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James Latham

AIM:LTHM
Snowflake Description

Flawless balance sheet and good value.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
LTHM
AIM
£131M
Market Cap
  1. Home
  2. GB
  3. Capital Goods
Company description

James Latham plc, together with its subsidiaries, imports and distributes timber and panel products in the United Kingdom, Ireland, rest of Europe, and internationally. The last earnings update was 127 days ago. More info.


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  • James Latham has significant price volatility in the past 3 months.
LTHM Share Price and Events
7 Day Returns
6.3%
AIM:LTHM
-6.6%
GB Trade Distributors
-5.4%
GB Market
1 Year Returns
-15.4%
AIM:LTHM
-20.5%
GB Trade Distributors
-25.2%
GB Market
LTHM Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
James Latham (LTHM) 6.3% -22.6% -29.1% -15.4% -18.7% 9.3%
GB Trade Distributors -6.6% -25.3% -26.7% -20.5% -7.6% 5.5%
GB Market -5.4% -20.6% -29.1% -25.2% -25.9% -25.1%
1 Year Return vs Industry and Market
  • LTHM outperformed the Trade Distributors industry which returned -20.5% over the past year.
  • LTHM outperformed the Market in United Kingdom of Great Britain and Northern Ireland which returned -25.2% over the past year.
Price Volatility
LTHM
Industry
5yr Volatility vs Market

LTHM Value

 Is James Latham undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of James Latham to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for James Latham.

AIM:LTHM Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Extrapolated from most recent financials. See below
Discount Rate (Cost of Equity) See below 6.2%
Perpetual Growth Rate 10-Year GB Government Bond Rate 0.5%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for AIM:LTHM
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year GB Govt Bond Rate 0.5%
Equity Risk Premium S&P Global 6.1%
Trade Distributors Unlevered Beta Simply Wall St/ S&P Global 0.87
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.867 (1 + (1- 19%) (3.79%))
0.929
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.93
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 0.53% + (0.929 * 6.07%)
6.17%

Discounted Cash Flow Calculation for AIM:LTHM using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for James Latham is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

Note: Free cash flow to equity valuations ignore the company's cash or debt.

AIM:LTHM DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (GBP, Millions) Source Present Value
Discounted (@ 6.17%)
2020 7.20 Est @ 23.61% 6.78
2021 8.40 Est @ 16.68% 7.45
2022 9.40 Est @ 11.84% 7.85
2023 10.19 Est @ 8.45% 8.02
2024 10.81 Est @ 6.07% 8.01
2025 11.29 Est @ 4.41% 7.88
2026 11.65 Est @ 3.25% 7.66
2027 11.94 Est @ 2.43% 7.39
2028 12.16 Est @ 1.86% 7.09
2029 12.34 Est @ 1.46% 6.78
Present value of next 10 years cash flows £74.00
AIM:LTHM DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= £12.34 × (1 + 0.53%) ÷ (6.17% – 0.53%)
£219.92
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= £219.92 ÷ (1 + 6.17%)10
£120.86
AIM:LTHM Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= £74.00 + £120.86
£194.86
Equity Value per Share
(GBP)
= Total value / Shares Outstanding
= £194.86 / 19.48
£10.01
AIM:LTHM Discount to Share Price
Calculation Result
Value per share (GBP) From above. £10.01
Current discount Discount to share price of £6.75
= -1 x (£6.75 - £10.01) / £10.01
32.5%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price James Latham is available for.
Intrinsic value
33%
Share price is £6.75 vs Future cash flow value of £10.01
Current Discount Checks
For James Latham to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • James Latham's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • James Latham's share price is below the future cash flow value, but not at a substantial discount (< 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for James Latham's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are James Latham's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
AIM:LTHM PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-09-30) in GBP £0.60
AIM:LTHM Share Price ** AIM (2020-04-03) in GBP £6.75
United Kingdom of Great Britain and Northern Ireland Trade Distributors Industry PE Ratio Median Figure of 18 Publicly-Listed Trade Distributors Companies 12.15x
United Kingdom of Great Britain and Northern Ireland Market PE Ratio Median Figure of 748 Publicly-Listed Companies 12.44x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of James Latham.

