Howden Joinery (HWDN) AI Stock Analysis

• Market Cap: £4.49B
• Dividend Yield: 2.55%
• Average Volume (3M): 1.43M
• Price to Earnings (P/E): 17.9
• Beta (1Y): 1.36
• Revenue Growth: 0.13%
• EPS Growth: -0.06%
• Country: UK
• Employees: 12,000
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Furnishings, Fixtures & Appliances
• EPS (TTM): 0.16
• Shares Outstanding: 541,758,850
• 10 Day Avg. Volume: 1,494,407
• 30 Day Avg. Volume: 1,431,242
• PEG Ratio: 0.00
• Price to Book (P/B): 3.84
• Price to Sales (P/S): 1.87
• P/FCF Ratio: 15.60
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: £927.80
• Price Target Upside: 11.58% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 5

• Rating: 73 Outperform
• Price Target: 926.00p ▲(11.37% Upside)

Howden Joinery's strong financial performance and balanced earnings call contribute positively to the overall score. The company's robust cash flow and strategic initiatives support its financial health. However, technical indicators suggest a bearish trend, and market challenges pose risks. The valuation is fair, with a reasonable P/E ratio and moderate dividend yield.

Positive Factors

Revenue Growth

The increase in group sales, despite a challenging market, indicates strong demand and effective sales strategies, supporting long-term growth.

Gross Margin Improvement

Improved gross margins reflect efficient cost management and pricing strategies, enhancing profitability and competitive positioning.

Strong Cash Flow

Strong cash flow supports financial stability and enables investment in growth initiatives, ensuring long-term operational resilience.

Negative Factors

Higher Operating Costs

Rising operating costs due to strategic investments and labor expenses may pressure margins, affecting profitability if not managed effectively.

Challenging Market Conditions

A contracting market presents headwinds that could impact sales growth, necessitating strategic adjustments to maintain market position.

Increased Labor Costs

Increased labor costs due to regulatory changes could reduce net margins, requiring efficiency improvements to sustain profitability.

Howden Joinery Business Overview & Revenue Model

Company Description

Howden Joinery Group Plc, a trade kitchen supplier, provides various products across kitchens, joinery, and hardware in the United Kingdom, France, and Belgium. It offers kitchen cabinets, surfaces, fittings, storages, fitted kitchens, kitchen doors, sinks, and taps, as well as appliances; joinery products, such as sliding wardrobe doors, door fittings, stairs and parts, floors, skirting boards, mouldings, doors, and architrave products; and appliances, such as cooking, refrigerator, dishwasher, and laundry products, as well as coffee machines. The company was incorporated in 1987 and is based in London, the United Kingdom.

How the Company Makes Money

Howden Joinery generates revenue primarily through the sale of kitchen products, including cabinetry, worktops, and appliances, as well as joinery products such as doors and flooring. The company's revenue model is heavily reliant on direct sales to trade customers, with a significant portion of income coming from repeat business due to strong relationships with builders and contractors. Key revenue streams include showroom sales, delivery services, and bespoke kitchen solutions. Additionally, Howden Joinery benefits from economies of scale and low-cost sourcing, which enhance its profit margins. The company also engages in strategic partnerships with suppliers and manufacturers, enabling it to offer a wide range of products while maintaining competitive pricing.

Howden Joinery Financial Statement Overview

Summary

Howden Joinery demonstrates strong financial health across all verticals. The income statement reflects profitability and operational efficiency, albeit with slight pressure on net margins. The balance sheet underscores a sound financial position with moderate leverage and strong equity metrics. Cash flow performance is impressive, indicating effective cash management and liquidity. Overall, the company is well-positioned financially, with some areas for improvement in net profitability.

Income Statement

The company shows a stable revenue base with a modest growth from the previous year. Gross profit margin is healthy at approximately 61.6%, indicating efficient cost management. However, the net profit margin has seen a slight decline, reflecting increased costs or reduced pricing power. EBIT and EBITDA margins are strong, suggesting good operational efficiency.

Balance Sheet

The balance sheet is strong with a debt-to-equity ratio of 0.6, indicating moderate leverage. Return on equity is robust at 22.1%, showcasing the company's ability to generate profit from shareholders' equity. The equity ratio is solid at 50.4%, reflecting a stable financial structure with a balanced approach to financing.

