Howden Joinery Group Plc
Howden Joinery Group Plc Fundamental Analysis
Howden Joinery Group Plc (HWDJY) shows moderate financial fundamentals with a PE ratio of 17.05, profit margin of 11.07%, and ROE of 23.51%. 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 56.7/100 based on profitability, valuation, growth, and balance sheet metrics. The C grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze HWDJY's fundamental strength across five key dimensions:
Efficiency Score
ExcellentHWDJY demonstrates superior asset utilization.
Valuation Score
ModerateHWDJY shows balanced valuation metrics.
Growth Score
WeakHWDJY faces weak or negative growth trends.
Financial Health Score
ExcellentHWDJY maintains a strong and stable balance sheet.
Profitability Score
ModerateHWDJY maintains healthy but balanced margins.
Key Financial Metrics
Is HWDJY Expensive or Cheap?
P/E Ratio
HWDJY trades at 17.05 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, HWDJY's PEG of 3.45 indicates potential overvaluation.
Price to Book
The market values Howden Joinery Group Plc at 3.82 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 7.92 times EBITDA. This is generally considered low.
How Well Does HWDJY 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 $23.51 in profit for every $100 of shareholder equity.
ROA
Howden Joinery Group Plc generates $11.34 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 $504.26M, showing steady but balanced cash generation.
Free Cash Flow
Howden Joinery Group Plc generates strong free cash flow of $346.59M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $2.56 in free cash annually.
FCF Yield
HWDJY converts 7.57% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
17.05
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
3.45
vs 25 benchmark
P/B Ratio
Price to book value ratio
3.82
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.89
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.59
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 HWDJY Stacks Against Its Sector Peers
| Metric | HWDJY Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 17.05 | 23.78 | Better (Cheaper) |
| ROE | 23.51% | 1098.00% | Weak |
| Net Margin | 11.07% | -626.00% (disorted) | Strong |
| Debt/Equity | 0.59 | 0.86 | Strong (Low Leverage) |
| Current Ratio | 2.10 | 2.64 | Strong Liquidity |
| ROA | 11.34% | -8081.00% (disorted) | Strong |
HWDJY outperforms its industry in 5 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