AIM:LTHM PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= AIM:LTHM Share Price ÷ EPS (both in GBP)

= 6.75 ÷ 0.60

11.23x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • James Latham is good value based on earnings compared to the GB Trade Distributors industry average.
  • James Latham is good value based on earnings compared to the United Kingdom of Great Britain and Northern Ireland market.
Price based on expected Growth
Does James Latham's expected growth come at a high price?
Raw Data
AIM:LTHM PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 11.23x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 0 Analysts
Not available
United Kingdom of Great Britain and Northern Ireland Trade Distributors Industry PEG Ratio Median Figure of 11 Publicly-Listed Trade Distributors Companies 0.5x
United Kingdom of Great Britain and Northern Ireland Market PEG Ratio Median Figure of 518 Publicly-Listed Companies 0.97x

*Line of best fit is calculated by linear regression .

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to calculate PEG ratio for James Latham, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on James Latham's assets?
Raw Data
AIM:LTHM PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-09-30) in GBP £4.94
AIM:LTHM Share Price * AIM (2020-04-03) in GBP £6.75
United Kingdom of Great Britain and Northern Ireland Trade Distributors Industry PB Ratio Median Figure of 21 Publicly-Listed Trade Distributors Companies 1.37x
United Kingdom of Great Britain and Northern Ireland Market PB Ratio Median Figure of 1,323 Publicly-Listed Companies 1.07x
AIM:LTHM PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= AIM:LTHM Share Price ÷ Book Value per Share (both in GBP)

= 6.75 ÷ 4.94

1.37x

* Primary Listing of James Latham.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • James Latham is good value based on assets compared to the GB Trade Distributors industry average.
X
Value checks
We assess James Latham's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Trade Distributors industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Trade Distributors industry average (and greater than 0)? (1 check)
  5. James Latham has a total score of 4/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

LTHM Future Performance

 How is James Latham expected to perform in the next 1 to 3 years based on estimates from 0 analysts?

In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as James Latham has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by Simply Wall St do have past financial data. You can see them here.

Show me the analysis anyway

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
4.5%
Expected Trade Distributors industry annual growth in earnings.
Earnings growth vs Low Risk Savings
Is James Latham expected to grow at an attractive rate?
  • Unable to compare James Latham's earnings growth to the low risk savings rate as no estimate data is available.
Growth vs Market Checks
  • Unable to compare James Latham's earnings growth to the United Kingdom of Great Britain and Northern Ireland market average as no estimate data is available.
  • Unable to compare James Latham's revenue growth to the United Kingdom of Great Britain and Northern Ireland market average as no estimate data is available.
Annual Growth Rates Comparison
Raw Data
AIM:LTHM Future Growth Rates Data Sources
Data Point Source Value (per year)
United Kingdom of Great Britain and Northern Ireland Trade Distributors Industry Earnings Growth Rate Market Cap Weighted Average 4.5%
United Kingdom of Great Britain and Northern Ireland Trade Distributors Industry Revenue Growth Rate Market Cap Weighted Average 4.3%
United Kingdom of Great Britain and Northern Ireland Market Earnings Growth Rate Market Cap Weighted Average 15.3%
United Kingdom of Great Britain and Northern Ireland Market Revenue Growth Rate Market Cap Weighted Average 2.4%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
AIM:LTHM Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (6 months ago) See Below
Future Estimates Average of up to 0 Analyst Estimates (S&P Global) See Below
All numbers in GBP Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
AIM:LTHM Future Estimates Data
Date (Data in GBP Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
AIM:LTHM Past Financials Data
Date (Data in GBP Millions) Revenue Cash Flow Net Income *
2019-09-30 243 12 12
2019-06-30 239 10 12
2019-03-31 235 8 12
2018-12-31 230 6 13
2018-09-30 226 4 14
2018-06-30 220 6 14
2018-03-31 215 8 13
2017-12-31 210 9 11
2017-09-30 206 9 10
2017-06-30 202 9 11
2017-03-31 199 9 11
2016-12-31 194 11 11

