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Halfords Group

LSE:HFD
Snowflake Description

Flawless balance sheet established dividend payer.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
HFD
LSE
£436M
Market Cap
  1. Home
  2. GB
  3. Retail
Company description

Halfords Group plc, through its subsidiaries, retails automotive, leisure, and cycling products in the United Kingdom and the Republic of Ireland. The last earnings update was 6 days ago. More info.


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HFD Share Price and Events
7 Day Returns
-2.6%
LSE:HFD
-0.1%
GB Specialty Retail
-0.1%
GB Market
1 Year Returns
-36.1%
LSE:HFD
-11.1%
GB Specialty Retail
-2.6%
GB Market
HFD Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Halfords Group (HFD) -2.6% -4.7% -4.7% -36.1% -31.2% -53.5%
GB Specialty Retail -0.1% -1% -0.6% -11.1% -12.3% -23%
GB Market -0.1% 1.3% 2.5% -2.6% 16.5% 3.8%
1 Year Return vs Industry and Market
  • HFD underperformed the Specialty Retail industry which returned -11.1% over the past year.
  • HFD underperformed the Market in United Kingdom of Great Britain and Northern Ireland which returned -2.6% over the past year.
Price Volatility
HFD
Industry
5yr Volatility vs Market

Value

 Is Halfords 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 Halfords 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 Halfords Group.

LSE:HFD Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 9 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 7.9%
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:HFD
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year GB Govt Bond Rate 1.2%
Equity Risk Premium S&P Global 6.7%
Specialty Retail Unlevered Beta Simply Wall St/ S&P Global 0.87
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.868 (1 + (1- 19%) (21.01%))
1.01
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.01
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 1.23% + (1.01 * 6.65%)
7.95%

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

The calculations below outline how an intrinsic value for Halfords 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:HFD DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (GBP, Millions) Source Present Value
Discounted (@ 7.95%)
2019 45.85 Analyst x5 42.47
2020 52.74 Analyst x5 45.26
2021 45.70 Analyst x6 36.33
2022 47.40 Analyst x4 34.91
2023 45.75 Est @ -3.48% 31.22
2024 44.81 Est @ -2.07% 28.32
2025 44.32 Est @ -1.08% 25.95
2026 44.15 Est @ -0.39% 23.95
2027 44.19 Est @ 0.1% 22.21
2028 44.39 Est @ 0.44% 20.66
Present value of next 10 years cash flows £311.30
LSE:HFD DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= £44.39 × (1 + 1.23%) ÷ (7.95% – 1.23%)
£668.79
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= £668.79 ÷ (1 + 7.95%)10
£311.36
LSE:HFD Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= £311.30 + £311.36
£622.65
Equity Value per Share
(GBP)
= Total value / Shares Outstanding
= £622.65 / 197.06
£3.16
LSE:HFD Discount to Share Price
Calculation Result
Value per share (GBP) From above. £3.16
Current discount Discount to share price of £2.21
= -1 x (£2.21 - £3.16) / £3.16
30%

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

Current Discount
Amount off the current price Halfords Group is available for.
Intrinsic value
30%
Share price is £2.21 vs Future cash flow value of £3.16
Current Discount Checks
For Halfords Group to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Halfords Group's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • Halfords 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 Halfords Group's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Halfords Group's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
LSE:HFD PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-03-29) in GBP £0.21
LSE:HFD Share Price ** LSE (2019-06-26) in GBP £2.21
United Kingdom of Great Britain and Northern Ireland Specialty Retail Industry PE Ratio Median Figure of 24 Publicly-Listed Specialty Retail Companies 13.06x
United Kingdom of Great Britain and Northern Ireland Market PE Ratio Median Figure of 787 Publicly-Listed Companies 16.32x

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

** Primary Listing of Halfords Group.

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

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

= 2.21 ÷ 0.21

10.41x

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

  • Halfords Group is good value based on earnings compared to the GB Specialty Retail industry average.
  • Halfords 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 Halfords Group's expected growth come at a high price?
Raw Data
LSE:HFD PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 10.41x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 9 Analysts
8%per year
United Kingdom of Great Britain and Northern Ireland Specialty Retail Industry PEG Ratio Median Figure of 23 Publicly-Listed Specialty Retail Companies 1.35x
United Kingdom of Great Britain and Northern Ireland Market PEG Ratio Median Figure of 577 Publicly-Listed Companies 1.47x

*Line of best fit is calculated by linear regression .

