# James Latham plc (LTHM.L) fundamentals

Data as of 2026-09-08. LSE, United Kingdom. Sector: Industrials / Trading Companies & Distributors. Price 1050p, market value 212 millionp.

## Valuation
- **P/E (trailing): 11.4×** (5-yr avg 888.8×, 3-yr avg 1075.7×). James Latham plc trades at 11.4× trailing earnings, well below its own five-year average of 888.8×: cheap by its own standards. The Industrials median in the September 2026 study was 25.7×. Forward P/E is 12.0×, higher than trailing, so analysts expect earnings to fall.
- **PEG: 5.39**. A PEG of 5.39 means the P/E is high relative to expected earnings growth; the price already assumes a lot.
- **Price / sales: 0.3×**. Each dollar of revenue is priced at 0.3×, a low multiple typical of thin-margin businesses or out-of-favour stocks.
- **Price / book: 1.3×**. The shares trade at 1.3× book value; book value is a meaningful part of the valuation.
- **EV / EBITDA: 2.9×**. Enterprise value is 2.9× operating earnings before depreciation, the multiple that ignores how the company is financed; below 8× is inexpensive for most sectors.
- **Free-cash-flow yield: 0.2%** (5-yr avg 0.1%). Free cash flow equals 0.2% of the market value, above its five-year average of 0.1%, so the shares are cheaper on cash than they have usually been.
- **Earnings yield: 8.8%**. The inverse of the P/E: 8.8% of the price is earned each year.

## Profitability
- **Gross margin: 16.6%**. James Latham plc keeps 16.6% of revenue after the direct cost of what it sells, a thin margin typical of retail, distribution and commodity businesses.
- **Operating margin: 5.6%**. 5.6% of revenue is left after running the business.
- **Net margin: 4.7%**. 4.7% of each dollar of sales reaches the bottom line.
- **Return on equity: 8.0%**. 8.0% on shareholders' equity is weak; the business earns little on the capital its owners have in it.
- **Return on invested capital: 16.6%**. Return on all capital, debt included, is 16.6%: comfortably above what that capital costs.
- **Return on assets: 12.6%**. Each dollar of assets produces 12.6% of profit.

## Growth
- **Revenue growth (1 yr): 7.2%** (3-yr -1.3%/yr, 5-yr 9.5%/yr). Revenue grew 7.2% over the last year, against 9.5% a year compounded over five years: growth is slowing.
- **EPS growth (1 yr): 2.2%** (3-yr -19.9%/yr, 5-yr 4.2%/yr). Earnings per share rose 2.2%, roughly in step with revenue.

## Financial health
- **Debt to equity: 0.03**. Debt is 0.03 times equity: a conservative balance sheet.
- **Net debt / EBITDA: net cash**. James Latham plc holds more cash than debt.
- **Interest coverage: 59.5×**. Operating profit covers interest 59.5× over, a safe margin.
- **Current ratio: 4.22** (quick 2.65). Current assets cover the next year's liabilities 4.22 times.
- **Altman Z-score: 5.50**. A Z-score of 5.50 places the company in the safe zone for bankruptcy risk.
- **Piotroski F-score: 5/9**. 5 of 9 checks pass: mixed.

## Dividends
- **Dividend yield: 3.45%** (0p per share, trailing). James Latham plc yields 3.45%, a modest yield more typical of a growth-oriented payer.
- **Payout ratio: 38%**. 38% of earnings goes out as dividends, leaving room to keep raising it.
- **Dividend growth (5 yr): 10.7%/yr** (1-yr -55.2%). The dividend has compounded at 10.7% a year over five years, doubling roughly every 7 years at that pace.
- **Shareholder yield: 3.8%**. Dividends plus net buybacks return 3.8% of the market value a year.

## Price and momentum
- **Total return (1 yr): -6.2%** (YTD 7.2%, 3-mo 15.4%). The shares are down 6.2% over twelve months including dividends.
- **From 52-week high: -10.2%** (15.4% above the low). Trading 10% below its 52-week high.
- **200-day average: above**. The price sits above its 200-day moving average, the usual definition of an uptrend.
- **RSI (14-day): 44**. An RSI of 44 is neutral.
- **Beta (1 yr): 0.27** (volatility 29%). Beta of 0.27 against the FTSE All-Share: the shares move much less than the market.

Live score and charts: https://foliofundamentals.com/analyzer?s=LTHM.L · Page: https://foliofundamentals.com/stocks/lthm.l

Not investment advice.