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Unable to determine if James Latham is high growth as no earnings estimate data is available.
  • Unable to determine if James Latham is high growth as no revenue estimate data is available.
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
AIM:LTHM Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (6 months ago) See Below
Future Estimates Average of up to 0 Analyst Estimates (S&P Global) See Below

All data from James Latham Company Filings, last reported 6 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

AIM:LTHM Future Estimates Data
Date (Data in GBP Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
AIM:LTHM Past Financials Data
Date (Data in GBP Millions) EPS *
2019-09-30 0.60
2019-06-30 0.62
2019-03-31 0.63
2018-12-31 0.68
2018-09-30 0.73
2018-06-30 0.69
2018-03-31 0.64
2017-12-31 0.59
2017-09-30 0.53
2017-06-30 0.54
2017-03-31 0.56
2016-12-31 0.58

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Unable to establish if James Latham will efficiently use shareholders’ funds in the future without estimates of Return on Equity.

Next steps:

  1. Examine whether James Latham is trading at James Latham'san attractive price based on how much it is expected to earn in the future, and relative to its industry peers and the wider market.
  2. James Latham's future outlook can be gauged by looking at industry trends and market size, and determining how well-positioned the company is compared to its competitors. Take a look at other high-growth Capital Goods companies here
  3. James Latham's competitive advantages and company strategy can generally be found in its financial reports archived here.
  4. Use fundamentals to screen for another stock to analyse from our database of over 75,000 companies worldwide
X
Future performance checks
We assess James Latham's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United Kingdom of Great Britain and Northern Ireland market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United Kingdom of Great Britain and Northern Ireland market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
James Latham has a total score of 0/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

LTHM Past Performance

  How has James Latham performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare James Latham's growth in the last year to its industry (Trade Distributors).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • James Latham's year on year earnings growth rate has been positive over the past 5 years.
  • James Latham's 1-year earnings growth is negative, it can't be compared to the 5-year average.
  • James Latham's 1-year earnings growth is negative, it can't be compared to the GB Trade Distributors industry average.
Earnings and Revenue History
James Latham's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from James Latham Company Filings, last reported 6 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

AIM:LTHM Past Revenue, Cash Flow and Net Income Data
Date (Data in GBP Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-09-30 242.58 11.86 27.12
2019-06-30 238.86 12.14 26.64
2019-03-31 235.13 12.42 26.16
2018-12-31 230.44 13.43 25.42
2018-09-30 225.74 14.44 24.68
2018-06-30 220.33 13.54 24.24
2018-03-31 214.92 12.65 23.79
2017-12-31 210.36 11.49 23.35
2017-09-30 205.81 10.33 22.90
2017-06-30 202.31 10.65 22.57
2017-03-31 198.81 10.98 22.25
2016-12-31 194.43 11.28 22.00
2016-09-30 190.05 11.58 21.76
2016-06-30 187.99 11.02 21.69
2016-03-31 185.93 10.47 21.62
2015-12-31 183.94 9.66 21.33
2015-09-30 181.94 8.86 21.04
2015-06-30 178.40 8.34 20.87
2015-03-31 174.86 7.82 20.69
2014-12-31 172.44 8.56 20.70
2014-09-30 170.03 9.29 20.70
2014-06-30 166.57 8.94 20.18
2014-03-31 163.12 8.59 19.66
2013-12-31 156.80 7.10 19.29
2013-09-30 150.49 5.60 18.92
2013-06-30 146.78 5.56 18.68

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • James Latham has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • James Latham used its assets more efficiently than the GB Trade Distributors industry average last year based on Return on Assets.
  • James Latham's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess James Latham's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Trade Distributors industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
James Latham has a total score of 2/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

LTHM Health

 How is James Latham's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up James Latham's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • James Latham is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • James Latham's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of James Latham's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is covered by short term assets, assets are 176.9x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from James Latham Company Filings, last reported 6 months ago.

