Join our community of smart investors

Bet your Henry Boot(s)

Sometimes markets overlook modest, unexciting businesses. Henry Boot looks like one of those
Bet your Henry Boot(s)

H​​​​​​enry Boot (BOOT) operates at the racy end of the construction market. Most of its profits (a bit over half in most recent years) are generated from buying and selling land. What makes this racy is that the price of land is highly sensitive to the prevailing price of the buildings to be constructed on it, which in this case is mainly houses. However, countering the risk, Henry Boot is a conservatively run company with a strong track record. There’s also plenty of tangible value bound up in investment properties and a £209m strategic land bank. Barring an explosion (or implosion) in land values or planning regime activity, the company’s market price has a good anchor in the value of these core assets underpinned by the UK’s ongoing housing shortage.

Tip style
Income
Risk rating
Low
Timescale
Long Term
Bull points
  • Forward P/BV near a five-year low
  • Strong family ownership
  • Track record
  • Double-digit growth target
  • Good capital options
Bear points
  • Interest rates and inflation
  • Speed of planning regime
  • Capital tied up in strategic land bank

To continue reading...
Join our Community of Smart Investors
  • Independent full-length company analysis
  • Actionable investment ideas and recommendations
  • Expert investment tools and data
  • Stock screens from Algy Hall
Have an account? Sign in