LSE:HWDN

Stock Analysis Report

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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. More Details

Rewards

Earnings are forecast to grow 25.26% per year

Risk Analysis

No risks detected for HWDN from our risk checks.


Snowflake Analysis

Flawless balance sheet with high 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 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

3.3%

HWDN

2.2%

GB Trade Distributors

0.1%

GB Market


1 Year Return

4.1%

HWDN

11.8%

GB Trade Distributors

-14.0%

GB Market

Return vs Industry: HWDN underperformed the UK Trade Distributors industry which returned 12.5% over the past year.

Return vs Market: HWDN exceeded the UK Market which returned -13.8% over the past year.


Shareholder returns

HWDNIndustryMarket
7 Day3.3%2.2%0.1%
30 Day8.0%1.9%0.2%
90 Day1.7%8.1%-1.8%
1 Year4.8%4.1%13.4%11.8%-10.6%-14.0%
3 Year47.7%39.9%34.1%24.3%-4.5%-16.0%
5 Year31.9%19.5%71.7%51.3%22.5%-4.8%

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?

25.49x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: HWDN (£5.86) is trading above our estimate of fair value (£5.49)

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 (25.5x) compared to the GB Trade Distributors industry average (18.2x).

PE vs Market: HWDN is poor value based on its PE Ratio (25.5x) compared to the UK market (17.7x).


Price to Earnings Growth Ratio

PEG Ratio: HWDN is poor value based on its PEG Ratio (1x)


Price to Book Ratio

PB vs Industry: HWDN is overvalued based on its PB Ratio (5.9x) compared to the GB Trade Distributors industry average (1.4x).


Next Steps

Future Growth

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

25.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: HWDN's forecast earnings growth (25.3% per year) is above the savings rate (1.2%).

Earnings vs Market: HWDN's earnings (25.3% per year) are forecast to grow faster than the UK market (23.9% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: HWDN's revenue (8.2% per year) is forecast to grow faster than the UK market (6.3% per year).

High Growth Revenue: HWDN's revenue (8.2% 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 (23.3%)


Next Steps

Past Performance

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

1.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: HWDN has high quality earnings.

Growing Profit Margin: HWDN's current net profit margins (9.8%) are lower than last year (12.8%).


Past Earnings Growth Analysis

Earnings Trend: HWDN's earnings have grown by 1.4% 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 (-31%) over the past year, making it difficult to compare to the Trade Distributors industry average (-11.9%).


Return on Equity

High ROE: HWDN's Return on Equity (23.2%) is considered high.


Next Steps

Financial Health

How is Howden Joinery Group's financial position?


Financial Position Analysis

Short Term Liabilities: HWDN's short term assets (£649.0M) exceed its short term liabilities (£301.6M).

Long Term Liabilities: HWDN's short term assets (£649.0M) exceed its long term liabilities (£535.1M).


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


Next Steps

Dividend

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

1.57%

Forecast Dividend Yield


Dividend Yield vs Market

Notable Dividend: Unable to evaluate HWDN's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate HWDN'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 HWDN's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if HWDN's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: HWDN is not paying a notable dividend for the UK market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of HWDN's dividend in 3 years as they are not forecast to pay a notable one for the UK market.


Next Steps

Management

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

6.3yrs

Average management tenure


CEO

Andrew Livingston (52 yo)

2.42yrs

Tenure

UK£1,392,000

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 ($USD1.80M) is about average for companies of similar size in the UK market ($USD2.43M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Andrew Livingston
CEO & Director2.42yrsUK£1.39m0.028%
£ 968.2k
Mark P. Robson
CFO, Deputy CEO & Executive Director15.42yrsUK£1.35m0.033%
£ 1.1m
Clive Cockburn
Chief Information Officer4.67yrsno data0.0044%
£ 152.8k
Guy Stainer
Head of Investor Relationsno datano datano data
Gareth Hopkins
Interim Group Human Resources Director5.42yrsno data0.0030%
£ 103.5k
Robert Fenwick
Chief Governance Officerno datano data0.0038%
£ 134.3k
Andy Witts
Chief Operating Officer of Howden Joinery Trade Division6.67yrsno data0.087%
£ 3.0m
Theresa Keating
Group Financial Controller & Finance Director13.67yrsno data0.034%
£ 1.2m
Forbes McNaughton
Company Secretary6.33yrsno datano data
David Boyle
Regional Managerno datano datano data

6.3yrs

Average Tenure

Experienced Management: HWDN's management team is seasoned and experienced (6.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Andrew Livingston
CEO & Director2.42yrsUK£1.39m0.028%
£ 968.2k
Mark P. Robson
CFO, Deputy CEO & Executive Director15.42yrsUK£1.35m0.033%
£ 1.1m
Geoffrey Drabble
Senior Independent Director1yrUK£58.00k0.00050%
£ 17.5k
Richard Pennycook
Independent Non-Executive Chairman4.33yrsUK£260.00k0.0092%
£ 319.9k
Andrew Cripps
Independent Non-Executive Director4.75yrsUK£65.00k0.00050%
£ 17.5k
Louise Fowler
Independent Non-Executive Director0.83yrUK£9.00k0.000080%
£ 2.8k
Karen Caddick
Independent Non-Executive Director2yrsUK£61.00k0.0010%
£ 35.0k
Debra White
Independent Non-Executive Director3.58yrsUK£55.00k0.00076%
£ 26.6k

3.0yrs

Average Tenure

58.5yo

Average Age

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


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£3.497b
  • Shares outstanding: 597.09m
  • 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 Analysis2020/09/20 04:17
End of Day Share Price2020/09/18 00:00
Earnings2020/06/13
Annual Earnings2019/12/28


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.