AIM:LTHM Past Debt and Equity Data
Date (Data in GBP Millions) Total Equity Total Debt Cash & Short Term Investments
2019-09-30 97.58 0.59 16.54
2019-06-30 97.58 0.59 16.54
2019-03-31 97.96 0.60 15.54
2018-12-31 97.96 0.60 15.54
2018-09-30 98.59 0.99 12.86
2018-06-30 98.59 0.99 12.86
2018-03-31 89.79 0.99 13.99
2017-12-31 89.79 0.99 13.99
2017-09-30 83.83 0.99 12.59
2017-06-30 83.83 0.99 12.59
2017-03-31 73.26 0.99 17.25
2016-12-31 73.26 0.99 17.25
2016-09-30 64.48 0.99 16.10
2016-06-30 64.48 0.99 16.10
2016-03-31 71.18 0.99 16.83
2015-12-31 71.18 0.99 16.83
2015-09-30 67.77 0.99 12.43
2015-06-30 67.77 0.99 12.43
2015-03-31 62.23 1.89 12.50
2014-12-31 62.23 1.89 12.50
2014-09-30 63.34 2.01 12.59
2014-06-30 63.34 2.01 12.59
2014-03-31 58.11 2.13 11.23
2013-12-31 58.11 2.13 11.23
2013-09-30 51.53 2.24 5.67
2013-06-30 51.53 2.24 5.67
  • James Latham's level of debt (0.6%) compared to net worth is satisfactory (less than 40%).
  • The level of debt compared to net worth has been reduced over the past 5 years (3.2% vs 0.6% today).
  • Debt is well covered by operating cash flow (2000.3%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 349.4x coverage).
X
Financial health checks
We assess James Latham's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. James Latham has a total score of 6/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

LTHM Dividends

 What is James Latham's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
2.65%
Current annual income from James Latham dividends.
If you bought £2,000 of James Latham shares you are expected to receive £53 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • James Latham's pays a lower dividend yield than the bottom 25% of dividend payers in United Kingdom of Great Britain and Northern Ireland (2.68%).
  • James Latham's dividend is below the markets top 25% of dividend payers in United Kingdom of Great Britain and Northern Ireland (7.57%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
AIM:LTHM Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 0 Analyst Estimates (S&P Global) See Below
United Kingdom of Great Britain and Northern Ireland Trade Distributors Industry Average Dividend Yield Market Cap Weighted Average of 18 Stocks 3.3%
United Kingdom of Great Britain and Northern Ireland Market Average Dividend Yield Market Cap Weighted Average of 608 Stocks 5.7%
United Kingdom of Great Britain and Northern Ireland Minimum Threshold Dividend Yield 10th Percentile 1.4%
United Kingdom of Great Britain and Northern Ireland Bottom 25% Dividend Yield 25th Percentile 2.7%
United Kingdom of Great Britain and Northern Ireland Top 25% Dividend Yield 75th Percentile 7.6%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

AIM:LTHM Future Dividends Estimate Data
Date (Data in £) Dividend per Share (annual) Avg. No. Analysts
AIM:LTHM Past Annualized Dividends Data
Date (Data in £) Dividend per share (annual) Avg. Yield (%)
2019-06-27 0.179 2.119
2019-06-26 0.179 2.128
2018-06-28 0.166 2.368
2018-06-27 0.166 2.221
2017-07-27 0.154 1.946
2017-06-22 0.154 1.771
2016-07-28 0.143 1.908
2016-06-23 0.143 2.305
2015-07-28 0.125 1.833
2015-06-24 0.125 1.782
2014-07-29 0.114 2.030
2014-06-26 0.114 2.339
2013-06-27 0.102 2.512
2012-07-26 0.098 3.401
2012-06-21 0.098 3.508
2011-07-25 0.093 3.694
2011-06-23 0.093 3.495
2010-07-05 0.078 3.829
2010-06-29 0.078 4.458
2009-06-25 0.063 3.864

