Why is Howden Joinery Group Plc ?
1
Strong Long Term Fundamental Strength with an average Return on Equity (ROE) of 28.65%
- Healthy long term growth as Net Sales has grown by an annual rate of 11.01%
- Company's ability to service its debt is strong with a healthy EBIT to Interest (avg) ratio of 24.69
2
Flat results in Jun 25
- INTEREST COVERAGE RATIO(Q) Lowest at 1,872.38
- INVENTORY TURNOVER RATIO(HY) Lowest at 2.15%
- DEBTORS TURNOVER RATIO(HY) Lowest at 7.81%
3
With ROE of 23.57%, it has a expensive valuation with a 4.22 Price to Book Value
- Over the past year, while the stock has generated a return of -0.54%, its profits have risen by 0% ; the PEG ratio of the company is 17.9
4
Underperformed the market in the last 1 year
- Even though the market (FTSE 100) has generated returns of 15.94% in the last 1 year, the stock has hugely underperformed and has generate negative returns of -0.54% returns
How much should you hold?
- Overall Portfolio exposure to Howden Joinery Group Plc should be less than 10%
- Overall Portfolio exposure to Electronics & Appliances should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Electronics & Appliances)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is Howden Joinery Group Plc for you?
Medium Risk, Medium Return
Absolute
Risk Adjusted
Volatility
Howden Joinery Group Plc
-0.54%
0.49
25.58%
FTSE 100
15.94%
1.23
12.99%
Quality key factors
Factor
Value
Sales Growth (5y)
11.01%
EBIT Growth (5y)
14.76%
EBIT to Interest (avg)
24.69
Debt to EBITDA (avg)
0
Net Debt to Equity (avg)
-0.23
Sales to Capital Employed (avg)
2.17
Tax Ratio
24.02%
Dividend Payout Ratio
46.49%
Pledged Shares
0
Institutional Holding
0.00%
ROCE (avg)
55.00%
ROE (avg)
28.65%
Valuation Key Factors 
Factor
Value
P/E Ratio
18
Industry P/E
Price to Book Value
4.22
EV to EBIT
12.62
EV to EBITDA
8.59
EV to Capital Employed
5.09
EV to Sales
1.84
PEG Ratio
17.92
Dividend Yield
254.89%
ROCE (Latest)
40.31%
ROE (Latest)
23.57%
Technical key factors
Indicator
Weekly
Monthly
MACD
Bearish
Mildly Bearish
RSI
No Signal
No Signal
Bollinger Bands
Bearish
Bearish
Moving Averages
Mildly Bullish (Daily)
KST
Bearish
Mildly Bearish
Dow Theory
No Trend
No Trend
OBV
Mildly Bullish
No Trend
Technical Movement
4What is working for the Company
OPERATING CASH FLOW(Y)
Highest at GBP 925.4 MM
RAW MATERIAL COST(Y)
Fallen by -1.85% (YoY
-4What is not working for the Company
INTEREST COVERAGE RATIO(Q)
Lowest at 1,872.38
INVENTORY TURNOVER RATIO(HY)
Lowest at 2.15%
DEBTORS TURNOVER RATIO(HY)
Lowest at 7.81%
Here's what is working for Howden Joinery Group Plc
Operating Cash Flow
Highest at GBP 925.4 MM and Grown
In each year in the last three yearsMOJO Watch
The company has generated higher cash revenues from business operations
Operating Cash Flows (GBP MM)
Raw Material Cost
Fallen by -1.85% (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
Here's what is not working for Howden Joinery Group Plc
Interest Coverage Ratio
Lowest at 1,872.38
in the last five periodsMOJO Watch
The company's ability to manage interest payments is deteriorating
Operating Profit to Interest
Inventory Turnover Ratio
Lowest at 2.15%
in the last five Semi-Annual periodsMOJO Watch
Company's pace of selling inventory has slowed
Inventory Turnover Ratio
Debtors Turnover Ratio
Lowest at 7.81%
in the last five Semi-Annual periodsMOJO Watch
Company's pace of selling Debtors has slowed
Debtors Turnover Ratio
Non Operating Income
Highest at GBP 0.05 MM
in the last five periodsMOJO Watch
Increased income from non business activities may not be sustainable
Non Operating income






