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Ashtead Group

LSE:AHT
Snowflake Description

Average dividend payer with moderate growth potential.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
AHT
LSE
£11B
Market Cap
  1. Home
  2. GB
  3. Capital Goods
Company description

Ashtead Group plc, together with its subsidiaries, rents a range of construction and industrial equipment. The last earnings update was 86 days ago. More info.


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AHT Share Price and Events
7 Day Returns
-2.6%
LSE:AHT
-3%
GB Trade Distributors
-2.5%
GB Market
1 Year Returns
43.7%
LSE:AHT
14.6%
GB Trade Distributors
5.3%
GB Market
AHT Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Ashtead Group (AHT) -2.6% -2.4% 1.9% 43.7% 44.7% 98.7%
GB Trade Distributors -3% 1.5% 3.3% 14.6% 28.8% 49.5%
GB Market -2.5% -1.3% 0.9% 5.3% 4.1% 5.1%
1 Year Return vs Industry and Market
  • AHT outperformed the Trade Distributors industry which returned 14.6% over the past year.
  • AHT outperformed the Market in United Kingdom of Great Britain and Northern Ireland which returned 5.3% over the past year.
Price Volatility
AHT
Industry
5yr Volatility vs Market

Value

 Is Ashtead Group 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 Ashtead Group 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 Ashtead Group.

LSE:AHT Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 15 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 7.9%
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 LSE:AHT
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 0.94
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.936 (1 + (1- 19%) (49.22%))
1.207
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.21
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 0.53% + (1.207 * 6.07%)
7.86%

Discounted Cash Flow Calculation for LSE:AHT using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Ashtead Group 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.

LSE:AHT DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (GBP, Millions) Source Present Value
Discounted (@ 7.86%)
2020 750.40 Analyst x5 695.72
2021 995.82 Analyst x8 855.99
2022 1,099.81 Analyst x7 876.49
2023 612.40 Analyst x1 452.49
2024 516.10 Analyst x1 353.55
2025 460.32 Est @ -10.81% 292.36
2026 426.22 Est @ -7.41% 250.98
2027 404.80 Est @ -5.03% 221.00
2028 391.20 Est @ -3.36% 198.01
2029 382.63 Est @ -2.19% 179.56
Present value of next 10 years cash flows £4,376.00
LSE:AHT DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= £382.63 × (1 + 0.53%) ÷ (7.86% – 0.53%)
£5,248.36
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= £5,248.36 ÷ (1 + 7.86%)10
£2,462.97
LSE:AHT Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= £4,376.00 + £2,462.97
£6,838.97
Equity Value per Share
(GBP)
= Total value / Shares Outstanding
= £6,838.97 / 453.83
£15.07
LSE:AHT Discount to Share Price
Calculation Result
Value per share (GBP) From above. £15.07
Current discount Discount to share price of £23.29
= -1 x (£23.29 - £15.07) / £15.07
-54.6%

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

  • The current share price of Ashtead Group is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
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 Ashtead Group's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Ashtead Group's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
LSE:AHT PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-07-31) in GBP £1.72
LSE:AHT Share Price ** LSE (2019-12-05) in GBP £23.29
United Kingdom of Great Britain and Northern Ireland Trade Distributors Industry PE Ratio Median Figure of 19 Publicly-Listed Trade Distributors Companies 15.14x
United Kingdom of Great Britain and Northern Ireland Market PE Ratio Median Figure of 752 Publicly-Listed Companies 17.14x

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

** Primary Listing of Ashtead Group.

LSE:AHT PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= LSE:AHT Share Price ÷ EPS (both in GBP)

= 23.29 ÷ 1.72

13.54x

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

  • Ashtead Group is good value based on earnings compared to the GB Trade Distributors industry average.
  • Ashtead Group is good value based on earnings compared to the United Kingdom of Great Britain and Northern Ireland market.
Price based on expected Growth
Does Ashtead Group's expected growth come at a high price?
Raw Data
LSE:AHT PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 13.54x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 15 Analysts
4%per year
United Kingdom of Great Britain and Northern Ireland Trade Distributors Industry PEG Ratio Median Figure of 11 Publicly-Listed Trade Distributors Companies 2.45x
United Kingdom of Great Britain and Northern Ireland Market PEG Ratio Median Figure of 562 Publicly-Listed Companies 1.44x

*Line of best fit is calculated by linear regression .

