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HSS

HSS Hire Group AIM:HSS Stock Report

Last Price

UK£0.15

Market Cap

UK£105.7m

7D

-5.1%

1Y

-17.4%

Updated

17 May, 2022

Data

Company Financials +
HSS fundamental analysis
Snowflake Score
Valuation4/6
Future Growth4/6
Past Performance3/6
Financial Health4/6
Dividends0/6

HSS Stock Overview

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

Rewards

PE ratio (14.5x) is below the UK market (15.3x)

Earnings are forecast to grow 21.44% per year

Became profitable this year

Risk Analysis

No risks detected for HSS from our risk checks.

HSS Hire Group Competitors

Price History & Performance

Summary of all time highs, changes and price drops for HSS Hire Group
Historical stock prices
Current Share PriceUK£0.15
52 Week HighUK£0.22
52 Week LowUK£0.13
Beta-0.0071
1 Month Change-6.25%
3 Month Change-13.30%
1 Year Change-17.36%
3 Year Change-59.35%
5 Year Change-75.81%
Change since IPO-92.86%

Recent News & Updates

May 06
We Think HSS Hire Group's (LON:HSS) Robust Earnings Are Conservative

We Think HSS Hire Group's (LON:HSS) Robust Earnings Are Conservative

The subdued stock price reaction suggests that HSS Hire Group plc's ( LON:HSS ) strong earnings didn't offer any...

Shareholder Returns

HSSGB Trade DistributorsGB Market
7D-5.1%4.2%3.6%
1Y-17.4%-6.4%-2.5%

Return vs Industry: HSS underperformed the UK Trade Distributors industry which returned -7.2% over the past year.

Return vs Market: HSS underperformed the UK Market which returned -3.2% over the past year.

Price Volatility

Is HSS's price volatile compared to industry and market?
HSS volatility
HSS Average Weekly Movement5.4%
Trade Distributors Industry Average Movement5.3%
Market Average Movement6.1%
10% most volatile stocks in GB Market11.8%
10% least volatile stocks in GB Market3.2%

Stable Share Price: HSS is not significantly more volatile than the rest of UK stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: HSS's weekly volatility (5%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
19572,000Steve Ashmorehttps://www.hsshiregroup.com

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 provides tools and equipment, including small tools, powered access, and power generation, as well as hire-related services to construction firms, maintenance contractors, FM providers, engineers, tradesmen, retailers, factories, DIYers, and others; supplies, fits, manages, and services diesel generators for power generation needs; and offers heavy plant equipment, including excavators, diggers, and dumpers.

HSS Hire Group Fundamentals Summary

How do HSS Hire Group's earnings and revenue compare to its market cap?
HSS fundamental statistics
Market CapUK£105.75m
Earnings (TTM)UK£7.31m
Revenue (TTM)UK£303.27m

14.5x

P/E Ratio

0.3x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
HSS income statement (TTM)
RevenueUK£303.27m
Cost of RevenueUK£146.27m
Gross ProfitUK£157.00m
Other ExpensesUK£149.69m
EarningsUK£7.31m

Last Reported Earnings

Jan 01, 2022

Next Earnings Date

n/a

Earnings per share (EPS)0.01
Gross Margin51.77%
Net Profit Margin2.41%
Debt/Equity Ratio42.1%

How did HSS perform over the long term?

See historical performance and comparison

Valuation

Is HSS Hire Group undervalued compared to its fair value and its price relative to the market?

Valuation Score

4/6

Valuation Score 4/6

  • Below Fair Value

  • Significantly Below Fair Value

  • PE vs Industry

  • PE vs Market

  • PEG Ratio

  • PB vs Industry


14.48x

Price to Earnings (PE) ratio

Share Price vs. Fair Value

Below Fair Value: HSS (£0.15) is trading above our estimate of fair value (£0.05)

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


Price To Earnings Ratio

PE vs Industry: HSS is good value based on its PE Ratio (14.5x) compared to the UK Trade Distributors industry average (14.9x).

PE vs Market: HSS is good value based on its PE Ratio (14.5x) compared to the UK market (15.3x).


Price to Earnings Growth Ratio

PEG Ratio: HSS is good value based on its PEG Ratio (0.7x)


Price to Book Ratio

PB vs Industry: HSS is good value based on its PB Ratio (0.7x) compared to the GB Trade Distributors industry average (1.7x).


Future Growth

How is HSS Hire Group forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

Future Growth Score

4/6

Future Growth Score 4/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


21.4%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: HSS's forecast earnings growth (21.4% per year) is above the savings rate (0.9%).

Earnings vs Market: HSS's earnings (21.4% per year) are forecast to grow faster than the UK market (11.1% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: HSS's revenue (5.3% per year) is forecast to grow faster than the UK market (4% per year).

High Growth Revenue: HSS's revenue (5.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

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


Past Performance

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

Past Performance Score

3/6

Past Performance Score 3/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


46.2%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: HSS has high quality earnings.

Growing Profit Margin: HSS became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: HSS has become profitable over the past 5 years, growing earnings by 46.2% per year.

Accelerating Growth: HSS has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: HSS has become profitable in the last year, making it difficult to compare its past year earnings growth to the Trade Distributors industry (48.6%).


Return on Equity

High ROE: HSS's Return on Equity (4.5%) is considered low.


Financial Health

How is HSS Hire Group's financial position?

Financial Health Score

4/6

Financial Health Score 4/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: HSS's short term assets (£123.6M) exceed its short term liabilities (£103.0M).

Long Term Liabilities: HSS's short term assets (£123.6M) do not cover its long term liabilities (£144.7M).


Debt to Equity History and Analysis

Debt Level: HSS's net debt to equity ratio (16%) is considered satisfactory.

Reducing Debt: HSS's debt to equity ratio has reduced from 130.5% to 42.1% over the past 5 years.

Debt Coverage: HSS's debt is well covered by operating cash flow (64.8%).

Interest Coverage: HSS's interest payments on its debt are not well covered by EBIT (1.4x coverage).


Balance Sheet


Dividend

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

Dividend Score

0/6

Dividend Score 0/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Future Dividend Coverage


2.56%

Forecast Dividend Yield

Dividend Yield vs Market

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

High Dividend: Unable to evaluate HSS'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 HSS's dividends per share have been stable in the past.

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


Earnings Payout to Shareholders

Earnings Coverage: HSS is not paying a notable dividend for the UK market.


Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as HSS has not reported any payouts.


Next Steps

Management

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

7.3yrs

Average board tenure


CEO

Steve Ashmore (56 yo)

4.92yrs

Tenure

UK£328,000

Compensation

Mr. Steve Ashmore has been Chief Executive Officer at HSS Hire Service Group Limited since June 2017 and also serves as its Director. He serves as Chief Executive Officer and Executive Director at HSS Hire...


CEO Compensation Analysis

Compensation vs Market: Steve's total compensation ($USD408.98K) is above average for companies of similar size in the UK market ($USD313.80K).

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


Board Members

Experienced Board: HSS's board of directors are considered experienced (7.3 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.


Recent Insider Transactions

Ownership Breakdown

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


Top Shareholders

Company Information

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


Key Information

  • Name: HSS Hire Group plc
  • Ticker: HSS
  • Exchange: AIM
  • Founded: 1957
  • Industry: Trading Companies and Distributors
  • Sector: Capital Goods
  • Implied Market Cap: UK£105.748m
  • Shares outstanding: 704.99m
  • 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


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/05/17 00:00
End of Day Share Price2022/05/17 00:00
Earnings2022/01/01
Annual Earnings2022/01/01


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.