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Halfords Group PLC (GB:HFD)
LSE:HFD

Halfords (HFD) AI Stock Analysis

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GBHalfords
(LSE:HFD)
67Neutral
Halfords shows solid financial stability with strong cash flow management and growth in key areas. However, profitability margins and technical indicators suggest caution. Valuation is high, but a strong dividend yield provides some balance. Positive corporate events and executive confidence further support the stock's potential.

Halfords (HFD) vs. S&P 500 (SPY)

Halfords Business Overview & Revenue Model

Company DescriptionHalfords Group plc (HFD) is a leading UK-based retailer that specializes in automotive and cycling products, as well as services. Established in 1892, the company operates through a network of retail stores and service centers, providing a wide range of products including car parts, bikes, camping equipment, and accessories. Halfords is also known for its professional in-store services, such as car servicing, bike repairs, and MOT testing, catering to the needs of automotive and cycling enthusiasts.
How the Company Makes MoneyHalfords generates revenue primarily through the sale of automotive parts, accessories, and bicycles across its retail outlets and online platform. The company also earns a significant portion of its income from service-oriented offerings, including car repair services, bike maintenance, and MOT testing, provided at its Autocentres and Halfords Mobile Expert services. Partnerships with vehicle manufacturers and suppliers, as well as an extensive private label product range, further enhance its revenue streams. Additionally, Halfords benefits from a strong brand reputation and a large customer base, which contribute to its financial performance.

Halfords Financial Statement Overview

Summary
Halfords demonstrates strong revenue growth and effective cash flow management, but faces challenges with profitability margins and equity utilization. The balance sheet shows improved leverage and a strong equity position, supporting future growth potential. While profitability needs attention, the overall financial health remains stable with good cash flow resilience.
Income Statement
65
Positive
Halfords shows a solid gross profit margin of 48.4% and a stable net profit margin of 1.0% in the latest year. However, the net profit margin has decreased from the previous year, indicating a challenge with cost management or pricing pressures. Revenue growth is healthy at 6.5%, suggesting strong sales performance, but EBIT and EBITDA margins have declined, showing potential operational inefficiencies.
Balance Sheet
70
Positive
The company's debt-to-equity ratio is 0.59, reflecting moderate leverage, but it has decreased compared to the previous year, indicating improved balance sheet stability. The ROE stands at 3.1%, which is relatively low, suggesting underutilization of equity. The equity ratio of 43.3% is solid, providing a stable foundation for growth.
Cash Flow
72
Positive
Free cash flow growth is strong at 24.4%, indicating robust cash generation. The operating cash flow to net income ratio is 9.91, highlighting excellent cash flow efficiency relative to net income. Free cash flow to net income ratio is 7.21, suggesting healthy cash flow generation relative to profits.
Breakdown
Mar 2024Mar 2023Mar 2022Mar 2021Mar 2020
Income StatementTotal Revenue
1.70B1.59B1.38B1.29B1.16B
Gross Profit
822.60M757.20M701.10M635.30M565.40M
EBIT
51.90M64.20M104.80M131.60M78.50M
EBITDA
177.20M174.60M213.90M183.00M142.60M
Net Income Common Stockholders
16.90M28.10M77.70M53.20M17.50M
Balance SheetCash, Cash Equivalents and Short-Term Investments
13.30M41.90M46.30M67.20M115.50M
Total Assets
1.28B1.36B1.29B1.07B1.20B
Total Debt
328.60M390.60M391.20M344.50M595.30M
Net Debt
315.30M348.70M344.90M277.30M479.80M
Total Liabilities
725.70M796.40M739.20M655.60M833.40M
Stockholders Equity
553.80M562.80M551.00M417.80M365.80M
Cash FlowFree Cash Flow
121.80M97.90M71.60M239.10M144.70M
Operating Cash Flow
167.40M152.30M118.90M266.60M178.30M
Investing Cash Flow
-46.50M-87.00M-98.30M-39.00M-44.50M
Financing Cash Flow
-139.80M-79.20M-41.50M-275.90M-11.10M

Halfords Technical Analysis

Technical Analysis Sentiment
Negative
Last Price121.20
Price Trends
50DMA
133.07
Negative
100DMA
139.20
Negative
200DMA
139.91
Negative
Market Momentum
MACD
-3.85
Positive
RSI
30.42
Neutral
STOCH
6.95
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:HFD, the sentiment is Negative. The current price of 121.2 is below the 20-day moving average (MA) of 135.33, below the 50-day MA of 133.07, and below the 200-day MA of 139.91, indicating a bearish trend. The MACD of -3.85 indicates Positive momentum. The RSI at 30.42 is Neutral, neither overbought nor oversold. The STOCH value of 6.95 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GB:HFD.