LSE:AHT PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 13.54x ÷ 4%

3.4x

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

  • Ashtead Group is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Ashtead Group's assets?
Raw Data
LSE:AHT PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-07-31) in GBP £6.62
LSE:AHT Share Price * LSE (2019-12-05) in GBP £23.29
United Kingdom of Great Britain and Northern Ireland Trade Distributors Industry PB Ratio Median Figure of 21 Publicly-Listed Trade Distributors Companies 1.84x
United Kingdom of Great Britain and Northern Ireland Market PB Ratio Median Figure of 1,311 Publicly-Listed Companies 1.53x
LSE:AHT PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= LSE:AHT Share Price ÷ Book Value per Share (both in GBP)

= 23.29 ÷ 6.62

3.52x

* Primary Listing of Ashtead Group.

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

  • Ashtead Group is overvalued based on assets compared to the GB Trade Distributors industry average.
X
Value checks
We assess Ashtead Group'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. Ashtead Group has a total score of 2/6, 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.

Future Performance

 How is Ashtead Group expected to perform in the next 1 to 3 years based on estimates from 15 analysts?

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%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Ashtead Group expected to grow at an attractive rate?
  • Ashtead Group's earnings growth is expected to exceed the low risk savings rate of 0.5%.
Growth vs Market Checks
  • Ashtead Group's earnings growth is positive but not above the United Kingdom of Great Britain and Northern Ireland market average.
  • Ashtead Group's revenue growth is expected to exceed the United Kingdom of Great Britain and Northern Ireland market average.
Annual Growth Rates Comparison
Raw Data
LSE:AHT Future Growth Rates Data Sources
Data Point Source Value (per year)
LSE:AHT Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 15 Analysts 4%
LSE:AHT Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 15 Analysts 5.9%
United Kingdom of Great Britain and Northern Ireland Trade Distributors Industry Earnings Growth Rate Market Cap Weighted Average 8.6%
United Kingdom of Great Britain and Northern Ireland Trade Distributors Industry Revenue Growth Rate Market Cap Weighted Average 3.7%
United Kingdom of Great Britain and Northern Ireland Market Earnings Growth Rate Market Cap Weighted Average 12.4%
United Kingdom of Great Britain and Northern Ireland Market Revenue Growth Rate Market Cap Weighted Average 3.6%

*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
LSE:AHT Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (4 months ago) See Below
Future Estimates Average of up to 15 Analyst Estimates (S&P Global) See Below
All numbers in GBP Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
LSE:AHT Future Estimates Data
Date (Data in GBP Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2024-04-30 2,936
2023-04-30 2,796
2022-04-30 5,793 2,653 943 10
2021-04-30 5,565 2,563 963 15
2020-04-30 5,212 2,356 905 15
2019-12-05
LSE:AHT Past Financials Data
Date (Data in GBP Millions) Revenue Cash Flow Net Income *
2019-07-31 4,730 666 815
2019-04-30 4,500 527 797
2019-01-31 4,285 445 742
2018-10-31 4,057 522 1,109
2018-07-31 3,873 512 1,029
2018-04-30 3,706 519 969
2018-01-31 3,646 560 989
2017-10-31 3,534 496 550
2017-07-31 3,360 531 534
2017-04-30 3,187 425 501
2017-01-31 3,022 289 483
2016-10-31 2,830 214 460

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Ashtead Group's earnings are expected to grow by 4% yearly, however this is not considered high growth (20% yearly).
  • Ashtead Group's revenue is expected to grow by 5.9% yearly, however this is not considered high growth (20% yearly).
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
LSE:AHT Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (4 months ago) See Below
Future Estimates Average of up to 15 Analyst Estimates (S&P Global) See Below

All data from Ashtead Group Company Filings, last reported 4 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