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

= PE Ratio ÷ Net Income Annual Growth Rate

= 10.41x ÷ 8%

1.29x

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

  • Halfords Group is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Halfords Group's assets?
Raw Data
LSE:HFD PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-03-29) in GBP £2.14
LSE:HFD Share Price * LSE (2019-06-26) in GBP £2.21
United Kingdom of Great Britain and Northern Ireland Specialty Retail Industry PB Ratio Median Figure of 39 Publicly-Listed Specialty Retail Companies 0.95x
United Kingdom of Great Britain and Northern Ireland Market PB Ratio Median Figure of 1,372 Publicly-Listed Companies 1.48x
LSE:HFD PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

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

= 2.21 ÷ 2.14

1.03x

* Primary Listing of Halfords Group.

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

  • Halfords Group is overvalued based on assets compared to the GB Specialty Retail industry average.
X
Value checks
We assess Halfords 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 Specialty Retail 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 Specialty Retail industry average (and greater than 0)? (1 check)
  5. Halfords Group has a total score of 3/6, 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 Halfords Group expected to perform in the next 1 to 3 years based on estimates from 9 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
8%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Halfords Group expected to grow at an attractive rate?
  • Halfords Group's earnings growth is expected to exceed the low risk savings rate of 1.2%.
Growth vs Market Checks
  • Halfords Group's earnings growth is positive but not above the United Kingdom of Great Britain and Northern Ireland market average.
  • Halfords 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:HFD Future Growth Rates Data Sources
Data Point Source Value (per year)
LSE:HFD Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 9 Analysts 8%
LSE:HFD Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 9 Analysts 2%
United Kingdom of Great Britain and Northern Ireland Specialty Retail Industry Earnings Growth Rate Market Cap Weighted Average 19.3%
United Kingdom of Great Britain and Northern Ireland Specialty Retail Industry Revenue Growth Rate Market Cap Weighted Average 4.8%
United Kingdom of Great Britain and Northern Ireland Market Earnings Growth Rate Market Cap Weighted Average 10.6%
United Kingdom of Great Britain and Northern Ireland Market Revenue Growth Rate Market Cap Weighted Average 4.8%

*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:HFD Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 9 Analyst Estimates (S&P Global) See Below
All numbers in GBP Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
LSE:HFD Future Estimates Data
Date (Data in GBP Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2023-03-31 1,232 1
2022-03-31 1,207 96 54 5
2021-03-31 1,186 90 50 9
2020-03-31 1,157 89 48 9
2019-03-31 1,141 87 48 10
LSE:HFD Past Financials Data
Date (Data in GBP Millions) Revenue Cash Flow Net Income *
2019-03-29 1,139 72 42
2018-12-29 1,142 77 45
2018-09-28 1,146 81 48
2018-06-28 1,141 80 51
2018-03-30 1,135 79 55
2017-12-30 1,126 80 55
2017-09-29 1,116 80 55
2017-06-29 1,106 76 55
2017-03-31 1,095 72 56
2016-12-31 1,075 79 57
2016-09-30 1,055 86 57
2016-06-30 1,038 85 60
2016-04-01 1,022 84 64

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Halfords Group's earnings are expected to grow by 8% yearly, however this is not considered high growth (20% yearly).
  • Halfords Group's revenue is expected to grow by 2% 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:HFD 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 9 Analyst Estimates (S&P Global) See Below

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

LSE:HFD Future Estimates Data
Date (Data in GBP Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2023-03-31
2022-03-31 0.27 0.29 0.25 4.00
2021-03-31 0.25 0.27 0.24 5.00
2020-03-31 0.24 0.25 0.24 5.00
2019-03-31 0.24 0.24 0.24 5.00
LSE:HFD Past Financials Data
Date (Data in GBP Millions) EPS *
2019-03-29 0.21
2018-12-29 0.23
2018-09-28 0.24
2018-06-28 0.26
2018-03-30 0.28
2017-12-30 0.28
2017-09-29 0.28
2017-06-29 0.28
2017-03-31 0.29
2016-12-31 0.29
2016-09-30 0.29
2016-06-30 0.31
2016-04-01 0.33

