LSE:BOOT

Stock Analysis Report

Executive Summary

Henry Boot PLC invests in, develops, and trades in properties in the United Kingdom.


Snowflake Analysis

Undervalued with excellent balance sheet and pays a dividend.


Similar Companies

Share Price & News

How has Henry Boot's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: BOOT has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-1.5%

BOOT

1.0%

GB Consumer Durables

0.3%

GB Market


1 Year Return

24.0%

BOOT

38.8%

GB Consumer Durables

6.5%

GB Market

Return vs Industry: BOOT underperformed the UK Consumer Durables industry which returned 38.8% over the past year.

Return vs Market: BOOT exceeded the UK Market which returned 6.4% over the past year.


Shareholder returns

BOOTIndustryMarket
7 Day-1.5%1.0%0.3%
30 Day-1.5%6.0%-0.5%
90 Day21.0%27.6%3.8%
1 Year28.7%24.0%48.8%38.8%12.0%6.5%
3 Year58.3%44.3%87.2%56.2%18.7%3.8%
5 Year78.0%53.3%140.1%80.3%35.0%4.1%

Price Volatility Vs. Market

How volatile is Henry Boot's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

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

41.3%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: BOOT (£3.28) is trading below our estimate of fair value (£5.58)

Significantly Below Fair Value: BOOT is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: BOOT is good value based on its PE Ratio (12.3x) compared to the Consumer Durables industry average (13.3x).

PE vs Market: BOOT is good value based on its PE Ratio (12.3x) compared to the UK market (18.6x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: BOOT is good value based on its PB Ratio (1.4x) compared to the GB Consumer Durables industry average (1.8x).


Next Steps

Future Growth

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

-8.1%

Forecasted annual revenue growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: Insufficient data to determine if BOOT's forecast earnings growth is above the savings rate (0.5%).

Earnings vs Market: Insufficient data to determine if BOOT's earnings are forecast to grow faster than the UK market

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

Revenue vs Market: BOOT's revenue is expected to decline over the next 3 years (-8.1% per year).

High Growth Revenue: BOOT's revenue is forecast to decline over the next 3 years (-8.1% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if BOOT's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Henry Boot performed over the past 5 years?

17.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: BOOT has high quality earnings.

Growing Profit Margin: BOOT's current net profit margins (9.1%) are lower than last year (11.2%).


Past Earnings Growth Analysis

Earnings Trend: BOOT's earnings have grown by 17% per year over the past 5 years.

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

Earnings vs Industry: BOOT had negative earnings growth (-22.5%) over the past year, making it difficult to compare to the Consumer Durables industry average (3.1%).


Return on Equity

High ROE: BOOT's Return on Equity (12.3%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Henry Boot's financial position?


Financial Position Analysis

Short Term Liabilities: BOOT's short term assets (£343.9M) exceed its short term liabilities (£138.7M).

Long Term Liabilities: BOOT's short term assets (£343.9M) exceed its long term liabilities (£26.2M).


Debt to Equity History and Analysis

Debt Level: BOOT's debt to equity ratio (16.9%) is considered satisfactory.

Reducing Debt: BOOT's debt to equity ratio has reduced from 19.4% to 16.9% over the past 5 years.

Debt Coverage: BOOT's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: BOOT's interest payments on its debt are well covered by EBIT (45.8x coverage).


Balance Sheet

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

Debt Coverage by Assets: BOOT's debt is covered by short term assets (assets are 6.5x debt).


Next Steps

Dividend

What is Henry Boot's current dividend yield, its reliability and sustainability?

2.74%

Current Dividend Yield


Dividend Yield vs Market

company2.7%marketbottom25%1.8%markettop25%5.1%industryaverage4.8%forecastin3Years3.4%

Current dividend yield vs market & industry

Notable Dividend: BOOT's dividend (2.74%) is higher than the bottom 25% of dividend payers in the UK market (1.8%).

High Dividend: BOOT's dividend (2.74%) is low compared to the top 25% of dividend payers in the UK market (5.1%).