Cash Flow

Cash flow generation is strong with a significant operating cash flow to net income ratio of 1.6, suggesting efficient cash conversion from earnings. Free cash flow has grown by 9.8%, indicating good cash management. The free cash flow to net income ratio is favorable, reinforcing the company's capacity to generate cash relative to its earnings.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.35B	2.32B	2.31B	2.32B	2.09B	1.55B
Gross Profit	1.46B	1.43B	1.40B	1.41B	1.29B	930.00M
EBITDA	515.90M	503.00M	485.30M	544.70M	515.10M	287.80M
Net Income	254.50M	249.30M	254.60M	374.20M	314.50M	147.60M
Balance Sheet
Total Assets	2.25B	2.24B	2.06B	2.03B	2.05B	1.69B
Cash, Cash Equivalents and Short-Term Investments	321.40M	343.60M	282.80M	308.00M	515.30M	430.70M
Total Debt	700.90M	681.00M	684.50M	665.30M	591.20M	580.50M
Total Liabilities	1.17B	1.11B	1.09B	1.16B	1.06B	966.40M
Stockholders Equity	1.08B	1.13B	978.40M	871.70M	991.50M	720.80M
Cash Flow
Free Cash Flow	418.40M	278.10M	253.40M	255.60M	351.50M	260.10M
Operating Cash Flow	543.10M	400.10M	372.30M	396.40M	437.40M	329.80M
Investing Cash Flow	-124.60M	-112.10M	-114.20M	-154.70M	-85.80M	-69.70M
Financing Cash Flow	-262.80M	-228.90M	-285.40M	-444.60M	-267.00M	-96.80M

Howden Joinery Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 831.50
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:HWDN, the sentiment is Negative. The current price of 831.5 is below the 20-day moving average (MA) of 835.75, below the 50-day MA of 853.66, and above the 200-day MA of 803.17, indicating a neutral trend. The MACD of -3.19 indicates Negative momentum. The RSI at 44.68 is Neutral, neither overbought nor oversold. The STOCH value of 29.25 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GB:HWDN.

Howden Joinery Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ULTP	75 Outperform	£53.63M	7.79	―	10.12%	-7.42%	-42.84%
HWDN	73 Outperform	£4.49B	17.92	24.46%	2.55%	0.13%	-0.06%
DFS	60 Neutral	£355.26M	14.79	―	―	4.38%	―
VCP	55 Neutral	£76.87M	-0.29	96.81%	―	-12.17%	-145.41%
HEAD	46 Neutral	£44.14M	-0.97	-13.09%	―	-11.65%	-273.57%
PMP	46 Neutral	£16.20M	186.51	0.62%	2.98%	-3.72%	―
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%

Howden Joinery Corporate Events

Howden Joinery Executes Strategic Share Buyback

Howden Joinery Group PLC announced a share buyback transaction, purchasing 75,000 of its ordinary shares for cancellation at an average price of 832.49 pence per share. This move reduces the total number of shares in circulation, potentially increasing shareholder value and reflecting the company’s confidence in its financial position. The transaction aligns with regulatory requirements and impacts the company’s total voting rights, which now stand at 542,300,764 shares.

The most recent analyst rating on (GB:HWDN) stock is a Buy with a £961.00 price target. To see the full list of analyst forecasts on Howden Joinery stock, see the GB:HWDN Stock Forecast page.

Howden Joinery Executes Share Buyback Program

Howden Joinery Group PLC announced the repurchase and cancellation of 75,000 ordinary shares at an average price of 845.25 pence per share, as part of its ongoing share buyback program. This transaction, conducted through Barclays Bank PLC, affects the company’s total voting rights and may influence shareholder interest notifications under the FCA’s rules.

The most recent analyst rating on (GB:HWDN) stock is a Buy with a £900.00 price target. To see the full list of analyst forecasts on Howden Joinery stock, see the GB:HWDN Stock Forecast page.

