James Latham (LTHP) AI Stock Analysis

James Latham

(LSE:LTHP)

Select Model

Rating:76Outperform

Price Target:GBX 138.00▲(12.65% Upside)

Action:reiterated

Date:10/04/26

The score is driven primarily by very attractive valuation (very low P/E and a high dividend yield) and a supportive technical uptrend (price above key moving averages with positive MACD). Offsetting these positives, financial performance is mixed due to post-2022/2023 profitability normalization and weakening free cash flow, including negative free cash flow in 2026.

Positive Factors

Low leverage and stronger equityA conservatively financed balance sheet gives James Latham financial flexibility to manage demand fluctuations and continue investing in its distribution operations. Rising equity also indicates cumulative balance-sheet strengthening, reducing reliance on leverage to support the business over the medium term.

Negative Factors

Profitability normalizationThe sustained step-down in EBIT and net income from the 2022–2023 peak indicates that earnings power has not been maintained at prior levels. Lower profitability may constrain reinvestment and reduce the resilience of returns if demand or pricing conditions remain less favorable.

James Latham (LTHP) vs. iShares MSCI United Kingdom ETF (EWC)

Market Cap: GBP 205.87M
Dividend Yield: 6.53%
Average Volume (3M): 333
Price to Earnings (P/E): 1.3
Beta (1Y): 0.00
Revenue Growth: ―
EPS Growth: ―
Country: UK
Employees: 588
Sector: General
Sector Strength: 55
Industry: Industrial - Distribution

James Latham Business Overview & Revenue Model

Company Description

James Latham Plc specializes in the importation and distribution of a diverse range of wood-based panel products. The company offers an extensive portfolio of materials, including various panels, solid surfaces, door blanks, hardwoods, softwoods, mel...

How the Company Makes Money

James Latham primarily makes money by buying timber, panel products and other wood-based materials from manufacturers/sawmills and reselling them to trade customers at a margin (distribution/merchanting model). Revenue is therefore mainly driven by (...

James Latham Financial Statement Overview

Summary

Strong, low-leverage balance sheet and steadily rising equity support financial resilience, but profitability has stepped down meaningfully since the 2022–2023 peak and free cash flow deteriorated to negative in 2026, reducing earnings quality in the near term.

Income Statement

67Positive

Balance Sheet

83Very Positive

Cash Flow

56Neutral

Financial statement breakdown
Breakdown	TTM	Mar 2026	Mar 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	393.04M	393.04M	366.61M	366.51M	408.37M	385.37M
Gross Profit	64.85M	64.85M	61.45M	62.10M	80.01M	91.53M
EBITDA	29.75M	27.87M	30.11M	34.73M	48.94M	62.26M
Net Income	18.60M	18.60M	18.15M	22.66M	35.92M	35.92M
Balance Sheet
Total Assets	291.66M	291.66M	275.45M	269.70M	250.36M	224.81M
Cash, Cash Equivalents and Short-Term Investments	51.20M	51.20M	69.12M	75.88M	62.61M	37.03M
Total Debt	7.77M	7.77M	12.02M	8.67M	6.60M	5.00M
Total Liabilities	59.34M	59.34M	54.97M	54.47M	54.78M	60.84M
Stockholders Equity	232.31M	232.31M	220.48M	215.23M	195.57M	163.97M
Cash Flow
Free Cash Flow	-4.56M	-4.56M	3.56M	21.54M	33.01M	16.35M
Operating Cash Flow	21.76M	21.76M	17.02M	27.13M	36.31M	20.66M
Investing Cash Flow	-26.26M	-26.26M	-9.80M	-1.97M	-2.41M	-6.47M
Financing Cash Flow	-9.78M	-9.78M	-17.61M	-8.33M	-8.32M	-5.79M

James Latham Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

GB:LTHP against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
GB:LTHP	76Outperform	GBP 206.86M	1.33	8.13%	6.53%	―	―
GB:GFTU	70Outperform	GBP 1.84B	14.56	7.94%	3.84%	8.57%	0.74%
GB:BMTO	66Neutral	GBP 22.08M	5.45	13.07%	0.80%	1.57%	2.78%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
GB:BRCK	55Neutral	GBP 126.72M	95.61	0.71%	8.95%	1.30%	-79.90%
GB:LORD	49Neutral	GBP 20.37M	-2.01	-26.48%	4.24%	3.98%	-322.92%
GB:SHI	45Neutral	GBP 104.48M	-2.03	-46.37%	―	-0.75%	25.17%

* General Sector Average

Performance Comparison

GB:LTHP and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
GB:LTHP	James Latham (LTHP)	122.50	7.87	6.87%
GB:BMTO	Braime Group PLC	2050.00	563.89	37.94%
GB:SHI	SIG plc	9.00	-0.28	-3.02%
GB:GFTU	Grafton Group plc	990.00	79.24	8.70%
GB:BRCK	BRCK Group plc	39.20	-12.71	-24.49%
GB:LORD	Lords Group Trading PLC	12.25	-19.38	-61.27%

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.

Date of analysis: Oct 04, 2026

James Latham AI Stock Analysis