Hargreaves Services (HSP) AI Stock Analysis

• Market Cap: £210.96M
• Dividend Yield: 5.63%
• Average Volume (3M): 49.83K
• Price to Earnings (P/E): 14.4
• Beta (1Y): 0.62
• Revenue Growth: 10.32%
• EPS Growth: 14.32%
• Country: UK
• Employees: 1,346
• Sector: Industrials
• Sector Strength: 69
• Industry: Transportation
• EPS (TTM): 0.44
• Shares Outstanding: 32,961,777
• 10 Day Avg. Volume: 21,599
• 30 Day Avg. Volume: 49,829
• PEG Ratio: 1.01
• Price to Book (P/B): N/A
• Price to Sales (P/S): 1.00
• Price to Cash Flow (P/CF): 10.80
• P/FCF Ratio: 10.60
• 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

Hargreaves Services scores well due to its robust financial health, strong interim results, and strategic leadership changes that enhance growth prospects. Valuation metrics are attractive with a fair P/E ratio and a high dividend yield. Technical indicators show neutral to positive momentum.

Hargreaves Services Business Overview & Revenue Model

Company Description

Hargreaves Services (HSP) is a diversified group delivering services to industrial and property sectors, with a focus on the UK and Europe. The company operates through various segments including industrial services, logistics, and land regeneration. Hargreaves Services provides essential support services across a range of sectors, including energy, environment, and infrastructure, leveraging its expertise in heavy industry operations and material handling.

How the Company Makes Money

Hargreaves Services generates revenue through a diversified model encompassing several key streams. The industrial services segment provides outsourced production and maintenance services, primarily to energy and manufacturing clients, contributing significantly to the company's earnings. Logistics operations deliver revenue by offering comprehensive transport and material handling solutions, addressing the needs of various industrial clients. Additionally, the land regeneration segment capitalizes on the redevelopment of former industrial sites for residential and commercial use, providing another significant revenue stream. The company's earnings are further supported by strategic partnerships and contracts within its core sectors, enhancing its ability to secure long-term and stable income.

Hargreaves Services Financial Statement Overview

Summary

Hargreaves Services demonstrates strong financial health with stable revenue and margins, a robust balance sheet with low leverage, and strong cash flow generation. Despite a decrease in net profit margins, operational efficiency has improved significantly.

Income Statement

Hargreaves Services shows a stable revenue with minor fluctuations over the years. The gross profit margin in the latest period is approximately 20.5%, indicating sound profitability, while the net profit margin has decreased to 5.8% from a stronger previous year. The EBIT and EBITDA margins have improved significantly, reflecting better operational efficiency.

Balance Sheet

The balance sheet is robust with a low debt-to-equity ratio of 0.18, indicating prudent financial leverage. ROE stands at 6.4%, which is a decent return for shareholders. The equity ratio is strong at 64.3%, showing a solid equity base against total assets.

Cash Flow

The company has a positive free cash flow, with a solid free cash flow to net income ratio of 2.29, indicating efficient cash generation relative to net income. Operating cash flow covers net income well, suggesting good cash earnings quality.

Breakdown
Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement		Total Revenue
211.15M	211.46M	177.91M	204.80M	223.18M
	Gross Profit
43.38M	39.06M	29.45M	25.53M	26.96M
	EBIT
15.87M	6.88M	4.71M	930.00K	1.70M
	EBITDA
35.77M	27.97M	13.98M	5.10M	21.39M
	Net Income Common Stockholders
12.28M	27.91M	34.72M	16.43M	4.32M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
22.70M	21.86M	13.77M	28.30M	18.50M
	Total Assets
298.89M	305.83M	265.46M	219.71M	237.82M
	Total Debt
34.15M	40.44M	18.80M	11.77M	46.62M
	Net Debt
11.45M	18.58M	5.03M	-16.54M	28.12M
	Total Liabilities
106.80M	104.84M	85.61M	75.41M	107.76M
	Stockholders Equity
192.37M	201.20M	180.07M	144.31M	130.04M
Cash Flow		Free Cash Flow
28.14M	27.98M	-6.25M	42.50M	-10.11M
	Operating Cash Flow
30.39M	31.51M	-4.61M	45.23M	-7.06M
	Investing Cash Flow
-264.00K	-3.85M	1.57M	5.80M	9.12M
	Financing Cash Flow
-29.21M	-19.42M	-11.77M	-40.41M	-5.21M

Hargreaves Services Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 638.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:HSP, the sentiment is Positive. The current price of 638 is below the 20-day moving average (MA) of 661.50, above the 50-day MA of 632.92, and above the 200-day MA of 574.64, indicating a neutral trend. The MACD of 0.57 indicates Positive momentum. The RSI at 46.29 is Neutral, neither overbought nor oversold. The STOCH value of 14.27 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:HSP.

Hargreaves Services Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
GFRD	77 Outperform	£345.91M	9.19	35.97%	4.19%	22.39%	179.53%
RNWH	74 Outperform	£516.89M	12.43	22.82%	2.83%	9.49%	-4.24%
HSP	71 Outperform	£210.96M	14.39	7.52%	5.63%	10.32%	14.32%
KIE	69 Neutral	£524.72M	12.41	9.87%	4.19%	15.51%	4.30%
Sector *	62 Neutral	$8.17B	12.83	0.26%	3.07%	3.83%	-16.44%

Hargreaves Services Corporate Events

Hargreaves Services Appoints New COO to Drive Services Growth

Hargreaves Services plc has appointed Simon Hicks as the new Chief Operating Officer and Executive Director, effective from June 2025. Simon Hicks, with extensive experience in the infrastructure and energy markets, is expected to focus on enhancing the value of the company’s Services business unit. His appointment follows the retirement of David Anderson and is seen as a strategic move to bolster leadership and capitalize on the consistent growth in revenue and profit within the Services division.

Hargreaves Services Reports Strong Interim Results with 14% Revenue Growth

Hargreaves Services plc reported significant growth in its interim results for the six months ending November 2024, with a 14% increase in revenue to £125.3 million and a return to profitability for its joint venture HRMS. Strong performance in earthmoving activities bolstered the company’s Services segment, with expectations to exceed revenue forecasts by 10% for the fiscal year ending May 2025. Despite technical planning delays at Blindwells, the company completed a major sale and increased its interim dividend, reflecting robust growth and shareholder value commitment. Hargreaves is also marketing its renewable energy assets and remains optimistic about future performance despite economic challenges in Germany.

Hargreaves Services Announces Interim Results Briefing Schedule

Hargreaves Services plc has announced its schedule for the interim results briefings for the six months ending November 30, 2024. The briefings are set for January 29, 2025, and will include a session for equity analysts and a presentation for investors. The investor presentation, led by key company executives, will be accessible online, allowing for questions both pre-event and during the live session. This initiative emphasizes Hargreaves’ commitment to transparency and stakeholder engagement, potentially strengthening its market position.