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 last earnings update was 56 days ago.
Discounted Cash Flow Calculation for OTCPK:HWDJ.Y using 2 Stage Free Cash Flow to Equity Model
The calculations below outline how an intrinsic value for
Howden Joinery 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.
OTCPK:HWDJ.Y DCF 1st Stage: Next 10 year cash flow forecast
The current share price of
Howden Joinery Group
is above its future cash flow value.
Often investors are willing to pay a
for a company that has a high dividend or the potential for future growth.
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
Howden Joinery Group's
is considered below, and whether this is a fair price.
Price based on past earnings
Howden Joinery Group's earnings available for a low price, and how does
this compare to other companies in the same industry?
Howden Joinery Group's earnings are expected to grow by 6% yearly, however this is not considered high growth (20% yearly).
Howden Joinery Group's revenue is expected to grow by 5.6% 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.
Howden Joinery Group's performance over the past 5 years by checking for:
Has earnings increased in past 5 years? (1 check)
Has the earnings growth in the last year exceeded that of the
industry? (1 check)
Is the recent earnings growth over the last year higher than the average annual growth over the
past 5 years? (1 check)
Is the Return on Equity (ROE) higher than 20%? (1 check)
Is the Return on Assets (ROA) above industry average? (1 check)
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.
Howden Joinery 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.
A company's financial position is much like your own financial position,
it includes everything you own
The boxes below represent the relative size of what makes up
Howden Joinery Group's finances.
The net worth of a company is the difference between its assets and liabilities.
Howden Joinery Group is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
Howden Joinery Group's cash and other short term assets cover its long term commitments.
This treemap shows a more detailed breakdown of
Howden Joinery 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
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
High level of physical assets or inventory.
Howden Joinery Group has no debt, it does not need to be covered by short term assets.
Nearly all companies have debt. Debt in itself isn’t
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.
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.
TENURE AS CEO
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. Livingston previously served as the Commercial and Ecommerce Director at Screwfix from 2009 to 2013. Before joining Screwfix, he served as the Commercial Director of Wyevale Garden Centres PLC since March 1, 2006 until 2008 and then Chief Operating Officer from 2008 to 2009. He served as a Management Consultant with CSC Index. He has worked previously at Marks & Spencer and B&Q where he was Showroom Commercial Director from 2000 to 2005. He is a Director at Vedoneire Limited. He served as Commercial Director and Executive Director of The Garden Centre Group Trading Limited since March 2006. He served as an Executive Director of Wyevale Garden Centres PLC since March 1, 2006. He has been an Independent Non-Executive Director at LondonMetric Property Plc since May 31, 2016. Mr. Livingston holds a Masters degree in Business Administration from London Business School.
Insufficient data for Andrew to compare compensation growth.
Andrew's remuneration is lower than average for companies of similar size in United States of America.
Management Team Tenure
Average tenure of the
Howden Joinery Group
management team in years:
The average tenure for the Howden Joinery Group management team is over 5 years, this suggests they are a seasoned and experienced team.
CEO & Director
Mark P. Robson
CFO, Deputy CEO & Executive Director
Chief Information Officer
Head of Investor Relations
Interim Group Human Resources Director
Chief Operating Officer of Howden Joinery Supply Division
Chief Operating Officer of Howden Joinery Trade Division
Group Financial Controller & Finance Director
Board of Directors Tenure
Average tenure and age of the
Howden Joinery Group
board of directors in years:
The tenure for the Howden Joinery Group board of directors is about average.
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, doors and worktops, breakfast bars, ovens, dishwashers, fridge-freezers, built-under fridges, frontals, sinks, taps, flooring, hardware products, lighting products, joinery doors, and skirting and architrave products. It serves trade professionals, owner-occupiers, private landlords, local authorities, housing trusts, and small developers. As of December 31, 2018, the company operated 694 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.
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