James Latham (LTHP) AI Stock Analysis

• Market Cap: £210.84M
• Dividend Yield: N/A
• Average Volume (3M): 233.00
• Price to Earnings (P/E): ―
• Beta (1Y): 0.00
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: UK
• Employees: 565
• Sector: Industrials
• Sector Strength: 80
• Industry: Industrial - Distribution
• EPS (TTM): N/A
• Shares Outstanding: 590,603
• 10 Day Avg. Volume: 700
• 30 Day Avg. Volume: 233
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• P/FCF Ratio: 0.00
• 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

The overall stock score for James Latham is driven primarily by strong financial stability, evidenced by a robust balance sheet and efficient cash flow management. However, declining revenue and profitability margins present significant concerns. Technical analysis suggests a neutral to slightly positive outlook, with market indicators lacking strong momentum. The absence of valuation metrics limits a comprehensive assessment, yet the company's low leverage offers potential resilience in economic downturns.

James Latham Business Overview & Revenue Model

Company Description

James Latham plc (LTHP) is a leading UK-based distributor of timber, panels, and decorative surfaces. Established in 1757, the company operates in the building materials sector, supplying an extensive range of products including hardwoods, softwoods, panels, and decorative surfaces to various industries such as construction, furniture manufacturing, and shopfitting. With a strong focus on sustainability and innovation, James Latham provides high-quality materials sourced from responsibly managed forests.

How the Company Makes Money

James Latham makes money primarily through the distribution and sale of timber and panel products. The company's revenue model is based on sourcing a diverse range of high-quality materials from suppliers around the world and distributing them to a wide customer base across the UK. Key revenue streams include sales of hardwoods, softwoods, and panel products such as plywood and MDF. The company also generates income from value-added services such as cutting, machining, and finishing. Significant partnerships with global suppliers and a strong logistics network contribute to its competitive edge, allowing efficient distribution and reliable supply of materials to meet customer demand. Additionally, James Latham invests in sustainable practices, which enhances its reputation and aligns with market trends favoring environmentally responsible sourcing.

James Latham Financial Statement Overview

Summary

James Latham demonstrates financial stability with strong balance sheet metrics and efficient cash flow management. However, the declining revenue and profit margins pose challenges to future profitability. The company's low leverage provides a cushion against economic fluctuations, but revitalizing revenue growth is essential for maintaining long-term financial health.

Income Statement

The company shows a declining trend in revenue, with a revenue growth rate of -10.25% from the previous year. Gross profit margin stands at 16.94%, indicating a moderate efficiency in production. The net profit margin is 6.18%, showing profitability but lower than previous years. EBIT and EBITDA margins are 7.13% and 9.47% respectively, which are decent but reflect shrinking operational efficiency.

Balance Sheet

The balance sheet is strong with a low debt-to-equity ratio of 0.04, indicating minimal leverage and potential for safe expansion. ROE is 10.53%, which is solid, reflecting good returns for equity holders. The equity ratio is high at 79.80%, suggesting a strong equity base and financial stability.

Cash Flow

Cash flow analysis shows a decrease in free cash flow growth rate by -34.78%. However, the company maintains a robust operating cash flow to net income ratio of 1.20, indicating efficient cash generation from operations. The free cash flow to net income ratio is 0.95, reflecting adequate cash flow generation relative to net income.

Breakdown
Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement		Total Revenue
366.51M	408.37M	385.37M	250.16M	247.10M
	Gross Profit
62.10M	80.01M	91.53M	45.10M	43.44M
	EBIT
26.14M	43.70M	58.16M	19.04M	16.00M
	EBITDA
34.73M	48.94M	62.30M	22.84M	19.69M
	Net Income Common Stockholders
22.66M	35.92M	35.92M	14.98M	12.48M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
75.88M	62.61M	37.03M	28.62M	16.95M
	Total Assets
269.70M	250.36M	224.81M	167.35M	154.08M
	Total Debt
8.67M	6.60M	5.00M	4.85M	5.63M
	Net Debt
-67.21M	-56.01M	-32.03M	-23.77M	-11.32M
	Total Liabilities
54.47M	54.78M	60.84M	45.53M	49.81M
	Stockholders Equity
215.23M	195.57M	163.97M	121.82M	104.28M
Cash Flow		Free Cash Flow
21.54M	33.01M	16.35M	16.16M	5.79M
	Operating Cash Flow
27.13M	36.31M	20.66M	18.13M	9.67M
	Investing Cash Flow
-5.53M	-2.41M	-6.47M	-1.95M	-4.23M
	Financing Cash Flow
-8.33M	-8.32M	-5.79M	-4.51M	-4.04M

James Latham Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 122.50
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:LTHP, the sentiment is Positive. The current price of 122.5 is above the 20-day moving average (MA) of 122.50, above the 50-day MA of 120.34, and above the 200-day MA of 117.99, indicating a bullish trend. The MACD of 0.60 indicates Positive momentum. The RSI at 100.00 is Negative, neither overbought nor oversold. The STOCH value of 100.00 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:LTHP.

James Latham Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CRH	81 Outperform	£63.51B	20.79	15.72%	1.60%	2.11%	3.37%
TW	77 Outperform	£4.25B	19.52	4.92%	7.93%	-3.22%	-37.21%
FORT	73 Outperform	£404.38M	23.10	8.09%	1.56%	-0.61%	34.19%
LTHP	71 Outperform	£210.84M	―		―	―	―
Sector *	64 Neutral	$4.24B	11.64	5.23%	249.83%	4.07%	-10.54%
IBST	63 Neutral	£740.01M	48.91	3.80%	2.71%	-9.77%	-28.49%