Halfords Group plc
Halfords Group plc Fundamental Analysis
Halfords Group plc (HLFDF) shows moderate financial fundamentals with a PE ratio of -8.77, profit margin of -1.94%, and ROE of -6.79%. The company generates $1.8B in annual revenue with moderate year-over-year growth of 6.46%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 14.9/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze HLFDF's fundamental strength across five key dimensions:
Efficiency Score
WeakHLFDF struggles to generate sufficient returns from assets.
Valuation Score
ExcellentHLFDF trades at attractive valuation levels.
Growth Score
ExcellentHLFDF delivers strong and consistent growth momentum.
Financial Health Score
ModerateHLFDF shows balanced financial health with some risks.
Profitability Score
WeakHLFDF struggles to sustain strong margins.
Key Financial Metrics
Is HLFDF Expensive or Cheap?
P/E Ratio
HLFDF trades at -8.77 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, HLFDF's PEG of 1.78 indicates fair valuation.
Price to Book
The market values Halfords Group plc at 0.60 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at -0.98 times EBITDA. This is generally considered low.
How Well Does HLFDF Make Money?
Net Profit Margin
For every $100 in sales, Halfords Group plc keeps $-1.94 as profit after all expenses.
Operating Margin
Core operations generate 2.79 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $-6.79 in profit for every $100 of shareholder equity.
ROA
Halfords Group plc generates $-2.89 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Halfords Group plc produces operating cash flow of $200.37M, showing steady but balanced cash generation.
Free Cash Flow
Halfords Group plc produces free cash flow of $156.57M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $0.72 in free cash annually.
FCF Yield
HLFDF converts 52.02% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
-8.77
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
1.78
vs 25 benchmark
P/B Ratio
Price to book value ratio
0.60
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.17
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.86
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.84
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
-0.07
vs 25 benchmark
ROA
Return on assets percentage
-0.03
vs 25 benchmark
ROCE
Return on capital employed
0.07
vs 25 benchmark
How HLFDF Stacks Against Its Sector Peers
| Metric | HLFDF Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | -8.77 | 24.85 | Better (Cheaper) |
| ROE | -6.79% | 1165.00% | Weak |
| Net Margin | -1.94% | 749.00% | Weak |
| Debt/Equity | 0.86 | 0.76 | Neutral |
| Current Ratio | 0.84 | 9.23 | Weak Liquidity |
| ROA | -2.89% | 1271.00% | Weak |
HLFDF outperforms its industry in 1 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Halfords Group plc's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
35.09%
Industry Style: Cyclical, Growth, Discretionary
High GrowthEPS CAGR
-63.43%
Industry Style: Cyclical, Growth, Discretionary
DecliningFCF CAGR
101.02%
Industry Style: Cyclical, Growth, Discretionary
High Growth