HSS Hire Group (AIM:HSS) - Share price, News & Analysis

HSS fundamental analysis
Snowflake Score
Valuation	4/6
Future Growth	4/6
Past Performance	3/6
Financial Health	4/6
Dividends	0/6

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

Ashtead Group

LSE:AHT

UK£17.5b

United Rentals

NYSE:URI

US$20.3b

Price History & Performance

Summary of all time highs, changes and price drops for HSS Hire Group
Historical stock prices
Current Share Price	UK£0.15
52 Week High	UK£0.22
52 Week Low	UK£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

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

Shareholder Returns

	HSS	GB Trade Distributors	GB 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 Movement	5.4%
Trade Distributors Industry Average Movement	5.3%
Market Average Movement	6.1%
10% most volatile stocks in GB Market	11.8%
10% least volatile stocks in GB Market	3.2%

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

Founded	Employees	CEO	Website
1957	2,000	Steve Ashmore	https://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 Cap	UK£105.75m
Earnings (TTM)	UK£7.31m
Revenue (TTM)	UK£303.27m

14.5x

P/E Ratio

0.3x

P/S Ratio

Is HSS overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
HSS income statement (TTM)
Revenue	UK£303.27m
Cost of Revenue	UK£146.27m
Gross Profit	UK£157.00m
Other Expenses	UK£149.69m
Earnings	UK£7.31m

Last Reported Earnings

Jan 01, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	0.01
Gross Margin	51.77%
Net Profit Margin	2.41%
Debt/Equity Ratio	42.1%

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

Explore strong dividend paying companies in the Capital Goods industry.

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.

Data	Last Updated (UTC time)
Company Analysis	2022/05/17 00:00
End of Day Share Price	2022/05/17 00:00
Earnings	2022/01/01
Annual Earnings	2022/01/01