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dividends per share have been stable in the past 10 years.
  • Dividends per share have increased over the past 10 years.
Current Payout to shareholders
What portion of James Latham's earnings are paid to the shareholders as a dividend.
  • Dividends paid are well covered by earnings (3.3x coverage).
Future Payout to shareholders
  • Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.
X
Income/ dividend checks
We assess James Latham's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.4%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can James Latham afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. James Latham has a total score of 3/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

LTHM Management

 What is the CEO of James Latham's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Peter Douglas Latham
COMPENSATION £29,000
AGE 68
TENURE AS CEO 13.3 years
CEO Bio

Mr. Peter Douglas Langdon Latham, OBE, BA, FIMMM has been the Chief Executive of James Latham plc since December 18, 2006. Mr. Latham serves as the Executive Chairman of Nevill Long Limited. He served as Non-Executive Chairman at James Latham plc from January 1, 2016 to August 23, 2017 and as its Non Executive Director from January 1, 2016 to August 23, 2017. He served as an Executive Director at James Latham plc since 1983 and serves as Director of Lathams Limited. He serves as Hon Treasurer of the Institute of Wood Science, Chairman of Forests Forever which is the environmental arm of the Timber Trade Federation (TTF) and serves on the TTF's Governing Body. He serves as the Chairman of the Programme for the Endorsement of Forest Certification schemes (PEFC).

CEO Compensation
  • Peter Douglas's compensation has been consistent with company performance over the past year, both up more than 20%.
  • Peter Douglas's remuneration is lower than average for companies of similar size in United Kingdom of Great Britain and Northern Ireland.
Management Team

David Dunmow

TITLE
Group Financial Director
COMPENSATION
£260K
AGE
55
TENURE
20.3 yrs

Piers Latham

TITLE
Executive Director
COMPENSATION
£198K
AGE
47

Andrew Wright

TITLE
MD & Executive Director
COMPENSATION
£212K
AGE
55

Peter Douglas Latham

TITLE
Chief Executive Officer
COMPENSATION
£29K
AGE
68
TENURE
13.3 yrs
Board of Directors Tenure

Average tenure and age of the James Latham board of directors in years:

4.8
Average Tenure
53
Average Age
  • The tenure for the James Latham board of directors is about average.
Board of Directors

Nick Latham

TITLE
Chairman
COMPENSATION
£254K
AGE
51
TENURE
2.7 yrs

David Dunmow

TITLE
Group Financial Director
COMPENSATION
£260K
AGE
55
TENURE
20.3 yrs

Piers Latham

TITLE
Executive Director
COMPENSATION
£198K
AGE
47
TENURE
6.3 yrs

Andrew Wright

TITLE
MD & Executive Director
COMPENSATION
£212K
AGE
55
TENURE
5 yrs

Philip Luke French

TITLE
Non-Executive Director
COMPENSATION
£34K
AGE
59
TENURE
4.5 yrs

Paula Kerrigan

TITLE
Non-Executive Director
COMPENSATION
£31K
AGE
47
TENURE
2.5 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month open market individual insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (£) Value (£)
X
Management checks
We assess James Latham's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. James Latham has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

LTHM News

Simply Wall St News

Do You Know About James Latham plc’s (LON:LTHM) ROCE?

Analysts use this formula to calculate return on capital employed: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) Or for James Latham: 0.13 = UK£14m ÷ (UK£139m - UK£28m) (Based on the trailing twelve months to March 2019.) So, James Latham has an ROCE of 13%. … See our latest analysis for James Latham Is James Latham's ROCE Good? … What Are Current Liabilities, And How Do They Affect James Latham's ROCE?

Simply Wall St -

Introducing James Latham (LON:LTHM), A Stock That Climbed 66% In The Last Five Years

For example, long term James Latham plc (LON:LTHM) shareholders have enjoyed a 66% share price rise over the last half decade, well in excess of the market return of around 3.7% (not including dividends). … Check out our latest analysis for James Latham To paraphrase Benjamin Graham: Over the short term the market is a voting machine, but over the long term it's a weighing machine. … During five years of share price growth, James Latham achieved compound earnings per share (EPS) growth of 7.3% per year.

