# Hill & Smith Holdings (HILS.LSE)

Canonical: https://gigainvestors.com/s/HILS.LSE

Analysis as of: 2026-10-16T07:39:07.327Z. Financial observations: FY2002–FY2025.

Listing currency: GBX. Reporting currency: GBP.

## Verdict

Not a wonderful business

Quality tests for Buy: not passed (profit record: pass; earnings resilience is evidence only). Published buy qualification: no.

Share price: GBX 3,025.00 per share; close as of 2026-10-15.

Estimated value: low GBX 1,136.15 per share, central GBX 1,283.40 per share, high GBX 1,479.42 per share. Buy at or below the central value GBX 1,283.40 per share. Valuation as of 2026-10-16T07:39:07.327Z; scenarios are not confidence intervals.

Expected annual return: 5.8% at the stated quote. About 5.8% a year at today's price (required return 10.0%). required return 10.0% a year (10% floor; GB 10-year bond 5.4% + 4 points).

## Checklist

### understandable: pass

- 2 revenue declines in the last 10 years (informational)

- Financial history: 10 years

- Years with declining revenue: 2

- Years with a net loss: 0

- Operating margin variation: 0.24×

Chart: Operating margin; fiscal year observations.

- FY2016: 0.10×

- FY2017: 0.13×

- FY2018: 0.10×

- FY2019: 0.10×

- FY2020: 0.06×

- FY2021: 0.08×

- FY2022: 0.11×

- FY2023: 0.13×

- FY2024: 0.13×

- FY2025: 0.16×

### moat: fail

- ROIC worst years below threshold (more than 1 bad year allowed)

- ROIC, median of available years: 17.2%

- ROIC, second-lowest year: 9.1%

- Typical minus recent gross margin: -2.7 pp

- Typical gross margin (annual median): 37.3%

- Recent gross margin (lower of latest and 3-year median): 40.0%

- Years with nonpositive capital: 0

- Capital spending / revenue: 3.2%

- ROIC including acquisitions, ten-year median: 12.1%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2016: 16.4%

- FY2017: 24.4%

- FY2018: 18.0%

- FY2019: 14.6%

- FY2020: 8.7%

- FY2021: 9.1%

- FY2022: 15.8%

- FY2023: 19.7%

- FY2024: 20.0%

- FY2025: 26.4%

### economics: pass

- Owner earnings / net income, 5-yr: 1.12×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: GBP 355M

- Net income, five-year total: GBP 319M

- Return on incremental invested capital: >100%

- Working capital / revenue, annual change: -0.5 pp

- Working capital / revenue, change between three-year averages: -3.5 pp

- Working capital / revenue, final three-year average: 20.0%

Chart: Annual owner cash / profit; fiscal year observations.

- FY2021: 1.34×

- FY2022: 1.13×

- FY2023: 1.01×

- FY2024: 1.15×

- FY2025: 1.07×

### management: pass

- Historical market-dollar context (not the management verdict): 2016 to 2025 (9 years)

- buybacks unrelated to price (informational)

- ROIC first 3 years vs last 3 years: 18.0% vs 20.0%

- Per-share earnings: 0.43 to 0.93 (three-year endpoint medians)

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: 0.3%

- Ordinary dilution, 5-year annual growth: 0.4%

- Market cap gain: GBP 783M

- Cumulative retained earnings: GBP 255M

- Diluted shares, 10-year annual growth: 0.3%

- Diluted shares, 5-year annual growth: 0.4%

- $1 test, starting fiscal year: FY2016

- $1 test, ending fiscal year: FY2025

- Per-share value growth: 10.3%

- Per-share value change: GBP 0.51

- Per-share value, starting three-year median: GBP 0.43

- Per-share value, ending three-year median: GBP 0.93

- Buybacks concentrated in cheaper years (correlation): -0.07

- Average buyback yield: 0.3%

- Buyback history: 9 years

- Debt-funded buybacks: No

- Acquisition spending: GBP 148M

- Cumulative net income, 10 years: GBP 526M

- ROIC, first three-year median: 18.0%

- ROIC, last three-year median: 20.0%

Chart: Earnings per share; fiscal year observations.

