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Headlam Group (HEAD) Fair Value & Analysis

Consumer Cyclical · GB · Market cap 9.5M GBX

HG Headlam Group HEAD · LSE
Price£0.0800
Fair Value£0.0951
Upside+18.9%
Quality41/100
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Weak Growth
Loss-making · -16.4% net margin
Low debt · negative free cash flow
Mixed vs. peers (4/10)
Narrow moat 6/100
Evidence: Low Range £0.0634 – £0.1321 Share as image

Fair value as of: Jul 18, 2026

From 3 valuation models · updated 23 days ago

Fair value updated Jul 18, 2026, revised from £0.9100 to £0.0951 (−89.5%) since Jun 25, 2026. Share price −41.6% over the past month.

Below-average quality, screening 19% undervalued on our models.

What matters now

  • A fairly wide model range (£0.0634 to £0.1321) leaves room in how you read the outcome.
  • Evidence is limited here (fewer models, shorter history), so the fair value is a rougher estimate than usual.
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Price vs Fair Value (5 years)

£3.20 £0.0359 Fair Value £0.0951 May 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Jul 18, 2026.

How to read this chart

60‑month range £0.0359 – £3.20 · fair‑value band £0.0634 – £0.1321 · the £0.0800 price screens below the £0.0951 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Jul 18, 2026.

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Analysis

Headlam Group (HEAD) currently trades at £0.0800, while our model-based Fair Value estimate is £0.0951, implying the stock looks roughly 18.9% undervalued today. The Quality Score stands at 41/100 (below-average quality), in the Consumer Cyclical sector. Bull case: trading below our estimate, it may offer upside if the fundamentals hold. Bear case: a low price can be a value trap when quality is weak or the data is thin (evidence: low), always confirm before acting.

Over the trailing twelve months, Headlam Group generated revenue of £499M at a net margin of -16.4%. Revenue declined 5.7% year over year. It earns a return on equity of -43.1%. Net debt stands at £99.6M. Fundamentals as of Jul 18, 2026

Our scenario range runs from £0.0634 (bear case) to £0.1321 (bull case); at £0.0800, the current price sits within that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. For context, the median of 10 Consumer Cyclical peers we cover trades at 16% fair-value upside, at 19%, HEAD screens cheaper than that median.

Fair Value models

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small.

Model Bear Bear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull Bull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. Evidence
Highest evidence
Gordon GGM £0.4200 £0.6000 £0.7700 70
DDM Multi-Stage £0.4200 £0.5600 £0.6900 61
NCAV (Graham) £0.6900 £0.9200 £1.37 50
All 3 models by family
Dividend Discount
Gordon GGM £0.4200 £0.6000 £0.7700 70
DDM Multi-Stage £0.4200 £0.5600 £0.6900 61
Asset-Based
NCAV (Graham) £0.6900 £0.9200 £1.37 50

Widest divergence: Asset-Based (£0.9200) versus Dividend Discount (£0.5600). Highest evidence: Gordon GGM (70).

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Key figures & financial health

Revenue (TTM) 499M GBX
Revenue growth (YoY) -5.7%
Net margin -16.4%
Return on equity -43.1%
Free cash flow −49.6M GBX FY2025
Operating margin -4.9%
More key figures
EPS (TTM) £-0.8100
EPS growth (YoY) -74.3%
Net debt 99.6M GBX FY2025

Figures from reported company fundamentals · as of Jul 18, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 41/100

Of which business quality 42 · Market factors (momentum, volatility) 11

Profitability 35
Margins and returns on capital today
Quality Growth 22
Are margins and returns improving?
Cashflow 1
Earnings quality: real cash, not paper profit
Fin. Strength 39
Balance sheet, leverage, solvency risk
Investment 100
Disciplined investing over empire-building
Low Volatility 37
Calm price path (market factor)
Momentum 0
Price trend over the last 3–12 months (market factor)
52W Momentum 2
Distance to the 52-week high (market factor)
Net Issuance 89
Buybacks instead of dilution

Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.

About the company

Headlam Group plc, together with its subsidiaries, engages in the sale, marketing, supply, and distribution of floorcovering and other ancillary products in the United Kingdom and Continental Europe. The company offers its products to independent and multiple retailers, small and large contractors, and housebuilders.

