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HWG

Harworth Group LSE:HWG Stock Report

Last Price

UK£1.21

Market Cap

UK£390.4m

7D

-4.7%

1Y

-30.5%

Updated

30 Sep, 2022

Data

Company Financials +

Harworth Group Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Harworth Group
Historical stock prices
Current Share PriceUK£1.21
52 Week HighUK£1.93
52 Week LowUK£1.08
Beta0.78
1 Month Change-14.49%
3 Month Change-18.52%
1 Year Change-30.46%
3 Year Change-0.82%
5 Year Change15.24%
Change since IPO-94.83%

Recent News & Updates

Sep 01
If EPS Growth Is Important To You, Harworth Group (LON:HWG) Presents An Opportunity

If EPS Growth Is Important To You, Harworth Group (LON:HWG) Presents An Opportunity

The excitement of investing in a company that can reverse its fortunes is a big draw for some speculators, so even...

Shareholder Returns

HWGGB Real EstateGB Market
7D-4.7%-5.2%-1.7%
1Y-30.5%-39.0%-15.1%

Return vs Industry: HWG exceeded the UK Real Estate industry which returned -40.2% over the past year.

Return vs Market: HWG underperformed the UK Market which returned -16.2% over the past year.

Price Volatility

Is HWG's price volatile compared to industry and market?
HWG volatility
HWG Average Weekly Movement6.0%
Real Estate Industry Average Movement4.2%
Market Average Movement5.4%
10% most volatile stocks in GB Market10.7%
10% least volatile stocks in GB Market2.8%

Stable Share Price: HWG is not significantly more volatile than the rest of UK stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: HWG's weekly volatility (6%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
199191Lynda Shillawhttps://www.harworthgroup.com

Harworth Group plc operates as a land and property regeneration company in the North of England and the Midlands. The company operates through two segments, Income Generation and Capital Growth. The Income Generation segment focuses on generating rental returns from the investment portfolio; rental returns and royalties from energy generation, environmental technologies, and the agricultural portfolio; and income-generating streams from recycled aggregates and secondary coal products.

Harworth Group Fundamentals Summary

How do Harworth Group's earnings and revenue compare to its market cap?
HWG fundamental statistics
Market CapUK£390.37m
Earnings (TTM)UK£116.67m
Revenue (TTM)UK£153.60m

3.3x

P/E Ratio

2.5x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
HWG income statement (TTM)
RevenueUK£153.60m
Cost of RevenueUK£95.44m
Gross ProfitUK£58.15m
Other Expenses-UK£58.51m
EarningsUK£116.67m

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

n/a

Earnings per share (EPS)0.36
Gross Margin37.86%
Net Profit Margin75.96%
Debt/Equity Ratio16.2%

How did HWG perform over the long term?

See historical performance and comparison

Dividends

1.0%

Current Dividend Yield

3%

Payout Ratio
We’ve recently updated our valuation analysis.

Valuation

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

Valuation Score

4/6

Valuation Score 4/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

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

Other financial metrics that can be useful for relative valuation.

HWG key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue3x
Enterprise Value/EBITDA12.5x
PEG Ratio-0.1x

Price to Earnings Ratio vs Peers

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

HWG PE Ratio vs Peers
The above table shows the PE ratio for HWG vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average18.3x
WJG Watkin Jones
49x33.1%UK£383.3m
MTVW Mountview Estates
17xn/aUK£456.2m
ETLN Etalon Group
0.7xn/aUS$161.0m
INL Inland Homes
6.3x40.6%UK£43.7m
HWG Harworth Group
3.3x-35.0%UK£390.4m

Price-To-Earnings vs Peers: HWG is good value based on its Price-To-Earnings Ratio (3.3x) compared to the peer average (18.3x).


Price to Earnings Ratio vs Industry

How does HWG's PE Ratio compare vs other companies in the GB Real Estate Industry?

Price-To-Earnings vs Industry: HWG is good value based on its Price-To-Earnings Ratio (3.3x) compared to the UK Real Estate industry average (7.8x)


Price to Earnings Ratio vs Fair Ratio

What is HWG'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.

HWG PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio3.3x
Fair PE Ratio7x

Price-To-Earnings vs Fair Ratio: HWG is good value based on its Price-To-Earnings Ratio (3.3x) compared to the estimated Fair Price-To-Earnings Ratio (7x).


