Halfords Group PLC

Halfords Group PLC maintains a capital structure characterized by a debt-to-equity ratio of 0.48 and a current ratio of 0.89. The balance sheet reflects total assets of £1.17 billion against total liabilities of £654.6 million, resulting in total equity of £513.6 million. Long-term debt stands at £248.0 million. The company generates operating cash flow of £186.3 million and free cash flow of £85.1 million, indicating positive cash generation despite the negative net cash position flagged in risk assessments.

Profitability metrics show a gross profit of £952.9 million on revenue of £1.80 billion, yielding a gross margin of approximately 52.9%. Operating income is £55.1 million, and net income is £32.9 million. Return on equity is 6.41%, and return on assets is 2.82%. These returns are modest relative to the high valuation multiples observed.

The company operates within the Specialty Retail industry. Specific segment and geographic revenue breakdowns are not provided in the available data, preventing detailed analysis of revenue concentration by business unit or region.

Growth trajectory analysis is limited by the absence of historical period data in the input. The latest normalized period shows revenue of £1.80 billion and net income of £32.9 million. Without multi-year historical data, year-over-year growth rates cannot be calculated.

Risk assessment indicates medium liquidity risk and low dilution risk. A key flag notes that net cash is negative after subtracting total debt. The current ratio of 0.89 suggests short-term liquidity pressure, as current liabilities exceed current assets.

Recent IR observations show a mean analyst price target of £242.14 and a median target of £250.00. The mean recommendation is 1.86, with three strong buys, two buys, and two holds. The high price target is £260.00, and the low is £210.00.

Revenue grew 7.1% annually over four years, demonstrating consistent top-line expansion despite recent volatility in profitability metrics.

Cash conversion ratio of 5.66 ranks best-in-class among specialty retail peers, indicating superior efficiency in generating cash from earnings.

Return on equity of 6.4% exceeds the 6.25% cohort median, suggesting better capital efficiency than most specialty retail competitors.

Long-term debt decreased to £248 million in FY2026, reflecting a disciplined deleveraging strategy that reduces financial risk exposure.

Dilution risk is assessed as low, providing reassurance to existing shareholders regarding potential equity value erosion from new issuances.

Credit risk is flagged as high, signaling potential difficulties in meeting debt obligations or securing favorable financing terms in the future.

Liquidity risk is rated as medium, suggesting potential constraints in meeting short-term financial obligations without raising additional capital.

Revenue £1.80B, +5,0% YoY; Operating income +391,5% YoY.

• ▍Revenue £1.80B, +5,0% YoY
• ▍Operating income +391,5% YoY
• ▍Net income +197,9% YoY
• ▍Free cash flow +218,7% YoY
• ▍Net margin 1.8%

Revenue £1.72B, +1,1% YoY; Operating income −136,4% YoY.

• ▍Revenue £1.72B, +1,1% YoY
• ▍Operating income −136,4% YoY
• ▍Net income −298,8% YoY
• ▍Free cash flow −70,0% YoY
• ▍Net margin -2.0%

Revenue £1.70B, +7,9% YoY; Operating income +1,6% YoY.

• ▍Revenue £1.70B, +7,9% YoY
• ▍Operating income +1,6% YoY
• ▍Net income −39,9% YoY
• ▍Free cash flow +10,4% YoY
• ▍Net margin 1.0%

Revenue £1.57B, +14,8% YoY; Operating income −52,6% YoY.

• ▍Revenue £1.57B, +14,8% YoY
• ▍Operating income −52,6% YoY
• ▍Net income −63,8% YoY
• ▍Free cash flow −33,0% YoY
• ▍Net margin 1.8%

Revenue £1.37B; Operating income £107.9M.

• ▍Revenue £1.37B
• ▍Operating income £107.9M
• ▍Net margin 5.7%