Hargreaves Services (AIM:HSP) - Share price, News & Analysis

HSP fundamental analysis
Snowflake Score
Valuation	2/6
Future Growth	1/6
Past Performance	5/6
Financial Health	6/6
Dividends	2/6

HSP Stock Overview

Rewards

PE ratio (7.3x) is below the UK market (15.4x)

Revenue is forecast to grow 7.56% per year

Earnings grew by 2334.7% over the past year

Risk Analysis

Earnings are forecast to decline by an average of 14.6% per year for the next 3 years

Hargreaves Services Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Hargreaves Services
Historical stock prices
Current Share Price	UK£5.72
52 Week High	UK£6.22
52 Week Low	UK£3.54
Beta	0.99
1 Month Change	-3.05%
3 Month Change	9.58%
1 Year Change	53.35%
3 Year Change	136.36%
5 Year Change	69.17%
Change since IPO	107.25%

Recent News & Updates

May 11

Estimating The Fair Value Of Hargreaves Services Plc (LON:HSP)

Does the May share price for Hargreaves Services Plc ( LON:HSP ) reflect what it's really worth? Today, we will...

Shareholder Returns

	HSP	GB Oil and Gas	GB Market
7D	-1.0%	1.1%	-0.4%
1Y	53.4%	19.5%	-4.0%

Return vs Industry: HSP exceeded the UK Oil and Gas industry which returned 19.5% over the past year.

Return vs Market: HSP exceeded the UK Market which returned -4% over the past year.

Price Volatility

Is HSP's price volatile compared to industry and market?
HSP volatility
HSP Average Weekly Movement	7.5%
Oil and Gas Industry Average Movement	10.0%
Market Average Movement	6.2%
10% most volatile stocks in GB Market	11.6%
10% least volatile stocks in GB Market	3.2%

Stable Share Price: HSP is not significantly more volatile than the rest of UK stocks over the past 3 months, typically moving +/- 7% a week.

Volatility Over Time: HSP's weekly volatility (7%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1994	1,267	Gordon Frank Banham	https://www.hsgplc.co.uk

Hargreaves Services plc, together with its subsidiaries, provides materials handling and processing, mechanical and electrical contracting, logistics, and bulk earthmoving services for energy, environmental, infrastructure, and industrial sectors. It also engages in the production and distribution of solid fuels and kiln dried logs; provision of logistics services, which include a fleet of approximately 450 vehicles; technical, professional, and advisory services for a range of dormant site management topics, such as source material for land remediation, site restoration, geotechnical assessment, water and soil analysis, site inspections, planning and liaison services, and safety assessment; and soil and overburden stripping, load and haul, and geotechnical advice and quarry development consultancy services. In addition, the company offers earthmoving advisory and contracting services, which include soils stabilization and treatment services under the Geofirma brand name; develops brownfield site for residential and commercial purposes; industrial services, including outsourced bulk materials handling, mechanical and electrical maintenance, project engineering and mining, facilities management, scaffolding and safe access, and transmission and distribution services; and supplies raw materials for steel, foundry, smelting, non-ferroalloy, sugar, limestone, insulation, refractory, and ceramic industries.

Hargreaves Services Fundamentals Summary

How do Hargreaves Services's earnings and revenue compare to its market cap?
HSP fundamental statistics
Market Cap	UK£186.06m
Earnings (TTM)	UK£25.37m
Revenue (TTM)	UK£188.84m

7.3x

P/E Ratio

1.0x

P/S Ratio

Is HSP overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
HSP income statement (TTM)
Revenue	UK£188.84m
Cost of Revenue	UK£163.00m
Gross Profit	UK£25.84m
Other Expenses	UK£467.00k
Earnings	UK£25.37m

Last Reported Earnings

Nov 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)	0.78
Gross Margin	13.68%
Net Profit Margin	13.43%
Debt/Equity Ratio	0%

How did HSP perform over the long term?

See historical performance and comparison

Dividends

1.3%

Current Dividend Yield

9%

Payout Ratio

Valuation

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

Valuation Score

2/6

Valuation Score 2/6

Below Fair Value
Significantly Below Fair Value
PE vs Industry
PE vs Market
PEG Ratio
PB vs Industry

7.33x

Price to Earnings (PE) ratio

Share Price vs. Fair Value

Below Fair Value: HSP (£5.72) is trading above our estimate of fair value (£5.55)

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

Price To Earnings Ratio

PE vs Industry: HSP is good value based on its PE Ratio (7.3x) compared to the UK Oil and Gas industry average (10.1x).

