Howden Joinery Group
Market Cap
US$4.5b
Last Updated
2020/06/05 05:39 UTC
Data Sources
Company Financials +
Executive Summary
Howden Joinery Group Plc engages in the manufacture, sourcing, sale, and distribution of kitchens and joinery products in the United Kingdom, France, Belgium, the Netherlands, and Germany.
Rewards
Risk Analysis
Snowflake Analysis
Flawless balance sheet with outstanding track record.
Similar Companies
Share Price & News
How has Howden Joinery Group's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: HWDJ.Y's share price has been volatile over the past 3 months.
Market Performance
7 Day Return
1.3%
HWDJ.Y
4.6%
US Trade Distributors
2.9%
US Market
1 Year Return
11.3%
HWDJ.Y
3.5%
US Trade Distributors
8.9%
US Market
Return vs Industry: HWDJ.Y exceeded the US Trade Distributors industry which returned 3.5% over the past year.
Return vs Market: HWDJ.Y exceeded the US Market which returned 8.9% over the past year.
Shareholder returns
| HWDJ.Y | Industry | Market | |
|---|---|---|---|
| 7 Day | 1.3% | 4.6% | 2.9% |
| 30 Day | 14.9% | 18.7% | 10.6% |
| 90 Day | -11.8% | 6.8% | 5.1% |
| 1 Year | 12.0%11.3% | 5.5%3.5% | 11.4%8.9% |
| 3 Year | 31.4%25.2% | 22.2%16.5% | 34.3%25.4% |
| 5 Year | n/a | 31.0%20.5% | 60.7%42.7% |
Price Volatility Vs. Market
How volatile is Howden Joinery Group's share price compared to the market and industry in the last 5 years?
Simply Wall St News
No news available
Valuation
Is Howden Joinery Group undervalued compared to its fair value and its price relative to the market?
17.11x
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: HWDJ.Y ($28.89) is trading above our estimate of fair value ($23.19)
Significantly Below Fair Value: HWDJ.Y is trading above our estimate of fair value.
Price To Earnings Ratio
PE vs Industry: HWDJ.Y is poor value based on its PE Ratio (17.1x) compared to the Trade Distributors industry average (16x).
PE vs Market: HWDJ.Y is poor value based on its PE Ratio (17.1x) compared to the US market (16.4x).
Price to Earnings Growth Ratio
PEG Ratio: HWDJ.Y is poor value based on its PEG Ratio (3.5x)
Price to Book Ratio
PB vs Industry: HWDJ.Y is overvalued based on its PB Ratio (5.8x) compared to the US Trade Distributors industry average (1.3x).
Next Steps
Future Growth
How is Howden Joinery Group forecast to perform in the next 1 to 3 years based on estimates from 11 analysts?
4.9%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: HWDJ.Y's forecast earnings growth (4.9% per year) is above the savings rate (2.2%).
Earnings vs Market: HWDJ.Y's earnings (4.9% per year) are forecast to grow slower than the US market (22.3% per year).
High Growth Earnings: HWDJ.Y's earnings are forecast to grow, but not significantly.
Revenue vs Market: HWDJ.Y's revenue (4.2% per year) is forecast to grow slower than the US market (8.8% per year).
High Growth Revenue: HWDJ.Y's revenue (4.2% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: HWDJ.Y's Return on Equity is forecast to be high in 3 years time (26%)
Next Steps
Past Performance
How has Howden Joinery Group performed over the past 5 years?
5.1%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: HWDJ.Y has high quality earnings.
Growing Profit Margin: HWDJ.Y's current net profit margins (13.2%) are higher than last year (12.6%).
Past Earnings Growth Analysis
Earnings Trend: HWDJ.Y's earnings have grown by 5.1% per year over the past 5 years.
Accelerating Growth: HWDJ.Y's earnings growth over the past year (9.8%) exceeds its 5-year average (5.1% per year).
Earnings vs Industry: HWDJ.Y earnings growth over the past year (9.8%) exceeded the Trade Distributors industry -5.5%.
Return on Equity
High ROE: HWDJ.Y's Return on Equity (34%) is considered high.
Next Steps
Financial Health
How is Howden Joinery Group's financial position?
Financial Position Analysis
Short Term Liabilities: HWDJ.Y's short term assets (£692.3M) exceed its short term liabilities (£261.7M).
Long Term Liabilities: HWDJ.Y's short term assets (£692.3M) exceed its long term liabilities (£67.1M).
Debt to Equity History and Analysis
Debt Level: HWDJ.Y is debt free.
Reducing Debt: HWDJ.Y has no debt compared to 5 years ago when its debt to equity ratio was 0.03%.
Debt Coverage: HWDJ.Y has no debt, therefore it does not need to be covered by operating cash flow.
Interest Coverage: HWDJ.Y has no debt, therefore coverage of interest payments is not a concern.
Balance Sheet
Next Steps
Dividend
What is Howden Joinery Group's current dividend yield, its reliability and sustainability?
2.17%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: HWDJ.Y's dividend (2.17%) is higher than the bottom 25% of dividend payers in the US market (1.62%).
High Dividend: HWDJ.Y's dividend (2.17%) is low compared to the top 25% of dividend payers in the US market (4.32%).