LSE:AHT Future Estimates Data
Date (Data in GBP Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2024-04-30
2023-04-30
2022-04-30 2.10 2.38 1.83 2.00
2021-04-30 2.14 2.27 2.07 6.00
2020-04-30 1.93 1.99 1.89 6.00
2019-12-05
LSE:AHT Past Financials Data
Date (Data in GBP Millions) EPS *
2019-07-31 1.72
2019-04-30 1.66
2019-01-31 1.53
2018-10-31 2.26
2018-07-31 2.08
2018-04-30 1.95
2018-01-31 1.99
2017-10-31 1.11
2017-07-31 1.07
2017-04-30 1.00
2017-01-31 0.97
2016-10-31 0.92

*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.
  • Ashtead Group is expected to efficiently use shareholders’ funds in the future (Return on Equity greater than 20%).
X
Future performance checks
We assess Ashtead Group'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.
Ashtead Group has a total score of 3/6, 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.

Past Performance

  How has Ashtead Group 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 Ashtead Group'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.
  • Ashtead Group has delivered over 20% year on year earnings growth in the past 5 years.
  • Ashtead Group's 1-year earnings growth is negative, it can't be compared to the 5-year average.
  • Ashtead Group's 1-year earnings growth is negative, it can't be compared to the GB Trade Distributors industry average.
Earnings and Revenue History
Ashtead Group'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 Ashtead Group Company Filings, last reported 4 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

LSE:AHT Past Revenue, Cash Flow and Net Income Data
Date (Data in GBP Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-07-31 4,730.40 815.20 1,184.90
2019-04-30 4,499.60 796.90 1,147.80
2019-01-31 4,284.60 742.30 1,090.20
2018-10-31 4,057.30 1,109.40 1,038.60
2018-07-31 3,873.30 1,028.70 1,002.90
2018-04-30 3,706.00 968.80 971.90
2018-01-31 3,645.80 989.10 949.80
2017-10-31 3,534.20 550.40 917.90
2017-07-31 3,359.80 533.80 874.10
2017-04-30 3,186.80 501.00 831.00
2017-01-31 3,022.20 483.00 791.70
2016-10-31 2,829.90 460.20 742.30
2016-07-31 2,634.20 423.00 697.70
2016-04-30 2,545.70 407.60 667.40
2016-01-31 2,418.40 372.90 638.00
2015-10-31 2,319.10 356.70 612.10
2015-07-31 2,199.60 330.50 580.90
2015-04-30 2,038.90 303.40 545.00
2015-01-31 1,885.10 287.60 505.50
2014-10-31 1,772.30 266.10 482.70
2014-07-31 1,682.10 245.20 472.00
2014-04-30 1,634.70 231.20 467.70
2014-01-31 1,597.40 213.30 464.30
2013-10-31 1,531.20 197.90 451.20
2013-07-31 1,447.40 176.20 431.30
2013-04-30 1,361.90 137.80 412.90
2013-01-31 1,302.10 127.50 399.60

*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.
  • Whilst Ashtead Group has efficiently used shareholders’ funds last year (Return on Equity greater than 20%), this is metric is skewed due to its high level of debt.
  • Ashtead Group used its assets more efficiently than the GB Trade Distributors industry average last year based on Return on Assets.
  • Ashtead Group's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Ashtead Group'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.
Ashtead Group 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.

Health

 How is Ashtead Group'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 Ashtead Group's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Ashtead Group is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Ashtead Group's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of Ashtead Group'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.
  • Low level of unsold assets.
  • Debt is not covered by short term assets, assets are 0.3x 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 Ashtead Group Company Filings, last reported 4 months ago.

