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Halfords Group

HFD.L
47
Specialty Retail · Consumer Cyclical
Price
232.50 GBp
-1.00 (-0.43%)
Market Cap
£506.6M
Exchange
London Stock Exchange
Winston Score
47
Winston is serious
Mixed quality — meaningful strengths and weaknesses.
Data as of Aug 23, 2026 · filings through Mar 31, 2026
How the score breaks down
Quality
Mixed
Growth
Weak
Cash Flow
Strong
Stability
Strong
Valuation
Good
Dividends
Mixed

Share count rising — dilution

+5.4% over 4y

The company has issued more shares over this period, which dilutes each existing shareholder’s stake.

Diluted shares outstanding: 213.7M (2022) → 225.2M (2026)

Winston Score History

The full picture

Halfords Group is a UK retailer that sells car parts, bicycles, and outdoor gear. Its stores help everyday customers fix their own vehicles, buy cycling equipment, and access motoring accessories. The company also runs a network of auto-repair garages under the Halfords Autocentres brand, making it one of the largest independent car-servicing chains in the UK.

Halfords earns money through in-store and online product sales, plus fees from its garage and fitting services. It operates almost entirely in the UK and Ireland, with hundreds of retail locations and autocentre sites. The services side of the business — fitting, repairs, and maintenance — gives Halfords some stability because customers need those jobs done regardless of the economy, but the retail side faces real pressure from online competitors and squeezed consumer spending. The key challenge ahead is growing its services revenue fast enough to offset weaker demand for physical products.

Growth Profile

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

+6.8% YoY

YoY Growth Rate

Slow revenue growth

EPS Growth

+139.2% YoY

YoY Growth Rate

EPS growth accelerating

R&D Spend

£0/ year

0.0% of revenue

Below sector average (4%)

Research and development spending

Insider Activity

9.7%ownership

Flat

Insider ownership roughly steady over the past year

Cash Position

Cash flow positive

£22M cash & investments

Quarterly Free Cash Flow

↓ Burn rate worsening

Company generates more cash than it spends — no dilution risk from fundraising

Growth context

Halfords Group is growing revenue at 7% year-over-year. The Winston Score measures business quality today — these growth metrics show what could matter tomorrow.

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Score breakdown

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Quality

Profit per sale
Gross Margin
53.1%
Healthy — 53.1% gross margin
Profit after running costs
Operating Margin
3.8%
Thin — 3.8% operating margin
Return on the money invested
ROCE
11.8%
Below par — 11.8% return on capital

ROIC between 5% and 15%. They earn 5 to 15 cents back per year on every dollar invested.

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Growth

Sales growth
Sales YoY
+5.0%
Slow sales growth (+5.0% YoY)
Profit growth
EPS YoY
N/A
Data not available
How steady the profit is
EPS Consistency
2/8 quarters
Earnings rarely grow — volatile business

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Cash Flow

Profit that turns into cash
Cash Conversion
563%
Turns 563% of profit into real cash
Spare cash per sale
FCF Margin
8.0%
Modest free cash flow (8.0%)

FCF margin between 0% and 10%. Some cash from sales, but not a lot.

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Stability

What it owes vs what it owns
Debt / Equity
0.00
Conservative — low debt load (0.00)
Covers its interest
Interest Cover
4.94x
Adequate interest coverage (4.9x)

Interest coverage between 3 and 8. Profits cover interest several times over.

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Valuation

Price vs profit
P/E Ratio (TTM)
15.4x
Fair value — P/E 15.4

P/E in the normal range. Price is roughly $15 for every $1 of yearly profit.

Cheaper or dearer next year
P/E vs Forward
+1.5
GROWING
Earnings expected to grow — slightly cheaper on forward P/E

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Dividends

Dividend
Dividend Yield
3.59%
Moderate income — 3.59% yield

Standard yield zone for stable dividend payers. A meaningful piece of total return.

Dividend record
Dividend Growth
-1.1%
Dividend cut (-1.1% YoY) — warning sign

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