Household Goods & DIY

Household Goods & DIY equity research

Explore the most viewed and latest equity research and media content for companies within the Household Goods & DIY sector. Stocks in this sector include those who specialise in: decoration, furnishing, durable & non-durable home products, and DIY.

Household Goods & DIY equity research

21 Oct 19

Quarterly Research Outlook Autumn 2019

Following continued delays of a Brexit agreement, few sectors within the UK market have remained attractive to investors despite low valuations. One sector which has continued to outperform despite the political drama has been the UK video gaming sector (henceforth UK gaming), which we are fans of. We believe a combination of sector-leading growth, strong cash conversion and timely cyclical positioning support our positive view on the UK video gaming sector.

Companies: ABBY AMS ANX ARS ATYM AVON BLVN PIER BUR CGS CAML CDM CSRT TIDE CYAN DTG DEMG ELM EMR FPO FDEV GTLY GENL GHH GRI GEEC GKP HMI HAYD HEAD HILS HTG HUR IBPO IOG INDI JHD JOG KAPE KEYS KWS KCT KGH LAM LIT LOK MACF MANO MOD OXIG PCA PANR APP SRE PHC PMO RBW RMM RBGP REDD RSW RNO ROR SUS SCPA SEN SHG SOLG SOM SUMO TM17 INCE TWD TRAK TRI VNET VTC ZOO ZTF

05 Nov 19

Execution strength fuels growth

Excellent execution underpinned a strong recovery year for UPGS in FY2019, which augurs well for future growth. Headline results confirm the company’s 9 th September trading statement. Detailed sales data reflect the company’s ability to enhance core domestic growth with strong progress in both international and online. In our view, growth should remain positive in FY2020.

Companies: Up Global Sourcing

05 Nov 19

How to have your cake and eat it

Often investors are faced with the difficult decision of having to choose between growth and value. Rarely is it possible to get the best of both worlds, but we think Watkin Jones is one such stock. Not only do the shares trade on a FY20 adjusted PER (ex cash) of 12.0x and pay a 3.6% dividend yield. But also the firm is benefiting from long term tailwinds in its 2 key markets of Build to Rent (BtR) & student accommodation (PBSA). In turn, offering opportunities much larger than we’d previously thought.

Companies: Watkin Jones

06 Nov 19

LIBERUM: Crest Nicholson* - Resetting to reposition

We put our recommendation, target price and estimates under review on Crest Nicholson’s update last week. Having had time to reflect, we re-establish coverage with a target price of 379p, which gives 10% TSR upside, making the shares a Buy on our rating system.

Companies: Crest Nicholson

07 Oct 19

UK Housebuilding Sector in 3Q 2019: ‘And then there were 17’

Dame Agatha Christie (née Miller) published more than 80 books and plays; and the Guinness Book of World Records lists her as the best-selling novelist of all time with roughly two billion copies sold. ‘And then there were none’ was originally published in 1939, with an un-politically correct title; and it is still the world’s best-selling mystery (with more than 100 million sold). It is also number six on the list of best-selling books of all-time.

Companies: ABBY CSP WJG TW/ BWY PSN GLV BDEV RDW BKG BVS GFRD CRN GLE SPR

05 Nov 19

Turning point reached

Having previously raised all the capital required to invest in its land bank, Cairn Homes has now passed a significant mile-stone; paying its first dividend, and, commencing a share buy-back. It is now expected that both of these features will repeat regularly, given the anticipated cash flows. Furthermore, the very long landbank implies a c5year land buying holiday further supporting cash flow. We raise our price target to €1.60 price target which implies 36% upside.

Companies: Cairn Homes

14 Jan 19

Opportunity knocks

We are introducing our Best Ideas for 2019 and also review the performance of last year’s picks. We suggest ten solidly financed stocks with good business dynamics that ought to be considered for core portfolio holdings and six UK domestically focused stocks that our analysts believe should perform strongly in the event that uncertainties unwind. We also introduce a new style of research from N+1 Singer which presents a Company’s dynamics and metrics in a clear and concise manner and concentrates on the pivotal issues affecting that Company and an investment decision.

