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Headlam Group

LSE:HEAD
Snowflake Description

Flawless balance sheet established dividend payer.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
HEAD
LSE
£364M
Market Cap
  1. Home
  2. GB
  3. Retail
Company description

Headlam Group plc, through its subsidiaries, sells, markets, supplies, and distributes floorcovering and other ancillary products. The last earnings update was 16 days ago. More info.


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HEAD Share Price and Events
7 Day Returns
0.7%
LSE:HEAD
1.6%
GB Retail Distributors
2.1%
GB Market
1 Year Returns
5.1%
LSE:HEAD
-12.9%
GB Retail Distributors
3.1%
GB Market
HEAD Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Headlam Group (HEAD) 0.7% 4.9% 5.1% 5.1% -16.6% -9.3%
GB Retail Distributors 1.6% -4.6% 5.8% -12.9% -10% -4.7%
GB Market 2.1% 2.6% 9.7% 3.1% 17.2% 4.4%
1 Year Return vs Industry and Market
  • HEAD outperformed the Retail Distributors industry which returned -12.9% over the past year.
  • HEAD outperformed the Market in United Kingdom of Great Britain and Northern Ireland which returned 3.1% over the past year.
Price Volatility
HEAD
Industry
5yr Volatility vs Market

Value

 Is Headlam Group undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Headlam Group to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Headlam Group.

LSE:HEAD Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 4 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 7.4%
Perpetual Growth Rate 10-Year GB Government Bond Rate 1.2%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for LSE:HEAD
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year GB Govt Bond Rate 1.2%
Equity Risk Premium S&P Global 6.7%
Retail Distributors Unlevered Beta Simply Wall St/ S&P Global 0.89
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.887 (1 + (1- 19%) (2%))
0.934
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.93
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 1.23% + (0.934 * 6.65%)
7.44%

Discounted Cash Flow Calculation for LSE:HEAD using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Headlam Group is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

LSE:HEAD DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (GBP, Millions) Source Present Value
Discounted (@ 7.44%)
2019 16.95 Analyst x2 15.78
2020 29.70 Analyst x2 25.73
2021 36.50 Analyst x1 29.43
2022 37.71 Est @ 3.32% 28.30
2023 38.73 Est @ 2.69% 27.05
2024 39.60 Est @ 2.25% 25.75
2025 40.37 Est @ 1.94% 24.43
2026 41.07 Est @ 1.73% 23.13
2027 41.71 Est @ 1.58% 21.87
2028 42.33 Est @ 1.47% 20.66
Present value of next 10 years cash flows £242.12
LSE:HEAD DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= £42.33 × (1 + 1.23%) ÷ (7.44% – 1.23%)
£689.81
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= £689.81 ÷ (1 + 7.44%)10
£336.61
LSE:HEAD Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= £242.12 + £336.61
£578.74
Equity Value per Share
(GBP)
= Total value / Shares Outstanding
= £578.74 / 84.37
£6.86
LSE:HEAD Discount to Share Price
Calculation Result
Value per share (GBP) From above. £6.86
Current discount Discount to share price of £4.31
= -1 x (£4.31 - £6.86) / £6.86
37.2%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Headlam Group is available for.
Intrinsic value
37%
Share price is £4.31 vs Future cash flow value of £6.86
Current Discount Checks
For Headlam Group to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Headlam Group's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • Headlam Group's share price is below the future cash flow value, but not at a substantial discount (< 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Headlam Group's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Headlam Group's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
LSE:HEAD PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-12-31) in GBP £0.40
LSE:HEAD Share Price ** LSE (2019-03-22) in GBP £4.31
United Kingdom of Great Britain and Northern Ireland Retail Distributors Industry PE Ratio Median Figure of 5 Publicly-Listed Retail Distributors Companies 12.1x
United Kingdom of Great Britain and Northern Ireland Market PE Ratio Median Figure of 805 Publicly-Listed Companies 15.82x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Headlam Group.

