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Howden Joinery Group Plc (HWDN) Fair Value & Analysis

Consumer Cyclical · GB · Market cap 4.4B GBX · ISIN GB0005576813

What is Howden Joinery Group Plc really worth?

HJ Howden Joinery Group Plc HWDN · LSE
Price£7.75
Fair Value£9.24
Upside+19.2%
Quality74/100

A solid business, trading 16% below our fair value of £9.24.

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Strengths

Healthy Growth (revenue 5y +9.3 %/yr)
Solidly profitable · 11.1% net margin
Low debt · generates free cash flow
Ranks above peers (9/15)
Wide moat 68/100

Risks

!Weak on future: 24 out of 100

For context

·2.84% dividend yield
Evidence: High Range £6.49 – £11.99

Fair value as of: Aug 28, 2026

From 26 valuation models · updated 8 days ago

Share price −7.0% over the past month.

What runs behind every stock

69 individual criteria per stock, every one traceable See the method →

What matters now

  • A fairly wide model range (£6.49 to £11.99) leaves room in how you read the outcome.
  • The price sits in the lower half of our model range, the side with the larger margin of safety.
  • The data supports the verdict: every model runs on fully documented inputs.

Price vs Fair Value (5 years)

£9.50 £4.28 Fair Value £9.24 Jun 2021 Sep 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 28, 2026.

How to read this chart

60‑month range £4.28 – £9.50 · fair‑value band £6.49 – £11.99 · the £7.75 price screens below the £9.24 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Aug 28, 2026.

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Analysis

Howden Joinery Group Plc (HWDN) currently trades at £7.75, while our model-based Fair Value estimate is £9.24, implying the stock looks roughly 16.1% undervalued today. The Quality Score stands at 74/100 (solid quality), in the Consumer Cyclical sector. Bull case: the DCF Models group reads highest at a median of £10.45 per share, and 18 of the 26 models we run sit above the £7.75 price. Bear case: the Asset-Based group reads lowest at £1.45, and 8 of the 26 models stay below the price. Evidence for this calculation is high.

Over the trailing twelve months, Howden Joinery Group Plc generated revenue of £2.4B at a net margin of 11.1%. Revenue grew 4.8% year over year. It earns a return on equity of 23.1%. Net debt stands at £968M. Fundamentals as of Aug 28, 2026

Our scenario range runs from £6.49 (bear case) to £11.99 (bull case); at £7.75, 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 −9% fair-value upside, at 19%, HWDN screens cheaper than that median.

Fair Value models

This estimate rests on fiscal year 2025 figures, and about 8 months have passed since. In that time the company retained roughly £0.1835 per share, which is 2.0 % of the fair value. The fair value deliberately does not add this in: the models value reported figures, not a projection.

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted, family-balanced 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. Every input is real reported data, nothing guessed.

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
FCF DCF £7.22 £10.45 £15.07 80
Growth DCF £7.34 £10.22 £14.11 79
Owner Earnings £6.06 £8.72 £12.52 76
All 26 models by family
DCF Models
FCF DCF £7.22 £10.45 £15.07 80
Owner Earnings £6.06 £8.72 £12.52 76
5Y Revenue Exit £6.38 £9.44 £13.27 73
5Y EBITDA Exit £8.28 £12.94 £18.29 75
5Y P/E Exit £7.35 £11.22 £15.21 71
10Y Revenue Exit £6.47 £9.28 £12.90 67
10Y EBITDA Exit £7.81 £11.64 £16.59 68
10Y P/E Exit £7.23 £10.48 £14.33 64
Earnings-Based
Graham-Dodd £3.32 £9.52 £12.55 65
Lynch FV £1.96 £2.79 £3.63 61
PEG = 1.0 £1.96 £2.79 £3.63 57
EPV £5.23 £5.96 £6.59 74
Dividend Discount
Gordon GGM £1.87 £3.72 £5.63 67
DDM Multi-Stage £1.87 £2.93 £3.92 66
Multiples
P/E Multiple £7.68 £10.24 £12.80 63
P/S Multiple £6.22 £8.29 £10.36 58
P/B Multiple £6.22 £8.29 £10.36 55
EV/EBIT £8.88 £11.63 £14.38 66
EV/EBITDA £9.97 £13.09 £16.20 67
EV/Revenue £6.18 £8.56 £10.93 54
Asset-Based
NCAV (Graham) £1.08 £1.45 £2.17 54
Growth DCF
Growth DCF £7.34 £10.22 £14.11 79
Rev-Margin DCF £6.38 £9.49 £13.00 73
Economic Profit
Residual Income £3.00 £3.88 £14.14 64
ROIC Compounder £5.47 £6.54 £7.68 72
Growth Earnings
Growth-Adj P/E £6.18 £8.83 £11.48 67

