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James Latham
(LSE:LTHM)
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Rating:70Outperform
Price Target:
1,199.00 p
▲(12.06% Upside)
Action:Reiterated
Date:10/04/26
The score is driven primarily by strong balance-sheet quality and a constructive technical uptrend (price above key moving averages with positive MACD). Offsetting these positives, profitability has cooled and free cash flow turned negative in 2026, which limits the financial performance score despite a reasonable P/E and supportive dividend yield.
Positive Factors
Very strong balance sheet
Very low leverage and steadily growing equity provide James Latham with meaningful financial resilience. The company can support operations and selective investment without relying heavily on debt, while positive returns on equity indicate that this conservative balance sheet is still producing acceptable profitability.
Negative Factors
Negative free cash flow
Negative free cash flow reduces the cash available for dividends, buybacks and internally funded growth. Although operating cash flow remained positive, the recent reversal suggests that capital spending or working-capital requirements are absorbing a larger share of internally generated funds and weakening financial flexibility.
Read all positive and negative factors
Positive Factors
Negative Factors
Very strong balance sheet
Very low leverage and steadily growing equity provide James Latham with meaningful financial resilience. The company can support operations and selective investment without relying heavily on debt, while positive returns on equity indicate that this conservative balance sheet is still producing acceptable profitability.
Read all positive factors
James Latham (LTHM) vs. iShares MSCI United Kingdom ETF (EWC)
Market Cap
£212.83M
Dividend Yield3.43%
Average Volume (3M)8.82K
Price to Earnings (P/E)11.6
Beta (1Y)0.57
Revenue Growth7.21%
EPS Growth2.55%
CountryUK
Employees611
SectorBasic Materials
Sector Strength58
IndustryPaper, Lumber & Forest Products
Share Statistics
EPS (TTM)0.92
Shares Outstanding20,160,000
10 Day Avg. Volume8,462
30 Day Avg. Volume8,817
Financial Highlights & Ratios
PEG Ratio3.10
Price to Book (P/B)0.83
Price to Sales (P/S)0.49
P/FCF Ratio-42.30
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)0.87
Revenue Forecast (FY)£410.40M
James Latham Business Overview & Revenue Model
Company Description
James Latham plc, operating with its subsidiaries, functions as a key importer and distributor of timber, panel products, and decorative surface materials. Its extensive operations cover the United Kingdom, the Republic of Ireland, broader Europe,...
How the Company Makes Money
James Latham primarily makes money by buying timber, panel products, and other specialist materials from domestic and international producers and selling them on to business customers at a margin. Key revenue streams come from (1) distribution sal...
James Latham Financial Statement Overview
Summary
Income Statement
63
Positive
Balance Sheet
86
Very Positive
Cash Flow
48
Neutral
| Breakdown | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 | Mar 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 393.04M | 366.61M | 366.51M | 408.37M | 385.37M |
| Gross Profit | 64.85M | 61.45M | 62.10M | 78.50M | 90.00M |
| EBITDA | 31.23M | 30.11M | 34.73M | 48.94M | 62.30M |
| Net Income | 18.60M | 18.15M | 22.66M | 35.92M | 45.64M |
Balance Sheet | |||||
| Total Assets | 291.66M | 275.45M | 269.70M | 250.36M | 224.81M |
| Cash, Cash Equivalents and Short-Term Investments | 51.20M | 69.12M | 75.88M | 62.61M | 37.03M |
| Total Debt | 7.77M | 12.02M | 8.67M | 6.60M | 5.00M |
| Total Liabilities | 59.34M | 54.97M | 54.47M | 54.78M | 60.84M |
| Stockholders Equity | 232.31M | 220.48M | 215.23M | 195.57M | 163.97M |
Cash Flow | |||||
| Free Cash Flow | -4.56M | 3.56M | 17.98M | 33.83M | 16.38M |
| Operating Cash Flow | 21.76M | 17.02M | 23.57M | 37.13M | 20.69M |
| Investing Cash Flow | -26.26M | -9.80M | -1.97M | -3.23M | -6.50M |
| Financing Cash Flow | -9.78M | -17.61M | -8.33M | -8.32M | -5.79M |
James Latham Technical Analysis
Positive
1070.00
Price Trends
1061.05
Positive
1037.58
Positive
1011.30
Positive
Market Momentum
7.10
Negative
49.76
Neutral
52.37
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:LTHM, the sentiment is Positive. The current price of 1070 is above the 20-day moving average (MA) of 1068.25, above the 50-day MA of 1061.05, and above the 200-day MA of 1011.30, indicating a bullish trend. The MACD of 7.10 indicates Negative momentum. The RSI at 49.76 is Neutral, neither overbought nor oversold. The STOCH value of 52.37 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:LTHM.
James Latham Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | £1.03B | 12.94 | 6.73% | 5.15% | 7.88% | -9.34% | |
70 Outperform | £212.83M | 11.63 | 8.13% | 3.43% | 7.21% | 2.55% | |
66 Neutral | £1.36B | 15.50 | 10.54% | ― | 4.46% | 100.00% | |
65 Neutral | £281.44M | 16.79 | 7.98% | 4.24% | -4.66% | 16.91% | |
61 Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% | |
58 Neutral | £392.62M | 19.28 | 3.79% | 4.29% | -0.25% | -12.96% | |
49 Neutral | £297.64M | -13.33 | -6.19% | 2.65% | -10.12% | -287.99% |
* Basic Materials Sector Average
GB:LTHM
James Latham
1,070.00
55.88
5.51%
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James Latham Corporate Events
Business Operations and Strategy
James Latham Increases Management Shareholdings via SIPS Allocation
Positive
Sep 4, 2026
James Latham plc has disclosed that trustees of its Share Incentive Plan scheme have allocated 3,307 ordinary shares to four senior executives at a price of 1,065p per share. The allocations modestly increase the direct equity stakes of Chairman N...
Business Operations and StrategyExecutive/Board ChangesStock BuybackDividendsFinancial DisclosuresShareholder Meetings
James Latham Shareholders Back All AGM Resolutions, Strengthening Capital Flexibility
Positive
Aug 19, 2026
James Latham plc reported that all resolutions at its Annual General Meeting on 19 August 2026 were passed, including approval of the directors’ report and accounts for the year to 31 March 2026 and the declaration of a final dividend on ord...
Business Operations and StrategyFinancial Disclosures
James Latham posts revenue growth and advances national distribution hub
Positive
Aug 19, 2026
James Latham has reported a strong start to its current financial year, with revenue rising 9.8% to £146m and volumes up 5.6% in the four months to 31 July 2026. The increase reflects both higher demand and earlier supplier price rises linked...
Financial DisclosuresRegulatory Filings and ComplianceShareholder Meetings
James Latham Publishes 2026 Annual Report and Sets AGM Date
Neutral
Jul 24, 2026
James Latham plc has posted its Annual Report for the year ended 31 March 2026, together with the notice of its 2026 Annual General Meeting, to shareholders and made the documents available on its investor website. The move ensures investors have ...
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.