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Halfords Group PLC (GB:HFD)
LSE:HFD

Halfords (HFD) AI Stock Analysis

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Halfords

(LSE:HFD)

Rating:67Neutral
Price Target:
Halfords shows strong revenue and cash flow growth with a solid dividend yield, though profitability and valuation concerns persist. Positive strategic corporate events and management confidence provide upside potential, balancing technical caution from overbought signals.

Halfords (HFD) vs. iShares MSCI United Kingdom ETF (EWC)

Halfords Business Overview & Revenue Model

Company DescriptionHalfords Group plc (HFD) is a leading UK-based retailer that specializes in automotive and cycling products, as well as services. Established in 1892, the company operates through a network of retail stores and service centers, providing a wide range of products including car parts, bikes, camping equipment, and accessories. Halfords is also known for its professional in-store services, such as car servicing, bike repairs, and MOT testing, catering to the needs of automotive and cycling enthusiasts.
How the Company Makes MoneyHalfords generates revenue primarily through the sale of automotive parts, accessories, and bicycles across its retail outlets and online platform. The company also earns a significant portion of its income from service-oriented offerings, including car repair services, bike maintenance, and MOT testing, provided at its Autocentres and Halfords Mobile Expert services. Partnerships with vehicle manufacturers and suppliers, as well as an extensive private label product range, further enhance its revenue streams. Additionally, Halfords benefits from a strong brand reputation and a large customer base, which contribute to its financial performance.

Halfords Financial Statement Overview

Summary
Halfords demonstrates strong revenue growth and effective cash flow management, but faces challenges with profitability margins and equity utilization. The balance sheet shows improved leverage and a strong equity position, supporting future growth potential.
Income Statement
65
Positive
Halfords shows a solid gross profit margin of 48.4% and a stable net profit margin of 1.0% in the latest year. However, the net profit margin has decreased from the previous year, indicating a challenge with cost management or pricing pressures. Revenue growth is healthy at 6.5%, suggesting strong sales performance, but EBIT and EBITDA margins have declined, showing potential operational inefficiencies.
Balance Sheet
70
Positive
The company's debt-to-equity ratio is 0.59, reflecting moderate leverage, but it has decreased compared to the previous year, indicating improved balance sheet stability. The ROE stands at 3.1%, which is relatively low, suggesting underutilization of equity. The equity ratio of 43.3% is solid, providing a stable foundation for growth.
Cash Flow
72
Positive
Free cash flow growth is strong at 24.4%, indicating robust cash generation. The operating cash flow to net income ratio is 9.91, highlighting excellent cash flow efficiency relative to net income. Free cash flow to net income ratio is 7.21, suggesting healthy cash flow generation relative to profits.
Breakdown
TTMMar 2024Mar 2023Mar 2022Mar 2021Mar 2020
Income StatementTotal Revenue
1.69B1.70B1.59B1.38B1.29B1.16B
Gross Profit
819.20M822.60M757.20M701.10M635.30M565.40M
EBIT
51.80M51.90M64.20M104.80M131.60M78.50M
EBITDA
140.70M177.20M174.60M213.90M183.00M142.60M
Net Income Common Stockholders
14.00M16.90M28.10M77.70M53.20M17.50M
Balance SheetCash, Cash Equivalents and Short-Term Investments
67.20M13.30M41.90M46.30M67.20M115.50M
Total Assets
1.09B1.28B1.36B1.29B1.07B1.20B
Total Debt
344.50M328.60M390.60M391.20M344.50M595.30M
Net Debt
277.30M315.30M348.70M344.90M277.30M479.80M
Total Liabilities
667.60M725.70M796.40M739.20M655.60M833.40M
Stockholders Equity
417.80M553.80M562.80M551.00M417.80M365.80M
Cash FlowFree Cash Flow
182.30M121.80M97.90M71.60M239.10M144.70M
Operating Cash Flow
215.80M167.40M152.30M118.90M266.60M178.30M
Investing Cash Flow
-47.70M-46.50M-87.00M-98.30M-39.00M-44.50M
Financing Cash Flow
-138.30M-139.80M-79.20M-41.50M-275.90M-11.10M

Halfords Technical Analysis

Technical Analysis Sentiment
Positive
Last Price171.00
Price Trends
50DMA
154.12
Positive
100DMA
142.72
Positive
200DMA
142.39
Positive
Market Momentum
MACD
4.83
Positive
RSI
62.20
Neutral
STOCH
59.29
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:HFD, the sentiment is Positive. The current price of 171 is above the 20-day moving average (MA) of 169.07, above the 50-day MA of 154.12, and above the 200-day MA of 142.39, indicating a bullish trend. The MACD of 4.83 indicates Positive momentum. The RSI at 62.20 is Neutral, neither overbought nor oversold. The STOCH value of 59.29 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:HFD.

