LSE:HFD

Stock Analysis Report

Executive Summary

Halfords Group plc, through its subsidiaries, retails automotive, leisure, and cycling products in the United Kingdom and the Republic of Ireland.

Snowflake

Fundamentals

Flawless balance sheet established dividend payer.


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


Market Performance


7 Day Return

3.2%

HFD

2.7%

GB Specialty Retail

-0.4%

GB Market


1 Year Return

-44.4%

HFD

15.5%

GB Specialty Retail

2.9%

GB Market

Return vs Industry: HFD underperformed the UK Specialty Retail industry which returned 15.5% over the past year.

Return vs Market: HFD underperformed the UK Market which returned 2.9% over the past year.


Shareholder returns

HFDIndustryMarket
7 Day3.2%2.7%-0.4%
30 Day2.5%8.1%-1.4%
90 Day-20.2%8.8%-2.1%
1 Year-39.7%-44.4%19.6%15.5%7.9%2.9%
3 Year-38.7%-50.4%3.6%-6.8%18.0%3.6%
5 Year-50.4%-63.0%11.4%-5.0%35.8%6.4%

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?

29.8%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: HFD (£1.71) is trading below our estimate of fair value (£2.43)

Significantly Undervalued: HFD is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: HFD is good value based on its PE Ratio (8x) compared to the Specialty Retail industry average (14.6x).

PE vs Market: HFD is good value based on its PE Ratio (8x) compared to the UK market (16.7x).


Price to Earnings Growth Ratio

Low PEG Ratio: HFD is poor value based on its PEG Ratio (2.5x)


Price to Book Ratio

PB vs Industry: HFD is good value based on its PB Ratio (0.8x) compared to the GB Specialty Retail industry average (1x).


Next Steps

Future Growth

How is Halfords Group forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?

3.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: HFD's forecast earnings growth (3.2% per year) is above the savings rate (1.2%).

Earnings vs Market: HFD's earnings (3.2% per year) are forecast to grow slower than the UK market (12.6% per year).

High Growth Earnings: HFD's earnings are forecast to grow, but not significantly.

Revenue vs Market: HFD's revenue (1.4% per year) is forecast to grow slower than the UK market (3.9% per year).

High Growth Revenue: HFD's revenue (1.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: HFD's Return on Equity is forecast to be low in 3 years time (9.8%).


Next Steps

Past Performance

How has Halfords Group performed over the past 5 years?

-5.8%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: HFD's earnings have declined by -5.8% per year over the past 5 years.

Accelerating Growth: HFD's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: HFD had negative earnings growth (-23.4%) over the past year, making it difficult to compare to the Specialty Retail industry average (-1.9%).


Return on Equity

High ROE: HFD's Return on Equity (10%) is considered low.


Return on Assets

ROA vs Industry: HFD has a higher Return on Assets than the Specialty Retail industry average last year.


Return on Capital Employed

ROCE Improving: HFD's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is Halfords Group's financial position?


Financial Position Analysis

Short Term Liabilities: HFD's short term assets (£257.5M) exceeds its short term liabilities (£214.7M)

Long Term Liabilities: HFD's short term assets (257.5M) exceeds its long term liabilities (106.5M)


Debt to Equity History and Analysis

Debt Level: HFD's debt to equity ratio (19.2%) is considered satisfactory

Reducing Debt: HFD's debt to equity ratio has reduced from 28.6% to 19.2% over the past 5 years.

Debt Coverage: HFD's debt is well covered by operating cash flow (89.4%).

Interest Coverage: HFD's interest payments on its debt are well covered by EBIT (22.2x coverage).


Balance Sheet

Inventory Level: HFD has a high level of physical assets or inventory.

Debt Coverage by Assets: HFD's debt is covered by short term assets (assets are 3.179010x debt).


Next Steps

Dividend

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

10.86%

Current Dividend Yield


Dividend Yield vs Market

company10.9%marketbottom25%2.0%markettop25%5.4%industryaverage2.9%forecastin3Years9.7%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: HFD's dividend (10.86%) is higher than the bottom 25% of dividend payers in the UK market (2.01%).

High Dividend: HFD's dividend (10.86%) is in the top 25% of dividend payers in the UK market (5.36%)

Stable Dividend: HFD's dividend payments have been volatile in the past 10 years.

Growing Dividend: HFD's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: At its current payout ratio (87.4%), HFD's payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: HFD's dividends in 3 years are forecast to be covered by earnings (73.5% payout ratio).


Next Steps

Management

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

1.8yrs

Average management tenure


CEO

Graham Stapleton 0

1.8yrs

Tenure

UK£642,117

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 has recently become CEO, making it difficult to compare their total compensation against companies of similar size in the UK market.

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


Management Age and Tenure

1.8yrs

Average Tenure

Experienced Management: HFD's management team is not considered experienced ( 1.8 years average tenure), which suggests a new team.


Board Age and Tenure

1.8yrs

Average Tenure

62yo

Average Age

Experienced Board: HFD's board of directors are not considered experienced ( 1.8 years average tenure), which suggests a new board.


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown


Management Team

  • Keith Jones (54yo)

    Chief Operating Officer

    • Tenure: 0.8yrs
  • Tim O’Gorman

    Company Secretary

    • Tenure: 3.8yrs
  • Loraine Woodhouse

    CFO & Director

    • Tenure: 1.8yrs
    • Compensation: UK£180.28k
  • Graham Stapleton

    CEO & Executive Director

    • Tenure: 1.8yrs
    • Compensation: UK£642.12k
  • Andy Randall

    Managing Director of Autocentres

    • Tenure: 5.6yrs
  • Nima Dattani

    Head of Investor Relations & Corporate Finance

    • Tenure: 0yrs

Board Members

  • David Alexander Adams (64yo)

    Senior Independent Director

    • Tenure: 5.6yrs
  • Keith Williams (63yo)

    Non-Executive Chairman

    • Tenure: 1.3yrs
  • Loraine Woodhouse

    CFO & Director

    • Tenure: 1.8yrs
    • Compensation: UK£180.28k
  • Helen Jones (61yo)

    Independent Non-Executive Director

    • Tenure: 5.6yrs
  • Jill Caseberry (54yo)

    Independent Non-Executive Director

    • Tenure: 0.6yrs
  • Graham Stapleton

    CEO & Executive Director

    • Tenure: 1.8yrs
    • Compensation: UK£642.12k

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£336.840m
  • 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, 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 Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/19 20:31
End of Day Share Price2019/10/18 00:00
Earnings2019/03/29
Annual Earnings2019/03/29


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.