LSE:HSTN

Stock Analysis Report

Executive Summary

As of February 6, 2020, Hansteen Holdings PLC was taken private.

Rewards

Trading at 7% below its fair value

Risk Analysis

Earnings are forecast to decline by an average of -12.7% per year for the next 3 years

Dividend of 5.34% is not well covered by earnings

Large one-off items impacting financial results

Profit margins are lower than last year



Snowflake Analysis

Average dividend payer and fair value.


Similar Companies

Share Price & News

How has Hansteen Holdings's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: HSTN has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-0.3%

HSTN

0.3%

GB REITs

-0.4%

GB Market


1 Year Return

27.8%

HSTN

15.1%

GB REITs

6.6%

GB Market

Return vs Industry: HSTN exceeded the UK REITs industry which returned 11.6% over the past year.

Return vs Market: HSTN exceeded the UK Market which returned 8.4% over the past year.


Shareholder returns

HSTNIndustryMarket
7 Day-0.3%0.3%-0.4%
30 Day-0.2%1.2%-1.7%
90 Day15.3%6.5%5.4%
1 Year36.0%27.8%20.2%15.1%12.4%6.6%
3 Year63.9%2.2%29.3%11.1%18.5%3.4%
5 Year81.3%0.6%30.9%4.9%35.8%4.7%

Price Volatility Vs. Market

How volatile is Hansteen Holdings's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Hansteen Holdings undervalued compared to its fair value and its price relative to the market?

7.0%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: HSTN (£1.16) is trading below our estimate of fair value (£1.25)

Significantly Below Fair Value: HSTN is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: HSTN is good value based on its PE Ratio (9.8x) compared to the REITs industry average (15.2x).

PE vs Market: HSTN is good value based on its PE Ratio (9.8x) compared to the UK market (18.1x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: HSTN is overvalued based on its PB Ratio (1.1x) compared to the GB REITs industry average (1x).


Next Steps

Future Growth

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

-12.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: HSTN's earnings are forecast to decline over the next 3 years (-12.7% per year).

Earnings vs Market: HSTN's earnings are forecast to decline over the next 3 years (-12.7% per year).

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

Revenue vs Market: HSTN's revenue (2.8% per year) is forecast to grow slower than the UK market (3.6% per year).

High Growth Revenue: HSTN's revenue (2.8% 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 HSTN's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Hansteen Holdings performed over the past 5 years?

-20.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: HSTN has a large one-off gain of £39.0M impacting its June 30 2019 financial results.

Growing Profit Margin: HSTN's current net profit margins are lower than last year .


Past Earnings Growth Analysis

Earnings Trend: HSTN's earnings have declined by -20.1% per year over the past 5 years.

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

Earnings vs Industry: HSTN had negative earnings growth (-43.1%) over the past year, making it difficult to compare to the REITs industry average (-21.1%).


Return on Equity

High ROE: HSTN's Return on Equity (11.2%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Hansteen Holdings'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: HSTN has a high level of physical assets or inventory.

Debt Coverage by Assets: HSTN's debt is not covered by short term assets (assets are 0.3x debt).


Financial Institutions Analysis

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

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

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

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

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

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


Next Steps

Dividend

What is Hansteen Holdings's current dividend yield, its reliability and sustainability?

5.34%

Current Dividend Yield


Dividend Yield vs Market

company5.3%marketbottom25%1.8%markettop25%5.1%industryaverage3.8%forecastin3Years4.3%

Current dividend yield vs market & industry

Notable Dividend: HSTN's dividend (5.34%) is higher than the bottom 25% of dividend payers in the UK market (1.85%).

High Dividend: HSTN's dividend (5.34%) is in the top 25% of dividend payers in the UK market (5.1%)


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: HSTN is paying a dividend but the company is unprofitable.


Future Payout to Shareholders

Future Dividend Coverage: HSTN's dividends in 3 years are forecast to be covered by earnings (89.2% payout ratio).


Next Steps

Management

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

14.1yrs

Average management tenure


CEO

Morgan Jones (62yo)

14.3yrs

Tenure

UK£22,197,000

Compensation

Mr. Morgan Lewis Jones is a Co-Founder of Hansteen Holdings plc and has been its Joint Chief Executive and Executive Director since October 27, 2005 and 2005 respectively. Mr. Jones served as the Founder D ...


CEO Compensation Analysis

Compensation vs Market: Morgan's total compensation ($USD28.71M) is above average for companies of similar size in the UK market ($USD1.18M).

Compensation vs Earnings: Morgan's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Morgan Jones
Joint Chief Executive & Executive Director14.3yrsUK£22.20m2.7% £13.4m
Ian Watson
Joint Chief Executive & Executive Director14.3yrsUK£22.21m2.71% £13.5m
Richard Lowes
Finance Director & Executive Director9.3yrsUK£1.07m0.15% £768.2k
Janine Anne McDonald
Director of Operations13.1yrsno datano data
Ben Howlett
Head of Financial Planning & Analysis0yrsno datano data
Marco Murray
Company Secretary0yrsno datano data
Derek Heathwood
Director of UK8.9yrsno datano data
Paul Rodger
Director of Europe0yrsno datano data

14.1yrs

Average Tenure

61yo

Average Age

Experienced Management: HSTN's management team is seasoned and experienced (14.1 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Morgan Jones
Joint Chief Executive & Executive Director14.3yrsUK£22.20m2.7% £13.4m
Ian Watson
Joint Chief Executive & Executive Director14.3yrsUK£22.21m2.71% £13.5m
Richard Lowes
Finance Director & Executive Director9.3yrsUK£1.07m0.15% £768.2k
David Rough
Senior Independent Director0yrsUK£56.00k0.0075% £37.2k
Jim Clarke
Independent Non-Executive Director2yrsUK£48.00k0.0072% £35.9k
Melvyn Egglenton
Non-Executive Chairman3.5yrsUK£150.00k0.024% £119.5k

9.3yrs

Average Tenure

62yo

Average Age

Experienced Board: HSTN's board of directors are considered experienced (9.3 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.


Top Shareholders

Company Information

Hansteen Holdings PLC's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Hansteen Holdings PLC
  • Ticker: HSTN
  • Exchange: LSE
  • Founded: 2005
  • Industry: Industrial REITs
  • Sector: Real Estate
  • Market Cap: UK£498.199m
  • Shares outstanding: 428.74m
  • Website: https://www.hansteen.co.uk

Number of Employees


Location

  • Hansteen Holdings PLC
  • Pegasus House
  • 1st Floor
  • London
  • East Lothian
  • W1S 3DL
  • United Kingdom

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
HSTNLSE (London Stock Exchange)YesOrdinary SharesGBGBPNov 2005
HSTNLBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBGBPNov 2005

Biography

As of February 6, 2020, Hansteen Holdings PLC was taken private.  


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/07 21:29
End of Day Share Price2020/02/05 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.