Fact based stock research
Hargreaves (LSE:HL.)

GB00B1VZ0M25

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For every stock, we judge its performance against its peers and rank it on a scale of 1 to 100. The higher the rank, the better the stock performs than its peers. And, we do this for six investment strategies:
Value - shows how good of a value the stock is. Green is "inexpensive"; red is "expensive".

Growth - shows a company's growth potential. Green is "high growth" expected; red is "tough times ahead".

Safety - relates to the amount of debt a company has. Green is low debt level; red is high debt level.

Combined Financial - this isn't an average of the first three ranks but rather a consolidated view across several financial indicators. Green = good; red = tread carefully.

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Hargreaves stock research in summary

hl.co.uk

ANALYSIS: With an Obermatt Combined Rank of 30 (worse than 70% compared with investment alternatives), Hargreaves (Asset Management & Custody, United Kingdom) shares have somewhat below-average financial characteristics compared with similar stocks. Shares of Hargreaves are low in value (priced high) with a consolidated Value Rank of 34 (worse than 66% of alternatives) and show below-average growth (Growth Rank of 1) but are safely financed (Safety Rank of 96), which means low debt burdens. ...read more

RECOMMENDATION: A Combined Rank of 30, is a hold recommendation based on Hargreaves's financial characteristics. As the company Hargreaves's critical financial metrics exhibit below-average performance, such as low value (Obermatt Value Rank of 34) and low growth (Obermatt Growth Rank of 1), it is a somewhat questionable stock investment, where the risk of paying too much for the shares is significant, unless the company has an exceptionally bright future. In this case, good financing practices (Obermatt Safety Rank of 96) are a positive sign, because it may allow the company to weather challenging times until the hoped-for cash flows materialize. This may be true for high-tech or biotechnology companies with enough cash to sustain prolonged business development. If they own properties that only provide cash flows in the future, the stock may look excessively expensive and unattractive today. In such cases, the Obermatt Method has limited value, as it is based on facts we can observe today. If the facts lie all in the future, stock investing becomes guesswork, and this should only be a driver in a limited number of investments that account for a small fraction of a safe portfolio. Obermatt Premium subscribers can further check the stock’s Sentiment Ranks, which also flow into the Obermatt 360° View for investors. ...read more

Latest Obermatt Ranks


360° View^new
Sentiment Rank^new
Value Rank	n/a
Growth Rank	n/a
Safety Rank	n/a
Combined Rank	n/a

Country	United Kingdom
Industry	Asset Management & Custody
Index	FTSE All Shares, FTSE 100, FTSE 350
Size class	Large

This stock has achievements: Top 10 Stock.

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Further information

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Research History: Hargreaves

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	3	17	49	n/a
GROWTH
GROWTH	13	13	1	n/a
SAFETY
SAFETY	66	90	94	n/a
SENTIMENT
SENTIMENT	n/a	43	52	^new
360° VIEW
360° VIEW	n/a	33	46	^new

Most recent update of the stock research: . Financial reporting date used for calculating ranks: . Stock research history is based on the Obermatt Method. The higher the rank, the better Hargreaves is in the corresponding investment strategy.
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Combined financial peformance in Detail

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	3	17	49	n/a
GROWTH
GROWTH	13	13	1	n/a
SAFETY
SAFETY	66	90	94	n/a
COMBINED
COMBINED	14	29	44	n/a

Last update of combined financial performance: . Stock analysis on combined financial performance: The higher the rank of Hargreaves the better the performance.

Value Metrics in Detail

ANALYSIS: With an Obermatt Value Rank of 34 (worse than 66% compared with alternatives), Hargreaves shares are more expensive than the average comparable stock. The Value Rank is based on consolidating four value indicators, with three out of four indicators below average for Hargreaves. Only Price-to-Profit (also referred to as price-earnings, P/E) indicates good stock value with a rank of 51, which means that the stock price compared with what market professionals expect for future profits is lower than for 51% of comparable companies, indicating a good value concerning Hargreaves's profit levels. But Price-to-Sales is 39 which means that the stock price compared with what market professionals expect for future profits is higher than for 61% of comparable companies, indicating a low value concerning Hargreaves's profit levels. The same is valid for Price-to-Book Capital (also referred to as market-to-book ratio) with a Price-to-Book Rank of 15 and for dividend yield, which is lower than for 52% of comparable companies, making the stock more expensive as regards to the company's expected dividend payouts. ...read more

RECOMMENDATION: The overall picture with a consolidated Value Rank of 34, is a hold recommendation based on Hargreaves's stock price compared with the company's operational size and dividend yields. Can we rely on only one good value indicator? Only if we know the company well. In this case, a high Price-to-Profit Rank, while Price-to-Sales and Price-to-Book are both below the market typical levels, means that the company can charge higher prices for its products and needs less capital to produce them. If this is sustainable, then Hargreaves is a good investment because profits count most in enterprise valuations. The low dividend yield indicates that the company is confident it can do something with the generated cash that is more valuable than paying the profits out to the shareholders in the form of dividends. We recommend further analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks, including the 360° View, before making an investment decision, which is essential in this case, as the financial indicators are inconclusive. ...read more

VALUE METRICS	2021	2022	2023	2024
PRICE VS. REVENUES (P/S)
PRICE VS. REVENUES (P/S)	5	10	38	n/a
PRICE VS. PROFITS (P/E)
PRICE VS. PROFITS (P/E)	24	17	59	n/a
PRICE VS. CAPITAL (Market-to-Book)
PRICE VS. CAPITAL (Market-to-Book)	1	3	13	n/a
DIVIDEND YIELD
DIVIDEND YIELD	58	57	74	n/a
CONSOLIDATED RANK: VALUE
CONSOLIDATED RANK: VALUE	3	17	49	n/a

Last update of Value Rank: . Stock analysis on value ratios: The higher the rank, the lower the value ratio of Hargreaves; except for dividend yield where the rank is higher, the higher the yield.

