AIM:HAT

Stock Analysis Report

Executive Summary

H&T Group plc primarily provides pawn broking services in the United Kingdom.


Snowflake Analysis

Undervalued with solid track record 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's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-1.9%

HAT

6.7%

GB Consumer Finance

5.9%

GB Market


1 Year Return

-16.9%

HAT

-68.7%

GB Consumer Finance

-22.7%

GB Market

Return vs Industry: HAT exceeded the UK Consumer Finance industry which returned -65.7% over the past year.

Return vs Market: HAT exceeded the UK Market which returned -18.8% over the past year.


Shareholder returns

HATIndustryMarket
7 Day-1.9%6.7%5.9%
30 Day-21.2%-49.5%-23.1%
90 Day-18.2%-52.2%-28.1%
1 Year-14.1%-16.9%-67.3%-68.7%-18.6%-22.7%
3 Year-1.1%-10.3%-78.4%-84.5%-13.4%-24.7%
5 Year63.6%39.0%-78.0%-85.2%1.3%-22.0%

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?

46.7%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: HAT (£2.6) is trading below our estimate of fair value (£4.84)

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 (5.9x) compared to the Consumer Finance industry average (6x).

PE vs Market: HAT is good value based on its PE Ratio (5.9x) compared to the UK market (12.7x).


Price to Earnings Growth Ratio

PEG Ratio: HAT is good value based on its PEG Ratio (0.7x)


Price to Book Ratio

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


Next Steps

Future Growth

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

8.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: HAT's forecast earnings growth (8.2% per year) is above the savings rate (0.5%).

Earnings vs Market: HAT's earnings (8.2% per year) are forecast to grow slower than the UK market (15.4% per year).

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

Revenue vs Market: HAT's revenue (7.4% per year) is forecast to grow faster than the UK market (2.7% per year).

High Growth Revenue: HAT's revenue (7.4% 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 (13.9%).


Next Steps

Past Performance

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

23.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: HAT has high quality earnings.

Growing Profit Margin: HAT's current net profit margins (10.4%) are higher than last year (7.6%).


Past Earnings Growth Analysis

Earnings Trend: HAT's earnings have grown significantly by 23.4% per year over the past 5 years.

Accelerating Growth: HAT's earnings growth over the past year (54.1%) exceeds its 5-year average (23.4% per year).

Earnings vs Industry: HAT earnings growth over the past year (54.1%) exceeded the Consumer Finance industry 12.7%.


Return on Equity

High ROE: HAT's Return on Equity (13.6%) is considered low.


Next Steps

Financial Health

How is H&T Group's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

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

Debt Coverage by Assets: HAT's debt is covered by short term assets (assets are 5.2x debt).


Financial Institutions Analysis

Asset Level: HAT's level of assets compared to its equity is low.

Allowance for Bad Loans: Insufficient data to determine if HAT has a sufficient allowance for bad loans.

Low Risk Liabilities: HAT reports no customer deposits, loans are made up entirely of externally borrowed funds.

Loan Level: Insufficient data to determine if HAT has an acceptable proportion of non-loan assets held.

Low Risk Deposits: HAT has advanced significantly more loans than the customer deposits it holds.

Level of Bad Loans: Insufficient data to determine if HAT has an appropriate level of bad loans.


Next Steps

Dividend

What is H&T Group's current dividend yield, its reliability and sustainability?

4.50%

Current Dividend Yield


Upcoming Dividend Payment

TodayMar 29 2020Ex Dividend DateApr 30 2020Dividend Pay DateMay 29 202029 days from Ex DividendBuy in the next 32 days to receive the upcoming dividend

Dividend Yield vs Market

Notable Dividend: HAT's dividend (4.5%) is higher than the bottom 25% of dividend payers in the UK market (2.65%).

High Dividend: HAT's dividend (4.5%) is low compared to the top 25% of dividend payers in the UK market (7.27%).


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 (26.7%), 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 (35% payout ratio).


Next Steps

Management

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

1.8yrs

Average board tenure


CEO

John Nichols (68yo)

no data

Tenure

UK£330,442

Compensation

Mr. John G. Nichols serves as Chief Executive at H&T Group Plc and has been its Managing Director since 1997. Mr. Nichols had an early career in the RAF and entered the leisure industry with the Rank Organ ...


CEO Compensation Analysis

Compensation vs Market: John's total compensation ($USD401.09K) is about average for companies of similar size in the UK market ($USD330.32K).

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


Board Members

NamePositionTenureCompensationOwnership
John Nichols
CEO, MD & Executive Directorno dataUK£330.44k2.84% £2.9m
Richard Withers
CFO & Director0.17yrno datano data
Peter McNamara
Non-Executive Chairman11.42yrsUK£74.28k0.044% £45.1k
James Thornton
Senior Independent Directorno dataUK£41.58k0.013% £13.0k
Elaine Draper
Non-Executive Director1.83yrsUK£25.86k0.0025% £2.6k
Mark Smith
Non-Executive Director1.83yrsUK£25.86k0.0025% £2.6k

1.8yrs

Average Tenure

61yo

Average Age

Experienced Board: HAT's board of directors are not considered experienced ( 1.8 years average tenure), which suggests a new board.


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 been diluted in the past year, with total shares outstanding growing by 3.1%.


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£103.315m
  • Shares outstanding: 39.74m
  • Website: https://www.handt.co.uk

Number of Employees


Location

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

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
HATAIM (London Stock Exchange AIM Market)YesOrdinary SharesGBGBPMay 2006

Biography

H&T Group plc primarily provides pawn broking services in the United Kingdom. The company operates in six segments: Pawnbroking, Gold Purchasing, Retail, Pawnbroking Scrap, Personal Loans, and Other Services. It offers personal loans, as well as gold purchasing, jewelry retail, cheque cashing, unsecured lending, buyback, foreign exchange currency, and money transfer services. The company provides its products and services online and in-store. As of December 31, 2018, it operated 182 stores. The company was founded in 1897 and is headquartered in Sutton, the United Kingdom. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/03/28 21:31
End of Day Share Price2020/03/27 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


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.