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Howden Joinery Group

LSE:HWDN
Snowflake Description

Flawless balance sheet with acceptable track record.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
HWDN
LSE
£3B
Market Cap
  1. Home
  2. GB
  3. Capital Goods
Company description

Howden Joinery Group Plc engages in the manufacture, sourcing, sale, and distribution of kitchens and joinery products in the United Kingdom, France, Belgium, the Netherlands, and Germany. The last earnings update was 80 days ago. More info.


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HWDN Share Price and Events
7 Day Returns
-0.8%
LSE:HWDN
1.1%
GB Trade Distributors
0.4%
GB Market
1 Year Returns
-5.6%
LSE:HWDN
-8.3%
GB Trade Distributors
-3.7%
GB Market
HWDN Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Howden Joinery Group (HWDN) -0.8% -4.9% -0.9% -5.6% 5.7% 72%
GB Trade Distributors 1.1% -0.3% -0.9% -8.3% 29.1% 50.3%
GB Market 0.4% 1% 1.6% -3.7% 19% 3.4%
1 Year Return vs Industry and Market
  • HWDN outperformed the Trade Distributors industry which returned -8.3% over the past year.
  • HWDN underperformed the Market in United Kingdom of Great Britain and Northern Ireland which returned -3.7% over the past year.
Price Volatility
HWDN
Industry
5yr Volatility vs Market

HWDN Value

 Is Howden Joinery Group undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Howden Joinery Group to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Howden Joinery Group.

LSE:HWDN Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 12 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 7.5%
Perpetual Growth Rate 10-Year GB Government Bond Rate 1.2%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for LSE:HWDN
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year GB Govt Bond Rate 1.2%
Equity Risk Premium S&P Global 6.7%
Trade Distributors Unlevered Beta Simply Wall St/ S&P Global 0.92
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.915 (1 + (1- 19%) (0%))
0.943
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.94
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 1.23% + (0.943 * 6.65%)
7.5%

Discounted Cash Flow Calculation for LSE:HWDN using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Howden Joinery Group is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

LSE:HWDN DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (GBP, Millions) Source Present Value
Discounted (@ 7.5%)
2019 175.37 Analyst x3 163.13
2020 171.93 Analyst x3 148.78
2021 192.27 Analyst x3 154.77
2022 199.29 Est @ 3.65% 149.23
2023 205.12 Est @ 2.92% 142.88
2024 210.07 Est @ 2.42% 136.12
2025 214.40 Est @ 2.06% 129.23
2026 218.28 Est @ 1.81% 122.39
2027 221.84 Est @ 1.63% 115.71
2028 225.20 Est @ 1.51% 109.26
Present value of next 10 years cash flows £1,371.49
LSE:HWDN DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= £225.20 × (1 + 1.23%) ÷ (7.5% – 1.23%)
£3,633.96
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= £3,633.96 ÷ (1 + 7.5%)10
£1,763.15
LSE:HWDN Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= £1,371.49 + £1,763.15
£3,134.64
Equity Value per Share
(GBP)
= Total value / Shares Outstanding
= £3,134.64 / 600.30
£5.22
LSE:HWDN Discount to Share Price
Calculation Result
Value per share (GBP) From above. £5.22
Current discount Discount to share price of £4.99
= -1 x (£4.99 - £5.22) / £5.22
4.4%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Howden Joinery Group is available for.
Intrinsic value
4%
Share price is £4.99 vs Future cash flow value of £5.22
Current Discount Checks
For Howden Joinery Group to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Howden Joinery Group's share price is below the future cash flow value, but not at a moderate discount (< 20%).
  • Howden Joinery Group's share price is below the future cash flow value, but not at a substantial discount (< 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Howden Joinery Group's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Howden Joinery Group's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
LSE:HWDN PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-12-29) in GBP £0.31
LSE:HWDN Share Price ** LSE (2019-06-14) in GBP £4.99
United Kingdom of Great Britain and Northern Ireland Trade Distributors Industry PE Ratio Median Figure of 17 Publicly-Listed Trade Distributors Companies 16.1x
United Kingdom of Great Britain and Northern Ireland Market PE Ratio Median Figure of 789 Publicly-Listed Companies 16.17x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Howden Joinery Group.