LSE:HEAD PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= LSE:HEAD Share Price ÷ EPS (both in GBP)

= 4.31 ÷ 0.40

10.79x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Headlam Group is good value based on earnings compared to the GB Retail Distributors industry average.
  • Headlam Group is good value based on earnings compared to the United Kingdom of Great Britain and Northern Ireland market.
Price based on expected Growth
Does Headlam Group's expected growth come at a high price?
Raw Data
LSE:HEAD PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 10.79x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 4 Analysts
2.4%per year
Europe Retail Distributors Industry PEG Ratio Median Figure of 8 Publicly-Listed Retail Distributors Companies 1.12x
United Kingdom of Great Britain and Northern Ireland Market PEG Ratio Median Figure of 575 Publicly-Listed Companies 1.37x

*Line of best fit is calculated by linear regression .

LSE:HEAD PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 10.79x ÷ 2.4%

4.43x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Headlam Group is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Headlam Group's assets?
Raw Data
LSE:HEAD PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-12-31) in GBP £2.83
LSE:HEAD Share Price * LSE (2019-03-22) in GBP £4.31
United Kingdom of Great Britain and Northern Ireland Retail Distributors Industry PB Ratio Median Figure of 5 Publicly-Listed Retail Distributors Companies 1.72x
United Kingdom of Great Britain and Northern Ireland Market PB Ratio Median Figure of 1,360 Publicly-Listed Companies 1.5x
LSE:HEAD PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= LSE:HEAD Share Price ÷ Book Value per Share (both in GBP)

= 4.31 ÷ 2.83

1.52x

* Primary Listing of Headlam Group.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Headlam Group is good value based on assets compared to the GB Retail Distributors industry average.
X
Value checks
We assess Headlam Group's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Retail Distributors industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Retail Distributors industry average (and greater than 0)? (1 check)
  5. Headlam Group has a total score of 4/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is Headlam Group expected to perform in the next 1 to 3 years based on estimates from 4 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
2.4%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Headlam Group expected to grow at an attractive rate?
  • Headlam Group's earnings growth is expected to exceed the low risk savings rate of 1.2%.
Growth vs Market Checks
  • Headlam Group's earnings growth is positive but not above the United Kingdom of Great Britain and Northern Ireland market average.
  • Headlam Group's revenue growth is positive but not above the United Kingdom of Great Britain and Northern Ireland market average.
Annual Growth Rates Comparison
Raw Data
LSE:HEAD Future Growth Rates Data Sources
Data Point Source Value (per year)
LSE:HEAD Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 4 Analysts 2.4%
LSE:HEAD Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 4 Analysts 0.7%
Europe Retail Distributors Industry Earnings Growth Rate Market Cap Weighted Average 29.7%
Europe Retail Distributors Industry Revenue Growth Rate Market Cap Weighted Average 2.4%
United Kingdom of Great Britain and Northern Ireland Market Earnings Growth Rate Market Cap Weighted Average 11.1%
United Kingdom of Great Britain and Northern Ireland Market Revenue Growth Rate Market Cap Weighted Average 5%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
LSE:HEAD Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 4 Analyst Estimates (S&P Global) See Below
All numbers in GBP Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
LSE:HEAD Future Estimates Data
Date (Data in GBP Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2021-12-31 723 41 37 1
2020-12-31 717 38 33 3
2019-12-31 704 33 31 4
LSE:HEAD Past Financials Data
Date (Data in GBP Millions) Revenue Cash Flow Net Income *
2018-12-31 708 40 34
2018-09-30 713 34 33
2018-06-30 711 27 33
2018-03-31 709 35 33
2017-12-31 708 43 33
2017-09-30 700 44 33
2017-06-30 699 46 33
2017-03-31 696 39 32
2016-12-31 694 33 31
2016-09-30 681 31 31
2016-06-30 669 28 31
2016-03-31 662 32 30

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Headlam Group's earnings are expected to grow by 2.4% yearly, however this is not considered high growth (20% yearly).
  • Headlam Group's revenue is expected to grow by 0.7% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
LSE:HEAD Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 4 Analyst Estimates (S&P Global) See Below