Simply Wall St -

James Latham plc (LON:LTHM) Is About To Go Ex-Dividend, And It Pays A 1.6% Yield

James Latham's upcoming dividend is UK£0.13 a share, following on from the last 12 months, when the company distributed a total of UK£0.18 per share to shareholders. … Companies with consistently growing earnings per share generally make the best dividend stocks, as they usually find it easier to grow dividends per share. … Earnings per share have been growing at a steady rate, and James Latham paid out less than half its profits and more than half its free cash flow as dividends over the last year.

Simply Wall St -

Does James Latham plc's (LON:LTHM) P/E Ratio Signal A Buying Opportunity?

View our latest analysis for James Latham How Do I Calculate A Price To Earnings Ratio? … The formula for P/E is: Price to Earnings Ratio = Share Price ÷ Earnings per Share (EPS) Or for James Latham: P/E of 13.47 = £8.5 ÷ £0.63 (Based on the year to March 2019.) Is A High P/E Ratio Good? … AIM:LTHM Price Estimation Relative to Market, July 22nd 2019 Its relatively low P/E ratio indicates that James Latham shareholders think it will struggle to do as well as other companies in its industry classification.

Simply Wall St -

Should You Be Concerned About James Latham plc's (LON:LTHM) Earnings Growth?

After reading James Latham plc's (LON:LTHM) most recent earnings announcement (31 March 2019), I found it useful to look back at how the company has performed in the past and compare this against the latest numbers. … View our latest analysis for James Latham Did LTHM's recent earnings growth beat the long-term trend and the industry? … Furthermore, this one-year growth rate has been lower than its average earnings growth rate over the past 5 years of 10%, indicating the rate at which LTHM is growing has slowed down.

Simply Wall St -

James Latham plc (LON:LTHM) Is Yielding 2.0% - But Is It A Buy?

Could James Latham plc (LON:LTHM) be an attractive dividend share to own for the long haul? … Strong earnings per share (EPS) growth might encourage our interest in the company despite fluctuating dividends, which is why it's great to see James Latham has grown its earnings per share at 21% per annum over the past five years. Earnings per share have grown rapidly, and the company is retaining a majority of its earnings. We think this is ideal from an investment perspective, if the company is able to reinvest these earnings effectively. Conclusion Dividend investors should always want to know if a) a company's dividends are affordable, b) if there is a track record of consistent payments, and c) if the dividend is capable of growing. … While we're not hugely bearish on it, overall we think there are potentially better dividend stocks than James Latham out there.

Simply Wall St -

Is James Latham plc (LON:LTHM) A Smart Choice For Dividend Investors?