Widest divergence: DCF Models (£10.45) versus Asset-Based (£1.45). Highest evidence: FCF DCF (80).

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Key figures & financial health

P/E ratio 16.1
P/S ratio 1.78 P/E × margin
EPS (TTM) £0.4900 price ÷ EPS = P/E 16.1
Dividend yield 2.8% payout 44.9%
Net margin 11.1% FY2025
Return on equity 23.1% TTM
More key figures
Profitability
Return on assets (EBIT) 17.3% avg 5y
Operating margin 16.0% TTM
Growth
Revenue (TTM) £2.4B TTM
Revenue growth (YoY) +4.8% 3y avg +1.4%
EPS growth (YoY) +9.2%
Balance sheet & cash flow
Free cash flow 342M GBX FY2025
Net debt 968M GBX FY2025 · ≈ 2.8 yrs of FCF

Figures from reported company fundamentals · as of Aug 28, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 74/100

Of which business quality 74 · Market factors (momentum, volatility) 40

Profitability 75
Margins and returns on capital today
Quality Growth 48
Are margins and returns improving?
Cashflow 71
Earnings quality: real cash, not paper profit
Fin. Strength 85
Balance sheet, leverage, solvency risk
Investment 65
Disciplined investing over empire-building
Low Volatility 56
Calm price path (market factor)
Momentum 37
Price trend over the last 3–12 months (market factor)
52W Momentum 27
Distance to the 52-week high (market factor)
Net Issuance 91
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.

All values are scores from 0 to 100 (100 = best against fixed, research-based bands), not percentages. The three market factors (momentum, 52-week proximity, low volatility) are displayed but carry zero weight in the headline number: market sentiment is not a business property.

About the company

Howden Joinery Group Plc supplies various kitchen, joinery, and hardware products in the United Kingdom, France, Belgium, and the Republic of Ireland.

Full company description

Howden Joinery Group Plc supplies various kitchen, joinery, and hardware products in the United Kingdom, France, Belgium, and the Republic of Ireland. The company's product portfolio includes cabinet, worktops, sinks and taps, flooring, appliances, and handles; internal and external doors, such as fire doors, flooring, stair parts, and general joinery items; and cooking, cleaning, and cooling appliances. The company was formerly known as Galiform Plc and changed its name to Howden Joinery Group Plc in September 2010. Howden Joinery Group Plc was incorporated in 1987 and is based in London, the United Kingdom.

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

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Howden Joinery Group Plc reported revenue of £2.4B in FY2025 versus £2.1B in FY2021, a compound +3.7%/yr. Reported net income was £268M in FY2025, compounding −3.9%/yr from FY2021.

