Hill & Smith PLC

LSE:HILS Stock Report

Market Cap: UK£1.7b

Hill & Smith Valuation

Is HILS undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

0/6

Valuation Score 0/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of HILS when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: HILS (£21.6) is trading above our estimate of fair value (£18.07)

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

Key Valuation Metric

Which metric is best to use when looking at relative valuation for HILS?

Key metric: As HILS is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for HILS. This is calculated by dividing HILS's market cap by their current earnings.
What is HILS's PE Ratio?
PE Ratio22.6x
EarningsUK£76.80m
Market CapUK£1.74b

Price to Earnings Ratio vs Peers

How does HILS's PE Ratio compare to its peers?

The above table shows the PE ratio for HILS vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average5.3x
NLMK Novolipetsk Steel
0.8xn/aUS$4.1b
EVR EVRAZ
0.4xn/aUK£1.2b
ECOR Ecora Resources
10.2x14.9%UK£161.0m
CGS Castings
9.6x-0.1%UK£115.6m
HILS Hill & Smith
22.6x10.5%UK£1.7b

Price-To-Earnings vs Peers: HILS is expensive based on its Price-To-Earnings Ratio (22.6x) compared to the peer average (9.9x).

Price to Earnings Ratio vs Industry

How does HILS's PE Ratio compare vs other companies in the GB Metals and Mining Industry?

7 CompaniesPrice / EarningsEstimated GrowthMarket Cap
ENPL En+ Group International
2.2x8.0%US$4.67b
NLMK Novolipetsk Steel
0.8xn/aUS$4.08b
EVR EVRAZ
0.4xn/aUS$1.42b
MTL Metals Exploration
0.9x-60.3%US$120.92m
HILS 22.6xIndustry Avg. 9.9xNo. of Companies7PE01020304050+
7 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: HILS is expensive based on its Price-To-Earnings Ratio (22.6x) compared to the UK Metals and Mining industry average (9.9x).

Price to Earnings Ratio vs Fair Ratio

What is HILS's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

HILS PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio22.6x
Fair PE Ratio14.4x

Price-To-Earnings vs Fair Ratio: HILS is expensive based on its Price-To-Earnings Ratio (22.6x) compared to the estimated Fair Price-To-Earnings Ratio (14.4x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst HILS forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUK£21.60
UK£24.12
+11.7%
6.2%UK£26.25UK£22.00n/a8
Nov ’25UK£20.60
UK£24.12
+17.1%
6.2%UK£26.25UK£22.00n/a8
Oct ’25UK£20.20
UK£23.98
+18.7%
6.8%UK£26.25UK£22.00n/a8
Sep ’25UK£21.45
UK£23.81
+11.0%
5.8%UK£26.00UK£22.00n/a7
Aug ’25UK£22.65
UK£23.41
+3.4%
4.3%UK£25.00UK£22.00n/a7
Jul ’25UK£19.38
UK£23.31
+20.3%
5.0%UK£25.00UK£21.40n/a7
Jun ’25UK£20.40
UK£23.29
+14.1%
5.0%UK£25.00UK£21.40n/a7
May ’25UK£18.92
UK£21.81
+15.3%
5.7%UK£23.20UK£19.40n/a7
Apr ’25UK£19.56
UK£21.81
+11.5%
5.7%UK£23.20UK£19.40n/a7
Mar ’25UK£18.34
UK£21.24
+15.8%
5.0%UK£22.80UK£19.40n/a7
Feb ’25UK£18.86
UK£21.24
+12.6%
5.0%UK£22.80UK£19.40n/a7
Jan ’25UK£19.08
UK£20.49
+7.4%
3.2%UK£21.00UK£19.10n/a6
Dec ’24UK£18.30
UK£20.49
+12.0%
3.2%UK£21.00UK£19.10n/a6
Nov ’24UK£16.72
UK£19.83
+18.6%
3.4%UK£20.80UK£19.00UK£20.606
Oct ’24UK£17.22
UK£19.26
+11.8%
5.2%UK£20.80UK£17.70UK£20.206
Sep ’24UK£17.92
UK£19.26
+7.5%
5.2%UK£20.80UK£17.70UK£21.456
Aug ’24UK£15.74
UK£17.03
+8.2%
5.7%UK£18.00UK£15.40UK£22.656
Jul ’24UK£15.02
UK£16.51
+9.9%
5.3%UK£18.00UK£15.40UK£19.385
Jun ’24UK£14.70
UK£16.31
+11.0%
3.5%UK£17.00UK£15.40UK£20.405
May ’24UK£13.76
UK£15.68
+14.0%
2.9%UK£16.10UK£14.90UK£18.925
Apr ’24UK£13.42
UK£15.48
+15.4%
2.9%UK£16.00UK£14.90UK£19.565
Mar ’24UK£13.94
UK£14.90
+6.9%
6.2%UK£16.00UK£13.00UK£18.346
Feb ’24UK£12.54
UK£14.67
+17.0%
6.4%UK£16.00UK£13.00UK£18.866
Jan ’24UK£11.72
UK£14.48
+23.6%
6.6%UK£16.00UK£13.00UK£19.086
Dec ’23UK£11.86
UK£14.48
+22.1%
6.6%UK£16.00UK£13.00UK£18.306
Nov ’23UK£10.02
UK£14.90
+48.7%
4.4%UK£16.00UK£14.00UK£16.725

Analyst Forecast: Target price is less than 20% higher than the current share price.

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