LSE:HWDN PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= LSE:HWDN Share Price ÷ EPS (both in GBP)

= 4.99 ÷ 0.31

15.95x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Howden Joinery Group is good value based on earnings compared to the GB Trade Distributors industry average.
  • Howden Joinery Group is good value based on earnings compared to the United Kingdom of Great Britain and Northern Ireland market.
Price based on expected Growth
Does Howden Joinery Group's expected growth come at a high price?
Raw Data
LSE:HWDN PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 15.95x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 12 Analysts
6%per year
United Kingdom of Great Britain and Northern Ireland Trade Distributors Industry PEG Ratio Median Figure of 10 Publicly-Listed Trade Distributors Companies 2.26x
United Kingdom of Great Britain and Northern Ireland Market PEG Ratio Median Figure of 576 Publicly-Listed Companies 1.48x

*Line of best fit is calculated by linear regression .

LSE:HWDN PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 15.95x ÷ 6%

2.68x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Howden Joinery Group is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Howden Joinery Group's assets?
Raw Data
LSE:HWDN PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-12-29) in GBP £0.93
LSE:HWDN Share Price * LSE (2019-06-14) in GBP £4.99
United Kingdom of Great Britain and Northern Ireland Trade Distributors Industry PB Ratio Median Figure of 20 Publicly-Listed Trade Distributors Companies 1.89x
United Kingdom of Great Britain and Northern Ireland Market PB Ratio Median Figure of 1,371 Publicly-Listed Companies 1.48x
LSE:HWDN PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= LSE:HWDN Share Price ÷ Book Value per Share (both in GBP)

= 4.99 ÷ 0.93

5.36x

* Primary Listing of Howden Joinery Group.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Howden Joinery Group is overvalued based on assets compared to the GB Trade Distributors industry average.
X
Value checks
We assess Howden Joinery Group's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Trade Distributors industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Trade Distributors industry average (and greater than 0)? (1 check)
  5. Howden Joinery Group has a total score of 2/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

HWDN Future Performance

 How is Howden Joinery Group expected to perform in the next 1 to 3 years based on estimates from 12 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
6%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Howden Joinery Group expected to grow at an attractive rate?
  • Howden Joinery Group's earnings growth is expected to exceed the low risk savings rate of 1.2%.
Growth vs Market Checks
  • Howden Joinery Group's earnings growth is positive but not above the United Kingdom of Great Britain and Northern Ireland market average.
  • Howden Joinery Group's revenue growth is expected to exceed the United Kingdom of Great Britain and Northern Ireland market average.
Annual Growth Rates Comparison
Raw Data
LSE:HWDN Future Growth Rates Data Sources
Data Point Source Value (per year)
LSE:HWDN Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 12 Analysts 6%
LSE:HWDN Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 12 Analysts 5.6%
United Kingdom of Great Britain and Northern Ireland Trade Distributors Industry Earnings Growth Rate Market Cap Weighted Average 9.4%
United Kingdom of Great Britain and Northern Ireland Trade Distributors Industry Revenue Growth Rate Market Cap Weighted Average 5.1%
United Kingdom of Great Britain and Northern Ireland Market Earnings Growth Rate Market Cap Weighted Average 10.7%
United Kingdom of Great Britain and Northern Ireland Market Revenue Growth Rate Market Cap Weighted Average 5%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
LSE:HWDN Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (5 months ago) See Below
Future Estimates Average of up to 12 Analyst Estimates (S&P Global) See Below
All numbers in GBP Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
LSE:HWDN Future Estimates Data
Date (Data in GBP Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2022-12-31 1,894 244 1
2021-12-31 1,798 257 228 9
2020-12-31 1,704 238 214 12
2019-12-31 1,605 233 201 12
2018-12-31 1,524 174 193 10
LSE:HWDN Past Financials Data
Date (Data in GBP Millions) Revenue Cash Flow Net Income *
2018-12-29 1,511 163 190
2018-09-29 1,491 173 189
2018-06-16 1,470 183 187
2018-03-16 1,437 180 186
2017-12-30 1,404 177 185
2017-09-30 1,368 184 182
2017-06-10 1,331 192 180
2017-03-10 1,319 199 183
2016-12-24 1,307 207 186
2016-09-24 1,287 191 186
2016-06-11 1,267 174 187
2016-03-11 1,243 166 181

