AIM:HSM

Stock Analysis Report

Executive Summary

Samuel Heath & Sons PLC designs, manufactures, and markets a range of products in the builders’ hardware and bathroom field in the United Kingdom and internationally.

Snowflake

Fundamentals

Flawless balance sheet and good value.

Share Price & News

How has Samuel Heath & Sons's share price performed over time and what events caused price changes?


Latest Share Price and Events

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


Market Performance


7 Day Return

0%

HSM

1.3%

GB Building

0.5%

GB Market


1 Year Return

-32.9%

HSM

9.8%

GB Building

2.8%

GB Market

Return vs Industry: HSM underperformed the UK Building industry which returned 9.8% over the past year.

Return vs Market: HSM underperformed the UK Market which returned 2.8% over the past year.


Shareholder returns

HSMIndustryMarket
7 Day0%1.3%0.5%
30 Day0%3.6%1.7%
90 Day-10.2%7.4%3.7%
1 Year-30.3%-32.9%13.6%9.8%8.2%2.8%
3 Year4.7%-5.4%26.3%14.6%24.3%8.5%
5 Year43.7%17.8%57.5%34.4%35.1%4.3%

Price Volatility Vs. Market

How volatile is Samuel Heath & Sons's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Samuel Heath & Sons undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: HSM (£2.65) is trading below our estimate of fair value (£10.75)

Significantly Below Fair Value: HSM is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: HSM is good value based on its PE Ratio (9.1x) compared to the Building industry average (14.6x).

PE vs Market: HSM is good value based on its PE Ratio (9.1x) compared to the UK market (16.8x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate HSM's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: HSM is overvalued based on its PB Ratio (1.5x) compared to the GB Building industry average (1.5x).


Next Steps

Future Growth

How is Samuel Heath & Sons forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

6.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: HSM's forecast earnings growth (6% per year) is above the savings rate (1.2%).

Earnings vs Market: HSM's earnings (6% per year) are forecast to grow slower than the UK market (12.6% per year).

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

Revenue vs Market: Insufficient data to determine if HSM's revenue is forecast to grow faster than the UK market.

High Growth Revenue: Insufficient data to determine if HSM's revenue is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if HSM's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Samuel Heath & Sons performed over the past 5 years?

16.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: HSM has large one-off items impacting its financial results.

Growing Profit Margin: HSM's current net profit margins (5.3%) are lower than last year (6.8%).


Past Earnings Growth Analysis

Earnings Trend: HSM's earnings have grown by 16% per year over the past 5 years.

Accelerating Growth: HSM's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: HSM had negative earnings growth (-24.7%) over the past year, making it difficult to compare to the Building industry average (5.7%).


Return on Equity

High ROE: HSM's Return on Equity (16.8%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Samuel Heath & Sons's financial position?


Financial Position Analysis

Short Term Liabilities: HSM's short term assets (£9.4M) exceeds its short term liabilities (£2.0M)

Long Term Liabilities: HSM's short term assets (9.4M) exceeds its long term liabilities (7.4M)


Debt to Equity History and Analysis

Debt Level: HSM is debt free.

Reducing Debt: HSM has not had any debt for past 5 years.

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

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


Balance Sheet

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

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


Next Steps

Dividend

What is Samuel Heath & Sons's current dividend yield, its reliability and sustainability?

4.67%

Current Dividend Yield


Dividend Yield vs Market

company4.7%marketbottom25%1.9%markettop25%5.3%industryaverage3.3%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: HSM's dividend (4.67%) is higher than the bottom 25% of dividend payers in the UK market (1.94%).

High Dividend: HSM's dividend (4.67%) is low compared to the top 25% of dividend payers in the UK market (5.35%).


Stability and Growth of Payments

Stable Dividend: HSM's dividend payments have been volatile in the past 10 years.

Growing Dividend: HSM's dividend payments have fallen over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (42.5%), HSM's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

What is the CEO of Samuel Heath & Sons's salary, the management and board of directors tenure and is there insider trading?

14.5yrs

Average management tenure


CEO

David Pick 0

21.8yrs

Tenure

UK£275,000

Compensation

Mr. David J. Pick has been the Managing Director and Executive Director of Samuel Heath & Sons PLC since 1998 and 1995 respectively. 


CEO Compensation Analysis

Compensation vs Market: David's total compensation ($USD353.77K) is about average for companies of similar size in the UK market ($USD319.03K).

Compensation vs Earnings: David's compensation has been consistent with company performance over the past year.


Management Age and Tenure

14.5yrs

Average Tenure

Experienced Management: HSM's management team is seasoned and experienced (14.5 years average tenure).


Board Age and Tenure

8.0yrs

Average Tenure

59yo

Average Age

Experienced Board: HSM's board of directors are considered experienced (8 years average tenure).


Insider Trading

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


Ownership Breakdown

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


Management Team

  • Sam Heath

    Executive Chairman

    • Tenure: 0yrs
    • Compensation: UK£50.00k
  • Martyn Whieldon (47yo)

    Sales Director & Executive Director

    • Tenure: 9.3yrs
    • Compensation: UK£212.00k
  • David Pick

    MD & Executive Director

    • Tenure: 21.8yrs
    • Compensation: UK£275.00k
  • Alan Cogzell

    Member of Group Management Board

    • Tenure: 0yrs
  • Simon George Latham (54yo)

    Financial Director

    • Tenure: 2.8yrs
    • Compensation: UK£144.00k
  • Rolando Guselli

    Member of Group Management Board

    • Tenure: 0yrs
  • Martin Harrison

    Member of Group Management Board

    • Tenure: 0yrs

Board Members

  • Sam Heath

    Executive Chairman

    • Tenure: 0yrs
    • Compensation: UK£50.00k
  • Anthony Buttanshaw (64yo)

    Non-Executive Deputy Chairman & Senior Independent Director

    • Tenure: 0yrs
    • Compensation: UK£19.00k
  • Martyn Whieldon (47yo)

    Sales Director & Executive Director

    • Tenure: 9.3yrs
    • Compensation: UK£212.00k
  • David Pick

    MD & Executive Director

    • Tenure: 21.8yrs
    • Compensation: UK£275.00k
  • Martin Green (64yo)

    Non-Executive Director

    • Tenure: 8yrs
    • Compensation: UK£12.00k
  • Ross Martin Andrews (59yo)

    Non-Executive Director

    • Tenure: 2.2yrs
    • Compensation: UK£11.00k
  • Simon George Latham (54yo)

    Financial Director

    • Tenure: 2.8yrs
    • Compensation: UK£144.00k

Company Information

Samuel Heath & Sons PLC's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Samuel Heath & Sons PLC
  • Ticker: HSM
  • Exchange: AIM
  • Founded: 1820
  • Industry: Building Products
  • Sector: Capital Goods
  • Market Cap: UK£6.716m
  • Shares outstanding: 2.53m
  • Website: https://www.samuel-heath.com

Number of Employees


Location

  • Samuel Heath & Sons PLC
  • Leopold Street
  • Birmingham
  • West Midlands
  • B12 OUJ
  • United Kingdom

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
HSMAIM (London Stock Exchange AIM Market)YesOrdinary SharesGBGBPJan 1992

Biography

Samuel Heath & Sons PLC designs, manufactures, and markets a range of products in the builders’ hardware and bathroom field in the United Kingdom and internationally. The company offers bathroom products,  ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/11/11 20:33
End of Day Share Price2019/11/11 00:00
Earnings2019/03/31
Annual Earnings2019/03/31


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.