Hill & Smith PLC

DB:7HL Stock Report

Market Cap: €2.0b

Hill & Smith Valuation

Is 7HL undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

1/6

Valuation Score 1/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of 7HL when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 7HL (€25) is trading above our estimate of fair value (€21.73)

Significantly Below Fair Value: 7HL is trading above our estimate of fair value.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 7HL?

Key metric: As 7HL is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for 7HL. This is calculated by dividing 7HL's market cap by their current earnings.
What is 7HL's PE Ratio?
PE Ratio22x
EarningsUK£76.80m
Market CapUK£1.69b

Price to Earnings Ratio vs Peers

How does 7HL's PE Ratio compare to its peers?

The above table shows the PE ratio for 7HL vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average33.6x
EIS Eisen- und Hüttenwerke
18.5xn/a€202.4m
NDA Aurubis
8.8x-6.2%€3.3b
SDF K+S
78.9x61.1%€2.0b
WCH Wacker Chemie
28x37.0%€3.5b
7HL Hill & Smith
22x10.9%€1.7b

Price-To-Earnings vs Peers: 7HL is good value based on its Price-To-Earnings Ratio (22x) compared to the peer average (33.6x).

Price to Earnings Ratio vs Industry

How does 7HL's PE Ratio compare vs other companies in the European Metals and Mining Industry?

14 CompaniesPrice / EarningsEstimated GrowthMarket Cap
7HL 22.0xIndustry Avg. 11.1xNo. of Companies14PE0816243240+
14 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: 7HL is expensive based on its Price-To-Earnings Ratio (22x) compared to the European Metals and Mining industry average (11x).

Price to Earnings Ratio vs Fair Ratio

What is 7HL's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

7HL PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio22x
Fair PE Ratio13.9x

Price-To-Earnings vs Fair Ratio: 7HL is expensive based on its Price-To-Earnings Ratio (22x) compared to the estimated Fair Price-To-Earnings Ratio (13.9x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst 7HL forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current€25.00
€29.06
+16.2%
6.4%€31.50€26.40n/a8
Nov ’25€24.40
€28.96
+18.7%
6.2%€31.52€26.41n/a8
Oct ’25€24.20
€28.53
+17.9%
6.8%€31.24€26.18n/a8
Sep ’25€25.00
€27.73
+10.9%
5.8%€30.28€25.62n/a7
Aug ’25€27.00
€27.69
+2.5%
4.3%€29.56€26.02n/a7
Jul ’25€22.80
€27.61
+21.1%
5.0%€29.60€25.34n/a7
Jun ’25€23.20
€27.37
+18.0%
5.0%€29.38€25.15n/a7
May ’25€22.20
€25.49
+14.8%
5.7%€27.11€22.67n/a7
Apr ’25€22.60
€25.43
+12.5%
5.7%€27.04€22.61n/a7
Mar ’25€20.90
€24.87
+19.0%
5.0%€26.70€22.72n/a7
Feb ’25€22.00
€24.87
+13.0%
5.0%€26.70€22.72n/a7
Jan ’25€21.70
€23.45
+8.1%
3.2%€24.03€21.86n/a6
Dec ’24€20.60
€23.45
+13.8%
3.2%€24.03€21.86n/a6
Nov ’24€18.65
€22.99
+23.3%
3.4%€24.12€22.04€24.406
Oct ’24€19.55
€22.55
+15.3%
5.2%€24.35€20.72€24.206
Sep ’24€20.60
€22.55
+9.4%
5.2%€24.35€20.72€25.006
Aug ’24€18.00
€19.77
+9.9%
5.7%€20.91€17.89€27.006
Jul ’24€16.90
€19.21
+13.6%
5.3%€20.94€17.92€22.805
Jun ’24€16.55
€18.82
+13.7%
3.5%€19.61€17.77€23.205
May ’24€15.30
€17.76
+16.1%
2.9%€18.24€16.88€22.205
Apr ’24€15.10
€17.44
+15.5%
2.9%€18.02€16.78€22.605
Mar ’24€15.60
€16.89
+8.3%
6.2%€18.14€14.74€20.906
Feb ’24€14.30
€16.63
+16.3%
6.4%€18.14€14.74€22.006
Jan ’24€13.20
€16.47
+24.8%
6.6%€18.20€14.79€21.706
Dec ’23€13.50
€16.47
+22.0%
6.6%€18.20€14.79€20.606
Nov ’23€11.30
€16.97
+50.1%
4.4%€18.22€15.94€18.655

Analyst Forecast: Target price is less than 20% higher than the current share price.

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