*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.
  • Halfords Group is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Halfords 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 United Kingdom of Great Britain and Northern Ireland market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United Kingdom of Great Britain and Northern Ireland 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.
Halfords 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 Halfords 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 Halfords Group's growth in the last year to its industry (Specialty Retail).
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.
  • Halfords Group's year on year earnings growth rate was negative over the past 5 years and the most recent earnings are below average.
  • Halfords Group's 1-year earnings growth is negative, it can't be compared to the 5-year average.
  • Halfords Group's 1-year earnings growth is negative, it can't be compared to the GB Specialty Retail industry average.
Earnings and Revenue History
Halfords 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 Halfords Group Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

LSE:HFD Past Revenue, Cash Flow and Net Income Data
Date (Data in GBP Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-03-29 1,138.60 41.90 516.80
2018-12-29 1,142.45 44.95 514.35
2018-09-28 1,146.30 48.00 511.90
2018-06-28 1,140.70 51.35 503.75
2018-03-30 1,135.10 54.70 495.60
2017-12-30 1,125.75 54.60 491.75
2017-09-29 1,116.40 54.50 487.90
2017-06-29 1,105.70 55.45 484.70
2017-03-31 1,095.00 56.40 481.50
2016-12-31 1,075.15 56.80 475.20
2016-09-30 1,055.30 57.20 468.90
2016-06-30 1,038.40 60.35 463.75
2016-04-01 1,021.50 63.50 458.60
2016-01-01 1,028.15 63.75 462.55
2015-10-02 1,034.80 64.00 466.50
2015-07-02 1,030.10 64.90 462.60
2015-04-03 1,025.40 65.80 458.70
2015-01-03 999.30 63.20 447.90
2014-09-26 973.20 60.60 437.10
2014-06-26 956.45 58.05 431.75
2014-03-28 939.70 55.50 426.40
2013-12-28 923.00 55.20 418.20
2013-09-27 906.30 54.90 410.00
2013-06-27 888.80 53.80 404.50
2013-03-29 871.30 52.70 399.00
2012-12-29 868.00 56.60 393.40
2012-09-28 864.70 60.50 387.80
2012-06-28 863.90 64.45 381.70

*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.
  • Halfords Group has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Halfords Group used its assets less efficiently than the GB Specialty Retail industry average last year based on Return on Assets.
  • Halfords Group's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Halfords 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 Specialty Retail 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.
Halfords Group has a total score of 0/6, 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 Halfords 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 Halfords Group's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Halfords Group is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Halfords Group's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Halfords 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 2.8x 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 Halfords Group Company Filings, last reported 2 months ago.

LSE:HFD Past Debt and Equity Data
Date (Data in GBP Millions) Total Equity Total Debt Cash & Short Term Investments
2019-03-29 421.00 81.00 9.80
2018-12-29 421.00 81.00 9.80
2018-09-28 425.50 84.50 18.50
2018-06-28 425.50 84.50 18.50
2018-03-30 421.90 103.20 27.00
2017-12-30 421.90 103.20 27.00
2017-09-29 405.70 84.30 11.40
2017-06-29 405.70 84.30 11.40
2017-03-31 407.50 90.40 16.50
2016-12-31 407.50 90.40 16.50
2016-09-30 415.40 73.50 20.30
2016-06-30 415.40 73.50 20.30
2016-04-01 405.40 48.10 11.90
2016-01-01 405.40 48.10 11.90
2015-10-02 386.50 74.00 23.20
2015-07-02 386.50 74.00 23.20
2015-04-03 367.70 73.00 22.40
2015-01-03 367.70 73.00 22.40
2014-09-26 350.60 63.20 3.70
2014-06-26 350.60 63.20 3.70
2014-03-28 326.10 94.00 5.30
2013-12-28 326.10 94.00 5.30
2013-09-27 311.30 52.20 5.80
2013-06-27 311.30 52.20 5.80
2013-03-29 298.70 107.30 7.90
2012-12-29 298.70 107.30 7.90
2012-09-28 292.10 125.00 28.50
2012-06-28 292.10 125.00 28.50
  • Halfords Group's level of debt (21.8%) 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 (31.9% vs 21.8% today).
  • Debt is well covered by operating cash flow (79%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 22.2x coverage).
X
Financial health checks
We assess Halfords 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. Halfords 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 Halfords 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
8.4%
Current annual income from Halfords Group dividends. Estimated to be 8.5% next year.
If you bought £2,000 of Halfords Group shares you are expected to receive £168 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?
  • Halfords Group's pays a higher dividend yield than the bottom 25% of dividend payers in United Kingdom of Great Britain and Northern Ireland (1.95%).
  • Halfords Group's dividend is above the markets top 25% of dividend payers in United Kingdom of Great Britain and Northern Ireland (5.45%).
Upcoming dividend payment

