LSE:HFD

Stock Analysis Report

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Executive Summary

Halfords Group plc, through its subsidiaries, provides motoring and cycling products and services in the United Kingdom and the Republic of Ireland. More Details


Snowflake Analysis

Excellent balance sheet and fair value.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: HFD is not significantly more volatile than the rest of UK stocks over the past 3 months, typically moving +/- 8% a week.

Volatility Over Time: HFD's weekly volatility has decreased from 13% to 8% over the past year.


Market Performance


7 Day Return

-6.9%

HFD

0.9%

GB Specialty Retail

-0.5%

GB Market


1 Year Return

69.2%

HFD

0.7%

GB Specialty Retail

-8.2%

GB Market

Return vs Industry: HFD exceeded the UK Specialty Retail industry which returned 0.7% over the past year.

Return vs Market: HFD exceeded the UK Market which returned -8.2% over the past year.


Shareholder returns

HFDIndustryMarket
7 Day-6.9%0.9%-0.5%
30 Day3.1%0.04%3.0%
90 Day16.8%3.4%14.1%
1 Year69.2%69.2%0.9%0.7%-4.5%-8.2%
3 Year-9.3%-22.3%12.9%5.1%3.7%-9.0%
5 Year-2.4%-26.5%10.9%-3.9%42.1%14.4%

Long-Term Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

13.51x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: HFD (£2.79) is trading above our estimate of fair value (£2.1)

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


Price To Earnings Ratio

PE vs Industry: HFD is good value based on its PE Ratio (13.5x) compared to the GB Specialty Retail industry average (19.4x).

PE vs Market: HFD is good value based on its PE Ratio (13.5x) compared to the UK market (22.9x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: HFD is good value based on its PB Ratio (1.3x) compared to the GB Specialty Retail industry average (1.7x).


Next Steps

Future Growth

How is Halfords Group forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

-0.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: HFD's earnings are forecast to decline over the next 3 years (-0.8% per year).

Earnings vs Market: HFD's earnings are forecast to decline over the next 3 years (-0.8% per year).

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

Revenue vs Market: HFD's revenue is expected to decline over the next 3 years (-0.2% per year).

High Growth Revenue: HFD's revenue is forecast to decline over the next 3 years (-0.2% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: HFD's Return on Equity is forecast to be low in 3 years time (10.5%).


Next Steps

Past Performance

How has Halfords Group performed over the past 5 years?

-15.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: HFD has a large one-off loss of £31.9M impacting its October 2 2020 financial results.

Growing Profit Margin: HFD's current net profit margins (3.4%) are lower than last year (3.6%).


Past Earnings Growth Analysis

Earnings Trend: HFD's earnings have declined by 15% per year over the past 5 years.

Accelerating Growth: HFD's earnings growth over the past year (0.07%) exceeds its 5-year average (-15% per year).

Earnings vs Industry: HFD earnings growth over the past year (0.07%) exceeded the Specialty Retail industry -13.3%.


Return on Equity

High ROE: HFD's Return on Equity (9.9%) is considered low.


Next Steps

Financial Health

How is Halfords Group's financial position?


Financial Position Analysis

Short Term Liabilities: HFD's short term assets (£320.1M) do not cover its short term liabilities (£393.4M).

Long Term Liabilities: HFD's short term assets (£320.1M) exceed its long term liabilities (£318.0M).


Debt to Equity History and Analysis

Debt Level: HFD's debt to equity ratio (0.6%) is considered satisfactory.

Reducing Debt: HFD's debt to equity ratio has reduced from 19% to 0.6% over the past 5 years.

Debt Coverage: HFD's debt is well covered by operating cash flow (12520.8%).

Interest Coverage: HFD's interest payments on its debt are well covered by EBIT (6.7x coverage).


Balance Sheet


Next Steps

Dividend

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

2.09%

Forecast Dividend Yield


Dividend Yield vs Market

Notable Dividend: Unable to evaluate HFD's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate HFD's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if HFD's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if HFD's dividend payments have been increasing.


Current Payout to Shareholders

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


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of HFD'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

Graham Stapleton

3yrs

Tenure

UK£678,065

Compensation

Mr. Graham Stapleton has been Chief Executive Officer and Director at Halfords Group plc since January 15, 2018. Mr. Stapleton served as Chief Executive Officer of honeyBee at Dixons Carphone plc (formerly...


CEO Compensation Analysis

Compensation vs Market: Graham's total compensation ($USD926.46K) is about average for companies of similar size in the UK market ($USD1.01M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Graham Stapleton
CEO & Executive Director3yrsUK£678.07k0.064%
£ 350.8k
Loraine Woodhouse
CFO & Director2.17yrsUK£418.60k0.035%
£ 190.3k
Keith Jones
Chief Operating Officer2yrsno datano data
Nima Dattani
Head of Investor Relations & Corporate Financeno datano datano data
Andy Randall
Managing Director of Autocentres6.83yrsno datano data
Tim O'Gorman
Company Secretary5yrsno datano data

3.0yrs

Average Tenure

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


Board Members

NamePositionTenureCompensationOwnership
Graham Stapleton
CEO & Executive Director3yrsUK£678.07k0.064%
£ 350.8k
Loraine Woodhouse
CFO & Director2.17yrsUK£418.60k0.035%
£ 190.3k
Keith Williams
Independent Non-Executive Chairman2.5yrsUK£192.40k0.066%
£ 362.1k
Helen Jones
Independent Non-Executive Director6.83yrsUK£63.18k0.0015%
£ 8.3k
Jill Caseberry
Independent Non-Executive Director1.83yrsUK£62.72kno data

2.5yrs

Average Tenure

62yo

Average Age

Experienced Board: HFD's board of directors are not considered experienced ( 2.5 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: HFD insiders have only sold shares 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

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


Key Information

  • Name: Halfords Group plc
  • Ticker: HFD
  • Exchange: LSE
  • Founded: 1892
  • Industry: Automotive Retail
  • Sector: Retail
  • Market Cap: UK£548.596m
  • Shares outstanding: 196.98m
  • Website: https://www.halfordscompany.com

Number of Employees


Location

  • Halfords Group plc
  • Icknield Street Drive
  • Washford West
  • Redditch
  • Worcestershire
  • B98 0DE
  • United Kingdom

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
HFDLSE (London Stock Exchange)YesOrdinary SharesGBGBPJun 2004
HDKDB (Deutsche Boerse AG)YesOrdinary SharesDEEURJun 2004
HLFD.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJun 2004
HFDLBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBGBPJun 2004
HLFD.YOTCPK (Pink Sheets LLC)UNSPONSORED ADRUSUSDDec 2009

Biography

Halfords Group plc, through its subsidiaries, provides motoring and cycling products and services in the United Kingdom and the Republic of Ireland. Its Retail segment is involved in the retail of automoti...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/01/23 01:20
End of Day Share Price2021/01/22 00:00
Earnings2020/10/02
Annual Earnings2020/04/03


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.