AIM:HAT

Stock Analysis Report

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Market Cap

UK£108.8m

Last Updated

2021/06/18 03:47 UTC

Data Sources

Company Financials +

Executive Summary

H&T Group plc, together with its subsidiaries, primarily provides pawn broking services in the United Kingdom and internationally. More Details


Snowflake Analysis

Very undervalued with flawless balance sheet and pays a dividend.

Share Price & News

How has H&T Group's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: HAT is not significantly more volatile than the rest of UK stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: HAT's weekly volatility (4%) has been stable over the past year.


Market Performance


7 Day Return

1.1%

HAT

0.2%

GB Consumer Finance

0.1%

GB Market


1 Year Return

-16.1%

HAT

43.5%

GB Consumer Finance

18.7%

GB Market

Return vs Industry: HAT underperformed the UK Consumer Finance industry which returned 43.5% over the past year.

Return vs Market: HAT underperformed the UK Market which returned 18.7% over the past year.


Shareholder returns

HATIndustryMarket
7 Day1.1%0.2%0.1%
30 Day-4.9%11.7%1.4%
90 Day-7.5%24.9%7.2%
1 Year-13.6%-16.1%44.9%43.5%24.6%18.7%
3 Year-18.0%-24.2%-39.8%-44.3%14.5%1.3%
5 Year39.8%21.3%-73.9%-82.0%47.6%19.9%

Long-Term Price Volatility Vs. Market

How volatile is H&T Group's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is H&T Group undervalued compared to its fair value and its price relative to the market?

38.7%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: HAT (£2.73) is trading below our estimate of fair value (£4.45)

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


Price To Earnings Ratio

PE vs Industry: HAT is good value based on its PE Ratio (8.5x) compared to the UK Consumer Finance industry average (22.2x).

PE vs Market: HAT is good value based on its PE Ratio (8.5x) compared to the UK market (25.6x).


Price to Earnings Growth Ratio

PEG Ratio: HAT is good value based on its PEG Ratio (0.6x)


Price to Book Ratio

PB vs Industry: HAT is good value based on its PB Ratio (0.8x) compared to the GB Consumer Finance industry average (1.2x).


Future Growth

How is H&T Group forecast to perform in the next 1 to 3 years based on estimates from 3 analysts?

15.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: HAT's forecast earnings growth (15.3% per year) is above the savings rate (0.9%).

Earnings vs Market: HAT's earnings (15.3% per year) are forecast to grow slower than the UK market (17.4% per year).

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

Revenue vs Market: HAT's revenue (7.9% per year) is forecast to grow faster than the UK market (5.3% per year).

High Growth Revenue: HAT's revenue (7.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: HAT's Return on Equity is forecast to be low in 3 years time (9.6%).


Past Performance

How has H&T Group performed over the past 5 years?

18.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: HAT has high quality earnings.

Growing Profit Margin: HAT's current net profit margins (9.7%) are lower than last year (10.4%).


Past Earnings Growth Analysis

Earnings Trend: HAT's earnings have grown by 18.8% per year over the past 5 years.

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

Earnings vs Industry: HAT had negative earnings growth (-24.7%) over the past year, making it difficult to compare to the Consumer Finance industry average (-49.2%).


Return on Equity

High ROE: HAT's Return on Equity (9.3%) is considered low.


Financial Health

How is H&T Group's financial position?


Financial Position Analysis

Short Term Liabilities: HAT's short term assets (£117.8M) exceed its short term liabilities (£16.3M).

Long Term Liabilities: HAT's short term assets (£117.8M) exceed its long term liabilities (£18.7M).


Debt to Equity History and Analysis

Debt Level: HAT is debt free.

Reducing Debt: HAT has no debt compared to 5 years ago when its debt to equity ratio was 13.9%.

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

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


Balance Sheet


Dividend

What is H&T Group current dividend yield, its reliability and sustainability?

4.40%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: HAT's dividend (4.4%) is higher than the bottom 25% of dividend payers in the UK market (1.28%).

High Dividend: HAT's dividend (4.4%) is in the top 25% of dividend payers in the UK market (4.02%)


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (26.5%), HAT's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: HAT's dividends in 3 years are forecast to be well covered by earnings (38.5% payout ratio).


Next Steps

Management

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

0.4yrs

Average management tenure


CEO

Chris Gillespie (56 yo)

0.42

Tenure

Mr. Christopher Gillespie, also known as Chris, has been Chief Executive Officer and Director of H&T Group plc since January 1, 2021. Mr. Gillespie had been Managing Director of Consumer Credit Division & ...


Leadership Team

Experienced Management: HAT's management team is not considered experienced ( 0.4 years average tenure), which suggests a new team.


Board Members

Experienced Board: HAT's board of directors are considered experienced (3.1 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

H&T Group plc's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: H&T Group plc
  • Ticker: HAT
  • Exchange: AIM
  • Founded: 1897
  • Industry: Consumer Finance
  • Sector: Diversified Financials
  • Market Cap: UK£108.829m
  • Shares outstanding: 39.86m
  • Website: https://www.handt.co.uk

Number of Employees


Location

  • H&T Group plc
  • Times House
  • Throwley Way
  • Sutton
  • Greater London
  • SM1 4AF
  • United Kingdom

Listings


Biography

H&T Group plc, together with its subsidiaries, primarily provides pawn broking services in the United Kingdom and internationally. The company operates through six segments: Pawnbroking, Gold Purchasing, R...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/06/18 03:47
End of Day Share Price2021/06/17 00:00
Earnings2020/12/31
Annual Earnings2020/12/31


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.