Want to see GB:HFD full AI Analyst Report?
Top Page
Halfords
(LSE:HFD)
Select Model
Select Model
Rating:65Neutral
Price Target:
273.00 p
▼(-0.18% Downside)
Action:Downgraded
Date:10/22/26
The score is driven primarily by solid cash-flow generation and an improved balance sheet, partially offset by volatile and currently thin profitability. Technicals are mixed with near-term weakness despite longer-term improvement, while valuation is reasonable with a supportive dividend yield.
Positive Factors
Steady Revenue Growth
Sustained revenue growth indicates that Halfords has continued expanding its sales base across motoring and cycling products and services. This provides a durable platform for operating leverage, reinvestment, and improved earnings potential if profitability can remain stable.
Negative Factors
Thin Profitability
Despite the recovery in 2026, profitability remains thin relative to revenue, leaving limited operating cushion. Modest cost increases or weaker demand could therefore have a disproportionate effect on earnings, making sustained margin improvement important to the company’s fundamental outlook.
Read all positive and negative factors
Positive Factors
Negative Factors
Steady Revenue Growth
Sustained revenue growth indicates that Halfords has continued expanding its sales base across motoring and cycling products and services. This provides a durable platform for operating leverage, reinvestment, and improved earnings potential if profitability can remain stable.
Read all positive factors
Halfords (HFD) vs. iShares MSCI United Kingdom ETF (EWC)
Market Cap
£574.11M
Dividend Yield3.42%
Average Volume (3M)990.60K
Price to Earnings (P/E)17.4
Beta (1Y)1.38
Revenue Growth5.04%
EPS GrowthN/A
CountryUK
Employees12,429
SectorConsumer Cyclical
Sector Strength84
IndustrySpecialty Retail
Share Statistics
EPS (TTM)0.15
Shares Outstanding218,928,740
10 Day Avg. Volume1,594,967
30 Day Avg. Volume990,599
Financial Highlights & Ratios
PEG Ratio-0.04
Price to Book (P/B)0.54
Price to Sales (P/S)0.15
P/FCF Ratio1.92
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
£288.33Price Target Upside5.42% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering3
EPS Forecast (FY)0.2
Revenue Forecast (FY)£1.85B
Halfords Business Overview & Revenue Model
Company Description
Halfords Group plc specializes in offering a wide array of products and services for motorists and cyclists throughout the United Kingdom and the Republic of Ireland. Its Retail division distributes a diverse range of automotive, leisure, and cycl...
How the Company Makes Money
Halfords makes money primarily by selling products and delivering services across its motoring and cycling activities. Key revenue streams include (1) retail product sales, where revenue is generated from the sale of bicycles, bike parts and acces...
Halfords Earnings Call Summary
Earnings Call Date:Nov 27, 2025
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 26, 2026
Earnings Call Sentiment Neutral
The earnings call reflects a company with strong market presence and potential for growth, particularly in its Cycling and Motoring Club segments. However, challenges such as weak tire market performance, integration issues from past acquisitions, and the need for better margin management are significant hurdles. The focus on optimizing existing operations and leveraging digital and service offerings presents a balanced outlook for the future.Positive Updates
Strong Interim Results
Halfords announced strong interim results for the 26 weeks to September 26, with significant contributions from various divisions.
Negative Updates
Weak Tire Market
The tire market has struggled over the past two years, impacting the company's performance in this segment.
Read all updates
Q2-2026 Updates
Positive
Negative
Strong Interim Results
Halfords announced strong interim results for the 26 weeks to September 26, with significant contributions from various divisions.
Read all positive updates
Company Guidance
During the recent call, Halfords' CEO Henry Birch outlined the company's strategic vision, emphasizing optimized use of existing assets and services to drive growth and shareholder value. The company operates 370 retail stores and 500 garages across the UK and Ireland, supplemented by a fleet of 800 vans and over 12,000 trained colleagues. Halfords' annual sales are approximately GBP 1 billion, with one-third derived from B2B services. The company's strategic focus includes enhancing category management, expanding digital and service offerings, and leveraging its robust data platform for predictive analytics. The Halfords Motoring Club, a loyalty program with over 6 million members, serves as a key component in driving customer engagement. Financially, Halfords aims for like-for-like sales growth, margin expansion, and improved return on capital. Investments in technology and supply chain efficiency are planned, with capital expenditures maintained at GBP 55 million to GBP 65 million annually. The company's debt-free balance sheet supports these initiatives, while future growth is targeted through potential acquisitions and digital expansion.Halfords Financial Statement Overview
Summary
