HRN

HornbyAIM:HRN Stock Report

Market Cap

UK£68.4m

7D

-9.9%

1Y

22.4%

Updated

16 Sep, 2021

Data

Company Financials
HRN fundamental analysis
Snowflake Score
Valuation1/6
Future Growth0/6
Past Performance2/6
Financial Health6/6
Dividends0/6

HRN Overview

Hornby PLC, through its subsidiaries, engages in the design, development, production, and distribution of hobby and interactive products.

Price History & Performance

Summary of all time highs, changes and price drops for Hornby
Historical stock prices
Current Share PriceUK£0.41
52 Week HighUK£0.32
52 Week LowUK£0.73
Beta0.94
1 Month Change-3.53%
3 Month Change-21.15%
1 Year Change22.39%
3 Year Change8.75%
5 Year Change28.13%
Change since IPO-1.44%

Recent News & Updates

Sep 09
We Think Shareholders Will Probably Be Generous With Hornby PLC's (LON:HRN) CEO Compensation

We Think Shareholders Will Probably Be Generous With Hornby PLC's (LON:HRN) CEO Compensation

It would be hard to discount the role that CEO Lyndon Davies has played in delivering the impressive results at Hornby...

Jun 17
Investors Shouldn't Be Too Comfortable With Hornby's (LON:HRN) Robust Earnings

Investors Shouldn't Be Too Comfortable With Hornby's (LON:HRN) Robust Earnings

Hornby PLC ( LON:HRN ) announced strong profits, but the stock was stagnant. Our analysis suggests that this might be...

May 24
We're Hopeful That Hornby (LON:HRN) Will Use Its Cash Wisely

We're Hopeful That Hornby (LON:HRN) Will Use Its Cash Wisely

There's no doubt that money can be made by owning shares of unprofitable businesses. For example, although...

Shareholder Returns

HRNGB LeisureGB Market
7D-9.9%-3.3%-0.4%
1Y22.4%20.0%19.2%

Return vs Industry: HRN exceeded the UK Leisure industry which returned 20% over the past year.

Return vs Market: HRN exceeded the UK Market which returned 19.2% over the past year.

Price Volatility

Is HRN's price volatile compared to industry and market?
HRN volatility
HRN Beta0.94
Industry Beta1.12
Market Beta1

Stable Share Price: HRN is not significantly more volatile than the rest of UK stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: HRN's weekly volatility (5%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
1907193Lyndon Davieshttps://www.hornby.com

Hornby PLC, through its subsidiaries, engages in the design, development, production, and distribution of hobby and interactive products. It offers products under various categories, including train sets, locomotives, train packs, wagons and wagon packs, coaches and coach packs, parts and spares, power and control products, building accessory packs, track pieces and extension packs, tradition analogue control, digital command control, software products, people and animals products, and paints and weathering powders. The company sells its products through a network of retailers, wholesalers, and distributors, as well as website under the Hornby, SkaleAutos, SkaleScenics, Skaledale, Arnold, Jouef, Lima, Rivarossi, Bassett-Lowke, Pocher, Corgi, Corgi Premiums, and Electrotren brands.

Hornby Fundamentals Summary

How do Hornby's earnings and revenue compare to its market cap?
HRN fundamental statistics
Market CapUK£68.44m
Earnings (TTM)UK£1.36m
Revenue (TTM)UK£48.55m

50.2x

P/E Ratio

1.4x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
HRN income statement (TTM)
RevenueUK£48.55m
Cost of RevenueUK£26.80m
Gross ProfitUK£21.75m
ExpensesUK£20.39m
EarningsUK£1.36m

Last Reported Earnings

Mar 31, 2021

Next Earnings Date

n/a

Earnings per share (EPS)0.0082
Gross Margin44.81%
Net Profit Margin2.81%
Debt/Equity Ratio0%

How did HRN perform over the long term?

See historical performance and comparison

Valuation

Is Hornby undervalued compared to its fair value and its price relative to the market?

50.25x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: HRN (£0.41) is trading above our estimate of fair value (£0)

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


Price To Earnings Ratio

PE vs Industry: HRN is poor value based on its PE Ratio (50.2x) compared to the UK Leisure industry average (16.8x).

PE vs Market: HRN is poor value based on its PE Ratio (50.2x) compared to the UK market (23.8x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate HRN's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: HRN is good value based on its PB Ratio (1.8x) compared to the GB Leisure industry average (2.2x).


Future Growth

How is Hornby forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

14.1%

Forecasted Consumer Durables industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Hornby has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Past Performance

How has Hornby performed over the past 5 years?

41.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: HRN has a large one-off loss of £211.0K impacting its March 31 2021 financial results.

Growing Profit Margin: HRN became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: HRN has become profitable over the past 5 years, growing earnings by 41.3% per year.

Accelerating Growth: HRN has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: HRN has become profitable in the last year, making it difficult to compare its past year earnings growth to the Leisure industry (71%).


Return on Equity

High ROE: HRN's Return on Equity (3.6%) is considered low.


Financial Health

How is Hornby's financial position?


Financial Position Analysis

Short Term Liabilities: HRN's short term assets (£27.1M) exceed its short term liabilities (£8.0M).

Long Term Liabilities: HRN's short term assets (£27.1M) exceed its long term liabilities (£2.6M).


Debt to Equity History and Analysis

Debt Level: HRN is debt free.

Reducing Debt: HRN has no debt compared to 5 years ago when its debt to equity ratio was 24.3%.

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

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


Balance Sheet


Dividend

What is Hornby current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

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

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

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


Current Payout to Shareholders

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


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of HRN'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?

3.9yrs

Average management tenure


CEO

Lyndon Davies (60 yo)

3.92yrs

Tenure

UK£222,000

Compensation

Mr. Lyndon Charles Davies has been Chief Executive Officer and Executive Director of Hornby plc since October 5, 2017 and served as its Interim Chairman since 2018 until August 21, 2018. Mr. Davies is a hi...


CEO Compensation Analysis

Compensation vs Market: Lyndon's total compensation ($USD305.83K) is about average for companies of similar size in the UK market ($USD326.64K).

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


Leadership Team

Experienced Management: HRN's management team is considered experienced (3.9 years average tenure).


Board Members

Experienced Board: HRN's board of directors are considered experienced (3.4 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.


Ownership Breakdown

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


Top Shareholders

Company Information

Hornby PLC's employee growth, exchange listings and data sources


Key Information

  • Name: Hornby PLC
  • Ticker: HRN
  • Exchange: AIM
  • Founded: 1907
  • Industry: Leisure Products
  • Sector: Consumer Durables
  • Market Cap: UK£68.440m
  • Shares outstanding: 166.93m
  • Website: https://www.hornby.com

Number of Employees


Location

  • Hornby PLC
  • Westwood Industrial Estate
  • Enterprise Road
  • Margate
  • Kent
  • CT9 4JX
  • United Kingdom

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/09/16 17:40
End of Day Share Price2021/09/16 00:00
Earnings2021/03/31
Annual Earnings2021/03/31


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.