James Halstead (JHD) AI Stock Analysis

• Market Cap: £697.19M
• Dividend Yield: 5.12%
• Average Volume (3M): 309.01K
• Price to Earnings (P/E): 16.3
• Beta (1Y): 0.74
• Revenue Growth: -7.53%
• EPS Growth: -4.50%
• Country: UK
• Employees: 851
• Sector: Industrials
• Sector Strength: 90
• Industry: Construction
• EPS (TTM): 0.10
• Shares Outstanding: 416,786,440
• 10 Day Avg. Volume: 227,233
• 30 Day Avg. Volume: 309,007
• PEG Ratio: -1.52
• Price to Book (P/B): 3.29
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 12.95
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 72 Outperform
• Price Target: ―

James Halstead's overall score reflects strong financial health and profitability, supported by a robust balance sheet. While technical indicators suggest potential downside risks, the company's valuation remains fair with an appealing dividend yield. Corporate events further bolster investor confidence despite challenges in revenue growth and regional market conditions.

James Halstead Business Overview & Revenue Model

Company Description

James Halstead plc is a leading manufacturer and international distributor of commercial floor coverings. Established in the UK, the company operates in the industrial and consumer sectors, specializing in producing high-quality, resilient vinyl flooring under renowned brands such as Polyflor and Karndean. Their products are utilized in a variety of settings, including healthcare, education, retail, and residential spaces, where durability and design flexibility are paramount.

How the Company Makes Money

James Halstead primarily generates revenue through the production and sale of commercial floor coverings. Key revenue streams include direct sales of their branded products like Polyflor to sectors such as healthcare, education, and retail. The company benefits from a robust distribution network that extends its reach internationally, ensuring access to a diverse customer base. Partnerships with suppliers and distributors, combined with a focus on innovation and quality, further bolster its earnings. Additionally, James Halstead invests in maintaining strong customer relationships and expanding its product offerings to meet evolving market demands, which contributes to sustained revenue growth.

James Halstead Financial Statement Overview

Summary

James Halstead demonstrates strong financial stability with solid profitability and efficient cash management. While revenue has recently declined, profitability margins remain resilient, supported by a robust balance sheet with low leverage. The company is well-positioned to manage financial obligations and sustain operations, but future growth may face challenges without revenue expansion.

Income Statement

The company's income statement reveals a stable yet declining revenue trajectory with a recent drop from £303.6 million to £274.9 million. However, gross and net profit margins remain strong at 44.1% and 15.1%, respectively. The EBIT and EBITDA margins are also healthy, indicating efficient cost management despite revenue challenges.

Balance Sheet

The balance sheet is robust with a low debt-to-equity ratio of 0.04 and a high equity ratio of 73.4%, reflecting strong financial health. Return on equity stands at a solid 22.9%, indicating effective use of shareholder funds. The company maintains substantial cash reserves, further enhancing financial stability.

Cash Flow

Cash flow analysis shows consistent free cash flow with a slight increase to £46 million. The operating cash flow to net income ratio of 1.19 implies efficient cash generation relative to earnings. However, the free cash flow growth rate is negligible, indicating limited expansion in cash generation capacity.

Breakdown
Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement		Total Revenue
274.88M	303.56M	291.86M	266.36M	238.63M
	Gross Profit
121.12M	115.46M	113.50M	111.64M	100.37M
	EBIT
53.91M	51.53M	51.95M	51.71M	44.09M
	EBITDA
63.63M	58.88M	59.16M	58.12M	50.21M
	Net Income Common Stockholders
41.52M	42.40M	40.33M	39.86M	34.35M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
74.28M	63.22M	52.14M	83.26M	67.44M
	Total Assets
247.00M	245.51M	269.68M	234.49M	216.38M
	Total Debt
6.39M	7.48M	5.91M	6.38M	6.14M
	Net Debt
-67.89M	-55.74M	-46.23M	-76.88M	-61.31M
	Total Liabilities
65.72M	71.30M	96.42M	77.99M	78.90M
	Stockholders Equity
181.28M	174.21M	173.26M	156.49M	137.47M
Cash Flow		Free Cash Flow
46.02M	46.84M	3.31M	53.10M	26.94M
	Operating Cash Flow
49.33M	49.70M	6.56M	55.91M	31.16M
	Investing Cash Flow
-563.00K	-2.72M	-2.97M	-2.68M	-4.11M
	Financing Cash Flow
-37.59M	-35.52M	-34.85M	-37.22M	-28.28M

James Halstead Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 162.50
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:JHD, the sentiment is Positive. The current price of 162.5 is above the 20-day moving average (MA) of 158.92, above the 50-day MA of 148.92, and below the 200-day MA of 167.13, indicating a neutral trend. The MACD of 5.09 indicates Negative momentum. The RSI at 61.27 is Neutral, neither overbought nor oversold. The STOCH value of 35.38 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:JHD.

James Halstead Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
EPWN	76 Outperform	£124.97M	7.83	16.03%	5.33%	-6.20%	83.31%
NXR	76 Outperform	£233.53M	26.21	4.25%	3.96%	-10.36%	-41.41%
ECEL	73 Outperform	£154.16M	15.37	9.56%	3.99%	-1.81%	15.19%
JHD	72 Outperform	£697.19M	16.31	24.63%	5.12%	-7.53%	-4.50%
GEN	70 Outperform	£1.01B	30.12	5.24%	3.16%	-4.30%	-13.09%
ALU	70 Outperform	£137.73M	14.48	29.95%	2.81%	19.86%	19.09%
Sector *	64 Neutral	$4.46B	11.94	5.17%	249.36%	4.00%	-12.35%

James Halstead Corporate Events

James Halstead PLC Announces Change in Major Holdings

James Halstead PLC has announced a change in its major holdings, with Octopus Investments Limited adjusting its voting rights from 6.01% to 5.99%. This notification reflects a slight decrease in the voting rights held by Octopus Investments, indicating a minor shift in shareholder dynamics that could influence future decision-making processes within the company.

James Halstead Executive Increases Stake with Share Purchase

James Halstead plc announced that Gordon Richard Oliver, an Executive Director and Chief Executive, along with Susan Podesta-Oliver, purchased a total of 8,200 ordinary shares of the company. This transaction increases Oliver’s beneficial interest in the company to 463,770 shares, representing approximately 0.11% of the company’s issued share capital. This move reflects confidence in the company’s future prospects and may positively influence stakeholder perception.

James Halstead PLC Reports Strong Profitability Amid Revenue Decline

James Halstead PLC reported strong profitability for the first half of the fiscal year ending December 31, 2024, despite a 4.7% drop in revenue to £130.1 million. The company achieved a 3.9% increase in pre-tax profit to £28.5 million, driven by improved margins and reduced overheads. The interim dividend was raised to 2.75p per share. Operational highlights included completed upgrades at Teesside and Radcliffe sites and participation in South American trade exhibitions. The company faced challenges in Europe and Australia due to reduced government spending and consumer confidence but saw growth in North America and Southeast Asia. The company remains optimistic about medium-term prospects despite short-term challenges in Europe.

James Halstead to Announce Interim Results for 2024

James Halstead plc has announced that it will release its interim results for the six months ending 31 December 2024 on 27 March 2025. This announcement is significant as it provides stakeholders with insights into the company’s financial performance and strategic direction, potentially impacting its market positioning and investor relations.