- FY2016: GBP 0.43

- FY2017: GBP 0.68

- FY2018: GBP 0.59

- FY2019: GBP 0.61

- FY2020: GBP 0.30

- FY2021: GBP 0.42

- FY2022: GBP 0.70

- FY2023: GBP 0.84

- FY2024: GBP 0.93

- FY2025: GBP 1.02

### accounting: pass

- Sloan accruals: -7.1%

- Receivables to sales index (DSRI): 1.04×

- Restructuring years, last five: 0

- Stock compensation / operating cash flow: 2.1%

- Earnings backed by cash: Yes

- Operating cash / earnings: 1.66×

- Accounting red flags: 0

- Goodwill and intangibles / equity: 0.43×

Chart: Sloan accruals; fiscal year observations.

- FY2016: -4.9%

- FY2017: -0.5%

- FY2018: -1.3%

- FY2019: -1.8%

- FY2020: -10.5%

- FY2021: -4.7%

- FY2022: 1.0%

- FY2023: -8.4%

- FY2024: -6.6%

- FY2025: -7.1%

## Holders

## Price story

Price needs cash profits to grow 12.1% a year for ten years · sales +1.6%

Story as of 2026-10-16T10:00:10.453Z; price observation 2026-10-15.

Price needs cash profits to grow 12.1% a year for ten years

### Sales · FY2024–2025

sales +1.6%; source https://filings.xbrl.org/2138003A3ISGQZBOWI83/2025-12-31/ESEF/GB/0/2138003A3ISGQZBOWI83-2025-12-31-/reports/2138003A3ISGQZBOWI83-2025-12-31--T01.html; observed 2026-04-29.

- FY2016: GBP 540M 

- FY2017: GBP 585M 

- FY2018: GBP 638M 

- FY2019: GBP 695M 

- FY2020: GBP 661M 

- FY2021: GBP 625M 

- FY2022: GBP 732M 

- FY2023: GBP 830M 

- FY2024: GBP 855M 

- FY2025: GBP 869M 

### Gross margin · FY2025

gross margin 40.7%; source https://filings.xbrl.org/2138003A3ISGQZBOWI83/2025-12-31/ESEF/GB/0/2138003A3ISGQZBOWI83-2025-12-31-/reports/2138003A3ISGQZBOWI83-2025-12-31--T01.html; observed 2026-04-29.

- FY2016: 36.9% 

- FY2017: 37.5% 

- FY2018: 35.8% 

- FY2019: 36.9% 

- FY2020: 37.0% 

- FY2021: 37.7% 

- FY2022: 36.9% 

- FY2023: 38.2% 

- FY2024: 40.0% 

- FY2025: 40.7% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in engineering & construction; annual sales are GBP 868.8 million.

- Source: https://filings.xbrl.org/2138003A3ISGQZBOWI83/2025-12-31/ESEF/GB/0/2138003A3ISGQZBOWI83-2025-12-31-/reports/2138003A3ISGQZBOWI83-2025-12-31--T01.html (filed 2026-04-29); FY2025: revenue 868800000; grossProfit 353500000; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); HILS.LSE: Hill & Smith PLC manufactures and supplies infrastructure products in the United Kingdom, the rest of Europe, North America, the Middle East, the rest of Asia, and internationally. It operates through US Engineered Solutions, UK & India Engineered Solutions, and Galvanizing Services segments. The US Engineered Solutions segment provides composite and steel solutions for infrastructure construction, such as energy transmission and distribution, data centres, waterfront protection, transportation, and other industrial facilities, engineered support for water, power, and liquid natural gas markets, seismic protection solutions for road work zone safety products, and off-grid solar lighting and power solutions. The UK & India Engineered Solutions segment offers hostile vehicle mitigation and off-grid solar lighting solutions for energy markets. The Galvanizing Services segment offers hot-dip galvanizing and powder coating services, increasing the sustainability and maintenance-free life of steel products, such as structural steelwork, lighting, bridges, and other products for infrastructure and construction end markets. It also offers fiber reinforced polymer composite solutions; electrical transmission and distribution substation structures; temporary and permanent road safety barriers, vehicle restraint systems, security solutions, bridge parapets, and retained earth systems; engineered pipe support and ancillary; lighting columns and traffic safety; vibration and seismic control; and hostile vehicle mitigation perimeter security; solar light towers, message signs, and other construction equipment; perimeter security solutions; galvanized lintels, construction fittings, composite doors, builders' metalwork, and plasterers' accessories; and open steel flooring, and handrailing. It was formerly known as Hill & Smith Holdings PLC and changed its name to Hill & Smith PLC in November 2022. The company was founded in 1824 and is based in Solihull, the United Kingdom.

