Hill & Smith HILS.L
United KingdomIndustrials · Engineering & ConstructionLondon Stock Exchange · GBP
33.43 GBP (+7.8%)
9 analysts
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Hill & Smith PLC is a British industrial group that designs, manufactures and supplies infrastructure and construction products, including road safety systems, protection barriers, galvanised steel structures and solutions for the energy and telecommunications sectors.
Listed on London Stock Exchange · Symbol HILS.L · LON: HILS · Currency GBP
Key points
from its scores- ✓Good share-price trend8.3
- ✓Very solid balance sheet7.5
- ✕Weak growth4.1
- ✕Demanding valuation4.4
- !Risks to watch5.3
AI analysis
bottom line, main risk, context and newsSolid quality and balance sheet, but the earnings decline and demanding valuation (P/E 35.23) do not offer an attractive entry point until margin recovery is confirmed.
Hill & Smith has a solid balance sheet (net debt/EBITDA of 0.75, liquidity of 2.04) and an ROIC of 19.42%, but the 20.9% decline in earnings and a P/E of 35.23 (forward 19.82) suggest the market is already pricing in a recovery that has not yet materialised in results. The 35.89% momentum indicates recent strength, but the current valuation limits the margin of safety.
The 20.9% decline in earnings with a P/E of 35.23 suggests the stock trades at a premium that depends on the recovery materialising; if the 8.1% revenue growth does not translate into earnings, the multiple could compress sharply.
Context and risks
No recent relevant news and no material exposure to current macro factors: the company operates in engineering and construction in the UK, with net debt/EBITDA of 0.75 and an operating margin of 14.49%, so the rise in long-term rates and dollar strength do not significantly affect its business or balance sheet.
Is Hill & Smith stock cheap or expensive?
at the analysis dateOn P/E and EV / EBITDA, it trades 20% above the Industrials median on average.
| Multiple | Company | Sector | Difference |
|---|---|---|---|
| P/E | 35.2 | 25.4 | +39% |
| EV / EBITDA | 14.7 | 14.5 | +1% |
| Price / book | 5.0 | 4.1 | +23% |
| Price / sales | 2.7 | 2.1 | +29% |
Sector: median of the 388 Industrials companies analysed. In bold, the multiples used for the comparison.
Valuation score: 4.4 out of 10 (median for Industrials: 5.0).
Average analyst target: 33.43 GBP, +7.8% versus the price.
A premium can be justified if the company is of higher quality or grows faster than its sector: Quality / Moat 6.3 (sector 5.8), Growth 4.1 (sector 6.6).
Classic formulas with standard assumptions (10.0% growth, 8-9% discount rate). Indicative only: they change a lot with the assumptions and are not a recommendation.
Work out its fair value yourself →How much would you have made investing every month? →
Comparing it with its sector does not say whether it is a good buy: this is not investment advice.
Score by category
0 to 10 · hover overtap each one to see what it measuresKey metrics
at the analysis date · compared with the Industrials medianValuation
- P/E
- 35.2
- Forward P/E
- 19.8
- EV / EBITDA
- 14.7
- Price / book
- 5.0
- Price / sales
- 2.7
- Market cap
- 2.4B GBP
- Enterprise value
- 3.4B USD
Profitability
- ROE
- 15.0%
- ROA
- 10.5%
- ROIC (approx.)
- 19.4%
- Gross margin
- 40.4%
- Operating margin
- 14.5%
- Net margin
- 8.0%
- Free cash flow
- 86.0M USD
- FCF yield
- 2.7%
- Cash conversion
- 38%
Solvency
- Total debt
- 254.3M USD
- Net debt
- 170.9M USD
- Cash
- 83.4M USD
- EBITDA
- 228.7M USD
- Net debt / EBITDA
- 0.75
- Debt / equity
- 41.04
- Current ratio
- 2.04
- Quick ratio
- 1.45
Growth
- Revenue growth
- +8.1%
- Earnings growth
- −20.9%
- EPS (TTM)
- 0.88 GBP
- EPS (forward)
- 1.56 GBP
Dividend
- Dividend yield
- 1.7%
- Payout
- 60.3%
Risk and market
- Beta
- 1.24
- Analyst consensus
- Buy (9)
- Target price
- 33.43 GBP
Recent news
All HILS.L news →Compare it with its sector
All 388 in Industrials →Frequently asked questions about Hill & Smith
Is Hill & Smith stock cheap or expensive?
On P/E and EV / EBITDA, it trades 20% above the Industrials median on average. Valuation score: 4.4 out of 10 (median for Industrials: 5.0). Average analyst target: 33.43 GBP, +7.8% versus the price. This is not investment advice.
What score does Hill & Smith get on MeridIAn Screener?
It scores 5.9 out of 10, rank 1,074 of 2,130 (better than 47% of the companies analysed). Its strongest category is Momentum (8.3) and its weakest, Growth (4.1). Analysis of 08/10/2026.
What is Hill & Smith's P/E ratio?
Its P/E is 35.2: the share price equals 35.2 times earnings per share over the last 12 months. The Industrials median is 25.4. Based on the earnings analysts expect, the forward P/E is 19.8.
How much is Hill & Smith worth on the stock market?
Its market capitalisation is 2.4B GBP and its enterprise value, debt included, is 3.4B GBP.
How much debt does Hill & Smith have?
Its net debt (debt minus cash) is 170.9M USD. That is 0.75 times its EBITDA; the Industrials median is 1.58.
Does Hill & Smith pay a dividend?
Yes: its dividend yield is 1.71% and it pays out 60% of its earnings.
How has Hill & Smith stock performed over the last year?
It has risen 48.3% over the last year, excluding dividends. Over the last 52 weeks it has traded between 0.00 and 33.45 GBP. Past performance does not guarantee future results.
What do analysts think of Hill & Smith?
9 analysts cover it; their average recommendation is “Buy” and their average target is 33.43 GBP (+7.8% versus the price). It is an estimate, not market data.