LSE:HWDN

Stock Analysis Report

Executive Summary

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.

Snowflake

Fundamentals

Flawless balance sheet with solid track record.


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 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

5.4%

HWDN

-0.7%

GB Trade Distributors

-0.2%

GB Market


1 Year Return

33.1%

HWDN

13.7%

GB Trade Distributors

4.7%

GB Market

Return vs Industry: HWDN exceeded the UK Trade Distributors industry which returned 13.7% over the past year.

Return vs Market: HWDN exceeded the UK Market which returned 4.7% over the past year.


Shareholder returns

HWDNIndustryMarket
7 Day5.4%-0.7%-0.2%
30 Day8.5%3.0%0.8%
90 Day13.8%6.3%3.7%
1 Year36.1%33.1%18.5%13.7%10.1%4.7%
3 Year82.9%70.4%43.8%30.4%20.9%5.6%
5 Year75.7%57.1%73.8%50.5%32.3%2.2%

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?

19.9%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: HWDN (£6.14) is trading below our estimate of fair value (£7.67)

Significantly Below Fair Value: HWDN is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: HWDN is poor value based on its PE Ratio (18.7x) compared to the Trade Distributors industry average (16.7x).

PE vs Market: HWDN is poor value based on its PE Ratio (18.7x) compared to the UK market (17.2x).


Price to Earnings Growth Ratio

PEG Ratio: HWDN is poor value based on its PEG Ratio (2.4x)


Price to Book Ratio

PB vs Industry: HWDN is overvalued based on its PB Ratio (6.7x) compared to the GB Trade Distributors industry average (1.7x).


Next Steps

Future Growth

How is Howden Joinery Group forecast to perform in the next 1 to 3 years based on estimates from 13 analysts?

7.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: HWDN's forecast earnings growth (7.8% per year) is above the savings rate (1.2%).

Earnings vs Market: HWDN's earnings (7.8% per year) are forecast to grow slower than the UK market (12.5% per year).

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

Revenue vs Market: HWDN's revenue (5.5% per year) is forecast to grow faster than the UK market (3.6% per year).

High Growth Revenue: HWDN's revenue (5.5% 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 (28.3%)


Next Steps

Past Performance

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

7.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: HWDN has high quality earnings.

Growing Profit Margin: HWDN's current net profit margins (12.8%) are higher than last year (12.7%).


Past Earnings Growth Analysis

Earnings Trend: HWDN's earnings have grown by 7.1% per year over the past 5 years.

Accelerating Growth: HWDN's earnings growth over the past year (5.5%) is below its 5-year average (7.1% per year).

Earnings vs Industry: HWDN earnings growth over the past year (5.5%) exceeded the Trade Distributors industry 3.4%.


Return on Equity

High ROE: HWDN's Return on Equity (35.7%) is considered high.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Howden Joinery Group's financial position?


Financial Position Analysis

Short Term Liabilities: HWDN's short term assets (£667.9M) exceeds its short term liabilities (£323.9M)

Long Term Liabilities: HWDN's short term assets (£667.9M) exceeds its long term liabilities (15.3M)


Debt to Equity History and Analysis

Debt Level: HWDN is debt free.

Reducing Debt: HWDN had no debt 5 years ago.

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

Inventory Level: HWDN has a high level of physical assets or inventory.

Debt Coverage by Assets: Insufficient data to determine if HWDN's debt is covered by short term assets.


Next Steps

Dividend

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

1.89%

Current Dividend Yield


Dividend Yield vs Market

company1.9%marketbottom25%2.0%markettop25%5.3%industryaverage2.4%forecastin3Years2.2%

Current dividend yield vs market & industry

Notable Dividend: HWDN's dividend (1.89%) isn’t notable compared to the bottom 25% of dividend payers in the UK market (1.97%).

High Dividend: HWDN's dividend (1.89%) is low compared to the top 25% of dividend payers in the UK market (5.33%).


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, HWDN has been paying a dividend for less than 10 years.

Growing Dividend: HWDN's dividend payments have increased, but the company has only paid a dividend for 8 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (36%), 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 (36.8% payout ratio).


Next Steps

Management

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

5.5yrs

Average management tenure


CEO

Andrew Livingston (51yo)

1.6yrs

Tenure

UK£2,613,724

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 ($USD3.37M) is above average for companies of similar size in the UK market ($USD2.32M).

Compensation vs Earnings: Insufficient data to compare Andrew's compensation with company performance.


Management Age and Tenure

5.5yrs

Average Tenure

Experienced Management: HWDN's management team is seasoned and experienced (5.5 years average tenure).


Board Age and Tenure

3.1yrs

Average Tenure

60yo

Average Age

Experienced Board: HWDN's board of directors are considered experienced (3.1 years average tenure).