PE vs Market: HSP is good value based on its PE Ratio (7.3x) compared to the UK market (15.4x).

Price to Earnings Growth Ratio

PEG Ratio: HSP's earnings are forecast to decline next year, so we can't calculate its PEG ratio.

Price to Book Ratio

PB vs Industry: HSP is overvalued based on its PB Ratio (1.2x) compared to the GB Oil and Gas industry average (1x).

Future Growth

How is Hargreaves Services forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

Future Growth Score

1/6

Future Growth Score 1/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

-14.6%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: HSP's earnings are forecast to decline over the next 3 years (-14.6% per year).

Earnings vs Market: HSP's earnings are forecast to decline over the next 3 years (-14.6% per year).

High Growth Earnings: HSP's earnings are forecast to decline over the next 3 years.

Revenue vs Market: HSP's revenue (7.6% per year) is forecast to grow faster than the UK market (4.1% per year).

High Growth Revenue: HSP's revenue (7.6% per year) is forecast to grow slower than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

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

Past Performance

How has Hargreaves Services performed over the past 5 years?

Past Performance Score

5/6

Past Performance Score 5/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

55.0%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: HSP has high quality earnings.

Growing Profit Margin: HSP's current net profit margins (13.4%) are higher than last year (0.5%).

Past Earnings Growth Analysis

Earnings Trend: HSP has become profitable over the past 5 years, growing earnings by 55% per year.

Accelerating Growth: HSP's earnings growth over the past year (2334.7%) exceeds its 5-year average (55% per year).

Earnings vs Industry: HSP earnings growth over the past year (2334.7%) exceeded the Oil and Gas industry 344.7%.

Return on Equity

High ROE: HSP's Return on Equity (17%) is considered low.

Financial Health

How is Hargreaves Services's financial position?

Financial Health Score

6/6

Financial Health Score 6/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: HSP's short term assets (£130.0M) exceed its short term liabilities (£61.9M).

Long Term Liabilities: HSP's short term assets (£130.0M) exceed its long term liabilities (£11.2M).

Debt to Equity History and Analysis

Debt Level: HSP is debt free.

Reducing Debt: HSP has no debt compared to 5 years ago when its debt to equity ratio was 41.9%.

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

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

Balance Sheet

Dividend

What is Hargreaves Services's current dividend yield, its reliability and sustainability?

Dividend Score

2/6

Dividend Score 2/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

1.28%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: HSP's dividend (1.28%) isn’t notable compared to the bottom 25% of dividend payers in the UK market (1.8%).

High Dividend: HSP's dividend (1.28%) is low compared to the top 25% of dividend payers in the UK market (4.86%).

Stability and Growth of Payments

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

Growing Dividend: HSP's dividend payments have fallen over the past 10 years.

Earnings Payout to Shareholders

Earnings Coverage: With its low payout ratio (9%), HSP's dividend payments are thoroughly covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: With its low cash payout ratio (10.3%), HSP's dividend payments are thoroughly covered by cash flows.

Discover strong dividend paying companies

Management

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

4.3yrs

Average management tenure

CEO

Gordon Frank Banham (57 yo)

20.58yrs

Tenure

UK£1,114,000

Compensation

Mr. Gordon Frank Colenso Banham serves as Group Chief Executive and Director at Hargreaves Services Plc since October 01, 2001. Mr. Banham was Managing Director of his family firm, F Banham Limited, until...

CEO Compensation Analysis

Compensation vs Market: Gordon Frank's total compensation ($USD1.39M) is above average for companies of similar size in the UK market ($USD667.45K).

Compensation vs Earnings: Gordon Frank's compensation has increased by more than 20% in the past year.

Leadership Team

Experienced Management: HSP's management team is considered experienced (4.3 years average tenure).

Board Members

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

Recent Insider Transactions

Ownership Breakdown

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

Data	Last Updated (UTC time)
Company Analysis	2022/05/22 00:00
End of Day Share Price	2022/05/20 00:00
Earnings	2021/11/30
Annual Earnings	2021/05/31