Howden Joinery Executes Share Buyback to Enhance Market Position

Howden Joinery Group PLC announced the purchase and cancellation of 75,000 of its ordinary shares at an average price of 849.10 pence per share. This transaction, executed through Barclays Bank PLC, is part of the company’s ongoing share buyback program, which impacts the total voting rights and shareholding structure, potentially affecting shareholder interests and market positioning.

The most recent analyst rating on (GB:HWDN) stock is a Buy with a £900.00 price target. To see the full list of analyst forecasts on Howden Joinery stock, see the GB:HWDN Stock Forecast page.

Howden Joinery Executes Share Buyback

Howden Joinery Group PLC announced a share buyback transaction, purchasing 75,000 of its ordinary shares for cancellation at an average price of 836.52 pence per share. This transaction reduces the number of shares in circulation, potentially increasing the value of remaining shares and impacting shareholder voting rights, as the total shares in issue now stand at 542,525,764.

The most recent analyst rating on (GB:HWDN) stock is a Buy with a £900.00 price target. To see the full list of analyst forecasts on Howden Joinery stock, see the GB:HWDN Stock Forecast page.

Howden Joinery Executes Share Buyback Program

Howden Joinery Group PLC announced the purchase and cancellation of 74,846 of its ordinary shares at an average price of 829.09 pence per share. This transaction, conducted through Barclays Bank PLC, reduces the total number of shares in issue to 542,600,764, impacting the company’s voting rights and potentially influencing shareholder interests.

The most recent analyst rating on (GB:HWDN) stock is a Buy with a £900.00 price target. To see the full list of analyst forecasts on Howden Joinery stock, see the GB:HWDN Stock Forecast page.

Howden Joinery Awards Free Shares to Executives Under SIP

Howden Joinery Group PLC announced the award of free shares to its Executive Directors and Persons Discharging Managerial Responsibilities (PDMRs) under its Share Incentive Plan (SIP) as of September 1, 2025. Each recipient received 29 shares, with no performance conditions attached, and the shares will vest after three years if the recipients remain employed. This move is part of Howden’s strategy to incentivize and retain key personnel, potentially strengthening its operational stability and aligning management interests with those of shareholders.

The most recent analyst rating on (GB:HWDN) stock is a Buy with a £961.00 price target. To see the full list of analyst forecasts on Howden Joinery stock, see the GB:HWDN Stock Forecast page.

Howden Joinery Executes Share Buyback to Optimize Capital Structure

Howden Joinery Group PLC announced the repurchase and cancellation of 75,000 of its ordinary shares at an average price of 816.88 pence per share. This transaction reduces the number of shares in circulation, potentially enhancing shareholder value and adjusting the company’s capital structure, which may impact its market positioning and stakeholder interests.

The most recent analyst rating on (GB:HWDN) stock is a Buy with a £961.00 price target. To see the full list of analyst forecasts on Howden Joinery stock, see the GB:HWDN Stock Forecast page.

Howden Joinery Executes Share Buyback Program

Howden Joinery Group PLC announced the repurchase and cancellation of 74,749 of its ordinary shares at an average price of 818.15 pence per share. This transaction, executed through Barclays Bank PLC, reduces the total number of shares in issue to 542,750,610, impacting the company’s voting rights and potentially affecting shareholder interests.

The most recent analyst rating on (GB:HWDN) stock is a Buy with a £961.00 price target. To see the full list of analyst forecasts on Howden Joinery stock, see the GB:HWDN Stock Forecast page.

Howden Joinery Awards Free Shares to Executives Under SIP

Howden Joinery Group PLC announced the award of free shares to its Executive Directors and Persons Discharging Managerial Responsibilities (PDMRs) under the company’s Share Incentive Plan (SIP). Each recipient, including CEO Andrew Livingston and CFO Jackie Callaway, received 29 shares. These awards, which do not carry performance conditions, are set to vest after three years, provided the recipients remain qualifying employees. This move underscores Howden’s commitment to aligning the interests of its leadership with those of its shareholders, potentially enhancing company performance and stakeholder value.

The most recent analyst rating on (GB:HWDN) stock is a Buy with a £961.00 price target. To see the full list of analyst forecasts on Howden Joinery stock, see the GB:HWDN Stock Forecast page.