AIM:HSM

Stock Analysis Report

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Executive Summary

Samuel Heath & Sons plc manufactures and markets various products in the builders’ hardware and bathroom field in the United Kingdom. More Details


Snowflake Analysis

Flawless balance sheet and slightly overvalued.

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 is not significantly more volatile than the rest of UK stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: HSM's weekly volatility (6%) has been stable over the past year.


Market Performance


7 Day Return

-2.8%

HSM

0.1%

GB Building

-0.8%

GB Market


1 Year Return

19.0%

HSM

4.2%

GB Building

-3.7%

GB Market

Return vs Industry: HSM exceeded the UK Building industry which returned 2.7% over the past year.

Return vs Market: HSM exceeded the UK Market which returned -2% over the past year.


Shareholder returns

HSMIndustryMarket
7 Day-2.8%0.1%-0.8%
30 Day-10.4%3.6%0.9%
90 Day7.8%13.6%6.6%
1 Year19.0%19.0%5.1%4.2%2.1%-3.7%
3 Year-20.3%-25.8%28.2%19.2%9.6%-3.5%
5 Year43.7%24.3%40.2%22.3%41.7%14.3%

Long-Term 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?

14.72x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: HSM (£3.45) is trading above our estimate of fair value (£0.78)

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


Price To Earnings Ratio

PE vs Industry: HSM is good value based on its PE Ratio (14.7x) compared to the GB Building industry average (45.7x).

PE vs Market: HSM is good value based on its PE Ratio (14.7x) compared to the UK market (23.6x).


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 (2x) compared to the GB Building industry average (1.8x).


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?

33.9%

Forecasted Capital Goods industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Samuel Heath & Sons has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

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

-1.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: HSM has a large one-off gain of £366.0K impacting its September 30 2020 financial results.

Growing Profit Margin: HSM's current net profit margins (5%) are lower than last year (5.1%).


Past Earnings Growth Analysis

Earnings Trend: HSM's earnings have declined by 1.7% 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 (-17.7%) over the past year, making it difficult to compare to the Building industry average (-47%).


Return on Equity

High ROE: HSM's Return on Equity (13.3%) is considered low.


Next Steps

Financial Health

How is Samuel Heath & Sons's financial position?


Financial Position Analysis

Short Term Liabilities: HSM's short term assets (£9.0M) exceed its short term liabilities (£1.9M).

Long Term Liabilities: HSM's short term assets (£9.0M) exceed 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


Next Steps

Dividend

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


Dividend Yield vs Market

Notable Dividend: Unable to evaluate HSM's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate HSM's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if HSM's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if HSM's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: HSM is not paying a notable dividend for the UK market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of HSM's dividend in 3 years as they are not forecast to pay a notable one for the UK market.


Next Steps

Management

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

4.1yrs

Average board tenure


CEO

Martyn Whieldon (48 yo)

0.17

Tenure

UK£234,000

Compensation

Mr. Martyn Peter Whieldon has been Managing Director of Samuel Heath & Sons plc since December 31, 2020. Mr. Whieldon served as Sales Director at Samuel Heath & Sons PLC since May 2005 until February 06, 2...


CEO Compensation Analysis

Compensation vs Market: Martyn's total compensation ($USD329.73K) is about average for companies of similar size in the UK market ($USD341.60K).

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


Board Members

NamePositionTenureCompensationOwnership
Samuel Heath
Executive Chairmanno dataUK£51.00k19.48%
£ 1.7m
Martyn Whieldon
MD & Executive Director0.17yrUK£234.00k0.039%
£ 3.5k
Simon George Latham
Financial Director4.08yrsUK£149.00k0.039%
£ 3.5k
Martin Harrison
Manufacturing Director & Director1.17yrsUK£110.02k0.039%
£ 3.5k
Anthony Buttanshaw
Non-Executive Deputy Chairman & Senior Independent Directorno dataUK£21.00k0.039%
£ 3.5k
Martin Green
Non-Executive Director9.25yrsUK£12.00k0.039%
£ 3.5k
Ross Martin Hilton Andrews
Non-Executive Director3.42yrsUK£12.00k0.039%
£ 3.5k

4.1yrs

Average Tenure

57.5yo

Average Age

Experienced Board: HSM's board of directors are considered experienced (4.1 years average tenure).


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.


Ownership Breakdown

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


Top Shareholders

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£8.743m
  • Shares outstanding: 2.53m
  • Website: https://www.samuel-heath.com

Number of Employees


Location

  • Samuel Heath & Sons plc
  • Cobden Works
  • Leopold Street
  • Birmingham
  • West Midlands
  • B12 0UJ
  • United Kingdom

Listings

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

Biography

Samuel Heath & Sons plc manufactures and markets various products in the builders’ hardware and bathroom field in the United Kingdom. The company offers bathroom products, such as thermostatic shower kits ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/02/24 18:43
End of Day Share Price2021/02/23 00:00
Earnings2020/09/30
Annual Earnings2020/03/31


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.