Halfords Peers Comparison

Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
77
Outperform
£376.74M12.2313.45%3.11%-6.07%41.18%
76
Outperform
£2.52B6.5918.69%6.66%-19.08%57.32%
GBVTU
70
Outperform
£197.95M11.425.09%2.85%7.94%-25.81%
GBHFD
67
Neutral
£375.91M26.955.18%4.68%-0.79%-45.22%
65
Neutral
£1.32B10.9711.86%6.14%-4.96%-13.52%
62
Neutral
$6.88B11.072.77%4.28%2.67%-24.94%
54
Neutral
£65.86M-20.11%-15.67%45.17%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
GB:HFD
Halfords
171.00
36.95
27.56%
GB:RHIM
RHI Magnesita NV
2,825.00
-190.36
-6.31%
GB:VTU
Vertu Motors
62.60
-13.25
-17.47%
GB:COST
Costain
138.00
61.98
81.53%
GB:WINE
Naked Wines plc
89.00
27.50
44.72%
GB:INCH
Inchcape
677.00
-46.50
-6.43%

Halfords Corporate Events

Regulatory Filings and Compliance
Halfords Group PLC Announces Total Voting Rights Update
Neutral
May 1, 2025

Halfords Group PLC announced that its registered share capital consists of 218,928,736 ordinary shares, each with equal voting rights. This disclosure, made in accordance with the FCA’s Disclosure Guidance and Transparency Rules, provides shareholders with the necessary information to assess their interests in the company. The announcement underscores Halfords’ commitment to transparency and regulatory compliance, which may impact stakeholder decisions and perceptions.

Spark’s Take on GB:HFD Stock

According to Spark, TipRanks’ AI Analyst, GB:HFD is a Neutral.

Halfords shows strong revenue and cash flow growth with a solid dividend yield, though profitability and valuation concerns persist. Positive strategic corporate events and management confidence provide upside potential, balancing technical caution from overbought signals.

To see Spark’s full report on GB:HFD stock, click here.

Business Operations and StrategyRegulatory Filings and Compliance
Halfords Group PLC Announces Change in Major Shareholdings
Neutral
Apr 30, 2025

Halfords Group PLC has announced a change in its major shareholdings, with FIL Limited, based in Hamilton, Bermuda, notifying an increase in their voting rights through financial instruments. This adjustment in voting rights, which crossed the threshold on February 24, 2025, reflects a significant shift in the company’s shareholder structure, potentially impacting its governance and strategic decisions.

Spark’s Take on GB:HFD Stock

According to Spark, TipRanks’ AI Analyst, GB:HFD is a Neutral.

Halfords shows strong revenue and cash flow growth with a solid dividend yield, though profitability and valuation concerns persist. Positive strategic corporate events and management confidence provide upside potential, balancing technical caution from overbought signals.

To see Spark’s full report on GB:HFD stock, click here.

Regulatory Filings and Compliance
Halfords Group PLC Announces Change in Major Holdings
Neutral
Apr 30, 2025

Halfords Group PLC has announced a change in its major holdings, with FIL Limited, based in Hamilton, Bermuda, increasing its voting rights in the company. This adjustment, effective from February 19, 2025, sees FIL Limited’s total voting rights rise to 12.0856%, up from a previous 11.0876%. This change reflects FIL Limited’s acquisition of additional financial instruments, enhancing its influence within Halfords Group PLC.

Spark’s Take on GB:HFD Stock

According to Spark, TipRanks’ AI Analyst, GB:HFD is a Neutral.

Halfords shows strong revenue and cash flow growth with a solid dividend yield, though profitability and valuation concerns persist. Positive strategic corporate events and management confidence provide upside potential, balancing technical caution from overbought signals.

To see Spark’s full report on GB:HFD stock, click here.

Other
Halfords Announces Change in Major Shareholdings
Neutral
Apr 30, 2025

Halfords Group PLC has announced a change in its major shareholdings, with Flat Footed LLC, based in Wilson, United States, now holding 4.89% of voting rights through financial instruments. This adjustment in holdings could potentially impact Halfords’ governance and decision-making processes, reflecting a shift in stakeholder influence within the company.

Spark’s Take on GB:HFD Stock

According to Spark, TipRanks’ AI Analyst, GB:HFD is a Neutral.

Halfords shows strong revenue and cash flow growth with a solid dividend yield, though profitability and valuation concerns persist. Positive strategic corporate events and management confidence provide upside potential, balancing technical caution from overbought signals.

To see Spark’s full report on GB:HFD stock, click here.