Share Price vs Fair Value

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

Below Fair Value: HWG (£1.21) is trading above our estimate of fair value (£0.2)

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


Analyst Price Targets

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

Analyst Forecast: Target price is more than 20% higher than the current share price and analysts are within a statistically confident range of agreement.


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Future Growth

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

Future Growth Score

0/6

Future Growth Score 0/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


-35.0%

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 (-35% per year).

Earnings vs Market: HWG's earnings are forecast to decline over the next 3 years (-35% 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 (-7.8% per year).

High Growth Revenue: HWG's revenue is forecast to decline over the next 3 years (-7.8% 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 (6.6%).


Discover growth companies

Past Performance

How has Harworth Group performed over the past 5 years?

Past Performance Score

3/6

Past Performance Score 3/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


20.9%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: HWG has a large one-off gain of £108.6M impacting its June 30 2022 financial results.

Growing Profit Margin: HWG's current net profit margins (76%) are lower than last year .


Past Earnings Growth Analysis

Earnings Trend: HWG's earnings have grown significantly by 20.9% per year over the past 5 years.

Accelerating Growth: HWG's earnings growth over the past year (33.6%) exceeds its 5-year average (20.9% per year).

Earnings vs Industry: HWG earnings growth over the past year (33.6%) exceeded the Real Estate industry 25.3%.


Return on Equity

High ROE: HWG's Return on Equity (17.8%) is considered low.


Discover strong past performing companies

Financial Health

How is Harworth Group's financial position?

Financial Health Score

5/6

Financial Health Score 5/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: HWG's short term assets (£279.4M) exceed its short term liabilities (£91.0M).

Long Term Liabilities: HWG's short term assets (£279.4M) exceed its long term liabilities (£169.7M).


Debt to Equity History and Analysis

Debt Level: HWG's net debt to equity ratio (10.4%) is considered satisfactory.

Reducing Debt: HWG's debt to equity ratio has increased from 6.4% to 16.2% over the past 5 years.

Debt Coverage: HWG's debt is well covered by operating cash flow (50.9%).

Interest Coverage: HWG's interest payments on its debt are well covered by EBIT (6.4x coverage).


Balance Sheet


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Dividend

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

Dividend Score

0/6

Dividend Score 0/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Cash Flow Coverage


1.03%

Current Dividend Yield

Dividend Yield vs Market

Harworth Group Dividend Yield vs Market
How does Harworth Group dividend yield compare to the market?
SegmentDividend Yield
Company (Harworth Group)1.0%
Market Bottom 25% (GB)2.1%
Market Top 25% (GB)6.1%
Industry Average (Real Estate)4.3%
Analyst forecast in 3 Years (Harworth Group)1.1%

Notable Dividend: HWG's dividend (1.03%) isn’t notable compared to the bottom 25% of dividend payers in the UK market (2.15%).

High Dividend: HWG's dividend (1.03%) is low compared to the top 25% of dividend payers in the UK market (6.29%).


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.


Earnings Payout to Shareholders

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


Cash Payout to Shareholders

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


Discover strong dividend paying companies

Management

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

2.4yrs

Average management tenure


CEO

Lynda Shillaw (57 yo)

1.83yrs

Tenure

UK£823,843

Compensation

Ms. Lynda Margaret Shillaw, A.C.M.A, has been the Chief Executive Officer and Director at Harworth Group plc since November 01, 2020 and was its Member of Management Board since November 01, 2020. She serv...


CEO Compensation Analysis

Lynda Shillaw's Compensation vs Harworth Group Earnings
How has Lynda Shillaw's remuneration changed compared to Harworth Group's earnings?
DateTotal Comp.SalaryCompany Earnings
Jun 30 2022n/an/a

UK£117m

Mar 31 2022n/an/a

UK£105m

Dec 31 2021UK£824kUK£400k

UK£94m

Sep 30 2021n/an/a

UK£91m

Jun 30 2021n/an/a

UK£87m

Mar 31 2021n/an/a

UK£57m

Dec 31 2020UK£409kUK£67k

UK£26m

Compensation vs Market: Lynda's total compensation ($USD918.00K) is about average for companies of similar size in the UK market ($USD1.08M).