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Howden Joinery Group's earnings are expected to grow by 6% yearly, however this is not considered high growth (20% yearly).
  • Howden Joinery Group's revenue is expected to grow by 5.6% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
LSE:HWDN Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (5 months ago) See Below
Future Estimates Average of up to 12 Analyst Estimates (S&P Global) See Below

All data from Howden Joinery Group Company Filings, last reported 5 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

LSE:HWDN Future Estimates Data
Date (Data in GBP Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2022-12-31
2021-12-31 0.39 0.41 0.36 4.00
2020-12-31 0.36 0.37 0.34 5.00
2019-12-31 0.34 0.34 0.33 5.00
2018-12-31 0.32 0.33 0.30 6.00
LSE:HWDN Past Financials Data
Date (Data in GBP Millions) EPS *
2018-12-29 0.31
2018-09-29 0.31
2018-06-16 0.31
2018-03-16 0.30
2017-12-30 0.30
2017-09-30 0.29
2017-06-10 0.29
2017-03-10 0.29
2016-12-24 0.29
2016-09-24 0.29
2016-06-11 0.29
2016-03-11 0.28

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Howden Joinery Group is expected to efficiently use shareholders’ funds in the future (Return on Equity greater than 20%).
X
Future performance checks
We assess Howden Joinery Group's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United Kingdom of Great Britain and Northern Ireland market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United Kingdom of Great Britain and Northern Ireland market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Howden Joinery Group has a total score of 3/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

HWDN Past Performance

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

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Howden Joinery Group's growth in the last year to its industry (Trade Distributors).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Howden Joinery Group's year on year earnings growth rate has been positive over the past 5 years.
  • Howden Joinery Group's 1-year earnings growth is less than its 5-year average (2.9% vs 10.2%)
  • Howden Joinery Group's earnings growth has not exceeded the GB Trade Distributors industry average in the past year (2.9% vs 9.4%).
Earnings and Revenue History
Howden Joinery Group's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Howden Joinery Group Company Filings, last reported 5 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

LSE:HWDN Past Revenue, Cash Flow and Net Income Data
Date (Data in GBP Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-12-29 1,511.30 190.40 694.40
2018-09-29 1,490.75 188.90 686.35
2018-06-16 1,470.20 187.40 678.30
2018-03-16 1,437.00 186.20 667.35
2017-12-30 1,403.80 185.00 656.40
2017-09-30 1,367.60 182.45 641.05
2017-06-10 1,331.40 179.90 625.70
2017-03-10 1,319.35 182.75 614.70
2016-12-24 1,307.30 185.60 603.70
2016-09-24 1,286.90 186.40 594.55
2016-06-11 1,266.50 187.20 585.40
2016-03-11 1,243.35 181.30 576.00
2015-12-26 1,220.20 175.40 566.60
2015-09-26 1,179.10 163.90 551.40
2015-06-13 1,138.00 152.40 536.20
2015-03-13 1,114.40 150.55 521.20
2014-12-27 1,090.80 148.70 506.20
2014-09-27 1,045.95 130.80 490.45
2014-06-14 1,001.10 112.90 474.70
2014-03-14 978.80 105.10 464.95
2013-12-28 956.50 97.30 455.20
2013-09-28 934.90 95.95 446.45
2013-06-15 913.30 94.60 437.70
2013-03-15 900.20 91.30 435.25
2012-12-29 887.10 88.00 432.80

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Howden Joinery Group has efficiently used shareholders’ funds last year (Return on Equity greater than 20%).
  • Howden Joinery Group used its assets more efficiently than the GB Trade Distributors industry average last year based on Return on Assets.
  • Howden Joinery Group's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Howden Joinery Group's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Trade Distributors industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Howden Joinery Group has a total score of 3/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

HWDN Health

 How is Howden Joinery Group's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Howden Joinery Group's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Howden Joinery Group is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Howden Joinery Group's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Howden Joinery Group's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Howden Joinery Group has no debt, it does not need to be covered by short term assets.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Howden Joinery Group Company Filings, last reported 5 months ago.