Purchase Halfords Group 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:HFD 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 9 Analyst Estimates (S&P Global) See Below
United Kingdom of Great Britain and Northern Ireland Specialty Retail Industry Average Dividend Yield Market Cap Weighted Average of 25 Stocks 3.3%
United Kingdom of Great Britain and Northern Ireland Market Average Dividend Yield Market Cap Weighted Average of 706 Stocks 4.3%
United Kingdom of Great Britain and Northern Ireland Minimum Threshold Dividend Yield 10th Percentile 1%
United Kingdom of Great Britain and Northern Ireland Bottom 25% Dividend Yield 25th Percentile 1.9%
United Kingdom of Great Britain and Northern Ireland Top 25% Dividend Yield 75th Percentile 5.4%

Industry and Market average data is calculated daily.

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

LSE:HFD Future Dividends Estimate Data
Date (Data in £) Dividend per Share (annual) Avg. No. Analysts
2023-03-31 0.21 1.00
2022-03-31 0.18 5.00
2021-03-31 0.19 9.00
2020-03-31 0.19 8.00
2019-03-31 0.18 11.00
LSE:HFD Past Annualized Dividends Data
Date (Data in £) Dividend per share (annual) Avg. Yield (%)
2019-06-20 0.186 8.322
2019-05-21 0.186 8.084
2018-05-22 0.180 6.375
2017-06-22 0.175 5.128
2017-05-25 0.175 4.883
2016-06-23 0.170 4.848
2016-06-01 0.170 4.240
2014-05-22 0.143 3.033
2013-05-23 0.171 4.196
2012-05-31 0.220 7.616
2012-05-30 0.220 8.534
2011-06-09 0.220 7.039
2011-06-08 0.220 5.475
2010-06-10 0.200 4.672
2009-07-03 0.159 3.950
2009-06-10 0.159 5.015

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 Halfords Group's earnings are paid to the shareholders as a dividend.
  • Dividends paid are covered by earnings (1.1x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be covered by earnings (1.5x coverage).
X
Income/ dividend checks
We assess Halfords Group's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 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 Halfords Group afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Halfords 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 Halfords 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
Graham Stapleton
COMPENSATION £642,117
TENURE AS CEO 1.4 years
CEO Bio

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, Carphone Warehouse Group plc) since April 27, 2017. Mr. Stapleton served as the Chief Executive Officer of Connected World Services at Dixons Carphone plc from October 6, 2015 to April 27, 2017. Mr. Stapleton served as the Chief Executive Officer of UK & Ireland Carphone warehouse of Dixons Carphone plc. since August 6, 2014. As chief executive officer of UK & Ireland, he contributed to the growth of the business through the development of a customer-led strategy and a focus on strategic partner relationships with both network operators and hardware manufacturers. He was a Trustee of the Make-A-Wish charity. He served as Chief Commercial Officer at The Carphone Warehouse Limited. He joined the Carphone Group in 2005, having previously worked for Kingfisher plc from 2001 to 2005 and Marks and Spencer plc from 1994 to 2001. He served as an Executive Director of Dixons Carphone plc since August 6, 2014 until April 27, 2017.

