Howden Joinery Group Plc
Howden Joinery Group Plc Fundamental Analysis
Howden Joinery Group Plc (HWDJF) shows moderate financial fundamentals with a PE ratio of 16.20, profit margin of 11.07%, and ROE of 23.58%. The company generates $2.4B in annual revenue with weak year-over-year growth of 0.48%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 48.7/100 based on profitability, valuation, growth, and balance sheet metrics. The D grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze HWDJF's fundamental strength across five key dimensions:
Efficiency Score
ExcellentHWDJF demonstrates superior asset utilization.
Valuation Score
ModerateHWDJF shows balanced valuation metrics.
Growth Score
WeakHWDJF faces weak or negative growth trends.
Financial Health Score
ModerateHWDJF shows balanced financial health with some risks.
Profitability Score
ModerateHWDJF maintains healthy but balanced margins.
Key Financial Metrics
Is HWDJF Expensive or Cheap?
P/E Ratio
HWDJF trades at 16.20 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, HWDJF's PEG of 5.02 indicates potential overvaluation.
Price to Book
The market values Howden Joinery Group Plc at 3.64 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 6.36 times EBITDA. This is generally considered low.
How Well Does HWDJF Make Money?
Net Profit Margin
For every $100 in sales, Howden Joinery Group Plc keeps $11.07 as profit after all expenses.
Operating Margin
Core operations generate 14.69 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $23.58 in profit for every $100 of shareholder equity.
ROA
Howden Joinery Group Plc generates $11.37 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Howden Joinery Group Plc produces operating cash flow of $500.43M, showing steady but balanced cash generation.
Free Cash Flow
Howden Joinery Group Plc generates strong free cash flow of $343.42M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $0.63 in free cash annually.
FCF Yield
HWDJF converts 7.86% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
16.20
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
5.02
vs 25 benchmark
P/B Ratio
Price to book value ratio
3.64
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.80
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
1.10
vs 25 benchmark
Current Ratio
Current assets to current liabilities
2.10
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.24
vs 25 benchmark
ROA
Return on assets percentage
0.11
vs 25 benchmark
ROCE
Return on capital employed
0.19
vs 25 benchmark
How HWDJF Stacks Against Its Sector Peers
| Metric | HWDJF Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 16.20 | 23.78 | Better (Cheaper) |
| ROE | 23.58% | 1098.00% | Weak |
| Net Margin | 11.07% | -626.00% (disorted) | Strong |
| Debt/Equity | 1.10 | 0.86 | Weak (High Leverage) |
| Current Ratio | 2.10 | 2.64 | Strong Liquidity |
| ROA | 11.37% | -8081.00% (disorted) | Strong |
HWDJF outperforms its industry in 4 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Howden Joinery Group Plc's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
60.10%
Industry Style: Cyclical, Growth, Discretionary
High GrowthEPS CAGR
30.24%
Industry Style: Cyclical, Growth, Discretionary
High GrowthFCF CAGR
96.33%
Industry Style: Cyclical, Growth, Discretionary
High Growth