All data from Headlam Group Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

LSE:HEAD Future Estimates Data
Date (Data in GBP Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2021-12-31
2020-12-31 0.38 0.38 0.38 1.00
2019-12-31 0.37 0.37 0.37 1.00
LSE:HEAD Past Financials Data
Date (Data in GBP Millions) EPS *
2018-12-31 0.40
2018-09-30 0.39
2018-06-30 0.39
2018-03-31 0.39
2017-12-31 0.39
2017-09-30 0.39
2017-06-30 0.39
2017-03-31 0.38
2016-12-31 0.37
2016-09-30 0.37
2016-06-30 0.36
2016-03-31 0.35

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Headlam Group is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Headlam Group's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Europe market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Europe market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Headlam Group has a total score of 1/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has Headlam Group performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Headlam Group's growth in the last year to its industry (Retail Distributors).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Headlam Group's year on year earnings growth rate has been positive over the past 5 years.
  • Headlam Group's 1-year earnings growth is less than its 5-year average (1.8% vs 13.3%)
  • Headlam Group's earnings growth has exceeded the GB Retail Distributors industry average in the past year (1.8% vs -3.2%).
Earnings and Revenue History
Headlam Group's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Headlam Group Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

LSE:HEAD Past Revenue, Cash Flow and Net Income Data
Date (Data in GBP Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-12-31 708.42 33.50 186.56
2018-09-30 713.50 33.04 184.89
2018-06-30 710.98 32.57 181.99
2018-03-31 709.37 32.75 179.79
2017-12-31 707.76 32.92 177.59
2017-09-30 699.67 32.73 176.41
2017-06-30 699.17 32.54 176.45
2017-03-31 696.37 31.75 174.22
2016-12-31 693.57 30.96 172.00
2016-09-30 681.39 30.81 169.77
2016-06-30 669.21 30.65 167.55
2016-03-31 661.64 29.53 165.94
2015-12-31 654.08 28.41 164.33
2015-09-30 650.64 26.80 162.95
2015-06-30 647.21 25.19 161.57
2015-03-31 641.23 24.49 160.57
2014-12-31 635.24 23.79 159.58
2014-09-30 629.74 20.10 158.42
2014-06-30 624.25 16.42 157.26
2014-03-31 613.65 15.68 155.65
2013-12-31 603.05 14.94 154.04
2013-09-30 594.99 17.63 151.57
2013-06-30 586.93 20.31 149.10
2013-03-31 586.46 20.61 148.00
2012-12-31 585.98 20.91 146.91
2012-09-30 583.10 20.81 147.86
2012-06-30 580.22 20.72 148.82
2012-03-31 575.01 20.56 148.25

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Headlam Group has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Headlam Group used its assets more efficiently than the GB Retail Distributors industry average last year based on Return on Assets.
  • Headlam Group has improved its use of capital last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Headlam Group's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Retail Distributors industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Headlam Group has a total score of 4/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Headlam Group's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Headlam Group's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Headlam Group is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Headlam Group's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Headlam Group's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is covered by short term assets, assets are 40.7x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Headlam Group Company Filings, last reported 2 months ago.