Compensation vs Earnings: Lynda's compensation has increased by more than 20% in the past year.


Leadership Team

Experienced Management: HWG's management team is considered experienced (2.4 years average tenure).


Board Members

Experienced Board: HWG's board of directors are considered experienced (3.2 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

LSE:HWG Recent Insider Transactions by Companies or Individuals
DateValueNameEntityRoleSharesMax Price
13 Sep 22BuyUK£19,999Lynda ShillawIndividual14,102UK£1.42
30 Jun 22BuyUK£24,718Alastair LyonsIndividual16,870UK£1.47
27 Jun 22BuyUK£29,998Lynda ShillawIndividual19,622UK£1.53
24 Jun 22BuyUK£48,692Alastair LyonsIndividual32,034UK£1.52
12 May 22BuyUK£5,000Katerina PatmoreIndividual3,198UK£1.56
25 Mar 22BuyUK£9,999Katerina PatmoreIndividual5,691UK£1.76
23 Mar 22BuyUK£29,820Lynda ShillawIndividual17,286UK£1.73

Ownership Breakdown

What is the ownership structure of HWG?
Owner TypeNumber of SharesOwnership Percentage
Public Companies112,3630.03%
State or Government340,2360.1%
Employee Share Scheme361,7230.1%
Individual Insiders2,236,7260.7%
General Public5,605,7931.7%
Private Companies130,322,47940.4%
Institutions183,639,92756.9%

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Top 25 shareholders own 93.38% of the company
OwnershipNameSharesCurrent ValueChange %Portfolio %
25.43%
The London & Amsterdam Trust Company, Ltd.
82,051,849£99.3m0%no data
22.93%
Pension Protection Fund
73,966,672£89.5m0%84.35%
14.58%
Intu Trafford Centre Group Limited
47,041,348£56.9m-1.62%no data
5%
Schroder Investment Management Limited
16,121,478£19.5m3.85%0.02%
3.77%
BennBridge Ltd
12,176,538£14.7m-8.15%3.55%
2.71%
Invesco Ltd.
8,729,367£10.6m-1.5%no data
2.67%
Santander Asset Management, S.A., S.G.I.I.C.
8,626,626£10.4m0%0.05%
2.23%
James Sharp & Co., Asset Management Arm
7,196,283£8.7m-0.71%1.22%
1.86%
Janus Henderson Group plc
6,012,479£7.3m37.73%no data
1.85%
Premier Fund Managers Limited
5,984,145£7.2m15.11%0.09%
1.85%
Hermes Investment Management Limited
5,965,977£7.2m-0.45%0.05%
1.26%
BlackRock, Inc.
4,053,791£4.9m60.76%no data
1.1%
AXA Investment Managers S.A.
3,548,965£4.3m-22.36%0.01%
0.99%
Legal & General Investment Management Limited
3,182,310£3.9m4.21%no data
0.81%
EFG Private Bank SA, Asset Management Arm
2,625,548£3.2m-0.53%0.13%
0.69%
FMR LLC
2,233,600£2.7m-25.56%no data
0.5%
HBOS Investment Fund Managers Limited
1,611,431£1.9m103.6%0.02%
0.47%
Smith & Williamson Investment Management LLP
1,522,991£1.8m48.17%0.02%
0.47%
Barclays Bank PLC, Wealth and Investment Management Division
1,521,099£1.8m-4.83%0.02%
0.47%
Spencer Roditi
1,509,100£1.8m0%no data
0.41%
A J Bell Holdings Limited, Asset Management Arm
1,310,327£1.6m2.79%0.02%
0.36%
Tipacs Ltd
1,157,562£1.4m0%no data
0.35%
The Vanguard Group, Inc.
1,124,391£1.4m0%no data
0.34%
Sturgeon Capital Ltd
1,090,000£1.3m0%43.15%
0.28%
J.M. Finn & Co. Ltd.
902,223£1.1m4.36%0.02%

Company Information

Harworth Group plc's 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
  • Implied Market Cap: UK£390.369m
  • Shares outstanding: 322.62m
  • 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
HWGLBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBGBPJun 1993

Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/09/30 00:00
End of Day Share Price2022/09/30 00:00
Earnings2022/06/30
Annual Earnings2021/12/31


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.