LSE:HWDN Past Debt and Equity Data
Date (Data in GBP Millions) Total Equity Total Debt Cash & Short Term Investments
2018-12-29 567.10 0.00 231.30
2018-09-29 567.10 0.00 231.30
2018-06-16 475.60 0.00 213.30
2018-03-16 475.60 0.00 213.30
2017-12-30 454.20 0.00 241.10
2017-09-30 454.20 0.00 241.10
2017-06-10 373.90 0.00 215.10
2017-03-10 373.90 0.00 215.10
2016-12-24 397.00 0.00 226.60
2016-09-24 397.00 0.00 226.60
2016-06-11 349.80 0.00 182.70
2016-03-11 349.80 0.00 182.70
2015-12-26 421.70 0.00 226.10
2015-09-26 421.70 0.00 226.10
2015-06-13 335.20 0.00 222.70
2015-03-13 335.20 0.00 222.70
2014-12-27 294.90 0.10 216.90
2014-09-27 294.90 0.10 216.90
2014-06-14 266.60 0.10 160.00
2014-03-14 266.60 0.10 160.00
2013-12-28 261.70 0.20 139.70
2013-09-28 261.70 0.20 139.70
2013-06-15 170.70 0.90 101.70
2013-03-15 170.70 0.90 101.70
2012-12-29 112.80 1.30 96.70
  • Howden Joinery Group has no debt.
  • Howden Joinery Group has no debt compared to 5 years ago when it was 0.1%.
  • Howden Joinery Group has no debt, it does not need to be covered by operating cash flow.
  • Howden Joinery Group has no debt, therefore coverage of interest payments is not a concern.
X
Financial health checks
We assess Howden Joinery Group's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Howden Joinery Group has a total score of 6/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

HWDN Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
2.32%
Current annual income from Howden Joinery Group dividends. Estimated to be 2.66% next year.
If you bought £2,000 of Howden Joinery Group shares you are expected to receive £46 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Howden Joinery Group's pays a higher dividend yield than the bottom 25% of dividend payers in United Kingdom of Great Britain and Northern Ireland (1.97%).
  • Howden Joinery Group's dividend is below the markets top 25% of dividend payers in United Kingdom of Great Britain and Northern Ireland (5.43%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
LSE:HWDN Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 12 Analyst Estimates (S&P Global) See Below
United Kingdom of Great Britain and Northern Ireland Trade Distributors Industry Average Dividend Yield Market Cap Weighted Average of 18 Stocks 2.5%
United Kingdom of Great Britain and Northern Ireland Market Average Dividend Yield Market Cap Weighted Average of 705 Stocks 4.3%
United Kingdom of Great Britain and Northern Ireland Minimum Threshold Dividend Yield 10th Percentile 1.1%
United Kingdom of Great Britain and Northern Ireland Bottom 25% Dividend Yield 25th Percentile 2%
United Kingdom of Great Britain and Northern Ireland Top 25% Dividend Yield 75th Percentile 5.4%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

LSE:HWDN Future Dividends Estimate Data
Date (Data in £) Dividend per Share (annual) Avg. No. Analysts
2022-12-31 0.15 1.00
2021-12-31 0.14 10.00
2020-12-31 0.13 13.00
2019-12-31 0.12 13.00
2018-12-31 0.12 11.00
LSE:HWDN Past Annualized Dividends Data
Date (Data in £) Dividend per share (annual) Avg. Yield (%)
2019-02-27 0.116 2.295
2018-05-02 0.111 2.300
2017-03-22 0.107 2.407
2016-05-05 0.099 2.393
2015-05-06 0.084 1.714
2014-04-04 0.055 1.496
2014-02-27 0.055 1.452
2013-02-28 0.030 1.065
2012-07-19 0.006 0.370
2012-04-10 0.005 0.416
2012-03-01 0.005 0.399
2009-07-22 0.000 0.000