LSE:AHT Past Debt and Equity Data
Date (Data in GBP Millions) Total Equity Total Debt Cash & Short Term Investments
2019-07-31 3,055.50 4,195.80 17.00
2019-04-30 2,800.50 3,752.70 12.80
2019-01-31 2,786.70 3,735.70 16.70
2018-10-31 2,797.60 3,629.90 23.30
2018-07-31 2,735.40 3,038.10 10.10
2018-04-30 2,526.90 2,725.80 19.10
2018-01-31 2,493.10 2,632.10 8.70
2017-10-31 2,131.30 2,857.50 11.70
2017-07-31 2,085.10 2,571.30 7.40
2017-04-30 1,970.10 2,529.60 6.30
2017-01-31 1,920.80 2,591.80 8.00
2016-10-31 1,855.60 2,699.70 10.20
2016-07-31 1,698.90 2,353.10 10.60
2016-04-30 1,480.40 2,009.30 13.00
2016-01-31 1,428.40 2,173.40 10.00
2015-10-31 1,255.30 1,981.30 5.30
2015-07-31 1,201.60 1,801.30 2.30
2015-04-30 1,111.50 1,692.30 10.50
2015-01-31 1,075.30 1,767.90 3.80
2014-10-31 960.90 1,573.60 6.90
2014-07-31 877.90 1,299.40 4.50
2014-04-30 824.40 1,146.80 2.80
2014-01-31 789.30 1,263.80 2.60
2013-10-31 742.50 1,227.30 1.50
2013-07-31 728.60 1,187.90 3.90
2013-04-30 682.50 1,031.50 20.30
2013-01-31 649.40 1,074.60 1.10
  • Ashtead Group's level of debt (137.3%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has been reduced over the past 5 years (148.2% vs 137.3% today).
  • Debt is not well covered by operating cash flow (15.9%, less than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 7.2x coverage).
X
Financial health checks
We assess Ashtead Group'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. Ashtead Group has a total score of 3/6, 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.

Dividends

 What is Ashtead Group'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
1.72%
Current annual income from Ashtead Group dividends. Estimated to be 2.03% next year.
If you bought £2,000 of Ashtead Group shares you are expected to receive £34 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?
  • Ashtead Group's pays a lower dividend yield than the bottom 25% of dividend payers in United Kingdom of Great Britain and Northern Ireland (1.97%).
  • Ashtead Group's dividend is below the markets top 25% of dividend payers in United Kingdom of Great Britain and Northern Ireland (5.29%).
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
LSE:AHT 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 15 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 2.4%
United Kingdom of Great Britain and Northern Ireland Market Average Dividend Yield Market Cap Weighted Average of 679 Stocks 4.5%
United Kingdom of Great Britain and Northern Ireland Minimum Threshold Dividend Yield 10th Percentile 1.1%
United Kingdom of Great Britain and Northern Ireland Bottom 25% Dividend Yield 25th Percentile 2%
United Kingdom of Great Britain and Northern Ireland Top 25% Dividend Yield 75th Percentile 5.3%

Industry and Market average data is calculated daily.

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

LSE:AHT Future Dividends Estimate Data
Date (Data in £) Dividend per Share (annual) Avg. No. Analysts
2024-04-30
2023-04-30
2022-04-30 0.50 11.00
2021-04-30 0.48 15.00
2020-04-30 0.44 16.00
2019-12-05
LSE:AHT Past Annualized Dividends Data
Date (Data in £) Dividend per share (annual) Avg. Yield (%)
2019-07-24 0.400 1.779
2019-06-18 0.400 1.789
2018-07-20 0.330 1.651
2017-07-19 0.275 1.400
2016-07-19 0.225 1.534
2016-06-14 0.225 2.138
2015-06-16 0.153 1.591
2014-08-04 0.115 1.077
2013-06-20 0.075 0.983
2012-12-11 0.040 0.756
2012-06-21 0.035 1.130
2012-06-20 0.035 1.386
2011-12-08 0.031 1.295
2011-06-16 0.030 2.055
2011-06-15 0.030 1.733
2010-07-12 0.029 2.118
2010-06-17 0.029 2.934
2009-06-18 0.026 3.166

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 Ashtead Group's earnings are paid to the shareholders as a dividend.
  • Dividends paid are well covered by earnings (4.3x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be well covered by earnings (4.7x coverage).
X
Income/ dividend checks
We assess Ashtead Group's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.1%) - 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 Ashtead Group afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Ashtead Group has a total score of 4/6, see the detailed checks below.