Income Statement
62
Positive
Balance Sheet
68
Positive
Cash Flow
74
Positive
| Breakdown | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 1.80B | 1.72B | 1.70B | 1.59B | 1.38B |
| Gross Profit | 927.30M | 869.10M | 822.60M | 757.20M | 701.10M |
| EBITDA | 189.50M | 111.00M | 177.20M | 174.60M | 213.90M |
| Net Income | 32.90M | -33.60M | 16.90M | 28.10M | 77.70M |
Balance Sheet | |||||
| Total Assets | 1.17B | 1.18B | 1.28B | 1.36B | 1.29B |
| Cash, Cash Equivalents and Short-Term Investments | 19.30M | 19.10M | 13.30M | 41.90M | 46.30M |
| Total Debt | 248.00M | 280.40M | 328.60M | 390.60M | 391.20M |
| Total Liabilities | 654.70M | 675.10M | 725.70M | 796.40M | 739.20M |
| Stockholders Equity | 513.60M | 500.10M | 553.80M | 562.80M | 551.00M |
Cash Flow | |||||
| Free Cash Flow | 145.00M | 141.50M | 121.80M | 97.90M | 71.60M |
| Operating Cash Flow | 185.10M | 194.70M | 167.40M | 152.30M | 118.90M |
| Investing Cash Flow | -58.10M | -57.20M | -46.50M | -87.00M | -98.30M |
| Financing Cash Flow | -126.80M | -131.70M | -139.80M | -79.20M | -41.50M |
Halfords Technical Analysis
Positive
273.50
Price Trends
256.59
Positive
238.04
Positive
190.84
Positive
Market Momentum
2.36
Positive
52.00
Neutral
38.24
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 273.5 is above the 20-day moving average (MA) of 263.55, above the 50-day MA of 256.59, and above the 200-day MA of 190.84, indicating a neutral trend. The MACD of 2.36 indicates Positive momentum. The RSI at 52.00 is Neutral, neither overbought nor oversold. The STOCH value of 38.24 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
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | £1.77B | 11.42 | 99.65% | 8.02% | 3.08% | -0.16% | |
67 Neutral | £509.56M | 14.45 | 21.65% | 0.02% | 11.35% | 247.54% | |
66 Neutral | £1.48B | 9.39 | 7.10% | 2.06% | 6.29% | 55.06% | |
66 Neutral | £4.33B | 8.04 | 18.67% | 1.30% | 2.06% | 14.07% | |
65 Neutral | £574.11M | 17.45 | 6.52% | 3.42% | 5.04% | ― | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
46 Neutral | £51.43M | -122.50 | -4.18% | 1.57% | -7.46% | 71.01% |
* Consumer Cyclical Sector Average
GB:HFD
Halfords
263.50
121.15
85.11%
GB:DNLM
Dunelm Group
879.00
-172.09
-16.37%
GB:AO
AO World
92.20
-12.82
-12.21%
GB:CURY
Currys plc
145.50
4.71
3.35%
GB:JD
JD Sports Fashion
92.00
-4.98
-5.13%
GB:MRK
Marks Electrical Group Plc
49.00
-0.50
-1.01%
Halfords Corporate Events
DividendsRegulatory Filings and Compliance
Halfords Executives Boost Shareholdings Through Dividend Reinvestment
Positive
Sep 21, 2026
Halfords has disclosed a series of director and senior management share transactions under U.K. Market Abuse Regulation, detailing dividend reinvestment purchases of ordinary shares on 15 September 2026. Chief executive Henry Birch, chief financia...
Business Operations and StrategyExecutive/Board ChangesStock BuybackDividendsFinancial DisclosuresShareholder Meetings
Halfords shareholders back all resolutions at 2026 AGM
Positive
Sep 11, 2026
Halfords Group plc reported that all resolutions at its 2026 Annual General Meeting were approved by shareholders on a poll, confirming support for the audited financial statements and the declaration of a final dividend. The meeting was held on 1...
Regulatory Filings and Compliance
Halfords Confirms Total Voting Rights and Share Capital Structure
Neutral
Sep 1, 2026
Halfords Group said its registered share capital currently comprises 218,928,736 ordinary shares of 1p each, all carrying equal voting rights and with no shares held in treasury. The company noted that this figure should be used by investors as th...
Business Operations and StrategyFinancial Disclosures
Halfords lifts FY27 profit outlook on strong summer trading
Positive
Aug 27, 2026
Halfords Group, the UK’s leading motoring and cycling services and products provider, operates a nationwide footprint of retail stores, consumer garages, commercial fleet locations and mobile service vans, supported by strong ecommerce chann...
Financial DisclosuresRegulatory Filings and ComplianceShareholder Meetings
Halfords publishes 2026 annual report and sets September AGM
Neutral
Aug 3, 2026
Halfords Group has published its Annual Report and Accounts for the period ended 3 April 2026, along with the notice of its Annual General Meeting, which has been distributed to shareholders and made available online. The AGM will be held on 10 Se...
Regulatory Filings and Compliance
Halfords Confirms Total Voting Rights and Share Capital
Neutral
Jul 31, 2026
Halfords Group plc has confirmed that its registered share capital currently comprises 218,928,736 ordinary shares of 1p each, all carrying equal voting rights. The company also reported that no ordinary shares are held in treasury, meaning the fu...
Executive/Board ChangesRegulatory Filings and Compliance
Halfords Discloses Share Award Exercise by General Counsel
Neutral
Jul 24, 2026
Halfords Group has disclosed a director dealing under UK Market Abuse Regulation, reporting that General Counsel and Company Secretary Tim O’Gorman exercised an award under the 2023 Performance Share Plan. The transaction involved the exerci...
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.