Insider Trading

Insider Buying: HWDN insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellUK£2,038,78515 Nov 19
Andy Witts
EntityIndividual
Role
Senior Key Executive
Chief Operating Officer of Howden Joinery Trade Division
Shares350,000
Max PriceUK£5.83
SellUK£637,18211 Nov 19
Robert Fenwick
EntityIndividual
Role
Senior Key Executive
Chief Operating Officer of Howden Joinery Supply Division
Shares110,549
Max PriceUK£5.76
SellUK£190,12702 Aug 19
Theresa Keating
EntityIndividual
Role
Controller
Group Financial Controller & Finance Director
Shares35,000
Max PriceUK£5.43
BuyUK£16,60902 Apr 19
Gareth Hopkins
EntityIndividual
Role
Head of Human Resources
Interim Group Human Resources Director
Shares3,431
Max PriceUK£4.84
BuyUK£17,23902 Apr 19
Andy Witts
EntityIndividual
Role
Senior Key Executive
Chief Operating Officer of Howden Joinery Trade Division
Shares3,561
Max PriceUK£4.84
BuyUK£13,64202 Apr 19
Theresa Keating
EntityIndividual
Role
Controller
Group Financial Controller & Finance Director
Shares2,818
Max PriceUK£4.84
BuyUK£32,21702 Apr 19
Andrew Livingston
EntityIndividual
Role
Chief Executive Officer
CEO & Director
Shares6,655
Max PriceUK£4.84
BuyUK£27,81602 Apr 19
Mark P. Robson
EntityIndividual
Role
Member of the Board of Directors
CFO, Deputy CEO & Executive Director
Shares5,746
Max PriceUK£4.84
BuyUK£13,64202 Apr 19
Kevin Barrett
EntityIndividual
Shares2,818
Max PriceUK£4.84
BuyUK£17,23902 Apr 19
Robert Fenwick
EntityIndividual
Role
Senior Key Executive
Chief Operating Officer of Howden Joinery Supply Division
Shares3,561
Max PriceUK£4.84
BuyUK£13,00802 Apr 19
Clive Cockburn
EntityIndividual
Role
Chief Information Officer
Chief Information Officer
Shares2,687
Max PriceUK£4.84
BuyUK£10,08902 Apr 19
Andrew Gaulter
EntityIndividual
Shares2,084
Max PriceUK£4.84

Ownership Breakdown

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


Management Team

  • Mark P. Robson (60yo)

    CFO, Deputy CEO & Executive Director

    • Tenure: 14.6yrs
    • Compensation: UK£1.17m
  • Andrew Livingston (51yo)

    CEO & Director

    • Tenure: 1.6yrs
    • Compensation: UK£2.61m
  • Rob Fenwick

    Chief Operating Officer of Howden Joinery Supply Division

    • Tenure: 0yrs
  • Andy Witts

    Chief Operating Officer of Howden Joinery Trade Division

    • Tenure: 5.8yrs
  • Theresa Keating

    Group Financial Controller & Finance Director

    • Tenure: 12.8yrs
  • Forbes McNaughton

    Company Secretary

    • Tenure: 5.5yrs
  • Gareth Hopkins

    Interim Group Human Resources Director

    • Tenure: 4.6yrs
  • Clive Cockburn

    Chief Information Officer

    • Tenure: 3.8yrs
  • Paul Sharma

    Head of Investor Relations

    • Tenure: 0yrs
  • David Boyle

    Regional Manager

    • Tenure: 0yrs

Board Members

  • Geoff Drabble (60yo)

    Senior Independent Director

    • Tenure: 0.2yrs
  • Mark P. Robson (60yo)

    CFO, Deputy CEO & Executive Director

    • Tenure: 14.6yrs
    • Compensation: UK£1.17m
  • Richard Pennycook (55yo)

    Non Executive Chairman of the Board

    • Tenure: 3.5yrs
  • Mark Allen (60yo)

    Non Executive Director

    • Tenure: 8.5yrs
  • Andrew Cripps (62yo)

    Non Executive Director

    • Tenure: 3.9yrs
  • Andrew Livingston (51yo)

    CEO & Director

    • Tenure: 1.6yrs
    • Compensation: UK£2.61m
  • Louise Fowler

    Independent Non-Executive Director

    • Tenure: 0yrs
  • Karen Caddick (50yo)

    Non Executive Director

    • Tenure: 1.2yrs
  • Debbie White

    Non Executive Director

    • Tenure: 2.8yrs

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£3.676b
  • Shares outstanding: 598.65m
  • Website: https://www.howdenjoinerygroupplc.com

Number of Employees


Location

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

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
HWDNLSE (London Stock Exchange)YesOrdinary SharesGBGBPJul 1992
HWDJ.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJul 1992
10JDB (Deutsche Boerse AG)YesOrdinary SharesDEEURJul 1992
HWDNLBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBGBPJul 1992
HWDJ.YOTCPK (Pink Sheets LLC)UNSPONSORED ADRUSUSDDec 2012

Biography

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 offe ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/11/21 20:37
End of Day Share Price2019/11/21 00:00
Earnings2019/06/15
Annual Earnings2018/12/29


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.