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Halfords Group (HFD) Fair Value & Analysis

Consumer Cyclical · GB · Market cap 517M GBX

HG Halfords Group HFD · LSE
Price£2.40
Fair Value£3.32
Upside+38.6%
Quality67/100
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Healthy Growth
Thin margins · 1.8% net margin
Low debt · generates free cash flow
3.81% dividend yield
Mixed vs. peers (8/14)
Narrow moat 32/100
Evidence: High Range £2.49 – £4.15 Share as image

Fair value as of: Jul 15, 2026

From 24 valuation models · updated 25 days ago

Fair value updated Jul 15, 2026, revised from £4.98 to £3.32 (−33.3%) since Jun 25, 2026. Share price +3.4% over the past month.

A solid business, screening 39% undervalued on our models.

What matters now

  • The price is below even our cautious bear case (£2.49). The market is more pessimistic than our downside scenario.
  • Solid quality (67/100) at a price below fair value, the discount is the argument here, not the business quality.
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Price vs Fair Value (5 years)

£3.33 £1.01 Fair Value £3.32 May 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Jul 15, 2026.

How to read this chart

60‑month range £1.01 – £3.33 · fair‑value band £2.49 – £4.15 · the £2.40 price screens below the £3.32 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Jul 15, 2026.

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Analysis

Halfords Group (HFD) currently trades at £2.40, while our model-based Fair Value estimate is £3.32, implying the stock looks roughly 38.6% undervalued today. The Quality Score stands at 67/100 (solid 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: high), always confirm before acting.

Over the trailing twelve months, Halfords Group generated revenue of £1.7B at a net margin of -1.9%. Revenue grew 3.3% year over year. It earns a return on equity of -6.5%. Net debt stands at £229M. Fundamentals as of Jul 15, 2026

Our scenario range runs from £2.49 (bear case) to £4.15 (bull case); at £2.40, the current price sits below 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 -24% fair-value upside, at 39%, HFD 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 BearBaseBull Evidence
Highest evidence
Growth DCF £6.19 £8.32 £10.92 80
Residual Income £1.77 £1.79 £1.72 76
Rev-Margin DCF £3.94 £5.45 £7.18 74
All 24 models by family
DCF Models
FCF DCF £6.12 £8.52 £11.61 38
Owner Earnings £5.13 £7.15 £9.74 31
5Y Revenue Exit £3.94 £5.35 £7.04 39
5Y EBITDA Exit £6.59 £10.19 £14.27 41
5Y P/E Exit £3.82 £5.13 £6.43 38
10Y Revenue Exit £4.73 £6.13 £7.81 36
10Y EBITDA Exit £6.33 £9.16 £12.72 37
10Y P/E Exit £4.72 £5.99 £7.39 35
Earnings-Based
Graham-Dodd £1.03 £2.81 £3.68 54
Lynch FV £0.5500 £0.7900 £1.03 50
PEG = 1.0 £0.5500 £0.7900 £1.03 46
EPV £1.88 £2.13 £2.33 59
Multiples
P/E Multiple £2.49 £3.32 £4.15 63
P/S Multiple £1.93 £2.57 £3.21 58
P/B Multiple £1.93 £2.57 £3.21 55
EV/EBIT £3.82 £5.07 £6.33 53
EV/EBITDA £7.88 £10.49 £13.09 54
EV/Revenue £2.59 £3.68 £4.76 43
Asset-Based
NCAV (Graham) £1.18 £1.58 £2.36 50
Growth DCF
Growth DCF £6.19 £8.32 £10.92 80
Rev-Margin DCF £3.94 £5.45 £7.18 74
Economic Profit
Residual Income £1.77 £1.79 £1.72 76
ROIC Compounder £1.88 £2.13 £2.33 72
Growth Earnings
Growth-Adj P/E £1.97 £2.81 £3.65 68

Widest divergence: DCF Models (£6.13) versus Earnings-Based (£0.7900). Highest evidence: Growth DCF (80).

Key figures & financial health

Revenue (TTM) 1.7B GBX
Revenue growth (YoY) +3.3%
Net margin 1.8%
Return on equity 6.4%
Free cash flow 145M GBX FY2026
P/E ratio 15.8
More key figures
Operating margin 3.4%
EPS (TTM) £0.1500
Dividend yield 3.8%
Net debt 229M GBX FY2026

Figures from reported company fundamentals · as of Jul 15, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 67/100

Of which business quality 66 · Market factors (momentum, volatility) 86

Profitability 57
Margins and returns on capital today
Quality Growth 75
Are margins and returns improving?
Cashflow 65
Earnings quality: real cash, not paper profit
Fin. Strength 55
Balance sheet, leverage, solvency risk
Investment 100
Disciplined investing over empire-building
Low Volatility 53
Calm price path (market factor)
Momentum 100
Price trend over the last 3–12 months (market factor)
52W Momentum 100
Distance to the 52-week high (market factor)
Net Issuance 67
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

Halfords Group plc, through its subsidiaries, provides motoring and cycling products and services in the United Kingdom. It operates through two segments, Retail and Autocentres.