Growth Quality 89/100
Revenue growth appears healthy and is supported by profitability and cash-flow quality.
Latest Revenue (FY 2025)
£2.4B
Latest YoY
+4.1%
Avg. revenue 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.
+1.4%
Avg. revenue 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.
+9.3%
Avg. revenue growth/yr (36Y) 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.
+3.9%
Value creation/yr (5Y) Earnings growth per share (CAGR 5 years) plus dividend yield: value created per share and year.
+9.8% (7.0 + 2.8)
Revenue +3.7%/yr
FY21 £2.1B
FY22 £2.3B
FY23 £2.3B
FY24 £2.3B
FY25 £2.4B
Net income −3.9%/yr
FY21 £315M
FY22 £374M
FY23 £255M
FY24 £249M
FY25 £268M
Character of growth · EPS growth decomposed (2014-2025) +6.3 % p.a.
Revenue per share +9.6 %

of which total revenue +7.7 % · buybacks/dilution +1.7 %

EBIT margin −2.1 %
Tax rate −0.3 %
Residual (interest, one-offs) −0.6 %

Annual growth per factor. These are factors, not summands: multiplied they give the EPS growth rate, added they do not quite. Start and end points are 3-year averages (details on hover).

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Cite: Fair Value Calculator (2026). "Howden Joinery Group Plc Fair Value". https://www.fairvalue-calculator.com/stock/HWDN

Peer Group

Furnishings, Fixtures & Appliances · 317 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 74 · Top 25%
Fair Value upside +19% · Above median
Return on equity (TTM) 23% · Top 25%
Return on assets 10% · Top 25%
Net margin (TTM) 11% · Top 25%
Operating margin (TTM) 16% · Top 25%
Revenue growth 5% · Above median
Dividend yield (TTM) 2.8% · Below median

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

P/E (TTM) 16.1× · Cheaper than median
P/B 4.96× · Pricier than 75% of peers
P/S (TTM) 2.44× · Pricier than 75% of peers
P/FCF 17.2× · Pricier than 75% of peers
EV/EBITDA 13.7× · Pricier than median
PEG 2.46× · Pricier than 75% of peers

Strength profile in five axes (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.

VALUEFUTUREPASTHEALTHDIVIDEND
This stock
VALUEFUTUREPASTHEALTHDIVIDEND
Sector peers
VALUE59 · sector 21
FUTURE24 · sector 0
PAST92 · sector 19
HEALTH100 · sector 98
DIVIDEND57 · sector 58

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

Similar stocks

10 more Furnishings, Fixtures & Appliances stocks, each showing price versus our Fair Value estimate (as of Aug 28, 2026).

Stock Price Fair Value vs Fair Value
Midea Group 000333 ¥86.98 ¥99.66 +15%
Gree Electric Appliances, Inc 000651 ¥41.58 ¥86.91 +109%
Haier Smart Home Co 600690 ¥21.79 ¥36.04 +65%
King Slide Works Co 2059 12,500 TWD 1,917 TWD −85%
Guangdong Songfa Ceramics Co 603268 ¥173.26 ¥38.83 −78%
SharkNinja, Inc SN $181.24 $89.07 −51%
Somnigroup International Inc SGI $63.65 $31.69 −50%
Mohawk Industries, Inc MHK $131.70 $119.26 −9%
Hisense Home Appliances Group 000921 ¥26.12 ¥50.62 +94%
Alliance Laundry Holdings ALH $25.91 $7.74 −70%

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Frequently asked questions

Is Howden Joinery Group Plc (HWDN) overvalued or undervalued?
As of Aug 28, 2026, our model estimates a fair value of £9.24 versus a price of £7.75, about +19% upside (undervalued).
What is the fair value of HWDN?
Our model-based fair value for Howden Joinery Group Plc is £9.24 (as of Aug 28, 2026), built from audited fundamentals. The current price: £7.75.
What is the quality score of HWDN?
Howden Joinery Group Plc has a Quality Score of 74/100. 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 Howden Joinery Group Plc (HWDN)?
Howden Joinery Group Plc reported trailing-twelve-month revenue of about £2.4B (latest available figure, as of Aug 28, 2026).
What is the net profit margin of HWDN?
The net profit margin of Howden Joinery Group Plc is about 11.1%, meaning it keeps roughly 11.1% of revenue as net income. Based on the latest reported figures.
Does Howden Joinery Group Plc pay a dividend?
Howden Joinery Group Plc currently shows a dividend yield of about 2.84% relative to its recent price (as of Aug 28, 2026).
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