Growth Metrics in Detail

ANALYSIS: With an Obermatt Growth Rank of 1 (better than 1% compared with alternatives), Hargreaves shows one of the most restricted growth dynamics in its industry. There is little momentum in this company. The Growth Rank is based on consolidating four value indicators, with all four metrics below average for Hargreaves. Sales Growth has a rank of 14, which means that currently professionals expect the company to grow less than 86% of its competitors. The same is valid for Profit Growth, with a rank of 16, and Capital Growth with 6. In addition, Stock Returns have a below market rank of 14, which means that the stock returns have recently been below 86% of alternative investments. ...read more

RECOMMENDATION: The overall picture with a consolidated Growth Rank of 1, is a sell recommendation for growth and momentum investors. These are all bad growth momentum indicators. These are negative signals for investors interested in growth companies. Value is likely good for this company, as investors may have left this stock in the cold. If that is the case, investors should look at the company's outlook, especially Sentiment performance, because it may be a turnaround situation that could entail above-average stock returns in the future. But it remains a risky bet, as no growth signals are in the green zone yet. While momentum is a popular investment factor, the value aspect might be the more important one, in the longer term. We recommend analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks to arrive at a 360° View of the stock purchase case, especially since the growth performance is low here. ...read more

GROWTH METRICS	2021	2022	2023	2024
REVENUE GROWTH
REVENUE GROWTH	28	74	13	n/a
PROFIT GROWTH
PROFIT GROWTH	45	18	16	n/a
CAPITAL GROWTH
CAPITAL GROWTH	n/a	10	27	n/a
STOCK RETURNS
STOCK RETURNS	18	15	15	n/a
CONSOLIDATED RANK: GROWTH
CONSOLIDATED RANK: GROWTH	13	13	1	n/a

Last update of Growth Rank: . Stock analysis on growth metrics: The higher the rank, the higher the growth and returns of Hargreaves.

Safety Metrics in Detail

ANALYSIS: With an Obermatt Safety Rank of 96 (better than 96% compared with alternatives) for 2025, the company Hargreaves has safe financing practices, which means that their overall debt burden is low. This doesn't mean that the business of Hargreaves is safe, it only means that the company is on the safer side regarding possible bankruptcy, assuming that public reporting is correct. The Safety Rank is based on consolidating three financing indicators, with two out of three indicators above average for Hargreaves. Leverage is at a rank of 83, meaning the company has a below-average debt-to-equity ratio. It has less debt than 83% of its competitors. Liquidity is also good at a rank of 96, meaning the company generates more profit to service its debt than 96% of its competitors. This indicates that the company is on the safer side when it comes to debt service. But Refinancing is lower at a rank of 40, which means that the portion of the debt that is about to be refinanced is above-average. It has more debt in the refinancing stage than 60% of its competitors. ...read more

RECOMMENDATION: With a consolidated Safety Rank of 96 (better than 96% compared with alternatives), Hargreaves has a financing structure that is significantly safer than that of its competitors. The refinancing issues could be a short-term problem, especially if the company has reputation issues. Banks and investors don't like to refinance debt if there are clouds on the horizon. For this reason, investors should look at the refinancing environment for Hargreaves. Does it look safe that debt that is coming due can be covered with new debt? If that is the case, then the financing situation of the company is on the safer side. If not, it may be better to wait until refinancing has been completed and the Refinancing rank is good again. Investors may have a short-term debt challenge with Hargreaves and should also compare Obermatt’s Value, Growth, and Sentiment Ranks before making a decision. ...read more

SAFETY METRICS	2021	2022	2023	2024
LEVERAGE
LEVERAGE	40	74	84	n/a
REFINANCING
REFINANCING	50	39	37	n/a
LIQUIDITY
LIQUIDITY	85	93	95	n/a
CONSOLIDATED RANK: SAFETY
CONSOLIDATED RANK: SAFETY	66	90	94	n/a

Last update of Safety Rank: . Stock analysis on safety metrics: The higher the rank, the lower the leverage of Hargreaves and the more cash is available to service its debt.

Sentiment Metrics in Detail

SENTIMENT	2021	2022	2023	2024
ANALYST OPINIONS
ANALYST OPINIONS	n/a	1	22	^new
OPINIONS CHANGE
OPINIONS CHANGE	n/a	75	57	^new
PRO HOLDINGS
PRO HOLDINGS	n/a	98	84	^new
MARKET PULSE
MARKET PULSE	n/a	32	60	^new
CONSOLIDATED RANK: SENTIMENT
CONSOLIDATED RANK: SENTIMENT	n/a	43	52	^new

Last update of Sentiment Rank: . Stock analysis on sentiment metrics: The higher the rank, the more positive the sentiment for Hargreaves.
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