Hargreaves Services Plc (HSP) 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

Science Group Plc

Begbies Traynor Group Plc

Keystone Law Group Plc

Hargreaves Services Plc

Elixirr International Plc

Bioventix Plc

Restore Plc

Gateley (Holdings) Plc

Fintel Plc

Kin + Carta Plc

Ricardo Plc

Why is Hargreaves Services Plc ?

Healthy long term growth as Operating profit has grown by an annual rate 74.76%

Positive results in May 25

OPERATING CASH FLOW(Y) Highest at GBP 65.97 MM
OPERATING PROFIT(Q) Highest at GBP 18.62 MM
DIVIDEND PAYOUT RATIO(Y) Highest at 56.7%

With ROE of 7.58%, it has a very attractive valuation with a 1.20 Price to Book Value

Over the past year, while the stock has generated a return of 19.27%, its profits have risen by 20.6% ; the PEG ratio of the company is 0.8

Consistent Returns over the last 3 years

Along with generating 19.27% returns in the last 1 year, the stock has outperformed FTSE 100 in each of the last 3 annual periods

Real-Time Research Report

Verdict Report

How much should you buy?

Overall Portfolio exposure to Hargreaves Services Plc should be less than 10%
Overall Portfolio exposure to Miscellaneous should be less than 30%

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

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

Is Hargreaves Services Plc for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Hargreaves Services Plc

19.27%

3.46

37.34%

FTSE 100

15.94%

1.23

12.99%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

3.45%

EBIT Growth (5y)

74.76%

EBIT to Interest (avg)

2.57

Debt to EBITDA (avg)

0.47

Net Debt to Equity (avg)

0.04

Sales to Capital Employed (avg)

1.10

Tax Ratio

29.57%

Dividend Payout Ratio

82.50%

Pledged Shares

Institutional Holding

ROCE (avg)

2.93%

ROE (avg)

12.46%

Valuation

Valuation Scorecard

Valuation grade scale :

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

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

1.20

EV to EBIT

15.52

EV to EBITDA

6.74

EV to Capital Employed

1.21

EV to Sales

0.85

PEG Ratio

0.79

Dividend Yield

514.65%

ROCE (Latest)

7.81%

ROE (Latest)

7.58%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bearish

Mildly Bullish

Moving Averages

Bearish (Daily)

KST

Bearish

Mildly Bearish

Dow Theory

Mildly Bullish

Mildly Bearish

OBV

Mildly Bearish

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

13What is working for the Company

OPERATING CASH FLOW(Y)

Highest at GBP 65.97 MM

OPERATING PROFIT(Q)

Highest at GBP 18.62 MM

DIVIDEND PAYOUT RATIO(Y)

Highest at 56.7%

RAW MATERIAL COST(Y)

Fallen by -20.6% (YoY

CASH AND EQV(HY)

Highest at GBP 23.3 MM

DEBT-EQUITY RATIO (HY)

Lowest at 4.87 %

DEBTORS TURNOVER RATIO(HY)

Highest at 3.03%

NET SALES(Q)

Highest at GBP 139.09 MM

-5What is not working for the Company

INTEREST(Q)

Highest at GBP 2.44 MM

PRE-TAX PROFIT(Q)

Fallen at -24.14%

Here's what is working for Hargreaves Services Plc

Operating Profit

Highest at GBP 18.62 MM and Grown

In each period in the last five periods

MOJO Watch

Near term Operating Profit trend is quite positive

Operating Profit (GBP MM)

Operating Cash Flow

Highest at GBP 65.97 MM

in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (GBP MM)

Net Sales

Highest at GBP 139.09 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (GBP MM)

Net Sales

At GBP 139.09 MM has Grown at 37.75%

Year on Year (YoY)

MOJO Watch

Near term sales trend is positive

Net Sales (GBP MM)

Cash and Eqv

Highest at GBP 23.3 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debt-Equity Ratio

Lowest at 4.87 %

in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Debtors Turnover Ratio

Highest at 3.03%

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Dividend Payout Ratio

Highest at 56.7%

in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)

Raw Material Cost

Fallen by -20.6% (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 9.82 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 Hargreaves Services Plc

Interest

Highest at GBP 2.44 MM

in the last five periods and Increased by 60.43% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (GBP MM)

Pre-Tax Profit

Fallen at -24.14%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (GBP MM)