Companies: BCA CLIN CLG CBP DNLM EAH STU FCRM FUTR GTLY INS GLE NICL SDL SPR TRI

05 Jul 19

UK Housebuilding Sector in 2Q 2019

Dwight Barkley PhD is a Professor of Mathematics at the University of Warwick. He studies waves in excitable media such as the Belousov-Zhabotinsky reaction, heart tissue and neurons. In 1997, Dr Barkley and Dr Laurette Tuckerman, a Paris-based mathematical physicist, developed ‘bifurcation analysis for time steppers’, which is a technique for modifying computer codes to perform bifurcation analysis. More lyrical, perhaps, Dwight is also known for formulating an equation to estimate how long it will be until a child in a car asks the question “are we there yet?” And, it is shown on the image on page 3 of this report. Herein, there are three factors which decide the timing of this wearisome question i.e. one plus the number of activities, divided by the number of children in the car squared. That figure is then added to the time it took the family to get into the car and set off on its journey. Crucial in putting off the first query as to the proximity of the destination are onboard activities for children i.e. no activities equals a question before leaving the driveway. Dr Barkley says: “Mathematics can help answer many of life’s questions”. If only the Brexit journey were that simple. It is not. We are all children now stuck in the back seat; and, maybe, we are still on the driveway with a dearth of on-board activities. Yes, three years on Brexit-resolution-fatigue is making itself felt across the board, including the UK Housebuilding Sector, where the fall in value in 2Q’19 was 7%. Berkeley said something similarin its final results, on 20 June, when it lamented an uncertain operating environment and “a lack of visibility in the political outlook”; and its PBT is expected to fall by a further third this fiscal year. The daily Sector value chart is also lurching from top-left to bottom-right (as is the British Pound versus the Euro). Yes, there were two palpable positives in 2Q from the NHBC and UK Finance about building activity and mortgages; plus, on the third day of 3Q, CBRE’s bid for Telford Homes. Nonetheless, prospective earnings growth for the Sector is now flat in both 2019 and 2020. This is about the journey.

Companies: MCS TW/ PSN BDEV ABBY CSP WJG BVS TEF INL GLV GLE CRST BWY BKG

23 Jul 19

Quarterly Research Outlook - Summer 2019

In January, we provided a list of 11 stocks for 2019 that we believed would perform strongly with attractive catalysts that could lead to material outperformance. In this Quarterly Research Outlook, we revisit these views, analysing what has happened and how the remaining six months of the year could play out.

Companies: AMS ANX ARS ATYM AVON BLVN PIER BUR CGS CAML CALL CSRT TIDE CYAN DTG DEMG ELM EMR FPO FST GTLY GENL GRI GEEC GKP HMI HAYD HEAD HILS HTG HUR HYR IBPO IOG INDI JHD JOG KAPE KEYS KCT KGH LAM LIT LOK MACF MANO PCA PANR PXC PHC PMO RBW RMM REDD RSW RNO RKH RBGP ROR SUS SCPA SHG SOLG SOM TWD TRAK TSG TRI VNET VTC ZOO ZTF

29 Jul 19

Outstanding pipeline and forward visibility

If you were worried about the impact of Brexit on the UK’s £51.2bn purpose built student accommodation and £9.6bn Build-to-Rent markets, then don’t be. The country’s largest PBSA operator Unite, reported last week that the industry’s outlook was ”positive”, whilst institutional capital continues to flood into BtR. So much so, that real-estate adviser Savills expects the latter to ultimately be worth £543.6bn, covering 1.749m homes compared to 30.4k today.

Companies: Watkin Jones

09 Aug 19

Walker Greenbank - Maintained expectations, awaiting strategy update

Positive steps have been taken in the UK and US that will benefit Walker Greenbank in future periods and although the domestic market remains challenging, management’s full year expectations are unchanged. The upcoming strategic update may bring the prospects for re-building earnings and associated valuation metrics into sharper focus for investors.

Companies: Walker Greenbank

04 Oct 19

Full house of property deals

For professional investors, volatility begets opportunity. In fact 2 days ago, the FTSE100 tumbled 3.2% on the back of indiscriminate selling from algos and programmatic traders, with only 2 companies closing in the green. So how do you take advantage of these wild swings? One approach is to keep a shopping list of premium, dividend paying stocks to ‘buy & hold’ for the long term. Take Watkin Jones, who yesterday announced a clutch of new property deals and pipeline updates, involving 2,532 PBSA beds, 431 BtR units and 88 residential appts (see below).