Halfords Peers Comparison

Overall Rating
UnderperformOutperform
Sector (60)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
GBVTU
72
Outperform
£171.98M9.297.28%4.53%7.94%-25.81%
69
Neutral
£1.57B13.0711.81%4.74%-4.96%-13.52%
GBHFD
67
Neutral
£263.36M18.883.05%6.44%-0.79%-45.22%
60
Neutral
$13.01B10.450.79%3.53%1.60%-22.47%
56
Neutral
£47.21M-27.15%-15.67%45.17%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
GB:HFD
Halfords
122.00
-29.25
-19.34%
GB:RHIM
RHI Magnesita NV
3,465.00
92.23
2.73%
GB:VTU
Vertu Motors
53.40
-11.05
-17.15%
GB:WINE
Naked Wines plc
62.00
-3.00
-4.62%

Halfords Corporate Events

Regulatory Filings and Compliance
Halfords Group PLC Announces Total Voting Rights
Neutral
Feb 28, 2025

Halfords Group PLC announced its total voting rights, stating that its registered share capital consists of 218,928,736 ordinary shares, each with equal voting rights. This disclosure is important for shareholders to determine their notification requirements under the FCA’s Disclosure Guidance and Transparency Rules, potentially impacting shareholder engagement and transparency within the company.

Regulatory Filings and Compliance
Halfords Group PLC Announces Total Voting Rights Update
Neutral
Jan 31, 2025

Halfords Group PLC has announced its total voting rights as of January 31, 2025. The company has a registered share capital consisting of 218,928,736 ordinary shares, each with equal voting rights, and none held in Treasury. This information is significant for shareholders as it assists them in determining their interest in the company based on the FCA’s Disclosure Guidance and Transparency Rules.

Business Operations and StrategyFinancial Disclosures
Halfords Upgrades FY25 Profit Forecast Amid Strong Sales and Strategic Gains
Positive
Jan 28, 2025

Halfords Group PLC has upgraded its profit expectations for FY25 due to positive trading results and strategic progress in both its Retail and Autocentres divisions. The company reported significant growth in like-for-like sales, particularly in cycling and services, maintenance, and repair markets. Despite ongoing market volatility, Halfords anticipates underlying profit before tax to range between £32 million and £37 million. However, there remains uncertainty regarding the UK consumer outlook due to changes in fiscal policy, which could add substantial costs to operations in FY26.

DividendsBusiness Operations and Strategy
Halfords Executives Acquire Shares, Reinforce Confidence in Growth
Positive
Jan 27, 2025

The recent announcement from Halfords Group PLC detailed share transactions involving key management personnel. CEO Graham Stapleton, CFO Johanna Hartley, and other senior executives acquired shares following dividend reinvestment plans, reflecting their ongoing confidence in the company’s performance. These transactions, conducted on the London Stock Exchange, are part of the Deferred Bonus Plan and Performance Share Plan, underscoring a strategic alignment with shareholder interests and reinforcing leadership’s commitment to the company’s growth trajectory.

Halfords Group PLC Announces Total Voting Rights
Dec 31, 2024

Halfords Group PLC, a company with a registered share capital consisting of 218,928,736 ordinary shares, has disclosed its total voting rights, noting that all shares have equal voting rights and none are held in Treasury. This information is crucial for shareholders as it serves as the denominator in calculating their interest changes under the FCA’s Disclosure Guidance and Transparency Rules.

Halfords Group PLC Announces Sharesave Scheme Participation
Dec 23, 2024

Halfords Group PLC announced a transaction involving the grant of ordinary shares under their Sharesave Scheme to Chris McShane, who holds the position of MD Business to Business and CEO and President of Avayler. This transaction, conducted on December 20, 2024, at the London Stock Exchange, underscores the company’s ongoing efforts to align employee interests with long-term shareholder value, reflecting its commitment to employee participation in company growth.

Halfords Group Updates Shareholders on Voting Rights
Dec 8, 2024

Halfords Group PLC has announced that its registered share capital is comprised of 218,928,736 ordinary shares, each with equal voting rights. This update is crucial for shareholders to calculate their interests in the company according to the FCA’s rules. This transparency ensures investors are well-informed about any changes affecting their stakes.

Halfords Group PLC Rewards Executives with Share Grants
Dec 5, 2024

Halfords Group PLC recently announced significant share grants to its top executives under the Performance Share and Restricted Share Plans. CEO Graham Stapleton, CFO Johanna Hartley, and other senior leaders received substantial allocations of shares, reflecting the company’s commitment to rewarding its leadership at a price of £1.481 per share. These transactions were conducted on the London Stock Exchange, signaling a strategic move to align management interests with shareholder value.

Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

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.