LSE:HWDN

Stock Analysis Report

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Market Cap

UK£5.5b

Last Updated

2021/08/04 21:41 UTC

Data Sources

Company Financials +

Executive Summary

Howden Joinery Group Plc operates as a trade kitchen supplier providing various products across kitchens, joinery, and hardware in the United Kingdom, Isle of Man, France, Belgium, the Netherlands, and Germany. More Details

Rewards

Earnings are forecast to grow 12.22% per year

Risk Analysis

No risks detected for HWDN from our risk checks.


Snowflake Analysis

Flawless balance sheet with moderate growth potential.


Similar Companies

Share Price & News

How has Howden Joinery Group's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: HWDN is less volatile than 75% of UK stocks over the past 3 months, typically moving +/- 3% a week.

Volatility Over Time: HWDN's weekly volatility (3%) has been stable over the past year.


Market Performance


7 Day Return

3.6%

HWDN

-1.4%

GB Trade Distributors

1.6%

GB Market


1 Year Return

81.8%

HWDN

60.1%

GB Trade Distributors

21.5%

GB Market

Return vs Industry: HWDN exceeded the UK Trade Distributors industry which returned 60.1% over the past year.

Return vs Market: HWDN exceeded the UK Market which returned 21.5% over the past year.


Shareholder returns

HWDNIndustryMarket
7 Day3.6%-1.4%1.6%
30 Day10.7%0.8%0.2%
90 Day16.2%9.3%1.9%
1 Year86.1%81.8%66.1%60.1%26.8%21.5%
3 Year110.1%99.0%76.4%63.5%13.9%1.4%
5 Year136.0%113.1%148.2%115.0%39.7%14.7%

Long-Term Price Volatility Vs. Market

How volatile is Howden Joinery Group's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Howden Joinery Group undervalued compared to its fair value and its price relative to the market?

37.29x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: HWDN (£9.29) is trading above our estimate of fair value (£5.63)

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


Price To Earnings Ratio

PE vs Industry: HWDN is poor value based on its PE Ratio (37.3x) compared to the UK Trade Distributors industry average (28.7x).

PE vs Market: HWDN is poor value based on its PE Ratio (37.3x) compared to the UK market (23.5x).


Price to Earnings Growth Ratio

PEG Ratio: HWDN is poor value based on its PEG Ratio (3.1x)


Price to Book Ratio

PB vs Industry: HWDN is overvalued based on its PB Ratio (7.7x) compared to the GB Trade Distributors industry average (2.1x).


Future Growth

How is Howden Joinery Group forecast to perform in the next 1 to 3 years based on estimates from 14 analysts?

12.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: HWDN's forecast earnings growth (12.2% per year) is above the savings rate (0.9%).

Earnings vs Market: HWDN's earnings (12.2% per year) are forecast to grow slower than the UK market (14.3% per year).

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

Revenue vs Market: HWDN's revenue (7.2% per year) is forecast to grow faster than the UK market (4.7% per year).

High Growth Revenue: HWDN's revenue (7.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: HWDN's Return on Equity is forecast to be high in 3 years time (26.7%)


Past Performance

How has Howden Joinery Group performed over the past 5 years?

-2.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: HWDN has high quality earnings.

Growing Profit Margin: HWDN's current net profit margins (9.5%) are lower than last year (13.2%).


Past Earnings Growth Analysis

Earnings Trend: HWDN's earnings have declined by 2.2% per year over the past 5 years.

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

Earnings vs Industry: HWDN had negative earnings growth (-29.4%) over the past year, making it difficult to compare to the Trade Distributors industry average (-18.9%).


Return on Equity

High ROE: HWDN's Return on Equity (20.5%) is considered high.


Financial Health

How is Howden Joinery Group's financial position?


Financial Position Analysis

Short Term Liabilities: HWDN's short term assets (£852.3M) exceed its short term liabilities (£392.6M).

Long Term Liabilities: HWDN's short term assets (£852.3M) exceed its long term liabilities (£573.8M).


Debt to Equity History and Analysis

Debt Level: HWDN is debt free.

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

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

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


Balance Sheet


Dividend

What is Howden Joinery Group current dividend yield, its reliability and sustainability?

0.92%

Current Dividend Yield


Upcoming Dividend Payment

TodayAug 05 2021Ex Dividend DateOct 14 2021Dividend Pay DateNov 19 202136 days from Ex DividendBuy in the next 70 days to receive the upcoming dividend

Dividend Yield vs Market

Notable Dividend: HWDN's dividend (0.93%) isn’t notable compared to the bottom 25% of dividend payers in the UK market (1.3%).

High Dividend: HWDN's dividend (0.93%) is low compared to the top 25% of dividend payers in the UK market (3.87%).


Stability and Growth of Payments

Stable Dividend: HWDN has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: HWDN's dividend payments have increased, but the company has only paid a dividend for 9 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (36.5%), HWDN's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: HWDN's dividends in 3 years are forecast to be well covered by earnings (36.9% payout ratio).


Next Steps

Management

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

5.6yrs

Average management tenure


CEO

Andrew Livingston (53 yo)

3.33yrs

Tenure

UK£816,000

Compensation

Mr. Andrew Livingston has been Director and Chief Executive Officer at Howden Joinery Group Plc since April 02, 2018. He served as the Chief Executive Officer at Screwfix Direct Ltd. since 2013. Mr. Living...


CEO Compensation Analysis

Compensation vs Market: Andrew's total compensation ($USD1.13M) is below average for companies of similar size in the UK market ($USD2.22M).

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


Leadership Team

Experienced Management: HWDN's management team is seasoned and experienced (5.6 years average tenure).


Board Members

Experienced Board: HWDN's board of directors are considered experienced (3.1 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.


Recent Insider Transactions

Ownership Breakdown

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


Top Shareholders

Company Information

Howden Joinery Group Plc's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Howden Joinery Group Plc
  • Ticker: HWDN
  • Exchange: LSE
  • Founded: 1987
  • Industry: Trading Companies and Distributors
  • Sector: Capital Goods
  • Market Cap: UK£5.462b
  • Shares outstanding: 596.70m
  • Website: https://www.howdenjoinerygroupplc.com

Number of Employees


Location

  • Howden Joinery Group Plc
  • 40 Portman Square
  • London
  • Greater London
  • W1H 6LT
  • United Kingdom

Listings


Biography

Howden Joinery Group Plc operates as a trade kitchen supplier providing various products across kitchens, joinery, and hardware in the United Kingdom, Isle of Man, France, Belgium, the Netherlands, and Ger...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/08/04 21:41
End of Day Share Price2021/08/04 00:00
Earnings2020/12/26
Annual Earnings2020/12/26


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.