LSE:HEAD Past Debt and Equity Data
Date (Data in GBP Millions) Total Equity Total Debt Cash & Short Term Investments
2018-12-31 235.12 7.26 44.01
2018-09-30 235.12 7.26 44.01
2018-06-30 212.34 36.61 52.56
2018-03-31 212.34 36.61 52.56
2017-12-31 218.57 6.75 42.03
2017-09-30 218.57 6.75 42.03
2017-06-30 193.40 21.79 71.57
2017-03-31 193.40 21.79 71.57
2016-12-31 203.37 6.72 59.34
2016-09-30 203.37 6.72 59.34
2016-06-30 190.77 15.43 49.30
2016-03-31 190.77 15.43 49.30
2015-12-31 195.11 20.03 63.93
2015-09-30 198.43 20.03 63.93
2015-06-30 179.78 23.07 49.06
2015-03-31 179.78 23.07 49.06
2014-12-31 182.08 23.15 47.59
2014-09-30 182.08 23.15 47.59
2014-06-30 171.95 29.17 40.82
2014-03-31 171.95 29.17 40.82
2013-12-31 177.50 33.54 47.48
2013-09-30 177.50 33.54 47.48
2013-06-30 168.77 35.61 40.44
2013-03-31 168.77 35.61 40.44
2012-12-31 173.33 33.92 49.80
2012-09-30 173.33 33.92 49.80
2012-06-30 160.58 33.70 48.53
2012-03-31 160.58 33.70 48.53
  • Headlam Group's level of debt (3.1%) compared to net worth is satisfactory (less than 40%).
  • The level of debt compared to net worth has been reduced over the past 5 years (18.9% vs 3.1% today).
  • Debt is well covered by operating cash flow (551.4%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 48.1x coverage).
X
Financial health checks
We assess Headlam Group's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Headlam Group has a total score of 6/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
5.8%
Current annual income from Headlam Group dividends. Estimated to be 5.91% next year.
If you bought £2,000 of Headlam Group shares you are expected to receive £116 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Headlam Group's pays a higher dividend yield than the bottom 25% of dividend payers in United Kingdom of Great Britain and Northern Ireland (2.05%).
  • Headlam Group's dividend is above the markets top 25% of dividend payers in United Kingdom of Great Britain and Northern Ireland (5.22%).
Upcoming dividend payment

Purchase Headlam Group on or before the 'Buy Limit' to receive their next dividend payment.

Dividends are usually paid every 3 or 6 months, you can time your share purchase to take advantage of upcoming dividend payments.
Dividend payment calendar
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
LSE:HEAD Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 4 Analyst Estimates (S&P Global) See Below
Europe Retail Distributors Industry Average Dividend Yield Market Cap Weighted Average of 15 Stocks 3.6%
United Kingdom of Great Britain and Northern Ireland Market Average Dividend Yield Market Cap Weighted Average of 704 Stocks 4.3%
United Kingdom of Great Britain and Northern Ireland Minimum Threshold Dividend Yield 10th Percentile 1.1%
United Kingdom of Great Britain and Northern Ireland Bottom 25% Dividend Yield 25th Percentile 2%
United Kingdom of Great Britain and Northern Ireland Top 25% Dividend Yield 75th Percentile 5.2%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

LSE:HEAD Future Dividends Estimate Data
Date (Data in £) Dividend per Share (annual) Avg. No. Analysts
2021-12-31 0.26 1.00
2020-12-31 0.26 3.00
2019-12-31 0.25 4.00
LSE:HEAD Past Annualized Dividends Data
Date (Data in £) Dividend per share (annual) Avg. Yield (%)
2019-03-06 0.250 5.897
2018-03-06 0.248 5.587
2017-08-21 0.314 5.492
2017-04-03 0.306 5.213
2017-03-07 0.306 4.892
2016-04-07 0.207 4.267
2016-03-03 0.207 4.073
2015-03-05 0.175 3.647
2014-04-03 0.153 3.582
2014-03-07 0.153 3.205
2013-03-08 0.149 3.870
2012-04-26 0.142 4.625
2012-03-09 0.142 4.744
2011-03-11 0.124 4.504
2010-03-19 0.110 3.856
2009-12-31 0.110 3.776
2009-03-30 0.197 6.968
2009-03-23 0.197 8.420

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dividends per share have been volatile in the past 10 years (annual drop of over 20%).
  • Dividends per share have increased over the past 10 years.
Current Payout to shareholders
What portion of Headlam Group's earnings are paid to the shareholders as a dividend.
  • Dividends paid are covered by earnings (1.6x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be covered by earnings (1.7x coverage).
X
Income/ dividend checks
We assess Headlam Group's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.1%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Headlam Group afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Headlam Group has a total score of 5/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

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

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Steve Wilson
COMPENSATION £1,120,000
AGE 63
TENURE AS CEO 2.5 years
CEO Bio

Mr. Stephen Graham Wilson, also known as Steve, BSc., FCA, has been Chief Executive Officer of Headlam Group Plc since September 14, 2016. Mr. Wilson served as Finance Director of Headlam Group PLC from December 1991 to September 14, 2016. He served as Non-Executive Chairman of Synergy Health plc from October 2002 to September 22, 2010. Mr. Wilson has been an Executive Director at Headlam Group Plc since December 1991. Mr. Wilson has been a Non-Executive Director of Conviviality Retail Plc since February 2014. He served as a Director of Synergy Health plc since October 2002. Mr. Wilson is a Chartered Accountant.