CEO Compensation
  • Graham's compensation has been consistent with company performance over the past year, both up more than 20%.
  • Graham's remuneration is about average for companies of similar size in United Kingdom of Great Britain and Northern Ireland.
Management Team Tenure

Average tenure of the Halfords Group management team in years:

1.4
Average Tenure
  • The average tenure for the Halfords Group management team is less than 2 years, this suggests a new team.
Management Team

Graham Stapleton

TITLE
CEO & Executive Director
COMPENSATION
£642K
TENURE
1.4 yrs

Loraine Woodhouse

TITLE
CFO & Director
COMPENSATION
£180K
TENURE
0.6 yrs

Karen Bellairs

TITLE
Chief Operating Officer
TENURE
0.9 yrs

Nima Dattani

TITLE
Head of Investor Relations & Corporate Finance

Andy Randall

TITLE
Managing Director of Autocentres
TENURE
5.3 yrs

Tim O’Gorman

TITLE
Company Secretary
TENURE
3.4 yrs
Board of Directors Tenure

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

1.4
Average Tenure
61
Average Age
  • The average tenure for the Halfords Group board of directors is less than 3 years, this suggests a new board.
Board of Directors

Keith Williams

TITLE
Non-Executive Chairman
AGE
62
TENURE
0.9 yrs

Graham Stapleton

TITLE
CEO & Executive Director
COMPENSATION
£642K
TENURE
1.4 yrs

Loraine Woodhouse

TITLE
CFO & Director
COMPENSATION
£180K
TENURE
1.4 yrs

David Alexander Adams

TITLE
Senior Independent Director
AGE
63
TENURE
5.3 yrs

Helen Jones

TITLE
Independent Non-Executive Director
AGE
60
TENURE
5.3 yrs

Jill Caseberry

TITLE
Independent Non-Executive Director
AGE
53
TENURE
0.3 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month individual insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (£) Value (£)
X
Management checks
We assess Halfords 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. Halfords 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

Will Halfords Group plc's (LON:HFD) Earnings Grow In The Next 12 Months?

After Halfords Group plc's (LON:HFD) earnings announcement on 29 March 2019, the consensus outlook from analysts appear fairly confident, with profits predicted to increase by 15% next year compared with the past 5-year average growth rate of -5.8%. … I've plotted out each year's earnings expectations and inserted a line of best fit to calculate an annual growth rate from the slope in order to understand the overall trajectory of HFD's earnings growth over these next few years. … LSE:HFD Past and Future Earnings, June 17th 2019 By 2022, HFD's earnings should reach UK£54m, from current levels of UK£42m, resulting in an annual growth rate of 8.0%.

Simply Wall St -

Is Halfords Group plc's (LON:HFD) P/E Ratio Really That Good?

The formula for P/E is: Price to Earnings Ratio = Share Price ÷ Earnings per Share (EPS) Or for Halfords Group: P/E of 10.49 = £2.23 ÷ £0.21 (Based on the trailing twelve months to March 2019.) Is A High Price-to-Earnings Ratio Good? … Halfords Group's earnings per share fell by 23% in the last twelve months. … LSE:HFD Price Estimation Relative to Market, June 4th 2019 Its relatively low P/E ratio indicates that Halfords Group shareholders think it will struggle to do as well as other companies in its industry classification.

Simply Wall St -

Should You Be Concerned About Halfords Group plc's (LON:HFD) ROE?

The formula for ROE is: Return on Equity = Net Profit ÷ Shareholders' Equity Or for Halfords Group: 10.0% = UK£42m ÷ UK£421m (Based on the trailing twelve months to March 2019.) It's easy to understand the 'net profit' part of that equation, but 'shareholders' equity' requires further explanation. … Does Halfords Group Have A Good Return On Equity? … Combining Halfords Group's Debt And Its 10.0% Return On Equity While Halfords Group does have some debt, with debt to equity of just 0.22, we wouldn't say debt is excessive.

Simply Wall St -

Should Halfords Group plc (LON:HFD) Be Part Of Your Income Portfolio?

Could Halfords Group plc (LON:HFD) be an attractive dividend share to own for the long haul? … A high yield and a long history of paying dividends is an appealing combination for Halfords Group. … Explore this interactive chart for our latest analysis on Halfords Group!