Full company description

Halfords Group plc, through its subsidiaries, provides motoring and cycling products and services in the United Kingdom. It operates through two segments, Retail and Autocentres. The company offers batteries; car parts, cleaning solutions, seats, and accessories; engine oils and fluids; tyres; tools; baby and child car accessories; bulbs; wiper blades; roof bars and boxes; number plates; camping; and travel accessories. The company also offers bikes; electric and refurbished bikes; bike accessories, parts, racks, and helmets; cycling clothing; scooters; second hand electric scooters; turbo trainers; bike services and repairs; and cycling technologies. In addition, it offers car warranty, checks, and mobile fitting services. It sells its products and services through retail stores and online platform. Further, it provides vehicle servicing and repair from garages and mobile vans; and Avayler, Software-as-a-Service platform. Halfords Group plc was founded in 1892 and is based in Redditch, the United Kingdom.

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

Revenue & earnings trend

FY2022 – FY2026 · reported fiscal years

Halfords Group reported revenue of £1.8B in FY2026 versus £1.4B in FY2022, a compound +6.8%/yr. Reported net income was £32.9M in FY2026, compounding −19.3%/yr from FY2022.

Growth Quality 73/100
Revenue growth appears healthy and is supported by profitability and cash-flow quality.
Latest Revenue (FY 2026)
£1.8B
Latest YoY
+5.0%
Avg. growth/yr (3Y)
+4.2%
Avg. growth/yr (5Y)
+6.9%
Avg. growth/yr (22Y)
+5.3%
Revenue +6.8%/yr
FY22 £1.4B
FY23 £1.6B
FY24 £1.7B
FY25 £1.7B
FY26 £1.8B
Net income −19.3%/yr
FY22 £77.7M
FY23 £28.1M
FY24 £16.9M
FY25 −£33.6M
FY26 £32.9M

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

Peer Group

Specialty Retail · 221 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 67 · Top 25%
Fair Value upside +39% · Above median
Return on equity (TTM) 6% · Below median
Return on assets 3% · Below median
Net margin (TTM) 2% · Below median
Operating margin (TTM) 3% · Below median
Revenue growth 7% · Above median
Dividend yield (TTM) 3.8% · Above median
Debt / equity 0.02× · Lower than median

Valuation Multiples vs Specialty Retail median · lower = cheaper

P/E (TTM) 15.8× · Cheaper than median
P/B 1.36× · Pricier than median
P/S (TTM) 0.39× · Cheaper than median
P/FCF 4.8× · Pricier than median
EV/EBITDA 6.7× · Cheaper than median

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 85 · sector 31
FUTURE 34 · sector 23
PAST 26 · sector 27
HEALTH 99 · sector 94
DIVIDEND 76 · sector 51

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 Specialty Retail stocks, each showing price versus our Fair Value estimate (as of Jul 15, 2026).

Stock Price Fair Value vs Fair Value
Casey's General Stores, Inc CASY $827.04 $405.44 -51%
Williams-Sonoma, Inc WSM $222.84 $164.16 -26%
Ulta Beauty, Inc ULTA $479.57 $488.39 +2%
DICK'S Sporting Goods, Inc DKS $208.89 $181.10 -13%
Best Buy Co BBY $83.98 $109.12 +30%
China Tourism Group 601888 ¥52.90 ¥40.40 -24%
Tractor Supply Company TSCO $31.01 $35.52 +15%
Murphy USA Inc MUSA $618.57 $423.35 -32%
Five Below, Inc FIVE $197.71 $117.29 -41%
Taiwan Mobile Co 3045 110.50 TWD 80.98 TWD -27%

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Frequently asked questions

Is Halfords Group (HFD) overvalued or undervalued?
As of Jul 15, 2026, our model estimates a fair value of £3.32 versus a price of £2.40, about +39% (undervalued).
What is the fair value of HFD?
Our model-based fair value for Halfords Group is £3.32 (as of Jul 15, 2026), built from audited fundamentals. The current price is £2.40.
What is the quality score of HFD?
Halfords Group has a Quality Score of 67/100. 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 Halfords Group (HFD)?
Halfords Group reported trailing-twelve-month revenue of about £1.7B (latest available figure, as of Jul 15, 2026).
What is the net profit margin of HFD?
The net profit margin of Halfords Group is about -1.9%, meaning it is currently running at a net loss. Based on the latest reported figures.
Does Halfords Group pay a dividend?
Halfords Group currently shows a dividend yield of about 5.06% relative to its recent price (as of Jul 15, 2026).

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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