James Latham (LTHM) AI Stock Analysis

• Market Cap: £211.83M
• Dividend Yield: 7.41%
• Average Volume (3M): 10.57K
• Price to Earnings (P/E): 10.5
• Beta (1Y): 0.35
• Revenue Growth: -6.27%
• EPS Growth: -30.09%
• Country: UK
• Employees: 565
• Sector: Basic Materials
• Sector Strength: 56
• Industry: Forestry
• EPS (TTM): 1.02
• Shares Outstanding: 20,160,000
• 10 Day Avg. Volume: 11,782
• 30 Day Avg. Volume: 10,570
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.59
• Price to Cash Flow (P/CF): 10.90
• 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

James Latham's strong financial performance and fair valuation are key strengths, alongside a positive corporate event that aligns management with shareholders. However, technical indicators suggest caution due to bearish momentum, which tempers the overall score.

James Latham Business Overview & Revenue Model

Company Description

James Latham plc is one of the UK's oldest and largest independent distributors of timber, panels, and decorative surfaces. The company primarily operates in the timber and building materials sector, supplying a wide range of wood-based products to various industries, including construction, furniture manufacturing, and shopfitting. With a rich heritage dating back to 1757, James Latham has established itself as a reputable supplier known for quality and service.

How the Company Makes Money

James Latham makes money by sourcing timber and related products from a network of global suppliers and distributing them across the UK. The company's revenue model is based on the sale of these products to a diverse customer base, which includes construction companies, furniture makers, and other industrial clients. Key revenue streams include the sale of hardwoods, softwoods, panels, and decorative surfaces. Additionally, James Latham leverages its extensive warehouse and logistics infrastructure to efficiently manage inventory and ensure timely delivery to its customers. The company's earnings are also supported by its ability to adapt to market demands and trends, such as the increasing focus on sustainable and environmentally-friendly materials.

James Latham Financial Statement Overview

Summary

James Latham exhibits strong financial health, with a solid revenue base and profitability. The balance sheet is stable, with low leverage and strong equity. Cash flow management is sound, though attention to free cash flow growth is necessary. Overall, the company is well-positioned in the forestry industry, with some areas for improvement in revenue and cash flow growth.

Income Statement

The company has shown a stable revenue base with fluctuations in growth. The gross profit margin is healthy, and the net profit margin indicates profitability, although it has decreased over the recent period. EBIT and EBITDA margins remain strong, reflecting operational efficiency.

Balance Sheet

The company maintains a strong equity position with a low debt-to-equity ratio, indicating a conservative leverage approach. ROE is commendable, showing effective use of equity to generate profits. The equity ratio is robust, suggesting financial stability.

Cash Flow

Operating cash flow is positive and supports net income, though there is a noticeable decline in free cash flow growth. The company manages cash flow effectively, but the reduction in free cash flow indicates potential reinvestment challenges.

Breakdown
Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement		Total Revenue
366.51M	408.37M	385.37M	250.16M	247.10M
	Gross Profit
62.10M	78.50M	90.00M	43.62M	41.98M
	EBIT
26.14M	43.98M	57.84M	17.55M	15.91M
	EBITDA
34.73M	48.94M	62.30M	22.84M	19.69M
	Net Income Common Stockholders
22.66M	35.92M	45.64M	14.98M	12.48M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
75.88M	62.61M	37.03M	28.62M	16.95M
	Total Assets
269.70M	250.36M	224.81M	167.99M	154.08M
	Total Debt
8.67M	6.60M	5.00M	4.85M	5.63M
	Net Debt
-67.21M	-56.01M	-32.03M	-23.77M	-11.32M
	Total Liabilities
54.47M	54.78M	60.84M	48.91M	49.81M
	Stockholders Equity
215.23M	195.57M	163.97M	119.08M	104.28M
Cash Flow		Free Cash Flow
17.98M	33.83M	16.38M	16.18M	5.87M
	Operating Cash Flow
23.57M	37.13M	20.69M	18.14M	9.76M
	Investing Cash Flow
-1.97M	-3.23M	-6.50M	-1.96M	-4.31M
	Financing Cash Flow
-8.33M	-8.32M	-5.79M	-4.51M	-4.04M

James Latham Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1070.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:LTHM, the sentiment is Negative. The current price of 1070 is below the 20-day moving average (MA) of 1097.50, below the 50-day MA of 1134.93, and below the 200-day MA of 1241.99, indicating a bearish trend. The MACD of -20.60 indicates Positive momentum. The RSI at 20.97 is Positive, neither overbought nor oversold. The STOCH value of 27.01 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GB:LTHM.

James Latham Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CRH	82 Outperform	$65.15B	19.20	16.00%	1.67%	1.78%	15.53%
WOSG	74 Outperform	£1.14B	27.47	11.30%	―	1.45%	-61.69%
KIE	68 Neutral	£608.12M	14.38	8.21%	3.51%	15.51%	4.30%
LTHM	66 Neutral	£211.83M	10.48	10.53%	7.41%	-6.27%	-30.09%
Sector *	47 Neutral	$2.64B	-4.00	-31.55%	3.33%	2.93%	-29.90%

James Latham Corporate Events

James Latham Issues Shares to Key Management under SIPS Scheme

James Latham plc announced on January 24, 2025, the issuance of ordinary shares to several key managerial personnel under its SIPS scheme. This move reflects the company’s commitment to aligning management interests with shareholders and could strengthen internal governance by enhancing executive ownership stakes.

James Latham plc Grants Options and Issues Shares to Key Managers

James Latham plc, a company involved in timber distribution and related services, announced the granting of options under its CSOP scheme to key managerial figures. The options, exercisable from 2029 to 2034, reflect strategic incentives for leadership. Additionally, a separate issuance of CSOP shares was made to these managers, adjusting their shareholdings. This move underscores the company’s commitment to aligning management interests with shareholder value, potentially influencing its operational and strategic direction.