Hardide (HDD) AI Stock Analysis

• Market Cap: £4.61M
• Dividend Yield: N/A
• Average Volume (3M): 134.40K
• Price to Earnings (P/E): ―
• Beta (1Y): -0.35
• Revenue Growth: -13.98%
• EPS Growth: -6.84%
• Country: UK
• Employees: 46
• Sector: Basic Materials
• Sector Strength: 63
• Industry: Chemicals
• EPS (TTM): -0.02
• Shares Outstanding: 78,812,750
• 10 Day Avg. Volume: 93,230
• 30 Day Avg. Volume: 134,397
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.97
• Price to Cash Flow (P/CF): -6.10
• 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

Hardide's stock faces significant financial and market challenges. The company's weak financial performance and bearish technical indicators weigh heavily on its score. However, recent corporate events, including increased director shareholdings and strategic agreements, provide some optimism for future growth.

Hardide Business Overview & Revenue Model

Company Description

Hardide plc is a UK-based company specializing in advanced surface coating technologies. Operating primarily within the industrial and engineering sectors, Hardide develops and provides innovative tungsten carbide-based coatings that enhance the performance and longevity of metal components. These coatings offer superior wear, corrosion, and chemical resistance, making them ideal for use in demanding environments such as oil and gas, aerospace, power generation, and precision engineering.

How the Company Makes Money

Hardide makes money by providing its proprietary coating services to a range of industries that require enhanced durability and performance of their metal components. The company generates revenue through the application of its specialized coatings on customer-supplied parts, as well as by licensing its technology to other manufacturers. Key revenue streams include direct coating services for sectors such as oil and gas, aerospace, and power generation, where their coatings improve operational efficiency and reduce maintenance costs. Hardide also benefits from strategic partnerships and collaborations with industry leaders, which help expand its market reach and drive adoption of its technology.

Hardide Financial Statement Overview

Summary

Hardide faces financial challenges with declining revenues and persistent losses. Negative profit margins and weak cash flows are major concerns. Although leverage is manageable, operational inefficiencies and poor cash management need addressing for financial stability.

Income Statement

The company's income statement shows declining revenue growth with a negative trend in profitability. The gross profit margin has decreased over the years. Net profit margins remain negative, indicating challenges in achieving profitability. EBIT and EBITDA margins also reflect operational inefficiencies and a need for improved cost management.

Balance Sheet

The balance sheet reveals a moderate debt-to-equity ratio, which suggests manageable leverage but indicates potential debt-related risks. The equity ratio has been decreasing, reflecting a shrinking proportion of equity in total assets. Additionally, return on equity remains negative due to ongoing net losses.

Cash Flow

Cash flow analysis highlights negative free cash flow and a significant decline in operating cash flow, pointing to liquidity pressures. The free cash flow to net income ratio is unfavorable, indicating a need for better cash management. Despite occasional financing inflows, cash generation from operations is weak.

Breakdown
TTM	Sep 2024	Sep 2023	Sep 2022	Sep 2021	Sep 2020
Income Statement		Total Revenue
6.04M	4.73M	5.50M	5.01M	3.60M	4.76M
	Gross Profit
2.44M	2.28M	2.61M	1.88M	1.31M	2.32M
	EBIT
-1.69M	-1.19M	-1.03M	-2.15M	-2.83M	-1.26M
	EBITDA
-851.00K	-363.00K	-271.00K	-937.00K	-1.69M	-579.00K
	Net Income Common Stockholders
-1.71M	-1.32M	-1.12M	-2.19M	-2.80M	-1.29M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
933.00K	700.00K	740.00K	1.14M	1.99M	3.11M
	Total Assets
8.89M	7.75M	8.40M	9.73M	10.76M	12.75M
	Total Debt
3.31M	2.81M	3.05M	1.94M	2.11M	2.24M
	Net Debt
2.61M	2.10M	2.31M	1.25M	569.00K	-476.00K
	Total Liabilities
4.07M	4.09M	4.11M	4.21M	3.84M	3.91M
	Stockholders Equity
4.82M	3.66M	4.29M	5.53M	6.91M	8.84M
Cash Flow		Free Cash Flow
-168.00K	-486.00K	56.00K	-1.31M	-2.25M	-4.59M
	Operating Cash Flow
-59.50K	-422.00K	166.00K	-1.01M	-1.94M	-504.00K
	Investing Cash Flow
-730.00K	-64.00K	-110.00K	-292.00K	-299.00K	-4.09M
	Financing Cash Flow
800.00K	434.00K	-98.00K	322.00K	943.00K	2.48M