CEO Compensation
  • Steve's compensation has been consistent with company performance over the past year.
  • Steve's remuneration is higher than average for companies of similar size in United Kingdom of Great Britain and Northern Ireland.
Management Team Tenure

Average tenure and age of the Headlam Group management team in years:

2.3
Average Tenure
46
Average Age
  • The tenure for the Headlam Group management team is about average.
Management Team

Steve Wilson

TITLE
CEO & Director
COMPENSATION
£1M
AGE
63
TENURE
2.5 yrs

Chris Payne

TITLE
CFO & Executive Director
COMPENSATION
£247K
AGE
45
TENURE
1.5 yrs

Tony Judge

TITLE
COO & Director
COMPENSATION
£1M
AGE
53
TENURE
2.5 yrs

Sarah Ward

TITLE
Company Secretary & Legal Counsel
TENURE
1.2 yrs

Catherine Miles

TITLE
Director of Communications
TENURE
2.2 yrs

Sue LaVerne

TITLE
People Director
TENURE
1.4 yrs

James Kellett

TITLE
Managing Director of Mercado
AGE
45
TENURE
3.2 yrs

Adrian Laffey

TITLE
Managing Director of Mercado
AGE
46
TENURE
3.2 yrs
Board of Directors Tenure

Average tenure and age of the Headlam Group board of directors in years:

1.3
Average Tenure
62
Average Age
  • The average tenure for the Headlam Group board of directors is less than 3 years, this suggests a new board.
Board of Directors

Philip Lawrence

TITLE
Non-Executive Chairman
COMPENSATION
£45K
TENURE
0.8 yrs

Steve Wilson

TITLE
CEO & Director
COMPENSATION
£1M
AGE
63
TENURE
27.3 yrs

Chris Payne

TITLE
CFO & Executive Director
COMPENSATION
£247K
AGE
45
TENURE
1.6 yrs

Tony Judge

TITLE
COO & Director
COMPENSATION
£1M
AGE
53
TENURE
2 yrs

Andrew Eastgate

TITLE
Senior Independent Director
COMPENSATION
£55K
AGE
62
TENURE
3.8 yrs

Keith Edelman

TITLE
Senior Independent Director
AGE
68
TENURE
0.2 yrs

Amanda Aldridge

TITLE
Non-Executive Director
TENURE
1.1 yrs

Alison Littley

TITLE
Director
TENURE
0.2 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (£) Value (£)
X
Management checks
We assess Headlam Group's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Headlam Group has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

How Much is Headlam Group plc's (LON:HEAD) CEO Getting Paid?

First, this article will compare CEO compensation with compensation at similar sized companies. … How Does Steve Wilson's Compensation Compare With Similar Sized Companies. … Our data indicates that Headlam Group plc is worth UK£357m, and total annual CEO compensation is UK£1.1m.

Simply Wall St -

Headlam Group plc (LON:HEAD): The Yield That Matters The Most

Today we will examine Headlam Group’s ability to generate cash flows, as well as the level of capital expenditure it is expected to incur over the next couple of years, which will result in how much money goes to you. … Headlam Group’s free cash flow (FCF) is the level of cash flow the business generates from its operational activities, after it reinvests in the company as capital expenditure. … I will be analysing Headlam Group’s FCF by looking at its FCF yield and its operating cash flow growth.

Simply Wall St -

Here's What Headlam Group plc's (LON:HEAD) P/E Ratio Is Telling Us

To keep it practical, we'll show how Headlam Group plc's (LON:HEAD) P/E ratio could help you assess the value on offer. … Headlam Group has a P/E ratio of 10.35, based on the last twelve months. … Price to Earnings Ratio = Price per Share ÷ Earnings per Share (EPS)

Simply Wall St -

Is Headlam Group plc's (LON:HEAD) ROE Of 15% Impressive?