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Whilst dividend payments have been stable, Howden Joinery Group has been paying a dividend for less than 10 years.
  • Dividend payments have increased, but Howden Joinery Group only paid a dividend in the past 7 years.
Current Payout to shareholders
What portion of Howden Joinery Group's earnings are paid to the shareholders as a dividend.
  • Dividends paid are well covered by earnings (2.7x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be well covered by earnings (2.7x coverage).
X
Income/ dividend checks
We assess Howden Joinery Group's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.1%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Howden Joinery Group afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Howden Joinery Group has a total score of 3/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

HWDN Management

 What is the CEO of Howden Joinery Group's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Andrew Livingston
COMPENSATION £2,613,724
AGE 50
TENURE AS CEO 1.2 years
CEO Bio

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. Livingston previously served as the Commercial and Ecommerce Director at Screwfix from 2009 to 2013. Before joining Screwfix, he served as the Commercial Director of Wyevale Garden Centres PLC since March 1, 2006 until 2008 and then Chief Operating Officer from 2008 to 2009. He served as a Management Consultant with CSC Index. He has worked previously at Marks & Spencer and B&Q where he was Showroom Commercial Director from 2000 to 2005. He is a Director at Vedoneire Limited. He served as Commercial Director and Executive Director of The Garden Centre Group Trading Limited since March 2006. He served as an Executive Director of Wyevale Garden Centres PLC since March 1, 2006. He has been an Independent Non-Executive Director at LondonMetric Property Plc since May 31, 2016. Mr. Livingston holds a Masters degree in Business Administration from London Business School.

CEO Compensation
  • Insufficient data for Andrew to compare compensation growth.
  • Andrew's remuneration is about average for companies of similar size in United Kingdom of Great Britain and Northern Ireland.
Management Team Tenure

Average tenure of the Howden Joinery Group management team in years:

5.1
Average Tenure
  • The average tenure for the Howden Joinery Group management team is over 5 years, this suggests they are a seasoned and experienced team.
Management Team

Andrew Livingston

TITLE
CEO & Director
COMPENSATION
£3M
AGE
50
TENURE
1.2 yrs

Mark P. Robson

TITLE
CFO, Deputy CEO & Executive Director
COMPENSATION
£1M
AGE
59
TENURE
14.2 yrs

Clive Cockburn

TITLE
Chief Information Officer
TENURE
3.4 yrs

Paul Sharma

TITLE
Head of Investor Relations

Gareth Hopkins

TITLE
Interim Group Human Resources Director
TENURE
4.2 yrs

Rob Fenwick

TITLE
Chief Operating Officer of Howden Joinery Supply Division

Andy Witts

TITLE
Chief Operating Officer of Howden Joinery Trade Division
TENURE
5.4 yrs

Theresa Keating

TITLE
Group Financial Controller & Finance Director
TENURE
12.4 yrs

Forbes McNaughton

TITLE
Company Secretary
TENURE
5.1 yrs

David Boyle

TITLE
Regional Manager
Board of Directors Tenure

Average tenure and age of the Howden Joinery Group board of directors in years:

3.3
Average Tenure
59
Average Age
  • The tenure for the Howden Joinery Group board of directors is about average.
Board of Directors

Richard Pennycook

TITLE
Non Executive Chairman of the Board
AGE
54
TENURE
3.1 yrs

Andrew Livingston

TITLE
CEO & Director
COMPENSATION
£3M
AGE
50
TENURE
1.2 yrs

Mark P. Robson

TITLE
CFO, Deputy CEO & Executive Director
COMPENSATION
£1M
AGE
59
TENURE
14.2 yrs