Hardide Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 5.85
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:HDD, the sentiment is Negative. The current price of 5.85 is below the 20-day moving average (MA) of 6.42, below the 50-day MA of 6.14, and below the 200-day MA of 6.17, indicating a bearish trend. The MACD of -0.13 indicates Positive momentum. The RSI at 33.86 is Neutral, neither overbought nor oversold. The STOCH value of 27.76 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GB:HDD.

Hardide Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SRP	74 Outperform	£1.61B	39.16	4.71%	2.21%	-0.68%	-78.93%
JMAT	70 Neutral	£2.39B	4.98	21.80%	5.32%	-15.51%	200.70%
RAT	67 Neutral	£1.69B	25.50	4.83%	3.35%	49.59%	24.74%
HDD	47 Neutral	£4.61M	―	-33.20%	―	-13.98%	-6.84%
Sector *	46 Neutral	$2.64B	-3.89	-29.36%	3.33%	2.89%	-29.66%

Hardide Corporate Events

Hardide Directors Increase Shareholdings, Signaling Confidence in Company’s Future

Hardide plc announced that several of its directors have purchased additional ordinary shares in the company, highlighting a notable confidence in its future prospects. The transactions, conducted by CEO Matt Hamblin, Non-Executive Chair Andrew Magson, and Technical Director Yuri Zhuk, illustrate a strategic maneuver that could positively affect the company’s market perception and demonstrate executive commitment to its ongoing operations and growth.

Hardide plc Reports FY24 Results, Expects Strong Growth Ahead

Hardide plc reported its annual results for the year ending September 2024, highlighting a recovery in the latter half, with a revenue of £4.7m compared to £5.5m the previous year. The company achieved a positive EBITDA of £0.5m in the second half, driven by internal efficiencies and cost-reduction measures, and reported cash flow positivity. Looking forward, Hardide expects strong revenue growth in FY25, bolstered by a new 10-year aerospace supply agreement, and aims to leverage its spare capacity under new CEO Matt Hamblin’s leadership to accelerate growth.

Hardide plc to Announce Preliminary Year-End Results

Hardide plc has announced that it will release its preliminary results for the financial year ending 30 September 2024 on 29 January 2025. This announcement is crucial as it will provide insights into the company’s performance and strategic positioning, potentially impacting stakeholders and market perception.

Hardide Grants Share Options and Issues New Shares to Drive Growth

Hardide plc announced the granting of options over ordinary shares to certain directors as part of its executive remuneration strategy. This aligns with the company’s goal to promote profitable growth and better align the interests of directors and shareholders. The options, particularly for CEO Matt Hamblin, are conditioned on performance and tenure, with a focus on achieving stretching EBITDA growth targets over the next three years. Additionally, the company issued shares to Steve Paul as part of a payment for his role as Interim CEO, which supports the development of the company’s sales strategy. The issuance of new shares reflects a strategic decision to meet financial obligations without cash outlay, potentially impacting shareholder calculations under FCA rules.

Hardide Secures 10-Year Aerospace Supply Agreement

Hardide plc has secured a 10-year supply agreement with a major aerospace customer for coating cargo door components. This agreement is expected to enhance Hardide’s revenue significantly, benefiting the current financial year by at least £0.5m and generating between £6m to £8m over the next decade, supporting the company’s growth forecasts.