Our data shows Headlam Group has a return on equity of 15% for the last year. … One way to conceptualize this, is that for each £1 of shareholders' equity it has, the company made £0.15 in profit. … Return on Equity = Net Profit ÷ Shareholders' Equity

Simply Wall St -

Are You An Income Investor? Don't Miss Out On Headlam Group plc (LON:HEAD)

Headlam Group plc (LON:HEAD) has pleased shareholders over the past 10 years, by paying out dividends. … The stock currently pays out a dividend yield of 6.2%, and has a market cap of UK£341m. … Does Headlam Group tick all the boxes of a great dividend stock?

Simply Wall St -

What Investors Should Know About Headlam Group plc's (LON:HEAD) Financial Strength

While investors primarily focus on the growth potential and competitive landscape of the small-cap companies, they end up ignoring a key aspect, which could be the biggest threat to its existence: its financial health. … Evaluating financial health as part of your investment thesis is. … Here are few basic financial health checks you should consider before taking the plunge.

Simply Wall St -

Is There An Opportunity With Headlam Group plc's (LON:HEAD) 36.72% Undervaluation?

by projecting its future cash flows and then discounting them to today's value. … Discounted Cash Flows (DCF). … If you are reading this and its not December 2018 then I highly recommend you check out the latest calculation for Headlam Group by following the link below

Simply Wall St -

Before Investing In Headlam Group plc (LON:HEAD), Consider This

Today we will examine Headlam Group’s ability to generate cash flows, as well as the level of capital expenditure it is expected to incur over the next couple of years, which will result in how much money goes to you. … Headlam Group’s free cash flow (FCF) is the level of cash flow the business generates from its operational activities, after it reinvests in the company as capital expenditure. … There are two methods I will use to evaluate the quality of Headlam Group’s FCF: firstly, I will measure its FCF yield relative to the market index yield; secondly, I will examine whether its operating cash flow will continue to grow into the future, which will give us a sense of sustainability

Simply Wall St -

Why Headlam Group plc (LON:HEAD) Could Be Your Next Investment

Headlam Group plc (LON:HEAD) is a stock with outstanding fundamental characteristics. … When we build an investment case, we need to look at the stock with a holistic perspective. … In the case of HEAD, it

Simply Wall St -

Is Headlam Group plc's (LON:HEAD) 15% Better Than Average?

To keep the lesson grounded in practicality, we'll use ROE to better understand Headlam Group plc (LON:HEAD). … Our data shows Headlam Group has a return on equity of 15% for the last year. … Return on Equity = Net Profit ÷ Shareholders' Equity

Simply Wall St -

Company Info

Description

Headlam Group plc, through its subsidiaries, sells, markets, supplies, and distributes floorcovering and other ancillary products. The company’s products include floorcovering products comprising carpet, residential vinyl, wood, laminate, luxury vinyl tile, rugs, and underlay and commercial flooring. It offers a range of residential and commercial products to independent retailers and flooring contractors in the United Kingdom, France, Switzerland, and the Netherlands. The company was founded in 1992 and is based in Birmingham, the United Kingdom.

Details
Name: Headlam Group plc
HEAD
Exchange: LSE
Founded: 1992
£363,629,489
84,368,791
Website: http://www.headlam.com
Address: Headlam Group plc
Gorsey Lane,
Coleshill,
Birmingham,
West Midlands, B46 1LW,
United Kingdom
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
LSE HEAD Ordinary Shares London Stock Exchange GB GBP 02. Jan 1992
BATS-CHIXE HEADL Ordinary Shares BATS 'Chi-X Europe' GB GBP 02. Jan 1992
Number of employees
Current staff
Staff numbers
2,427
Headlam Group employees.
Industry
Distributors
Retail
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/03/22 20:35
End of day share price update: 2019/03/22 00:00
Last estimates confirmation: 2019/03/19
Last earnings filing: 2019/03/06
Last earnings reported: 2018/12/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.