Halfords Group Plc (HFD) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

ME Group International Plc

Dunelm Group Plc

Frasers Group Plc

Vertu Motors Plc

Inchcape Plc

Halfords Group Plc

Pinewood Technologies Group Plc

Pets At Home Group Plc

Watches of Switzerland Group Plc

Wickes Group Plc

Card Factory Plc

Why is Halfords Group Plc ?

Company's ability to service its debt is strong with a healthy EBIT to Interest (avg) ratio of 6.19

Poor long term growth as Operating profit has grown by an annual rate -171.96% of over the last 5 years

RAW MATERIAL COST(Y) Fallen by -9.62% (YoY)
INVENTORY TURNOVER RATIO(HY) Highest at 3.78%

Risky -

The stock is trading risky as compared to its average historical valuations
Over the past year, while the stock has generated a return of 6.61%, its profits have fallen by -207%

Underperformed the market in the last 1 year

The stock has generated a return of 6.61% in the last 1 year, much lower than market (FTSE 100) returns of 18.23%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Halfords Group Plc should be less than 10%
Overall Portfolio exposure to Retailing should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Retailing)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Halfords Group Plc for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

Halfords Group Plc

7.06%

-0.96

28.93%

FTSE 100

19.23%

1.44

12.63%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

7.56%

EBIT Growth (5y)

-171.96%

EBIT to Interest (avg)

6.19

Debt to EBITDA (avg)

0.29

Net Debt to Equity (avg)

0.14

Sales to Capital Employed (avg)

2.53

Tax Ratio

12.67%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

0.23%

ROCE (avg)

15.00%

ROE (avg)

11.09%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

NA (Loss Making)

Industry P/E

Price to Book Value

0.63

EV to EBIT

-19.45

EV to EBITDA

3.42

EV to Capital Employed

0.67

EV to Sales

0.22

PEG Ratio

Dividend Yield

616.25%

ROCE (Latest)

-3.45%

ROE (Latest)

-6.89%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Mildly Bearish (Daily)

KST

Bullish

Mildly Bullish

Dow Theory

No Trend

OBV

No Trend

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

2What is working for the Company

RAW MATERIAL COST(Y)

Fallen by -9.62% (YoY

INVENTORY TURNOVER RATIO(HY)

Highest at 3.78%

-16What is not working for the Company

ROCE(HY)

Lowest at -6.38%

INTEREST COVERAGE RATIO(Q)

Lowest at 387.72

OPERATING PROFIT(Q)

Lowest at GBP 22.1 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 2.6 %

PRE-TAX PROFIT(Q)

Lowest at GBP -51 MM

NET PROFIT(Q)

Lowest at GBP -51 MM

EPS(Q)

Lowest at GBP -0.22

Here's what is working for Halfords Group Plc

Inventory Turnover Ratio

Highest at 3.78%

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Raw Material Cost

Fallen by -9.62% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Depreciation

Highest at GBP 68.1 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (GBP MM)

Here's what is not working for Halfords Group Plc

Pre-Tax Profit

At GBP -51 MM has Fallen at -333.94%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (GBP MM)

Net Profit

At GBP -51 MM has Fallen at -416.8%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (GBP MM)

Interest Coverage Ratio

Lowest at 387.72

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Operating Profit

Lowest at GBP 22.1 MM and Fallen

In each period in the last five periods

MOJO Watch

Near term Operating Profit trend is quite negative

Operating Profit (GBP MM)

Operating Profit Margin

Lowest at 2.6 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at GBP -51 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (GBP MM)

Net Profit

Lowest at GBP -51 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (GBP MM)

EPS

Lowest at GBP -0.22

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (GBP)