Stability and Growth of Payments

Stable Dividend: BOOT's dividend payments have been volatile in the past 10 years.

Growing Dividend: BOOT's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (35.5%), BOOT's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: BOOT's dividends in 3 years are forecast to be well covered by earnings (37.6% payout ratio).


Next Steps

Management

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

10.1yrs

Average management tenure


CEO

Tim Roberts (54yo)

0.08yrs

Tenure

0

Mr. Timothy A. Roberts, also known as Tim, B.Sc., MRICS is the Chief Executive Officer at Henry Boot PLC since January 1, 2020. Mr. Roberts served as the Head of Offices at The British Land Company PLC unt ...


Leadership Team

NamePositionTenureCompensationOwnership
Darren Littlewood
Group Finance Director & Executive Director4.1yrsUK£607.00k0.12% £500.3k
John Sutcliffe
Advisor & Executive Director13.3yrsUK£1.26m0.62% £2.7m
Timothy Roberts
Chief Executive Officer0.08yrsno datano data
Richard Grafton
Head of Policy & Compliance0yrsno datano data
Amy Oakley
Head of Legal and Commercial & Company Secretary0yrsno datano data
Rachel White
Head of Human Resources0yrsno datano data
Giles Boot
Managing Director of Banner Plant Limited20.1yrsno datano data
David Anderson
Managing Director of Henry Boot Developments Limited14.6yrsno datano data
Simon Carr
Managing Director of Henry Boot Construction Limited10.4yrsno datano data
Darren Stubbs
Managing Director of Stonebridge Homes Limited10.1yrsno datano data

10.1yrs

Average Tenure

56.5yo

Average Age

Experienced Management: BOOT's management team is seasoned and experienced (10.1 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Darren Littlewood
Group Finance Director & Executive Director4.1yrsUK£607.00k0.12% £500.3k
John Sutcliffe
Advisor & Executive Director13.3yrsUK£1.26m0.62% £2.7m
Edward Boot
Chairman of the Board4.1yrsUK£85.00k4.85% £21.1m
Jonathan Sykes
Non-Independent Non-Executive Director8.9yrsUK£45.00k15.64% £68.0m
Joanne Lake
Deputy Chairman4.1yrsUK£45.00k0.0081% £35.1k
Peter Mawson
Senior Independent Non-Executive Director4.1yrsUK£45.00k0.0075% £32.8k
Gerald Jennings
Independent Non-Executive Director4.3yrsUK£45.00k0.0088% £38.2k

4.1yrs

Average Tenure

57yo

Average Age

Experienced Board: BOOT's board of directors are considered experienced (4.1 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: BOOT insiders have only sold shares 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

Henry Boot PLC's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Henry Boot PLC
  • Ticker: BOOT
  • Exchange: LSE
  • Founded: 1886
  • Industry: Homebuilding
  • Sector: Consumer Durables
  • Market Cap: UK£435.044m
  • Shares outstanding: 132.64m
  • Website: https://www.henryboot.co.uk

Number of Employees


Location

  • Henry Boot PLC
  • Banner Cross Hall
  • Ecclesall Road South
  • Sheffield
  • South Yorkshire
  • S11 9PD
  • United Kingdom

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
BOOTLSE (London Stock Exchange)YesOrdinary SharesGBGBPMay 1992
0KHBST (Boerse-Stuttgart)YesOrdinary SharesDEEURMay 1992

Biography

Henry Boot PLC invests in, develops, and trades in properties in the United Kingdom. It operates through Property Investment and Development, Land Promotion, and Construction segments. The company develops commercial properties and family homes. It is also involved in acquiring, promoting, developing, and trading in land. In addition, the company engages in the construction and civil engineering activities; the sale and hire of construction equipment; and the operation and maintenance of A69 trunk road between Carlisle and Newcastle upon Tyne. As of December 31, 2017, it had land interests in 13,273 acres. Henry Boot PLC was founded in 1886 and is headquartered in Sheffield, the United Kingdom. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/23 20:50
End of Day Share Price2020/02/21 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.