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

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Heath (Samuel) & Sons

(LSE:HSM)

Select Model

Rating:58Neutral

Price Target:GBX 265.00▲(3.92% Upside)

Action:reiterated

Date:11/01/26

The overall score of 58 is primarily influenced by moderate financial performance driven by a strong balance sheet offset by profitability challenges, with supportive valuation from high dividend yield and neutral technical indicators.

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): 551
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

Solid balance sheet with low debt and equity growth provides stability, but declining net profit margins and revenue stagnation in the income statement, combined with cash flow volatility, result in moderate financial performance.

Income Statement

42Neutral

Balance Sheet

82Very Positive

Cash Flow

58Neutral

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 SentimentNeutral

Last Price255.00

Price Trends

50DMA250.80Positive

100DMA257.57Negative

200DMA289.92Negative

Market Momentum

MACD0.90Positive

RSI76.68Negative

STOCH50.00Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:HSM, the sentiment is Neutral. The current price of 255.00 is below the 20-day moving average (MA) of 255.00, above the 50-day MA of 250.80, and below the 200-day MA of 289.92, indicating a neutral trend. The MACD of 0.90 indicates Positive momentum. The RSI at 76.68 is Negative, neither overbought nor oversold. The STOCH value of 50.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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:ECEL	65Neutral	GBP 137.97M	25.00	5.51%	4.71%	10.68%	-25.87%
GB:SRAD	65Neutral	GBP 203.76M	15.73	23.96%	5.15%	-5.92%	156.82%
Sector *	63Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
GB:ALU	62Neutral	GBP 103.39M	14.06	16.97%	3.84%	-5.55%	-21.94%
GB:TON	59Neutral	GBP 9.45M	-262.50	-0.34%	―	15.82%	98.85%
GB:HSM	58Neutral	GBP 6.46M	31.88	1.60%	5.12%	0.39%	-77.03%
GB:NXR	49Neutral	GBP 264.59M	864.71	0.15%	3.84%	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	289.00	40.52	16.31%
GB:ECEL	Eurocell plc	140.00	20.89	17.54%
GB:NXR	Norcros plc	294.00	14.77	5.29%
GB:TON	Titon Holdings	84.00	-3.50	-4.00%
GB:SRAD	Stelrad Group Plc	160.00	23.64	17.34%

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 global me...

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 comm...

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