James Halstead plc

AIM:JHD Stock Report

Market Cap: UK£808.6m

James Halstead Valuation

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

Valuation Score

2/6

Valuation Score 2/6

  • 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 JHD when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: JHD (£1.94) is trading above our estimate of fair value (£1.92)

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

Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for JHD. This is calculated by dividing JHD's market cap by their current earnings.
What is JHD's PE Ratio?
PE Ratio19.5x
EarningsUK£41.52m
Market CapUK£808.57m

Price to Earnings Ratio vs Peers

How does JHD's PE Ratio compare to its peers?

The above table shows the PE ratio for JHD vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average23.4x
GEN Genuit Group
44.1x32.6%UK£1.0b
FAN Volution Group
26x12.1%UK£1.1b
NXR Norcros
8.9x-1.2%UK£239.7m
ECEL Eurocell
14.8x22.3%UK£185.1m
JHD James Halstead
19.5x4.1%UK£825.2m

Price-To-Earnings vs Peers: JHD is good value based on its Price-To-Earnings Ratio (19.5x) compared to the peer average (23.4x).

Price to Earnings Ratio vs Industry

How does JHD's PE Ratio compare vs other companies in the European Building Industry?

1 CompanyPrice / EarningsEstimated GrowthMarket Cap
JHD 19.5xIndustry Avg. 20.0xNo. of Companies13PE01224364860+
1 CompanyEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: JHD is good value based on its Price-To-Earnings Ratio (19.5x) compared to the European Building industry average (19.9x).

Price to Earnings Ratio vs Fair Ratio

What is JHD'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.

JHD PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio19.5x
Fair PE Ratio14.3x

Price-To-Earnings vs Fair Ratio: JHD is expensive based on its Price-To-Earnings Ratio (19.5x) compared to the estimated Fair Price-To-Earnings Ratio (14.3x).

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 JHD forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUK£1.94
UK£3.00
+54.6%
6.7%UK£3.20UK£2.80n/a2
Nov ’25UK£1.96
UK£3.00
+53.1%
6.7%UK£3.20UK£2.80n/a2
Oct ’25UK£1.84
UK£3.00
+63.0%
6.7%UK£3.20UK£2.80n/a2
Sep ’25UK£1.80
UK£3.00
+66.7%
6.7%UK£3.20UK£2.80n/a2
Aug ’25UK£1.91
UK£2.93
+53.6%
6.4%UK£3.20UK£2.80n/a3
Jul ’25UK£1.80
UK£3.00
+66.7%
6.7%UK£3.20UK£2.80n/a2
Jun ’25UK£1.91
UK£3.00
+57.1%
6.7%UK£3.20UK£2.80n/a2
May ’25UK£2.04
UK£3.00
+47.1%
6.7%UK£3.20UK£2.80n/a2
Apr ’25UK£2.01
UK£3.00
+49.3%
6.7%UK£3.20UK£2.80n/a2
Mar ’25UK£1.95
UK£3.00
+53.8%
6.7%UK£3.20UK£2.80n/a2
Feb ’25UK£1.99
UK£3.00
+51.1%
6.7%UK£3.20UK£2.80n/a2
Jan ’25UK£2.04
UK£3.00
+47.1%
6.7%UK£3.20UK£2.80n/a2
Dec ’24UK£2.03
UK£3.00
+47.8%
6.7%UK£3.20UK£2.80n/a2
Nov ’24UK£1.93
UK£3.00
+55.8%
6.7%UK£3.20UK£2.80UK£1.962
Oct ’24UK£2.07
UK£3.00
+44.9%
6.7%UK£3.20UK£2.80UK£1.842
Sep ’24UK£1.98
UK£3.00
+51.5%
6.7%UK£3.20UK£2.80UK£1.802
Aug ’24UK£2.10
UK£3.00
+42.9%
6.7%UK£3.20UK£2.80UK£1.912
Jul ’24UK£2.11
UK£3.00
+42.2%
6.7%UK£3.20UK£2.80UK£1.802
Jun ’24UK£2.15
UK£3.00
+39.5%
6.7%UK£3.20UK£2.80UK£1.912
May ’24UK£2.08
UK£3.00
+44.2%
6.7%UK£3.20UK£2.80UK£2.042
Apr ’24UK£1.83
UK£3.00
+63.9%
6.7%UK£3.20UK£2.80UK£2.012
Mar ’24UK£1.98
UK£3.00
+51.3%
6.7%UK£3.20UK£2.80UK£1.952
Feb ’24UK£1.84
UK£3.00
+63.0%
6.7%UK£3.20UK£2.80UK£1.992
Jan ’24UK£1.88
UK£3.00
+59.6%
6.7%UK£3.20UK£2.80UK£2.042
Dec ’23UK£1.94
UK£3.00
+54.6%
6.7%UK£3.20UK£2.80UK£2.032
Nov ’23UK£1.93
UK£3.00
+55.4%
6.7%UK£3.20UK£2.80UK£1.932

Analyst Forecast: Target price is more than 20% higher than the current share price, but there are not enough analysts covering the stock to determine statistical confidence in agreement.

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