### Why customers stay

Margins ranged from 38.2% to 40.7% during 2023–25; it earns 17.2% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-04-29); FY2023: grossProfit / revenue = 38.2%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-04-29); FY2024: grossProfit / revenue = 40%.

- Source: https://filings.xbrl.org/2138003A3ISGQZBOWI83/2025-12-31/ESEF/GB/0/2138003A3ISGQZBOWI83-2025-12-31-/reports/2138003A3ISGQZBOWI83-2025-12-31--T01.html (filed 2026-04-29); FY2025: grossProfit / revenue = 40.7%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-04-29); 10-year return on capital observations [[2016,0.16432128450733838],[2017,0.24439194348988164],[2018,0.17993778796454385],[2019,0.14647424123152278],[2020,0.08691862801924191],[2021,0.09122199480292907],[2022,0.15751604976754988],[2023,0.19682736373969348],[2024,0.20006875792106002],[2025,0.26362717626610105]]; median 0.17212953623594113. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Can it raise prices

Kept about a 37% gross margin through 2022 cost inflation.

- Source: https://filings.xbrl.org/2138003A3ISGQZBOWI83/2025-12-31/ESEF/GB/0/2138003A3ISGQZBOWI83-2025-12-31-/reports/2138003A3ISGQZBOWI83-2025-12-31--T01.html (filed 2026-04-29); Gross margin observations: [[2021,0.37747920665387075],[2022,0.3694850430269089],[2023,0.3816582308990118]]; range within 2 percentage points.

### Where the cash goes

Paid dividends in 10 of 10 years; bought back GBP 24.7 million of shares.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-04-29); FY2016: growth capex 700000; upkeep 21000000; owner earnings 33800000. Growth capex / owner earnings = 0.020710059171597635.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-04-29); FY2017: growth capex 0; upkeep 20700000; owner earnings 56400000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-04-29); FY2018: growth capex 0; upkeep 18300000; owner earnings 53200000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-04-29); FY2019: growth capex 0; upkeep 31600000; owner earnings 46300000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-04-29); FY2020: growth capex 0; upkeep 17300000; owner earnings 40020000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-04-29); FY2021: growth capex 0; upkeep 19200000; owner earnings 45920000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-04-29); FY2022: growth capex 0; upkeep 20900000; owner earnings 64024781. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-04-29); FY2023: growth capex 0; upkeep 29500000; owner earnings 69160000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-04-29); FY2024: growth capex 0; upkeep 21300000; owner earnings 88200000. Growth capex / owner earnings = 0.

- Source: https://filings.xbrl.org/2138003A3ISGQZBOWI83/2025-12-31/ESEF/GB/0/2138003A3ISGQZBOWI83-2025-12-31-/reports/2138003A3ISGQZBOWI83-2025-12-31--T01.html (filed 2026-04-29); FY2025: growth capex 0; upkeep 29200000; owner earnings 88020000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-04-29); Dividend observations: [[2016,16200000],[2017,20700000],[2018,23600000],[2019,25100000],[2020,8400000],[2021,21200000],[2022,24700000],[2023,28000000],[2024,34500000],[2025,39400000]]. Zero only counted when supported by a complete cash-flow statement.

- Source: https://filings.xbrl.org/2138003A3ISGQZBOWI83/2025-12-31/ESEF/GB/0/2138003A3ISGQZBOWI83-2025-12-31-/reports/2138003A3ISGQZBOWI83-2025-12-31--T01.html (filed 2026-04-29); FY2025: cash repurchases 24700000 GBP.