Tiffany Hall

TITLE
Senior Independent Non Executive Director
TENURE
2.2 yrs

Andrew Cripps

TITLE
Non Executive Director
AGE
61
TENURE
3.5 yrs

Karen Caddick

TITLE
Non Executive Director
AGE
49

Mark Allen

TITLE
Non Executive Director
AGE
59
TENURE
8.1 yrs

Geoff Drabble

TITLE
Non Executive Director
AGE
59
TENURE
3.9 yrs

Debbie White

TITLE
Non Executive Director
TENURE
2.3 yrs
Who owns this company?
Recent Insider Trading
  • More shares have been bought than sold by Howden Joinery Group insiders in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (£) Value (£)
02. Apr 19 Buy Andrew Gaulter Individual 26. Mar 19 26. Mar 19 2,084 £4.84 £10,089
02. Apr 19 Buy Clive Cockburn Individual 26. Mar 19 26. Mar 19 2,687 £4.84 £13,008
02. Apr 19 Buy Gareth Hopkins Individual 26. Mar 19 26. Mar 19 3,431 £4.84 £16,609
02. Apr 19 Buy Theresa Keating Individual 26. Mar 19 26. Mar 19 2,818 £4.84 £13,642
02. Apr 19 Buy Andy Witts Individual 26. Mar 19 26. Mar 19 3,561 £4.84 £17,239
02. Apr 19 Buy Robert Fenwick Individual 26. Mar 19 26. Mar 19 3,561 £4.84 £17,239
02. Apr 19 Buy Kevin Barrett Individual 26. Mar 19 26. Mar 19 2,818 £4.84 £13,642
02. Apr 19 Buy Andrew Livingston Individual 26. Mar 19 26. Mar 19 6,655 £4.84 £32,217
02. Apr 19 Buy Mark P. Robson Individual 26. Mar 19 26. Mar 19 5,746 £4.84 £27,816
19. Nov 18 Buy Karen Caddick Individual 16. Nov 18 16. Nov 18 3,000 £4.62 £13,861
06. Aug 18 Sell Robert Fenwick Individual 06. Aug 18 06. Aug 18 -70,000 £4.65 £-325,423
X
Management checks
We assess Howden Joinery Group's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Howden Joinery Group has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

HWDN News

Simply Wall St News

Interested In Howden Joinery Group Plc (LON:HWDN)? Here's What Its Recent Performance Looks Like

After reading Howden Joinery Group Plc's (LON:HWDN) latest earnings update (29 December 2018), I found it beneficial to look back at how the company has performed in the past and compare this against the most recent numbers. … View our latest analysis for Howden Joinery Group How Well Did HWDN Perform? … You should continue to research Howden Joinery Group to get a more holistic view of the stock by looking at: Future Outlook: What are well-informed industry analysts predicting for HWDN’s future growth?

Simply Wall St -

Why You Should Like Howden Joinery Group Plc’s (LON:HWDN) ROCE

To be precise, we'll consider its Return On Capital Employed (ROCE), as that will inform our view of the quality of the business. … Return On Capital Employed (ROCE): What is it? … Analysts use this formula to calculate return on capital employed:

Simply Wall St -

Should You Be Excited About Howden Joinery Group Plc's (LON:HWDN) 34% Return On Equity?

Howden Joinery Group has a ROE of 34%, based on the last twelve months. … One way to conceptualize this, is that for each £1 of shareholders' equity it has, the company made £0.34 in profit. … View our latest analysis for Howden Joinery Group?

Simply Wall St -

Howden Joinery Group Plc (LON:HWDN): Will The Growth Last?

Based on Howden Joinery Group Plc's (LON:HWDN) earnings update on 29 December 2018, … with earnings expected to grow by 6.0% in the upcoming year … the higher past 5-year average growth rate of 10%.

Simply Wall St -

Is Howden Joinery Group Plc's (LON:HWDN) Liquidity Good Enough?

Small-cap and large-cap companies receive a lot of attention from investors, but mid-cap stocks like Howden Joinery Group Plc (LON:HWDN), with a market cap of UK£3.1b, are often out of the spotlight. … However, generally ignored mid-caps have historically delivered better risk adjusted returns than both of those groups. … Check out our latest analysis for Howden Joinery Group

Simply Wall St -

Has Howden Joinery Group Plc (LON:HWDN) Improved Earnings Growth In Recent Times?