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

Management

 What is the CEO of Ashtead Group'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
Brendan Horgan
COMPENSATION £4,022,000
AGE 45
TENURE AS CEO 0.6 years
CEO Bio

Mr. Brendan Horgan has been Chief Executive Officer of Ashtead Group plc since May 1, 2019. Mr. Horgan served as the Group Chief Operating Officer of Ashtead Group plc since January 1, 2018 until May 1, 2019. Mr. Horgan serves as Chief Executive Officer of Sunbelt Rentals Inc. since January 25, 2010. Mr. Horgan has been Director of Private Banking, a Division of Vantis plc since April 3, 2007. He has been a Member of Group Executive Board of Vantis plc since April 3, 2007. He served as Chief Sales Officer of Sunbelt Rentals Inc., a subsidiary of Ashtead Group PLC and served as its Chief Operating Officer since July 6, 2004. He served as an Executive Vice President of Operations responsible or Sunbelt's South Eastern region. Mr. Horgan joined Vantis from Barclays Bank where he served as Commercial Director, UK Business anking. His responsibility has included leading, managing and maximising sales, service and overall business performance of 2,600 staff of risk management within MB&A including credit risk, legal, operational risk, compliance, fraud and portfolio management. Mr. Horgan joined Barclays in 1979 and some of his more recent roles have included Regional Head of Small Business (East Anglia), and Head of Small Business Change. He has been an Executive Director of Sunbelt Rentals Inc. since January 25, 2010. He has been Executive Director at Ashtead Group PLC since January 1, 2011. A recent high profile role was Audit Director for Barclays Group Central Functions bringing audit to the most senior group levels and establishing group wide audit. He is a Fellow of the Chartered Institute of Banking (FCIB).

CEO Compensation
  • Brendan's compensation has increased by more than 20% in the past year whilst earnings fell less than 20%.
  • Brendan's remuneration is about average for companies of similar size in United Kingdom of Great Britain and Northern Ireland.
Management Team

Brendan Horgan

TITLE
CEO & Executive Director
COMPENSATION
£4M
AGE
45
TENURE
0.6 yrs

Michael Pratt

TITLE
Group Finance Director
COMPENSATION
£1M
AGE
55
TENURE
1.7 yrs

Will Shaw

TITLE
Director of Investor Relations

Eric Watkins

TITLE
General Counsel & Secretary

Rob Phillips

TITLE
Chief Executive of Ashtead Technology Rentals
Board of Directors Tenure

Average tenure and age of the Ashtead Group board of directors in years:

1.7
Average Tenure
56
Average Age
  • The average tenure for the Ashtead Group board of directors is less than 3 years, this suggests a new board.
Board of Directors

Paul Walker

TITLE
Non-Executive Chairman
COMPENSATION
£292K
AGE
62
TENURE
1.3 yrs

Brendan Horgan

TITLE
CEO & Executive Director
COMPENSATION
£4M
AGE
45
TENURE
8.9 yrs

Michael Pratt

TITLE
Group Finance Director
COMPENSATION
£1M
AGE
55
TENURE
1.7 yrs

Lucinda Riches

TITLE
Independent Non-Executive Director
COMPENSATION
£75K
AGE
57
TENURE
3.5 yrs

Angus Cockburn

TITLE
Senior Independent Non-Executive Director
COMPENSATION
£47K
AGE
56
TENURE
0.9 yrs

Tanya Fratto

TITLE
Independent Non-Executive Director
COMPENSATION
£83K
AGE
58
TENURE
3.4 yrs

Lindsley Ruth

TITLE
Independent Non-Executive Director
AGE
48
TENURE
0.6 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 (£)
05. Jul 19 Sell Michael Pratt Individual 04. Jul 19 04. Jul 19 -16,448 £23.20 £-381,594
05. Jul 19 Sell Brendan Horgan Individual 04. Jul 19 04. Jul 19 -46,792 £23.20 £-1,085,574
21. Jun 19 Buy Angus Cockburn Individual 21. Jun 19 21. Jun 19 1,000 £21.60 £21,600
21. Jun 19 Buy Paul Walker Individual 21. Jun 19 21. Jun 19 14,000 £21.63 £302,820
X
Management checks
We assess Ashtead Group'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. Ashtead Group 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.