Regulatory Filings and Compliance
Halfords Group PLC: Change in Major Shareholding
Neutral
Apr 30, 2025

Halfords Group PLC announced a change in major shareholding, with Morgan Stanley’s total holding dropping below 5%. This change was due to Morgan Stanley applying the trading book exemption to its remaining holding of 4.999315% as of February 6, 2025, potentially impacting the company’s voting rights structure.

Spark’s Take on GB:HFD Stock

According to Spark, TipRanks’ AI Analyst, GB:HFD is a Neutral.

Halfords shows strong revenue and cash flow growth with a solid dividend yield, though profitability and valuation concerns persist. Positive strategic corporate events and management confidence provide upside potential, balancing technical caution from overbought signals.

To see Spark’s full report on GB:HFD stock, click here.

Business Operations and StrategyRegulatory Filings and Compliance
Halfords Group PLC Reports Change in Major Holdings
Neutral
Apr 30, 2025

Halfords Group PLC has announced a change in major holdings, with FIL Limited, based in Hamilton, Bermuda, increasing its voting rights in the company. This change, effective from January 23, 2024, sees FIL Limited holding a total of 11.0876% of voting rights, up from a previous 10.042%. This adjustment in holdings may influence the company’s strategic decisions and impact its market positioning.

Spark’s Take on GB:HFD Stock

According to Spark, TipRanks’ AI Analyst, GB:HFD is a Neutral.

Halfords shows strong revenue and cash flow growth with a solid dividend yield, though profitability and valuation concerns persist. Positive strategic corporate events and management confidence provide upside potential, balancing technical caution from overbought signals.

To see Spark’s full report on GB:HFD stock, click here.

Executive/Board ChangesBusiness Operations and Strategy
Halfords Appoints Henry Birch as New CEO Amidst Strategic Transformation
Neutral
Apr 15, 2025

Halfords Group PLC has announced a leadership change with the appointment of Henry Birch as the new CEO, succeeding Graham Stapleton who has led the company for seven years. Under Stapleton’s leadership, Halfords transformed from a traditional retailer to an omnichannel motoring services specialist, significantly increasing its service-related sales. Birch, with extensive experience in consumer and retail sectors, is expected to continue building on the company’s strong foundations amidst challenging economic conditions, aiming to generate long-term value for stakeholders.

Spark’s Take on GB:HFD Stock

According to Spark, TipRanks’ AI Analyst, GB:HFD is a Neutral.

Halfords demonstrates solid financial health with strong revenue and cash flow growth, but faces challenges in profitability and operational efficiency. Technical indicators suggest current weakness, though corporate events and a strong dividend yield provide a positive outlook. Despite a high P/E ratio, management’s confidence and strategic achievements offer potential upside.

To see Spark’s full report on GB:HFD stock, click here.

Executive/Board ChangesBusiness Operations and StrategyFinancial Disclosures
Halfords Reports Strong FY25 Performance and Announces CEO Transition
Positive
Apr 15, 2025

Halfords Group PLC reported a strong finish for FY25, with expected profits at the top of the projected range and significant growth in its new Fusion locations. The company saw a 2.3% increase in like-for-like sales and exceeded its £30m cost-saving target, despite inflationary pressures. The Halfords Motoring Club also surpassed 5 million members. Looking forward, Halfords anticipates challenges from increased labor costs due to changes in the Autumn Budget but plans to mitigate these through strategic initiatives. The company also announced a leadership change, with Henry Birch taking over as CEO from Graham Stapleton.

Spark’s Take on GB:HFD Stock

According to Spark, TipRanks’ AI Analyst, GB:HFD is a Neutral.

Halfords demonstrates solid financial health with strong revenue and cash flow growth, but faces challenges in profitability and operational efficiency. Technical indicators suggest current weakness, though corporate events and a strong dividend yield provide a positive outlook. Despite a high P/E ratio, management’s confidence and strategic achievements offer potential upside.

To see Spark’s full report on GB:HFD stock, click here.

Regulatory Filings and Compliance
Halfords Group PLC Announces Total Voting Rights
Neutral
Mar 31, 2025

Halfords Group PLC announced its total voting rights, stating that its registered share capital consists of 218,928,736 ordinary shares, each with equal voting rights. This disclosure is significant for shareholders as it provides the denominator for calculating changes in their interests under the FCA’s Disclosure Guidance and Transparency Rules.

Regulatory Filings and Compliance
Halfords Group PLC Announces Total Voting Rights
Neutral
Feb 28, 2025

Halfords Group PLC announced its total voting rights, stating that its registered share capital consists of 218,928,736 ordinary shares, each with equal voting rights. This disclosure is important for shareholders to determine their notification requirements under the FCA’s Disclosure Guidance and Transparency Rules, potentially impacting shareholder engagement and transparency within the company.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.