSS Hire Group's financial position?


Financial Position Analysis

HSS Hire Group is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

HSS Hire Group's long term commitments exceed its cash and other short term assets.


Debt to Equity History and Analysis

HSS Hire Group's level of debt (309.5%) compared to net worth is high (greater than 40%).

HSS Hire Group had negative shareholder equity 5 years ago, it is now positive therefore their debt level has improved.


Balance Sheet

Low level of unsold assets.

Debt is not covered by short term assets, assets are 0.7x debt.


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Whilst loss making HSS Hire Group has sufficient cash runway for more than 3 years if it maintains the current positive free cash flow level.

Whilst loss making HSS Hire Group has sufficient cash runway for more than 3 years, even with free cash flow being positive and shrinking by -123.6% per year.


Next Steps

Dividend

What is HSS Hire Group's current dividend yield, its reliability and sustainability?


Dividend Yield and Payments Analysis

Unable to evaluate HSS Hire Group's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.

Unable to evaluate HSS Hire Group's dividend against the top 25% market benchmark as the company has not reported any payouts.

Unable to perform a dividend volatility check as HSS Hire Group has not reported any payouts.

Unable to verify if HSS Hire Group's dividend has been increasing as the company has not reported any payouts.


Current Payout to Shareholders

Unable to calculate sustainability of dividends as HSS Hire Group has not reported any payouts.


Future Payout to Shareholders

No need to calculate the sustainability of HSS Hire Group's dividends in 3 years as they are not expected to pay a notable one for Germany.


Next Steps

Management

What is the CEO of HSS Hire Group's salary, the management and board of directors tenure and is there insider trading?

4.6yrs

Average board tenure


CEO

Steve Ashmore (54yo)

2.2yrs

Tenure

UK£678,000

Compensation

Mr. Steve Ashmore has been Chief Executive Officer and Executive Director at HSS Hire Group plc since June 01, 2017. Mr. Ashmore is a Director of HSS Financing plc. since June 1, 2017. He has considerable  ...


CEO Compensation Analysis

Steve's remuneration is higher than average for companies of similar size in Germany.

Insufficient data for Steve to compare compensation growth.


Board Age and Tenure

4.6yrs

Average Tenure

60yo

Average Age

The tenure for the HSS Hire Group board of directors is about average.


Insider Trading

No 3 month open market individual insider trading information.


Ownership Breakdown


Management Team

  • Steve Ashmore (54yo)

    CEO & Executive Director

    • Tenure: 2.2yrs
    • Compensation: UK£678.00k
  • Paul Quested (48yo)

    CFO & Executive Director

    • Tenure: 3.0yrs
    • Compensation: UK£494.00k
  • Michael Killeen

    Managing Director of HSS Scotland & Ireland and Senior Manager

    • Tenure: 0.0yrs
  • Darron Cavanagh (43yo)

    Managing Director of ABird & Apex and Senior Manager

    • Tenure: 0.0yrs
  • Paul Lewis (39yo)

    Managing Director of Reintec & TecServ and Senior Manager

    • Tenure: 0.0yrs
  • Miguel Vicos (49yo)

    MD of Operations & Senior Manager

    • Tenure: 0.0yrs
  • Daniel Joll

    Group General Counsel & Company Secretary

    • Tenure: 0.0yrs

Board Members

  • Tom Sweet-Escott

    Non-Executive Director

    • Tenure: 4.6yrs
    • Compensation: UK£40.00k
  • Alan Peterson (72yo)

    Non-Executive Chairman

    • Tenure: 6.7yrs
    • Compensation: UK£150.00k
  • Amanda Burton (60yo)

    Senior Independent Non-Executive Director

    • Tenure: 0.0yrs
    • Compensation: UK£50.00k
  • Steve Ashmore (54yo)

    CEO & Executive Director

    • Tenure: 2.2yrs
    • Compensation: UK£678.00k
  • Doug Robertson (65yo)

    Independent Non-Executive Director

    • Tenure: 4.6yrs
    • Compensation: UK£50.00k
  • Paul Quested (48yo)

    CFO & Executive Director

    • Tenure: 3.0yrs
    • Compensation: UK£494.00k

Company Information

HSS Hire Group plc's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: HSS Hire Group plc
  • Ticker: HG3
  • Exchange: DB
  • Founded: 1957
  • Industry: Trading Companies and Distributors
  • Sector: Capital Goods
  • Market Cap: UK£51.573m
  • Listing Market Cap: UK£56.512m
  • Shares outstanding: 170.21m
  • Website: https://www.hsshiregroup.com

Number of Employees


Location

  • HSS Hire Group plc
  • Oakland House
  • 76 Talbot Road
  • Manchester
  • Greater Manchester
  • M16 0PQ
  • United Kingdom

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
HSSLSE (London Stock Exchange)YesOrdinary SharesGBGBPFeb 2015
HG3DB (Deutsche Boerse AG)YesOrdinary SharesDEEURFeb 2015

Biography

HSS Hire Group plc offers tool and equipment hire, and related services in the United Kingdom and the Republic of Ireland. It operates through Rental and related revenue; and Services segments. The company ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/08/20 21:54
End of Day Share Price2019/08/20 00:00
Earnings2018/12/29
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.