### Are managers owners

Insiders own 1.9% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); HILS.LSE SharesStats.PercentInsiders = 1.871 percentage points; cache date 2026-10-16.

### What the price says

The price assumes cash profits grow 12.1% yearly over ten years; actual growth was 12.6%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-04-29); Ten-year compound average after fade. Initial solved rate 0.1615835684391771. Price 3025; FX 100; discount 0.1; same standard ten-year fade to terminal 0.03. FY2015 owner earnings/share 0.33121827411167515 → FY2025 1.085741775524553. Closing-price date 2026-10-15.

## Monthly share-price history (GBX per share)

- 2016-10: GBX 1,004.00 per share

- 2016-11: GBX 1,227.00 per share

- 2016-12: GBX 1,199.00 per share

- 2017-01: GBX 1,206.00 per share

- 2017-02: GBX 1,103.00 per share

- 2017-03: GBX 1,272.00 per share

- 2017-04: GBX 1,328.00 per share

- 2017-05: GBX 1,439.00 per share

- 2017-06: GBX 1,380.00 per share

- 2017-07: GBX 1,340.00 per share

- 2017-08: GBX 1,285.00 per share

- 2017-09: GBX 1,264.00 per share

- 2017-10: GBX 1,322.00 per share

- 2017-11: GBX 1,280.00 per share

- 2017-12: GBX 1,339.00 per share

- 2018-01: GBX 1,199.00 per share

- 2018-02: GBX 1,215.00 per share

- 2018-03: GBX 1,329.00 per share

- 2018-04: GBX 1,327.00 per share

- 2018-05: GBX 1,408.00 per share

- 2018-06: GBX 1,479.00 per share

- 2018-07: GBX 1,507.00 per share

- 2018-08: GBX 1,061.00 per share

- 2018-09: GBX 986.00 per share

- 2018-10: GBX 990.50 per share

- 2018-11: GBX 1,197.00 per share

- 2018-12: GBX 1,200.00 per share

- 2019-01: GBX 1,104.00 per share

- 2019-02: GBX 1,180.00 per share

- 2019-03: GBX 1,243.00 per share

- 2019-04: GBX 1,276.00 per share

- 2019-05: GBX 1,206.00 per share

- 2019-06: GBX 1,171.00 per share

- 2019-07: GBX 1,129.00 per share

- 2019-08: GBX 1,150.00 per share

- 2019-09: GBX 1,250.00 per share

- 2019-10: GBX 1,310.00 per share

- 2019-11: GBX 1,359.00 per share

- 2019-12: GBX 1,473.00 per share

- 2020-01: GBX 1,421.00 per share

- 2020-02: GBX 1,337.00 per share

- 2020-03: GBX 956.50 per share

- 2020-04: GBX 1,154.00 per share

- 2020-05: GBX 1,276.00 per share

- 2020-06: GBX 1,244.00 per share

- 2020-07: GBX 1,210.00 per share

- 2020-08: GBX 1,216.00 per share

- 2020-09: GBX 1,194.00 per share

- 2020-10: GBX 1,200.00 per share

- 2020-11: GBX 1,320.00 per share

- 2020-12: GBX 1,410.00 per share

- 2021-01: GBX 1,352.00 per share

- 2021-02: GBX 1,272.00 per share

- 2021-03: GBX 1,472.00 per share

- 2021-04: GBX 1,472.00 per share

- 2021-05: GBX 1,534.00 per share

- 2021-06: GBX 1,494.00 per share

- 2021-07: GBX 1,624.00 per share

- 2021-08: GBX 1,852.00 per share

- 2021-09: GBX 1,816.00 per share

- 2021-10: GBX 1,834.00 per share

- 2021-11: GBX 1,688.00 per share

- 2021-12: GBX 1,796.00 per share

- 2022-01: GBX 1,494.00 per share

- 2022-02: GBX 1,410.00 per share

- 2022-03: GBX 1,472.00 per share

- 2022-04: GBX 1,384.00 per share

- 2022-05: GBX 1,394.00 per share

- 2022-06: GBX 1,158.00 per share

- 2022-07: GBX 1,316.00 per share

- 2022-08: GBX 1,042.00 per share

- 2022-09: GBX 911.00 per share