News

Simply Wall St News

Does Ashtead Group plc (LON:AHT) Have A Good P/E Ratio?

View our latest analysis for Ashtead Group How Do I Calculate Ashtead Group's Price To Earnings Ratio? … The formula for P/E is: Price to Earnings Ratio = Share Price ÷ Earnings per Share (EPS) Or for Ashtead Group: P/E of 13.67 = £22.71 ÷ £1.66 (Based on the trailing twelve months to April 2019.) Is A High P/E Ratio Good? … All else being equal, it's better to pay a low price -- but as Warren Buffett said, 'It's far better to buy a wonderful company at a fair price than a fair company at a wonderful price.' How Does Ashtead Group's P/E Ratio Compare To Its Peers?

Simply Wall St -

Here's Why Ashtead Group (LON:AHT) Can Manage Its Debt Responsibly

We note that Ashtead Group plc (LON:AHT) does have debt on its balance sheet. … LSE:AHT Historical Debt, August 21st 2019 A Look At Ashtead Group's Liabilities The latest balance sheet data shows that Ashtead Group had liabilities of UK£693.6m due within a year, and liabilities of UK£4.86b falling due after that. … Looking at the most recent three years, Ashtead Group recorded free cash flow of 34% of its EBIT, which is weaker than we'd expect.

Simply Wall St -

Ashtead Group plc (LON:AHT) Passed Our Checks, And It's About To Pay A 1.5% Dividend

Companies with consistently growing earnings per share generally make the best dividend stocks, as they usually find it easier to grow dividends per share. … Ashtead Group is paying out less than half its earnings and cash flow, while simultaneously growing earnings per share at a rapid clip. … We love that Ashtead Group is growing earnings per share while simultaneously paying out a low percentage of both its earnings and cash flow.

Simply Wall St -

Have Insiders Been Selling Ashtead Group plc (LON:AHT) Shares?

So we'll take a look at whether insiders have been buying or selling shares in Ashtead Group plc (LON:AHT). … LSE:AHT Recent Insider Trading, August 7th 2019 Insiders at Ashtead Group Have Sold Stock Recently There was substantially more insider selling, than buying, of Ashtead Group shares over the last three months. … Insider Ownership of Ashtead Group Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own.

Simply Wall St -

Ashtead Group plc (LON:AHT) Delivered A Better ROE Than Its Industry

The formula for ROE is: Return on Equity = Net Profit ÷ Shareholders' Equity Or for Ashtead Group: 28% = UK£797m ÷ UK£2.8b (Based on the trailing twelve months to April 2019.) It's easy to understand the 'net profit' part of that equation, but 'shareholders' equity' requires further explanation. … How Does Debt Impact Return On Equity? … Combining Ashtead Group's Debt And Its 28% Return On Equity Ashtead Group does use a significant amount of debt to increase returns.

Simply Wall St -

Should You Be Concerned With Ashtead Group plc's (LON:AHT) -18% Earnings Drop?

In this commentary, I will examine Ashtead Group plc's (LON:AHT) latest earnings update (30 April 2019) and compare these figures against its performance over the past couple of years, as well as how the rest of the trade distributors industry performed. … Furthermore, this one-year growth rate has been lower than its average earnings growth rate over the past 5 years of 30%, indicating the rate at which AHT is growing has slowed down. … I recommend you continue to research Ashtead Group to get a better picture of the stock by looking at: Future Outlook: What are well-informed industry analysts predicting for AHT’s future growth?

Simply Wall St -

The Ashtead Group (LON:AHT) Share Price Has Gained 160%, So Why Not Pay It Some Attention?

Over half a decade, Ashtead Group managed to grow its earnings per share at 29% a year. … Dive deeper into the earnings by checking this interactive graph of Ashtead Group's earnings, revenue and cash flow. … As it happens, Ashtead Group's TSR for the last 5 years was 182%, which exceeds the share price return mentioned earlier.

