Heath (Samuel) & Sons (HSM) AI Stock Analysis

Heath (Samuel) & Sons

(LSE:HSM)

Select Model

Rating:56Neutral

Price Target:GBX 252.00▼(-1.18% Downside)

Action:reiterated

Date:08/24/26

The score is primarily constrained by deteriorating profitability and a sharp 2026 downturn, partially offset by a very low-leverage balance sheet and improved recent free cash flow. Technicals remain bearish (price below key moving averages with negative MACD), and valuation is a mixed signal with a high P/E despite an attractive dividend yield.

Positive Factors

Very low leverageMinimal debt reduces refinancing and interest-rate exposure, preserving financial flexibility through weaker trading conditions. The conservative capital structure also leaves the company better positioned to fund operations and respond to recovery opportunities without relying heavily on external financing.

Negative Factors

Sharp revenue contractionThe sharp 2026 revenue decline signals a material deterioration in demand or activity compared with the prior period. If revenue does not recover, lower scale can continue to pressure fixed-cost absorption, investment capacity, and the company’s ability to rebuild earnings.

Heath (Samuel) & Sons (HSM) vs. iShares MSCI United Kingdom ETF (EWC)

Market Cap: GBP 6.46M
Dividend Yield: 5.12%
Average Volume (3M): 761
Price to Earnings (P/E): 31.9
Beta (1Y): -0.08
Revenue Growth: 0.39%
EPS Growth: -77.03%
Country: UK
Employees: 121
Sector: Industrials
Sector Strength: 63
Industry: Construction Materials

Heath (Samuel) & Sons Business Overview & Revenue Model

Company Description

Established in Birmingham, UK, in 1820, Samuel Heath & Sons plc operates as a prominent manufacturer and marketer of a comprehensive array of products specifically designed for both the builders' hardware and bathroom sectors. The company's extensive...

Heath (Samuel) & Sons Financial Statement Overview

Summary

Overall fundamentals are mixed: a conservative, low-debt balance sheet (Balance Sheet Score 78) and improved recent free cash flow (Cash Flow Score 62) support resilience, but operating performance has weakened materially (Income Statement Score 44) with sharp 2026 revenue decline and significant margin compression, driving ROE down to low single digits.

Income Statement

44Neutral

Balance Sheet

78Positive

Cash Flow

62Positive

Financial statement breakdown
Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	14.83M	14.83M	14.77M	15.24M	14.72M	14.02M
Gross Profit	6.58M	6.58M	6.84M	6.94M	6.77M	7.04M
EBITDA	1.58M	1.47M	1.93M	1.57M	1.70M	2.57M
Net Income	204.00K	204.00K	888.00K	768.00K	931.00K	1.47M
Balance Sheet
Total Assets	16.04M	16.04M	15.27M	15.01M	14.21M	14.70M
Cash, Cash Equivalents and Short-Term Investments	2.80M	2.80M	2.17M	1.68M	2.72M	4.41M
Total Debt	133.00K	133.00K	202.00K	85.00K	118.00K	191.00K
Total Liabilities	3.07M	3.07M	2.96M	2.83M	3.02M	7.02M
Stockholders Equity	12.97M	12.97M	12.30M	12.18M	11.19M	7.68M
Cash Flow
Free Cash Flow	1.40M	1.30M	800.00K	-713.00K	-1.29M	1.05M
Operating Cash Flow	1.47M	1.38M	1.58M	137.00K	233.00K	1.80M
Investing Cash Flow	-435.00K	-340.00K	-670.00K	-849.00K	-1.45M	-727.00K
Financing Cash Flow	-408.00K	-408.00K	-407.00K	-376.00K	-389.00K	-360.00K

Heath (Samuel) & Sons Technical Analysis

Technical Analysis SentimentPositive

Last Price255.00

Price Trends

50DMA248.80Positive

100DMA263.46Negative

200DMA294.78Negative

Market Momentum

MACD1.70Positive

RSI76.68Negative

STOCH16.67Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:HSM, the sentiment is Positive. The current price of 255.00 is above the 20-day moving average (MA) of 254.50, above the 50-day MA of 248.80, and below the 200-day MA of 294.78, indicating a neutral trend. The MACD of 1.70 indicates Positive momentum. The RSI at 76.68 is Negative, neither overbought nor oversold. The STOCH value of 16.67 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:HSM.

Heath (Samuel) & Sons Peers Comparison

Overall Rating

UnderperformOutperform

Sector (63)

Financial Indicators

GB:HSM against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
GB:ALU	76Outperform	GBP 87.65M	11.92	16.97%	6.20%	-5.55%	-21.94%
GB:SRAD	65Neutral	GBP 201.22M	15.54	23.96%	5.22%	-5.92%	156.82%
Sector *	63Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
GB:TON	59Neutral	GBP 9.28M	-257.81	-0.34%	―	15.82%	98.85%
GB:ECEL	57Neutral	GBP 136.98M	24.82	5.51%	4.75%	10.68%	-25.87%
GB:HSM	56Neutral	GBP 6.46M	31.88	1.60%	5.12%	0.39%	-77.03%
GB:NXR	54Neutral	GBP 269.99M	882.35	0.15%	3.77%	6.87%	-91.28%

* Industrials Sector Average

Performance Comparison

GB:HSM and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
GB:HSM	Heath (Samuel) & Sons	255.00	-69.52	-21.42%
GB:ALU	Alumasc Group plc	245.00	-10.65	-4.17%
GB:ECEL	Eurocell plc	139.00	21.31	18.11%
GB:NXR	Norcros plc	300.00	9.22	3.17%
GB:TON	Titon Holdings	82.50	-7.50	-8.33%
GB:SRAD	Stelrad Group Plc	158.00	-1.87	-1.17%

Heath (Samuel) & Sons Corporate Events

Business Operations and StrategyExecutive/Board Changes

Samuel Heath & Sons Names Sarn Lloyd as New Finance Director

Positive

Oct 13, 2026

Samuel Heath & Sons plc has appointed Sarn Lloyd to its Board as Finance Director with immediate effect, following his tenure as Head of Finance since February 2026. Lloyd brings extensive senior finance experience from U.K. engineering and globa...

DividendsShareholder Meetings

Samuel Heath shareholders approve all AGM resolutions and final dividend

Positive

Sep 3, 2026

Samuel Heath & Sons plc, a U.K. manufacturer of premium architectural hardware and bathroom fittings, serves the building products and interior design markets with high-end, design-focused metalware. Its products are used in both residential and...

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.

Date of analysis: Aug 24, 2026

Heath (Samuel) & Sons AI Stock Analysis