Could James Latham plc (LON:LTHM) be an attractive dividend share to own for the long haul? Investors are often drawn to strong companies with the idea of reinvesting the dividends. Unfortunately, it's common for investors to be enticed in by the seemingly attractive yield, and lose money when the company has to cut its dividend payments. A slim 2.0% yield is hard to get excited about, but the long payment history is respectable. At the right price, or with strong growth opportunities, James Latham could have potential. Before you buy any stock for its dividend however, you should always remember Warren Buffett's two rules: 1) Don't lose money, and 2) Remember rule #1. We'll run through some checks below to help with this. Click the interactive chart for our full dividend analysis AIM:LTHM Historical Dividend Yield, June 26th 2019 Payout ratios Dividends are typically paid from company earnings. If a company pays more in dividends than it earned, then the dividend might become unsustainable - hardly an ideal situation. As a result, we should always investigate whether a company can afford its dividend, measured as a percentage of a company's net income after tax. James Latham paid out 23% of its profit as dividends, over the trailing twelve month period. We'd say its dividends are thoroughly covered by earnings. We also measure dividends paid against a company's levered free cash flow, to see if enough cash was generated to cover the dividend. Unfortunately, while James Latham pays a dividend, it also reported negative free cash flow last year. While there may be a good reason for this, it's not ideal from a dividend perspective. It's positive to see that James Latham's dividend is covered by both profits and cash flow, since this is generally a sign that the dividend is sustainable, and a lower payout ratio usually suggests a greater margin of safety before the dividend gets cut. Consider getting our latest analysis on James Latham's financial position here. Dividend Volatility Before buying a stock for its income, we want to see if the dividends have been stable in the past, and if the company has a track record of maintaining its dividend. For the purpose of this article, we only scrutinise the last decade of James Latham's dividend payments. The dividend has been cut by more than 20% on at least one occasion historically. During the past ten-year period, the first annual payment was UK£0.081 in 2009, compared to UK£0.17 last year. Dividends per share have grown at approximately 7.4% per year over this time. The dividends haven't grown at precisely 7.4% every year, but this is a useful way to average out the historical rate of growth. A reasonable rate of dividend growth is good to see, but we're wary that the dividend history is not as solid as we'd like, having been cut at least once. Dividend Growth Potential Given that the dividend has been cut in the past, we need to check if earnings are growing and if that might lead to stronger dividends in the future. It's good to see James Latham has been growing its earnings per share at 21% a year over the past 5 years. The company is only paying out a fraction of its earnings as dividends, and in the past been able to use the retained earnings to grow its profits rapidly - an ideal combination. Conclusion Dividend investors should always want to know if a) a company's dividends are affordable, b) if there is a track record of consistent payments, and c) if the dividend is capable of growing. … Next, earnings growth has been good, but unfortunately the dividend has been cut at least once in the past. … Ultimately, James Latham comes up short on our dividend analysis.

Simply Wall St -

Do Institutions Own James Latham plc (LON:LTHM) Shares?

As Charlie Munger said 'Show me the incentive and I will show you the outcome.' James Latham is not a large company by global standards. … View our latest analysis for James Latham AIM:LTHM Ownership Summary, June 8th 2019 What Does The Institutional Ownership Tell Us About James Latham? … Insider Ownership Of James Latham The definition of company insiders can be subjective, and does vary between jurisdictions.

Simply Wall St -

Taking A Look At James Latham plc's (LON:LTHM) ROE

Our data shows James Latham has a return on equity of 15% for the last year. … One way to conceptualize this, is that for each £1 of shareholders' equity it has, the company made £0.15 in profit. … Return on Equity = Net Profit ÷ Shareholders' Equity

Simply Wall St -

Has James Latham plc (LON:LTHM) Been Employing Capital Shrewdly?

To be precise, we'll consider its Return On Capital Employed (ROCE), as that will inform our view of the quality of the business. … What is Return On Capital Employed (ROCE)? … Analysts use this formula to calculate return on capital employed:

Simply Wall St -

LTHM Company Info

Description

James Latham plc, together with its subsidiaries, imports and distributes timber and panel products in the United Kingdom, Ireland, rest of Europe, and internationally. The company offers panels, melamine, veneer, laminates, solid surface products, door blanks, plastics, hardwoods and softwoods, engineered timber products, flooring products, decking and cladding products, modified timbers and panels, fire retardant panels, advanced technical panels, and treatments. It serves the public and private construction/housing, retail, transport, exhibition, and other sectors. The company was founded in 1757 and is headquartered in Hemel Hempstead, the United Kingdom.

Details
Name: James Latham plc
LTHM
Exchange: AIM
Founded: 1757
£131,465,781
19,476,412
Website: http://www.lathamtimber.co.uk
Address: James Latham plc
Swallow Park,
Unit 3,
Hemel Hempstead,
Hertfordshire, HP2 7QU,
United Kingdom
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
AIM LTHM Ordinary Shares London Stock Exchange AIM Market GB GBP 02. Jan 1992
Number of employees
Current staff
Staff numbers
395
James Latham employees.
Industry
Trading Companies and Distributors
Capital Goods
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2020/04/03 20:32
End of day share price update: 2020/04/03 00:00
Last estimates confirmation: 2019/06/27
Last earnings filing: 2019/11/28
Last earnings reported: 2019/09/30
Last annual earnings reported: 2019/03/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.