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James Latham
(LSE:LTHM)
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Rating:73Outperform
Price Target:
1,204.00 p
▲(12.52% Upside)
Action:Upgraded
Date:07/04/26
The score is driven primarily by solid overall financial quality anchored by a very strong, low-leverage balance sheet, partly offset by weaker cash conversion and 2026 negative free cash flow. Technicals are supportive with the stock above major moving averages and positive MACD, while valuation is favorable with a moderate P/E and a ~3.3% dividend yield.
Positive Factors
Very low leverage / strong balance sheet
Very low leverage and steadily growing equity provide durable financial flexibility: the company can absorb demand swings, support dividends or opportunistic capex, and withstand supplier or customer stress without needing immediate external financing, improving resilience.
Negative Factors
Negative free cash flow in 2026
A shift to negative free cash flow reduces financial flexibility for dividends, buybacks, or reinvestment. Even with low debt, recurring negative FCF forces tradeoffs or use of cash reserves, constraining strategic investments and increasing vulnerability if the trend persists.
Read all positive and negative factors
Positive Factors
Negative Factors
Very low leverage / strong balance sheet
Very low leverage and steadily growing equity provide durable financial flexibility: the company can absorb demand swings, support dividends or opportunistic capex, and withstand supplier or customer stress without needing immediate external financing, improving resilience.
Read all positive factors
James Latham (LTHM) vs. iShares MSCI United Kingdom ETF (EWC)
Market Cap
£210.84M
Dividend Yield3.46%
Average Volume (3M)10.16K
Price to Earnings (P/E)11.5
Beta (1Y)0.61
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. Volume9,005
30 Day Avg. Volume10,162
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)0.93
Revenue Forecast (FY)£381.90M
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 makes money primarily by procuring timber and panel products from mills and manufacturers and reselling them to customers at a margin through its distribution network. The core revenue stream is product sales (e.g., timber, plywood an...
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 Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | £210.84M | 11.52 | 8.13% | 3.46% | 7.21% | 2.55% | |
73 Outperform | £1.16B | 14.01 | 6.73% | 4.58% | 7.88% | -9.34% | |
70 Outperform | £278.82M | 15.75 | 7.98% | 4.55% | -4.66% | 16.91% | |
69 Neutral | £1.47B | 15.98 | 10.54% | ― | 4.46% | 100.00% | |
61 Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% | |
49 Neutral | £317.40M | -13.55 | -6.19% | 2.55% | -10.12% | -287.99% | |
46 Neutral | £403.19M | 18.77 | 3.79% | 4.36% | -0.25% | -12.96% |
* Basic Materials Sector Average
GB:LTHM
James Latham
1,060.00
-7.24
-0.68%
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James Latham Corporate Events
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 ...
Business Operations and StrategyDividendsFinancial Disclosures
James Latham lifts revenue, dividend as distribution expansion gathers pace
Positive
Jul 2, 2026
James Latham reported resilient trading for the year to 31 March 2026, with revenue rising 7.2% to £393.0m and profit before tax edging up to £25.1m despite slightly lower gross margins. Higher timber volumes, particularly from its lower...
Other
James Latham Employee Trust Increases Shareholding to Support Incentive Plans
Neutral
May 5, 2026
James Latham plc has reported that the trustees of its Employee Benefits Trust purchased 11,500 ordinary shares on 30 April and 1 May at an average price of 1,025p, lifting the trust’s holding to 146,347 shares, or 0.73% of total voting righ...
Business Operations and Strategy
James Latham Employee Benefit Trust Increases Shareholding to Support Incentive Schemes
Positive
Apr 30, 2026
James Latham plc has confirmed that the trustees of its Employee Benefits Trust have purchased 12,500 ordinary shares in the company at an average price of 1,019p, increasing the trust’s holding to 134,847 shares, or 0.67% of total voting ri...
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.