Full company description

Headlam Group plc, together with its subsidiaries, engages in the sale, marketing, supply, and distribution of floorcovering and other ancillary products in the United Kingdom and Continental Europe. The company offers its products to independent and multiple retailers, small and large contractors, and housebuilders. Headlam Group plc was incorporated in 1948 and is based in Birmingham, the United Kingdom.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Headlam Group reported revenue of £499M in FY2025 versus £667M in FY2021, a compound −7.0%/yr. Reported net income was −£81.9M in FY2025.

Growth Quality 0/100
Revenue growth is weak, negative or inconsistent.
Latest Revenue (FY 2025)
£499M
Latest YoY
−15.9%
Avg. growth/yr (3Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
−9.1%
Avg. growth/yr (5Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
−2.9%
Avg. growth/yr (39Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+11.5%
Revenue −7.0%/yr
FY21 £667M
FY22 £664M
FY23 £657M
FY24 £593M
FY25 £499M
Net income
FY21 £24.4M
FY22 £33.6M
FY23 £7.7M
FY24 −£25.0M
FY25 −£81.9M

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Cite: Fair Value Calculator (2026). "Headlam Group Fair Value". https://www.fairvalue-calculator.com/stock/HEAD

Peer Group

Furnishings, Fixtures & Appliances · 311 stocks

How this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.

Quality Score 41 · Bottom 25%
Fair Value upside +25% · Above median
Return on assets -7% · Bottom 25%
Net margin (TTM) -16% · Bottom 25%
Operating margin (TTM) -5% · Bottom 25%
Revenue growth -6% · Below median

Valuation Multiples vs Furnishings, Fixtures & Appliances median · lower = cheaper

P/B 0.12× · Cheaper than 75% of peers
P/S (TTM) 0.03× · Cheaper than 75% of peers

Snowflake

Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.

VALUE 67 · sector 22
FUTURE 0 · sector 0
PAST 0 · sector 19
HEALTH 100 · sector 97
DIVIDEND 0 · sector 55

Insider activity: 40/100

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

None of the checked exposures detected

ESG scores are not available for this stock yet. Values and ESG data are contextual and can differ between providers.

Similar stocks

10 more Furnishings, Fixtures & Appliances stocks, each showing price versus our Fair Value estimate (as of Jul 18, 2026).

Stock Price Fair Value vs Fair Value
Midea Group 000333 ¥82.71 ¥107.22 +30%
Gree Electric Appliances, Inc 000651 ¥38.25 ¥88.02 +130%
Haier Smart Home Co 600690 ¥21.46 ¥36.04 +68%
King Slide Works Co 2059 8,655 TWD 1,917 TWD -78%
Guangdong Songfa Ceramics Co 603268 ¥155.59 ¥38.95 -75%
SharkNinja, Inc SN $154.53 $89.07 -42%
Hisense Home Appliances Group 000921 ¥26.33 ¥48.03 +82%
Zhejiang Supor Co 002032 ¥43.85 ¥44.84 +2%
COWAY Co 021240 96,700 KRW 112,530 KRW +16%
Ecovacs Robotics Co 603486 ¥50.13 ¥54.11 +8%

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Frequently asked questions

Is Headlam Group (HEAD) overvalued or undervalued?
As of Jul 18, 2026, our model estimates a fair value of £0.0951 versus a price of £0.0800, about +19% (undervalued).
What is the fair value of HEAD?
Our model-based fair value for Headlam Group is £0.0951 (as of Jul 18, 2026), built from audited fundamentals. The current price is £0.0800.
What is the quality score of HEAD?
Headlam Group has a Quality Score of 41/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the revenue of Headlam Group (HEAD)?
Headlam Group reported trailing-twelve-month revenue of about £499M (latest available figure, as of Jul 18, 2026).
What is the net profit margin of HEAD?
The net profit margin of Headlam Group is about -16.4%, meaning it is currently running at a net loss. Based on the latest reported figures.

How we calculate Fair Value

Each company is valued through a stack of independent intrinsic-value models (DCF variants, residual-income, multiples and more), blended into one family-balanced consensus and weighted by how much trustworthy data backs it. A separate quality layer scores the fundamentals. Every input is real reported data, nothing guessed.

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