Stability and Growth of Payments
Stable Dividend: Whilst dividend payments have been stable, HWDJ.Y has been paying a dividend for less than 10 years.
Growing Dividend: HWDJ.Y's dividend payments have increased, but the company has only paid a dividend for 8 years.
Current Payout to Shareholders
Dividend Coverage: With its reasonably low payout ratio (37.1%), HWDJ.Y's dividend payments are well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: HWDJ.Y's dividends in 3 years are forecast to be well covered by earnings (35.6% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
6.1yrs
Average management tenure
CEO
Andrew Livingston (51yo)
2.17yrs
Tenure
UK£1,392,000
Compensation
Mr. Andrew Livingston has been Director and Chief Executive Officer at Howden Joinery Group Plc since April 02, 2018. He served as the Chief Executive Officer at Screwfix Direct Ltd. since 2013. Mr. Living ...
CEO Compensation Analysis
Compensation vs Market: Andrew's total compensation ($USD1.75M) is below average for companies of similar size in the US market ($USD5.84M).
Compensation vs Earnings: Insufficient data to compare Andrew's compensation with company performance.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| CEO & Director | 2.17yrs | UK£1.39m | 0.030% £1.4m | |
| CFO, Deputy CEO & Executive Director | 15.17yrs | UK£1.35m | 0.033% £1.5m | |
| Chief Information Officer | 4.42yrs | no data | 0.0044% £196.8k | |
| Head of Investor Relations | no data | no data | no data | |
| Interim Group Human Resources Director | 5.17yrs | no data | 0.0030% £133.3k | |
| Chief Governance Officer | no data | no data | 0.0038% £172.9k | |
| Chief Operating Officer of Howden Joinery Trade Division | 6.42yrs | no data | 0.087% £3.9m | |
| Group Financial Controller & Finance Director | 13.42yrs | no data | 0.034% £1.6m | |
| Company Secretary | 6.08yrs | no data | no data | |
| Regional Manager | no data | no data | no data |
6.1yrs
Average Tenure
Experienced Management: HWDJ.Y's management team is seasoned and experienced (6.1 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| CEO & Director | 2.17yrs | UK£1.39m | 0.030% £1.4m | |
| CFO, Deputy CEO & Executive Director | 15.17yrs | UK£1.35m | 0.033% £1.5m | |
| Senior Independent Director | 0.75yr | UK£58.00k | 0.00050% £22.5k | |
| Independent Non-Executive Chairman | 4.08yrs | UK£260.00k | 0.0092% £412.0k | |
| Independent Non-Executive Director | 4.5yrs | UK£65.00k | 0.00050% £22.5k | |
| Independent Non-Executive Director | 0.58yr | UK£9.00k | no data | |
| Independent Non-Executive Director | 1.75yrs | UK£61.00k | 0.0010% £45.0k | |
| Independent Non-Executive Director | 3.33yrs | UK£55.00k | 0.00076% £34.2k |
2.8yrs
Average Tenure
57.5yo
Average Age
Experienced Board: HWDJ.Y's board of directors are not considered experienced ( 2.8 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: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Top Shareholders
Company Information
Howden Joinery Group Plc's company bio, employee growth, exchange listings and data sources
Key Information
- Name: Howden Joinery Group Plc
- Ticker: HWDJ.Y
- Exchange: OTCPK
- Founded: 1987
- Industry: Trading Companies and Distributors
- Sector: Capital Goods
- Market Cap: UK£3.578b
- Listing Market Cap: UK£4.503b
- Shares outstanding: 597.09m
- Website: https://www.howdenjoinerygroupplc.com
Number of Employees
Location
- Howden Joinery Group Plc
- 40 Portman Square
- London
- Greater London
- W1H 6LT
- United Kingdom
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| HWDN | LSE (London Stock Exchange) | Yes | Ordinary Shares | GB | GBP | Jul 1992 |
| HWDJ.F | OTCPK (Pink Sheets LLC) | Yes | Ordinary Shares | US | USD | Jul 1992 |
| 10J | DB (Deutsche Boerse AG) | Yes | Ordinary Shares | DE | EUR | Jul 1992 |
| HWDNL | BATS-CHIXE (BATS 'Chi-X Europe') | Yes | Ordinary Shares | GB | GBP | Jul 1992 |
| HWDJ.Y | OTCPK (Pink Sheets LLC) | UNSPONSORED ADR | US | USD | Dec 2012 |
Biography
Howden Joinery Group Plc engages in the manufacture, sourcing, sale, and distribution of kitchens and joinery products in the United Kingdom, France, Belgium, the Netherlands, and Germany. The company offers kitchen cabinets, flooring, stair parts, general joinery items, worktops, sinks and taps, flooring, appliances, handles, joinery doors, skirting and architrave products, heat-pump tumble dryers, dual cavity single ovens, and dishwashers, as well as internal, external, and fire doors. It operates approximately 750 depots. The company was formerly known as Galiform Plc and changed its name to Howden Joinery Group Plc in September 2010. Howden Joinery Group Plc was incorporated in 1987 and is headquartered in London, the United Kingdom.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/06/05 05:39 |
| End of Day Share Price | 2020/06/02 00:00 |
| Earnings | 2019/12/28 |
| Annual Earnings | 2019/12/28 |
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.