Below, I will assess HWDN's recent performance announced on 29 December 2018 and compare these figures to its historical trend and industry movements. … HWDN's trailing twelve-month earnings (from 29 December 2018) of UK£190m has? … However, this one-year growth rate has been lower than its average earnings growth rate over the past 5 years of 10%, indicating the rate at which HWDN is growing has slowed down

Simply Wall St -

Is Howden Joinery Group Plc’s (LON:HWDN) Cash Outlook Optimistic?

Two important questions to ask before you buy Howden Joinery Group Plc (LON:HWDN) is, how it makes money and how it spends its cash. … I’ve analysed below, the health and outlook of Howden Joinery Group’s cash flow, which will help you understand the stock from a cash standpoint. … Free cash flow (FCF) is the amount of cash Howden Joinery Group has left after it pays off its expenses, including its net capital expenditures, which is what the company needs to spend each year to maintain or grow its business operations.

Simply Wall St -

Need To Know: Howden Joinery Group Plc (LON:HWDN) Insiders Have Been Selling Shares

So shareholders might well want to know whether insiders have been buying or selling shares in Howden Joinery Group Plc (LON:HWDN). … The Last 12 Months Of Insider Transactions At Howden Joinery Group. … Over the last year, we can see that the biggest insider sale was by Chief Operating Officer of Howden Joinery Trade Division Andy Witts for UK£1.0m worth of shares, at about UK£5.11 per share

Simply Wall St -

Here's What Howden Joinery Group Plc's (LON:HWDN) ROCE Can Tell Us

In particular, we'll consider its Return On Capital Employed (ROCE), as that can give us insight into how profitably the company is able to employ capital in its business. … Return On Capital Employed (ROCE): What is it? … ROCE is a metric for evaluating how much pre-tax income (in percentage terms) a company earns on the capital invested in its business.

Simply Wall St -

A Closer Look At Howden Joinery Group Plc's (LON:HWDN) Impressive ROE

Howden Joinery Group has a ROE of 39%, based on the last twelve months. … That means that for every £1 worth of shareholders' equity, it generated £0.39 in profit. … View our latest analysis for Howden Joinery Group?

Simply Wall St -

HWDN Company Info

Description

Howden Joinery Group Plc engages in the manufacture, sourcing, sale, and distribution of kitchens and joinery products in the United Kingdom, France, Belgium, the Netherlands, and Germany. The company offers kitchen cabinets, doors and worktops, breakfast bars, ovens, dishwashers, fridge-freezers, built-under fridges, frontals, sinks, taps, flooring, hardware products, lighting products, joinery doors, and skirting and architrave products. It serves trade professionals, owner-occupiers, private landlords, local authorities, housing trusts, and small developers. As of December 31, 2018, the company operated 694 depots. The company was formerly known as Galiform Plc and changed its name to Howden Joinery Group Plc in September 2010. Howden Joinery Group Plc was incorporated in 1987 and is headquartered in London, the United Kingdom.

Details
Name: Howden Joinery Group Plc
HWDN
Exchange: LSE
Founded: 1987
£2,996,088,720
600,298,281
Website: http://www.howdenjoinerygroupplc.com
Address: Howden Joinery Group Plc
40 Portman Square,
London,
Greater London, W1H 6LT,
United Kingdom
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
LSE HWDN Ordinary Shares London Stock Exchange GB GBP 17. Jul 1992
OTCPK HWDJ.F Ordinary Shares Pink Sheets LLC US USD 17. Jul 1992
DB 10J Ordinary Shares Deutsche Boerse AG DE EUR 17. Jul 1992
BATS-CHIXE HWDNL Ordinary Shares BATS 'Chi-X Europe' GB GBP 17. Jul 1992
OTCPK HWDJ.Y UNSPONSORED ADR Pink Sheets LLC US USD 11. Dec 2012
Number of employees
Current staff
Staff numbers
9,500
Howden Joinery Group employees.
Industry
Trading Companies and Distributors
Capital Goods
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/06/15 20:39
End of day share price update: 2019/06/14 00:00
Last estimates confirmation: 2019/06/13
Last earnings filing: 2019/03/27
Last earnings reported: 2018/12/29
Last annual earnings reported: 2018/12/29


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.