Simply Wall St -

Ashtead Group plc (LON:AHT): What Are The Future Prospects?

Based on Ashtead Group plc's (LON:AHT) earnings update on 30 April 2019, analyst forecasts seem fairly subdued, as a 16% rise in profits is expected in the upcoming year, relative to the higher past 5-year average growth rate of 30%. … To reduce the year-on-year volatility of analyst earnings forecast, I've inserted a line of best fit through the expected earnings figures to determine the annual growth rate from the slope of the line. … LSE:AHT Past and Future Earnings, June 28th 2019 By 2022, AHT's earnings should reach UK£1.0b, from current levels of UK£797m, resulting in an annual growth rate of 8.1%.

Simply Wall St -

Is There Now An Opportunity In Ashtead Group plc (LON:AHT)?

Let’s take a look at Ashtead Group’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change. … The stock’s ratio of 12.4x is currently trading slightly below its industry peers’ ratio of 16.21x, which means if you buy Ashtead Group today, you’d be paying a fair price for it. … And if you believe Ashtead Group should be trading in this range, then there isn’t much room for the share price grow beyond where it’s currently trading.

Simply Wall St -

Read This Before You Buy Ashtead Group plc (LON:AHT) Because Of Its P/E Ratio

This article is for investors who would like to improve their understanding of price to earnings ratios (P/E ratios). … We'll look at Ashtead Group plc's (LON:AHT) P/E ratio and reflect on what it tells us about the company's share price. … Price to Earnings Ratio = Price per Share ÷ Earnings per Share (EPS)

Simply Wall St -

Company Info

Description

Ashtead Group plc, together with its subsidiaries, rents a range of construction and industrial equipment. It provides equipment for use in lifting, powering, generation, moving, digging, compacting, drilling, supporting, scrubbing, pumping, directing, heating, and ventilating works. The company offers various types of construction equipment for non-residential construction markets; and facilities management equipment for the maintenance and repair of facilities. It also provides disaster relief equipment, such as pumps and power generation equipment for various applications, such as assisting at times of flooding due to weather and burst water supply; power generation, lighting, and other equipment for bowl events, sporting events, music concerts, and festivals; and climate control equipment, including cooling, heating, and dehumidification equipment to the construction, commercial, industrial, and events markets. In addition, the company rents and installs scaffolding solutions for access to new or existing structures; and offers portable traffic systems to facilitate engineering projects or clean-up after an accident. It serves construction, industrial, and homeowner customers, as well as government entities and specialist contractors. The company operates 773 stores under the Sunbelt Rentals name in the United States; 67 stores under the Sunbelt Rentals Canada name in Canada; and 196 stores under the A-Plant name in the United Kingdom. Ashtead Group plc was founded in 1984 and is headquartered in London, the United Kingdom.

Details
Name: Ashtead Group plc
AHT
Exchange: LSE
Founded: 1984
£10,519,775,528
453,829,833
Website: http://www.ashtead-group.com
Address: Ashtead Group plc
100 Cheapside,
London,
Greater London, EC2V 6DT,
United Kingdom
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
LSE AHT Ordinary Shares London Stock Exchange GB GBP 01. Jan 1992
OTCPK ASHT.F Ordinary Shares Pink Sheets LLC US USD 01. Jan 1992
DB 0LC Ordinary Shares Deutsche Boerse AG DE EUR 01. Jan 1992
BATS-CHIXE AHTL Ordinary Shares BATS 'Chi-X Europe' GB GBP 01. Jan 1992
OTCPK ASHT.Y UNSPONSORED ADR Pink Sheets LLC US USD 25. Apr 2011
Number of employees
Current staff
Staff numbers
18,376
Ashtead Group employees.
Industry
Trading Companies and Distributors
Capital Goods
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/12/05 20:33
End of day share price update: 2019/12/05 00:00
Last estimates confirmation: 2019/12/02
Last earnings filing: 2019/09/10
Last earnings reported: 2019/07/31
Last annual earnings reported: 2019/04/30


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.