LSE:HWG

Stock Analysis Report

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Executive Summary

Harworth Group plc operates as a brownfield land developer and property regeneration company in the North of England and the Midlands. More Details


Snowflake Analysis

High growth potential with adequate balance sheet.


Similar Companies

Share Price & News

How has Harworth Group's share price performed over time and what events caused price changes?


Latest Share Price and Events

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


Market Performance


7 Day Return

-0.2%

HWG

-3.6%

GB Real Estate

-1.9%

GB Market


1 Year Return

-24.5%

HWG

-18.4%

GB Real Estate

-14.5%

GB Market

Return vs Industry: HWG underperformed the UK Real Estate industry which returned -19% over the past year.

Return vs Market: HWG underperformed the UK Market which returned -14.2% over the past year.


Shareholder returns

HWGIndustryMarket
7 Day-0.2%-3.6%-1.9%
30 Day6.6%-0.9%-1.7%
90 Day-3.7%1.3%-4.4%
1 Year-24.2%-24.5%-17.3%-18.4%-11.3%-14.5%
3 Year-9.9%-11.5%-16.6%-22.8%-9.0%-20.3%
5 Year-22.4%-25.0%4.5%-10.2%15.3%-10.6%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Harworth Group undervalued compared to its fair value and its price relative to the market?

56.42x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: HWG (£0.94) is trading above our estimate of fair value (£0.77)

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


Price To Earnings Ratio

PE vs Industry: HWG is poor value based on its PE Ratio (56.4x) compared to the GB Real Estate industry average (14.2x).

PE vs Market: HWG is poor value based on its PE Ratio (56.4x) compared to the UK market (18.1x).


Price to Earnings Growth Ratio

PEG Ratio: HWG is good value based on its PEG Ratio (1x)


Price to Book Ratio

PB vs Industry: HWG is good value based on its PB Ratio (0.7x) compared to the GB Real Estate industry average (0.8x).


Next Steps

Future Growth

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

57.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: HWG's forecast earnings growth (57.9% per year) is above the savings rate (1.2%).

Earnings vs Market: HWG's earnings (57.9% per year) are forecast to grow faster than the UK market (24.2% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: HWG's revenue (24.7% per year) is forecast to grow faster than the UK market (6% per year).

High Growth Revenue: HWG's revenue (24.7% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: HWG's Return on Equity is forecast to be low in 3 years time (7.6%).


Next Steps

Past Performance

How has Harworth Group performed over the past 5 years?

-17.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: HWG has a large one-off gain of £13.9M impacting its June 30 2020 financial results.

Growing Profit Margin: HWG's current net profit margins (10.6%) are lower than last year (38%).


Past Earnings Growth Analysis

Earnings Trend: HWG's earnings have declined by 17.4% per year over the past 5 years.

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

Earnings vs Industry: HWG had negative earnings growth (-87.7%) over the past year, making it difficult to compare to the Real Estate industry average (-17.3%).


Return on Equity

High ROE: HWG's Return on Equity (1.2%) is considered low.


Next Steps

Financial Health

How is Harworth Group's financial position?


Financial Position Analysis

Short Term Liabilities: HWG's short term assets (£257.6M) exceed its short term liabilities (£54.7M).

Long Term Liabilities: HWG's short term assets (£257.6M) exceed its long term liabilities (£86.3M).


Debt to Equity History and Analysis

Debt Level: HWG's debt to equity ratio (17%) is considered satisfactory.

Reducing Debt: HWG's debt to equity ratio has reduced from 21.9% to 17% over the past 5 years.

Debt Coverage: HWG's debt is not well covered by operating cash flow (6.4%).

Interest Coverage: Insufficient data to determine if HWG's interest payments on its debt are well covered by EBIT.


Balance Sheet


Next Steps

Dividend

What is Harworth Group current dividend yield, its reliability and sustainability?

0.71%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: HWG's dividend (0.71%) isn’t notable compared to the bottom 25% of dividend payers in the UK market (1.83%).

High Dividend: HWG's dividend (0.71%) is low compared to the top 25% of dividend payers in the UK market (5.36%).