Simply Wall St -

Estimating The Fair Value Of Halfords Group plc (LON:HFD)

Today we will run through one way of estimating the intrinsic value of Halfords Group plc (LON:HFD). … Anyone interested in learning a bit more about intrinsic value should have a read of the Simply Wall St analysis model. … The first stage is generally a higher growth period which levels off heading towards the terminal value, captured in the second 'steady growth' period.

Simply Wall St -

Are Halfords Group plc’s Returns On Capital Worth Investigating?

Specifically, we'll consider its Return On Capital Employed (ROCE), since that will give us an insight into how efficiently the business can generate profits from the capital it requires. … Return On Capital Employed (ROCE): What is it? … ROCE measures the 'return' (pre-tax profit) a company generates from capital employed in its business.

Simply Wall St -

If You Had Bought Halfords Group (LON:HFD) Stock Five Years Ago, You'd Be Sitting On A 46% Loss, Today

At this point some shareholders may be questioning their investment in Halfords Group plc (LON:HFD), since the last five years saw the share price fall 46%. … We also note that the stock has performed poorly over the last year, with the share price down 27%. … Looking back five years, both Halfords Group's share price and EPS declined; the latter at a rate of 2.9% per year.

Simply Wall St -

How Financially Strong Is Halfords Group plc (LON:HFD)?

Investors are always looking for growth in small-cap stocks like Halfords Group plc (LON:HFD), with a market cap of UK£487m. … However, an important fact which most ignore is: how financially healthy is the business? … Companies operating in the Specialty Retail industry facing headwinds from current disruption,.

Simply Wall St -

Halfords Group plc (LON:HFD): Exploring Free Cash Flows

Halfords Group plc (LON:HFD) shareholders, and potential investors, need to understand how much cash the business makes from its core operational activities, as well as how much is invested back into the business. … I’ve analysed below, the health and outlook of Halfords Group’s cash flow, which will help you understand the stock from a cash standpoint. … Halfords 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

Simply Wall St -

How Halfords Group plc (LON:HFD) Could Add Value To Your Portfolio

Help shape the future of investing tools and you could win a $250 gift card! … Building up an investment case requires looking at a stock holistically. … Today I've chosen to put the spotlight on Halfords Group plc (LON:HFD) due to its excellent fundamentals in more than one area.

Simply Wall St -

Company Info

Description

Halfords Group plc, through its subsidiaries, retails automotive, leisure, and cycling products in the United Kingdom and the Republic of Ireland. It operates in two segments, Retail and Car Servicing. The company retails auto parts, accessories, cycles, and cycle accessories; and provides garage servicing and auto repair services. It also offers bicycle replacement for insurance companies under the Wheelies brand; and bikes and cycling parts, accessories, and clothing through online under the Tredz brand. It operates approximately 460 retail stores; and 20 Cycle Republic stores. Halfords Group plc was founded in 1892 and is based in Redditch, the United Kingdom.

Details
Name: Halfords Group plc
HFD
Exchange: LSE
Founded: 1892
£435,888,467
197,056,269
Website: http://www.halfordscompany.com
Address: Halfords Group plc
Icknield Street Drive,
Washford West,
Redditch,
Worcestershire, B98 0DE,
United Kingdom
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
LSE HFD Ordinary Shares London Stock Exchange GB GBP 03. Jun 2004
OTCPK HLFD.F Ordinary Shares Pink Sheets LLC US USD 03. Jun 2004
DB HDK Ordinary Shares Deutsche Boerse AG DE EUR 03. Jun 2004
BATS-CHIXE HFDL Ordinary Shares BATS 'Chi-X Europe' GB GBP 03. Jun 2004
OTCPK HLFD.Y UNSPONSORED ADR Pink Sheets LLC US USD 24. Dec 2009
Number of employees
Current staff
Staff numbers
10,200
Halfords Group employees.
Industry
Automotive Retail
Retail
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/06/26 20:31
End of day share price update: 2019/06/26 00:00
Last estimates confirmation: 2019/06/01
Last earnings filing: 2019/06/20
Last earnings reported: 2019/03/29
Last annual earnings reported: 2019/03/29


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.