LSE:HWG

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

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 is not significantly more volatile than the rest of UK stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: HWG's weekly volatility (5%) has been stable over the past year.


Market Performance


7 Day Return

1.4%

HWG

0.5%

GB Real Estate

-0.7%

GB Market


1 Year Return

-28.5%

HWG

-17.9%

GB Real Estate

-8.5%

GB Market

Return vs Industry: HWG underperformed the UK Real Estate industry which returned -17.9% over the past year.

Return vs Market: HWG underperformed the UK Market which returned -8.5% over the past year.


Shareholder returns

HWGIndustryMarket
7 Day1.4%0.5%-0.7%
30 Day6.5%3.0%3.8%
90 Day13.3%15.5%14.6%
1 Year-28.3%-28.5%-16.6%-17.9%-4.7%-8.5%
3 Year-0.5%-2.3%-7.6%-14.6%3.9%-8.8%
5 Year1.3%-2.1%-19.0%-27.3%47.6%14.1%

Long-Term 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?

13.4%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: HWG (£1.07) is trading below our estimate of fair value (£1.23)

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


Price To Earnings Ratio

PE vs Industry: HWG is poor value based on its PE Ratio (64.1x) compared to the GB Real Estate industry average (16x).

PE vs Market: HWG is poor value based on its PE Ratio (64.1x) compared to the UK market (22.6x).


Price to Earnings Growth Ratio

PEG Ratio: HWG is poor value based on its PEG Ratio (1.1x)


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 (0.9x).


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%).

Earnings vs Market: HWG's earnings (57.9% per year) are forecast to grow faster than the UK market (26% 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 (6.5% 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 (-25.4%).


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?

0.63%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: HWG's dividend (0.63%) isn’t notable compared to the bottom 25% of dividend payers in the UK market (1.55%).

High Dividend: HWG's dividend (0.63%) is low compared to the top 25% of dividend payers in the UK market (4.55%).


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?

2.6yrs

Average management tenure


CEO

Lynda Shillaw (55 yo)

0.17

Tenure

Ms. Lynda Margaret Shillaw, A.C.M.A has been the Chief Executive Officer of Harworth Group plc since November 01, 2020 and has been its Director since 2020. She served as Chief Executive Officer and Divisi...


Leadership Team

NamePositionTenureCompensationOwnership
Katerina Patmore
CFO & Executive Director1.25yrsUK£207.50k0.0038%
£ 13.0k
Lynda Shillaw
CEO & Director0.17yrno data0.023%
£ 79.0k
Ian Ball
Chief Operating Officer1.67yrsno data0.032%
£ 109.7k
Cheryl Donohoe
Technical Manager4yrsno datano data
Iain Thomson
Head of Communications & Investor Relations2.17yrsno datano data
Christopher Birch
Group General Counsel & Company Secretary4.58yrsno datano data
Jordan Mawbey
Marketing Managerno datano datano data
Catherine Macdonald
Head of HR & Organisation Development3yrsno datano data
Tony Martin
Chief Operating Officer - Recovery Programmeno datano datano data
Stuart Ashton
Head of Planning3.42yrsno datano data
Richard Bousfield
Head of Incomeno datano datano data
Amy Parkin
Assistant Financial Controllerno datano datano data

2.6yrs

Average Tenure

Experienced Management: HWG's management team is considered experienced (2.6 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Katerina Patmore
CFO & Executive Director1.25yrsUK£207.50k0.0038%
£ 13.0k
Lynda Shillaw
CEO & Director0.17yrno data0.023%
£ 79.0k
Alastair Lyons
Independent Non-Executive Chairman2.83yrsUK£160.00k0.074%
£ 254.5k
Patrick Francis John Bourke
Non-Executive Director0.17yrno datano data
Lisa Scenna
Non-Executive Director0.33yrno datano data
Steven Underwood
Non-Executive Director10.42yrsUK£45.00k0.012%
£ 40.9k
Ruth Cooke
Independent Non-Executive Director1.83yrsUK£35.31kno data
Martyn Bowes
Non-Executive Director5.83yrsUK£45.00kno data
Angela Bromfield
Senior Independent Director0.25yrUK£33.75k0.0069%
£ 23.6k

1.3yrs

Average Tenure

55yo

Average Age

Experienced Board: HWG's board of directors are not considered experienced ( 1.3 years average tenure), which suggests a new board.


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£343.393m
  • Shares outstanding: 322.43m
  • 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 Analysis2021/01/19 01:51
End of Day Share Price2021/01/18 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.