Hargreaves Services
Market Cap
UK£96.2m
Last Updated
2020/02/20 21:10 UTC
Data Sources
Company Financials +
Executive Summary
Hargreaves Services plc, together with its subsidiaries, engages in the mining, sourcing, processing, blending, moving, and handling coal in the United Kingdom and internationally.
Rewards
Risk Analysis
Snowflake Analysis
Adequate balance sheet with moderate growth potential.
Share Price & News
How has Hargreaves Services's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: HSP has not had significant price volatility in the past 3 months.
Market Performance
7 Day Return
-1.7%
HSP
-0.09%
GB Oil and Gas
-0.4%
GB Market
1 Year Return
-2.0%
HSP
-5.2%
GB Oil and Gas
6.6%
GB Market
Return vs Industry: HSP exceeded the UK Oil and Gas industry which returned -6.1% over the past year.
Return vs Market: HSP underperformed the UK Market which returned 6.2% over the past year.
Shareholder returns
| HSP | Industry | Market | |
|---|---|---|---|
| 7 Day | -1.7% | -0.09% | -0.4% |
| 30 Day | -1.3% | -7.9% | -1.7% |
| 90 Day | 4.9% | -6.3% | 5.4% |
| 1 Year | 0.8%-2.0% | -0.3%-5.2% | 12.4%6.6% |
| 3 Year | 13.4%6.6% | 24.6%9.0% | 18.5%3.4% |
| 5 Year | -31.5%-40.4% | 42.4%14.3% | 35.8%4.7% |
Price Volatility Vs. Market
How volatile is Hargreaves Services's share price compared to the market and industry in the last 5 years?
Simply Wall St News
2 weeks ago | Simply Wall St
Does It Make Sense To Buy Hargreaves Services Plc (LON:HSP) For Its Yield?1 month ago | Simply Wall St
Imagine Owning Hargreaves Services (LON:HSP) While The Price Tanked 50%1 month ago | Simply Wall St
Is Hargreaves Services (LON:HSP) A Risky Investment?Valuation
Is Hargreaves Services undervalued compared to its fair value and its price relative to the market?
>50%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: HSP (£2.98) is trading below our estimate of fair value (£11.4)
Significantly Below Fair Value: HSP is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: HSP is poor value based on its PE Ratio (101.6x) compared to the Oil and Gas industry average (6.7x).
PE vs Market: HSP is poor value based on its PE Ratio (101.6x) compared to the UK market (18.5x).
Price to Earnings Growth Ratio
PEG Ratio: HSP is poor value based on its PEG Ratio (1.7x)
Price to Book Ratio
PB vs Industry: HSP is overvalued based on its PB Ratio (0.7x) compared to the GB Oil and Gas industry average (0.7x).
Next Steps
Future Growth
How is Hargreaves Services forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?
59.0%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: HSP's forecast earnings growth (59% per year) is above the savings rate (0.5%).
Earnings vs Market: HSP's earnings (59% per year) are forecast to grow faster than the UK market (12.2% per year).
High Growth Earnings: earnings are expected to grow significantly over the next 3 years.
Revenue vs Market: HSP's revenue is expected to decline over the next 3 years (-9% per year).
High Growth Revenue: HSP's revenue is forecast to decline over the next 3 years (-9% per year).
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: HSP's Return on Equity is forecast to be low in 3 years time (6.5%).
Next Steps
Past Performance
How has Hargreaves Services performed over the past 5 years?
-54.6%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: HSP has a large one-off loss of £3.5M impacting its November 30 2019 financial results.
Growing Profit Margin: HSP became profitable in the past.
Past Earnings Growth Analysis
Earnings Trend: HSP's earnings have declined by -54.6% per year over the past 5 years.
Accelerating Growth: HSP has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.
Earnings vs Industry: HSP has become profitable in the last year, making it difficult to compare its past year earnings growth to the Oil and Gas industry (24.4%).
Return on Equity
High ROE: HSP's Return on Equity (0.8%) is considered low.
Return on Assets
Return on Capital Employed
Next Steps
Financial Health
How is Hargreaves Services's financial position?
Financial Position Analysis
Short Term Liabilities: HSP's short term assets (£188.0M) exceed its short term liabilities (£79.7M).
Long Term Liabilities: HSP's short term assets (£188.0M) exceed its long term liabilities (£58.9M).
Debt to Equity History and Analysis
Debt Level: HSP's debt to equity ratio (38.2%) is considered satisfactory.
Reducing Debt: HSP's debt to equity ratio has increased from 29.7% to 38.2% over the past 5 years.
Debt Coverage: HSP's operating cash flow is negative, therefore debt is not well covered.
Interest Coverage: HSP's interest payments on its debt are well covered by EBIT (3.2x coverage).
Balance Sheet
Inventory Level: HSP has a high level of physical assets or inventory.