Companies: Watkin Jones

24 Oct 19

FY19 outlook trimmed after another disappointing quarter

Bic reported a third consecutive quarter of negative organic growth impacted by deteriorating conditions in the US lighters industry. The weak performance in stationery during the back-to-school season also weighed on the performance, nonetheless, shavers provided some respite, led by the success of value-added products. Given the continued challenging environment, the FY19 guidance has been slashed. The margin could also come under pressure and this may affect dividends.

Companies: Societe B I C

31 Oct 19

LIBERUM: Crest Nicholson* - Resetting – shares supported by NAV and dividend

The new CEO, Peter Truscott, has reset expectations as the new strategy takes shape. Guidance for underlying EPS for 2019E and 2020E is now 16% and 30% below our last published estimates.

Companies: Crest Nicholson

27 Jun 17

IG Design Group (IGR) Preliminary results for the year ended 31 March 2017

05 Mar 19

Telford Homes - Long term strategic build to rent partners selected

13 Jul 16

Watkin Jones at Mello 13.7.16

05 Feb 19

Consumer Staples: Our Best Ideas We expect sector rotation into defensives: Buy ABI, Imperial, Reckitt

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29 May 19

Telford Homes - Final Results

30 Nov 18

Design Group (IGR) H1 results November 2018

18 Apr 18

Telford Homes - Trading Update

28 Nov 18

Telford Homes - Interim Results 2018

17 Jun 19

IG Design Group (IGR) FY19 results presentation June 2019

11 Jun 18

IG Design Group (IGR) Full year results 2018

10 Oct 18

Telford Homes - Trading Update

28 Nov 17

IG Design Group (IGR) H1 results November 2017

06 Nov 19

UPGS FY Results November 2019

04 Jul 17

Executive interview - IG Design Group

20 Sep 19

Investor Update: Eve Sleep and Simba abandon merger plans

Latest Content

Crest Nicholson

LIBERUM: Crest Nicholson* - Resetting to reposition

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06 Nov 19
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Up Global Sourcing

UPGS FY Results November 2019

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06 Nov 19

Up Global Sourcing

Execution strength fuels growth

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05 Nov 19
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Cairn Homes

Turning point reached

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05 Nov 19
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Watkin Jones

How to have your cake and eat it

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05 Nov 19
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Crest Nicholson

LIBERUM: Crest Nicholson* - Resetting – shares supported by NAV and dividend

The new CEO, Peter Truscott, has reset expectations as the new strategy takes shape. Guidance for underlying EPS for 2019E and 2020E is now 16% and 30% below our last published estimates.

View

31 Oct 19
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SEB

Slowdown in China, highlight on Other EMEA

In Q3 19, organic sales growth was strong (+7.7%) and the operating margin from activity was 10% of sales (-0.3pt). In Consumer, organic sales growth slowed in China (+7.5%), reflecting softer demand and a very high comparative in Q3 18 (+26.5%), and was compensated by impressive organic growth in Other EMEA (+21.7%) and the US. For 2019, organic sales growth is downgraded to +6-7% (vs >+7% previously) and the c.6% increase in the operating result from activity is maintained.

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30 Oct 19
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Electrolux

Higher tariffs and raw material costs offset by price increases

Organic sales growth was low in Q3 19 (+0.8%). The good news was in North America where the deterioration in organic sales stabilised (-0.2% vs -10.8% in Q2 19 and -5% in Q1 19) despite a further decline of sales under private label. Higher trade tariffs and raw material costs and the negative currency effects were fully offset by price increases. The reported operating margin (3.7% of sales, -2.1pts) included significant restructuring costs and various non-recurring items.

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27 Oct 19
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Societe B I C

FY19 outlook trimmed after another disappointing quarter

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24 Oct 19
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Husqvarna

Moderate organic sales growth, operating margin improvement

Organic sales grew by +2% in Q3 19 (vs -3% in Q2 19, +7% in Q1 19) despite the weakness in demand for wheeled products in the US. The operating margin surged to 4.9% of sales (+2.1pts) thanks to price increases implemented to attenuate higher tariffs and raw material costs, cost savings and greater efficiency. Furthermore, the currency effect boosted the operating income by 10% (SEK40m) out of an 84% total increase in the operating income on a restated basis.

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