- 2022-10: GBX 988.00 per share

- 2022-11: GBX 1,194.00 per share

- 2022-12: GBX 1,172.00 per share

- 2023-01: GBX 1,260.00 per share

- 2023-02: GBX 1,382.00 per share

- 2023-03: GBX 1,342.00 per share

- 2023-04: GBX 1,376.00 per share

- 2023-05: GBX 1,456.00 per share

- 2023-06: GBX 1,502.00 per share

- 2023-07: GBX 1,578.00 per share

- 2023-08: GBX 1,792.00 per share

- 2023-09: GBX 1,722.00 per share

- 2023-10: GBX 1,648.00 per share

- 2023-11: GBX 1,800.00 per share

- 2023-12: GBX 1,908.00 per share

- 2024-01: GBX 1,874.00 per share

- 2024-02: GBX 1,814.00 per share

- 2024-03: GBX 1,956.00 per share

- 2024-04: GBX 1,890.00 per share

- 2024-05: GBX 2,040.00 per share

- 2024-06: GBX 1,966.00 per share

- 2024-07: GBX 2,300.00 per share

- 2024-08: GBX 2,145.00 per share

- 2024-09: GBX 2,050.00 per share

- 2024-10: GBX 2,035.00 per share

- 2024-11: GBX 2,065.00 per share

- 2024-12: GBX 1,868.00 per share

- 2025-01: GBX 1,994.00 per share

- 2025-02: GBX 1,912.00 per share

- 2025-03: GBX 1,746.00 per share

- 2025-04: GBX 1,790.00 per share

- 2025-05: GBX 1,852.00 per share

- 2025-06: GBX 1,792.00 per share

- 2025-07: GBX 2,045.00 per share

- 2025-08: GBX 2,115.00 per share

- 2025-09: GBX 2,045.00 per share

- 2025-10: GBX 2,155.00 per share

- 2025-11: GBX 2,255.00 per share

- 2025-12: GBX 2,140.00 per share

- 2026-01: GBX 2,230.00 per share

- 2026-02: GBX 2,380.00 per share

- 2026-03: GBX 2,105.00 per share

- 2026-04: GBX 2,570.00 per share

- 2026-05: GBX 2,770.00 per share

- 2026-06: GBX 2,745.00 per share

- 2026-07: GBX 2,850.00 per share

- 2026-08: GBX 2,995.00 per share

- 2026-09: GBX 3,320.00 per share

- 2026-10: GBX 3,025.00 per share

## Annual estimated value (GBX per share)

- FY2016: low GBX 445.96 per share, central GBX 538.18 per share, high GBX 626.06 per share

- FY2017: low GBX 453.88 per share, central GBX 515.64 per share, high GBX 597.87 per share

- FY2018: low GBX 604.23 per share, central GBX 713.77 per share, high GBX 825.97 per share

- FY2019: low GBX 717.17 per share, central GBX 901.52 per share, high GBX 1,050.18 per share

- FY2020: low GBX 622.75 per share, central GBX 714.56 per share, high GBX 828.52 per share

- FY2021: low GBX 629.28 per share, central GBX 714.97 per share, high GBX 829.04 per share

- FY2022: low GBX 819.20 per share, central GBX 1,032.78 per share, high GBX 1,204.01 per share

- FY2023: low GBX 939.06 per share, central GBX 1,199.95 per share, high GBX 1,398.74 per share

- FY2024: low GBX 998.81 per share, central GBX 1,130.14 per share, high GBX 1,304.96 per share

- FY2025: low GBX 1,089.81 per share, central GBX 1,231.06 per share, high GBX 1,419.08 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

Prior published observations retained from 2026-10-15T06:44:48.207Z where newer inputs omit a numeric field or fiscal period.

## Sources

[Original ESEF filing](https://filings.xbrl.org/2138003A3ISGQZBOWI83/2025-12-31/ESEF/GB/0/2138003A3ISGQZBOWI83-2025-12-31-/reports/2138003A3ISGQZBOWI83-2025-12-31--T01.html); period 2025-12-31, filed 2026-04-29.

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.