Debt Coverage by Assets: HSP's debt is covered by short term assets (assets are 3.8x debt).
Next Steps
Dividend
What is Hargreaves Services's current dividend yield, its reliability and sustainability?
2.42%
Current Dividend Yield
Upcoming Dividend Payment
Purchase Hargreaves Services before the 'Buy Limit' to receive their next dividend payment.
Dividend Yield vs Market
Current dividend yield vs market & industry
Notable Dividend: HSP's dividend (2.42%) is higher than the bottom 25% of dividend payers in the UK market (1.82%).
High Dividend: HSP's dividend (2.42%) is low compared to the top 25% of dividend payers in the UK market (5.15%).
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.
Current Payout to Shareholders
Dividend Coverage: With its high payout ratio (245.4%), HSP's dividend payments are not well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: HSP's dividends in 3 years are forecast to be covered by earnings (85.2% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
2.1yrs
Average management tenure
CEO
Gordon Frank Banham (55yo)
18.3yrs
Tenure
UK£641,000
Compensation
Mr. Gordon Frank Colenso Banham serves as Group Chief Executive and Director at Hargreaves Services Plc and joined it on October 01, 2001. Mr. Banham was Managing Director of his family firm, F Banham Limi ...
CEO Compensation Analysis
Compensation vs Market: Gordon Frank's total compensation ($USD829.81K) is above average for companies of similar size in the UK market ($USD325.33K).
Compensation vs Earnings: Gordon Frank's compensation has been consistent with company performance over the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Group Chief Executive & Director | 18.3yrs | UK£641.00k | 8.16% £7.8m | |
| Group Finance Director | 2.1yrs | UK£323.00k | no data | |
| Group Property Director & Director | 1.3yrs | UK£265.25k | 0.10% £97.7k | |
| Chief Operating Officer | 0yrs | no data | no data | |
| Managing Director of Industrial Services Division | 0yrs | no data | no data | |
| Managing Director of Production & Distribution Division | 2.1yrs | no data | no data | |
| Managing Director of Property Division | 0yrs | no data | no data | |
| Chief Executive Officer of Blackwell - Specialist Earthworks & Infrastructure Division | 0yrs | no data | no data | |
| Managing Director of Europe | 0yrs | no data | no data | |
| Managing Director of Hargreaves Carbon Products Nv - Energy & Commodities | 0yrs | no data | no data |
2.1yrs
Average Tenure
58.5yo
Average Age
Experienced Management: HSP's management team is considered experienced (2.1 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Group Chief Executive & Director | 18.3yrs | UK£641.00k | 8.16% £7.8m | |
| Group Finance Director | 2.1yrs | UK£323.00k | no data | |
| Group Property Director & Director | 1.3yrs | UK£265.25k | 0.10% £97.7k | |
| Non-Executive Chairman | 1.5yrs | UK£76.00k | 0.93% £894.0k | |
| Senior Independent Non-Executive Director | 0yrs | UK£43.00k | 0.015% £14.9k |
1.8yrs
Average Tenure
63yo
Average Age
Experienced Board: HSP'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 not been meaningfully diluted in the past year.
Top Shareholders
Company Information
Hargreaves Services Plc's company bio, employee growth, exchange listings and data sources
Key Information
- Name: Hargreaves Services Plc
- Ticker: HSP
- Exchange: AIM
- Founded: 1994
- Industry: Coal and Consumable Fuels
- Sector: Energy
- Market Cap: UK£96.151m
- Shares outstanding: 32.27m
- Website: https://www.hsgplc.co.uk
Number of Employees
Location
- Hargreaves Services Plc
- West Terrace
- Esh Winning
- Durham
- County Durham
- DH7 9PT
- United Kingdom
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| HSP | AIM (London Stock Exchange AIM Market) | Yes | Ordinary Shares | GB | GBP | Nov 2005 |
| HGRV.F | OTCPK (Pink Sheets LLC) | Yes | Ordinary Shares | US | USD | Nov 2005 |
Biography
Hargreaves Services plc, together with its subsidiaries, engages in the mining, sourcing, processing, blending, moving, and handling coal in the United Kingdom and internationally. It develops and operates surface coal mines; provides earthworks and mining services to various projects; offers underground mining services, such as mining consultancy, contract services, and project management; and provides solid fuels to the industrial and power generation markets. The company also offers specialist engineering contract services in the remediation, geotechnical, and large scale earthmoving areas; develops and realizes land and rents properties; provides bulk haulage and environmental waste disposal services; offers bulk materials handling, facilities management, and mechanical and electrical engineering services; and provides raw materials, such as fuels, ferroalloys, minerals, and pig iron. The company was founded in 1994 and is headquartered in Durham, the United Kingdom.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/02/20 21:10 |
| End of Day Share Price | 2020/02/20 00:00 |
| Earnings | 2019/11/30 |
| Annual Earnings | 2019/05/31 |
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.