LSE:HWG

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

Excellent balance sheet with solid track record.


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


Market Performance


7 Day Return

2.5%

HWG

1.2%

GB Real Estate

-0.4%

GB Market


1 Year Return

3.3%

HWG

3.2%

GB Real Estate

2.9%

GB Market

Return vs Industry: HWG matched the UK Real Estate industry which returned 3.2% over the past year.

Return vs Market: HWG matched the UK Market which returned 2.9% over the past year.


Shareholder returns

HWGIndustryMarket
7 Day2.5%1.2%-0.4%
30 Day0.8%3.4%-1.4%
90 Day-3.8%5.4%-2.1%
1 Year4.0%3.3%7.4%3.2%7.9%2.9%
3 Year45.6%42.0%-5.3%-11.9%18.0%3.6%
5 Year133.3%126.2%20.3%5.7%35.8%6.4%

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?

9.21x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Undervalued: HWG (£1.25) is trading above our estimate of fair value (£0.3)

Significantly Undervalued: HWG is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: HWG is good value based on its PE Ratio (9.2x) compared to the Real Estate industry average (11.2x).

PE vs Market: HWG is good value based on its PE Ratio (9.2x) compared to the UK market (16.7x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: HWG is good value based on its PB Ratio (0.9x) compared to the GB Real Estate industry average (1.1x).


Next Steps

Future Growth

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

-1.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: HWG's earnings are forecast to decline over the next 3 years (-1.2% per year).

Earnings vs Market: HWG's earnings are forecast to decline over the next 3 years (-1.2% per year).

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

Revenue vs Market: HWG's revenue is expected to decline over the next 3 years (-6.1% per year).

High Growth Revenue: HWG's revenue is forecast to decline over the next 3 years (-6.1% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: HWG's Return on Equity is forecast to be low in 3 years time (8.7%).


Next Steps

Past Performance

How has Harworth Group performed over the past 5 years?

6.4%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: HWG's earnings have grown by 6.4% per year over the past 5 years.

Accelerating Growth: HWG's earnings growth over the past year (13.1%) exceeds its 5-year average (6.4% per year).

Earnings vs Industry: HWG earnings growth over the past year (13.1%) exceeded the Real Estate industry 8%.


Return on Equity

High ROE: HWG's Return on Equity (9.6%) is considered low.


Return on Assets

ROA vs Industry: HWG has a higher Return on Assets than the Real Estate industry average last year.


Return on Capital Employed

ROCE Improving: HWG has significantly improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is Harworth Group's financial position?


Financial Position Analysis

Short Term Liabilities: HWG's short term assets (£274.0M) exceeds its short term liabilities (£61.1M)

Long Term Liabilities: HWG's short term assets (274.0M) exceeds its long term liabilities (72.3M)


Debt to Equity History and Analysis

Debt Level: HWG's debt to equity ratio (14.3%) is considered satisfactory

Reducing Debt: Insufficient data to determine if HWG's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: HWG's debt is well covered by operating cash flow (41.4%).

Interest Coverage: HWG's interest payments on its debt are well covered by EBIT (11.2x coverage).


Balance Sheet

Inventory Level: HWG has a high level of physical assets or inventory.

Debt Coverage by Assets: HWG's debt is covered by short term assets (assets are 4.203860x debt).


Next Steps

Dividend

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

0.73%

Current Dividend Yield


Dividend Yield vs Market

company0.7%marketbottom25%2.0%markettop25%5.4%industryaverage3.1%forecastin3Years0.9%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: HWG's dividend (0.73%) isn’t notable compared to the bottom 25% of dividend payers in the UK market (2.01%).

High Dividend: HWG's dividend (0.73%) is low compared to the top 25% of dividend payers in the UK market (5.36%).

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

What is the CEO of Harworth Group's salary, the management and board of directors tenure and is there insider trading?

2.2yrs

Average management tenure


CEO

Owen Michaelson (52yo)

4.6yrs

Tenure

UK£877,975

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 ($USD1.13M) is about average for companies of similar size in the UK market ($USD875.35K).

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


Management Age and Tenure

2.2yrs

Average Tenure

Experienced Management: HWG's management team is considered experienced (2.2 years average tenure).


Board Age and Tenure

3.3yrs

Average Tenure

57.5yo

Average Age

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


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown


Management Team

  • Owen Michaelson (52yo)

    CEO & Executive Director

    • Tenure: 4.6yrs
    • Compensation: UK£877.98k
  • Ian Ball

    Chief Operating Officer

    • Tenure: 0.4yrs
  • Tony Martin

    Chief Operating Officer - Recovery Programme

    • Tenure: 0yrs
  • Chris Birch

    Group General Counsel & Company Secretary

    • Tenure: 3.3yrs
  • Iain Thomson

    Head of Communications & Investor Relations

    • Tenure: 0.9yrs
  • Stuart Ashton

    Head of Planning

    • Tenure: 2.2yrs
  • Catherine Macdonald

    Head of HR & Organisation Development

    • Tenure: 1.8yrs
  • Cheryl Donohoe

    Technical Manager

    • Tenure: 2.8yrs
  • Jordan Mawbey

    Marketing Manager

    • Tenure: 0yrs
  • Kitty Patmore

    CFO & Executive Director

    • Tenure: 0yrs

Board Members

  • Alastair Lyons (65yo)

    Non-Executive Chairman

    • Tenure: 1.6yrs
    • Compensation: UK£131.08k
  • Andrew Cunningham (63yo)

    Independent Non-Executive Director

    • Tenure: 3.5yrs
    • Compensation: UK£50.00k
  • Owen Michaelson (52yo)

    CEO & Executive Director

    • Tenure: 4.6yrs
    • Compensation: UK£877.98k
  • Lisa Clement

    Senior Independent Director

    • Tenure: 3yrs
    • Compensation: UK£57.50k
  • Steven Underwood (45yo)

    Non-Executive Director

    • Tenure: 9.2yrs
    • Compensation: UK£42.50k
  • Ruth Cooke

    Non-Executive Director

    • Tenure: 0.6yrs
  • Martyn Bowes

    Non-Executive Director

    • Tenure: 4.6yrs
    • Compensation: UK£42.50k
  • Angela Bromfield

    Non-Executive Director

    • Tenure: 0.5yrs
  • Kitty Patmore

    CFO & Executive Director

    • Tenure: 0yrs

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£402.319m
  • Shares outstanding: 321.86m
  • 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 regeneration company in the North of England and the Midlands. The company operates through two segments, Income Generation and Capital Growth ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/19 20:35
End of Day Share Price2019/10/18 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.