Stability and Growth of Payments

Stable Dividend: HWG is not paying a notable dividend for the UK market, therefore no need to check if payments are stable.

Growing Dividend: HWG is not paying a notable dividend for the UK market, therefore no need to check if payments are increasing.


Current Payout to Shareholders

Dividend Coverage: HWG is not paying a notable dividend for the UK market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of HWG's dividend in 3 years as they are not forecast to pay a notable one for the UK market.


Next Steps

Management

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

3.0yrs

Average management tenure


CEO

Owen Michaelson (53 yo)

5.58yrs

Tenure

UK£703,948

Compensation

Mr. Owen Michaelson has been the Chief Executive Officer of Harworth Group plc since March 24, 2015 and had been the Managing Director of Property Division at Coalfield Resources plc (aka UK Coal plc) sinc ...


CEO Compensation Analysis

Compensation vs Market: Owen's total compensation ($USD914.15K) is about average for companies of similar size in the UK market ($USD909.22K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Owen Michaelson
CEO & Executive Director5.58yrsUK£703.95k0.13%
£ 396.1k
Katerina Patmore
CFO & Executive Director1yrUK£207.50k0.00030%
£ 906.9
Ian Ball
Chief Operating Officer1.42yrsno data0.030%
£ 90.4k
Cheryl Donohoe
Technical Manager3.75yrsno datano data
Iain Thomson
Head of Communications & Investor Relations1.92yrsno datano data
Christopher Birch
Group General Counsel & Company Secretary4.33yrsno datano data
Jordan Mawbey
Marketing Managerno datano datano data
Catherine Macdonald
Head of HR & Organisation Development2.75yrsno datano data
Tony Martin
Chief Operating Officer - Recovery Programmeno datano datano data
Stuart Ashton
Head of Planning3.17yrsno datano data
Richard Bousfield
Head of Incomeno datano datano data
Amy Parkin
Assistant Financial Controllerno datano datano data

3.0yrs

Average Tenure

Experienced Management: HWG's management team is considered experienced (3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Owen Michaelson
CEO & Executive Director5.58yrsUK£703.95k0.13%
£ 396.1k
Katerina Patmore
CFO & Executive Director1yrUK£207.50k0.00030%
£ 906.9
Alastair Lyons
Independent Non-Executive Chairman2.58yrsUK£160.00k0.057%
£ 173.5k
Andrew Cunningham
Independent Non-Executive Director4.5yrsUK£52.50k0.0054%
£ 16.3k
Lisa Scenna
Non-Executive Director0.083yrno datano data
Lisa Clement
Senior Independent Director4yrsUK£60.00kno data
Steven Underwood
Non-Executive Director10.17yrsUK£45.00k0.012%
£ 36.0k
Ruth Cooke
Independent Non-Executive Director1.58yrsUK£35.31kno data
Martyn Bowes
Non-Executive Director5.58yrsUK£45.00kno data
Angela Bromfield
Independent Non-Executive Director1.5yrsUK£33.75kno data

3.3yrs

Average Tenure

53yo

Average Age

Experienced Board: HWG's board of directors are considered experienced (3.3 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: HWG 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

Harworth Group plc's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Harworth Group plc
  • Ticker: HWG
  • Exchange: LSE
  • Founded: 1991
  • Industry: Real Estate Development
  • Sector: Real Estate
  • Market Cap: UK£302.285m
  • Shares outstanding: 322.27m
  • Website: https://www.harworthgroup.com

Number of Employees


Location

  • Harworth Group plc
  • Advantage House
  • Poplar Way
  • Rotherham
  • South Yorkshire
  • S60 5TR
  • United Kingdom

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
HWGLSE (London Stock Exchange)YesOrdinary SharesGBGBPJun 1993
UK6ADB (Deutsche Boerse AG)YesOrdinary SharesDEEURJun 1993

Biography

Harworth Group plc operates as a brownfield land developer and property regeneration company in the North of England and the Midlands. The company operates in two segments, Income Generation and Capital Gr ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/19 22:23
End of Day Share Price2020/10/19 00:00
Earnings2020/06/30
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.