ASX:HGH

Stock Analysis Report

Heartland Group Holdings

Executive Summary

Heartland Group Holdings Limited provides various financial services in New Zealand and Australia.


Snowflake Analysis

Solid track record with excellent balance sheet.

Share Price & News

How has Heartland Group Holdings's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: HGH has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-5.6%

HGH

11.9%

AU Banks

7.1%

AU Market


1 Year Return

n/a

HGH

-28.4%

AU Banks

-19.4%

AU Market

Return vs Industry: Insufficient data to determine how HGH performed against the Australian Banks industry.

Return vs Market: Insufficient data to determine how HGH performed against the Australian Market.


Shareholder returns

HGHIndustryMarket
7 Day-5.6%11.9%7.1%
30 Day0.7%-28.9%-21.3%
90 Dayn/a-28.3%-24.8%
1 Yearn/a-24.0%-28.4%-15.8%-19.4%
3 Yearn/a-31.6%-42.9%-2.4%-15.8%
5 Yearn/a-30.7%-49.7%8.4%-16.0%

Price Volatility Vs. Market

How volatile is Heartland Group Holdings's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Heartland Group Holdings undervalued compared to its fair value and its price relative to the market?

44.1%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: HGH (A$1.51) is trading below our estimate of fair value (A$2.7)

Significantly Below Fair Value: HGH is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: HGH is poor value based on its PE Ratio (8.4x) compared to the Banks industry average (7.8x).

PE vs Market: HGH is good value based on its PE Ratio (8.4x) compared to the Australian market (12.9x).


Price to Earnings Growth Ratio

PEG Ratio: HGH is good value based on its PEG Ratio (0.9x)


Price to Book Ratio

PB vs Industry: HGH is overvalued based on its PB Ratio (0.9x) compared to the AU Banks industry average (0.8x).


Next Steps

Future Growth

How is Heartland Group Holdings forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

9.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: HGH's forecast earnings growth (9% per year) is above the savings rate (1.1%).

Earnings vs Market: HGH's earnings (9% per year) are forecast to grow slower than the Australian market (9.7% per year).

High Growth Earnings: HGH's earnings are forecast to grow, but not significantly.

Revenue vs Market: HGH's revenue (9.6% per year) is forecast to grow faster than the Australian market (4% per year).

High Growth Revenue: HGH's revenue (9.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: HGH's Return on Equity is forecast to be low in 3 years time (10.8%).


Next Steps

Past Performance

How has Heartland Group Holdings performed over the past 5 years?

7.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: HGH has high quality earnings.

Growing Profit Margin: HGH's current net profit margins (37.4%) are higher than last year (33.4%).


Past Earnings Growth Analysis

Earnings Trend: HGH's earnings have grown by 7% per year over the past 5 years.

Accelerating Growth: HGH's earnings growth over the past year (29%) exceeds its 5-year average (7% per year).

Earnings vs Industry: HGH earnings growth over the past year (29%) exceeded the Banks industry -8.5%.


Return on Equity

High ROE: HGH's Return on Equity (10%) is considered low.


Next Steps

Financial Health

How is Heartland Group Holdings's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

Inventory Level: HGH has a low level of unsold assets or inventory.

Debt Coverage by Assets: HGH's debt is not covered by short term assets (assets are 0.2x debt).


Financial Institutions Analysis

Asset Level: HGH's level of assets compared to its equity is low.

Allowance for Bad Loans: HGH has a sufficient allowance for bad loans.

Low Risk Liabilities: HGH's liabilities are made up of primarily low risk sources of funding.

Loan Level: HGH has an acceptable proportion of non-loan assets held.

Low Risk Deposits: HGH has advanced significantly more loans than the customer deposits it holds.

Level of Bad Loans: HGH has an appropriate level of bad loans (0.62%)


Next Steps

Dividend

What is Heartland Group Holdings's current dividend yield, its reliability and sustainability?

10.78%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: HGH's dividend (10.78%) is higher than the bottom 25% of dividend payers in the Australian market (3.22%).

High Dividend: HGH's dividend (10.78%) is in the top 25% of dividend payers in the Australian market (8.38%)


Stability and Growth of Payments

Stable Dividend: HGH has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: HGH's dividend payments have increased, but the company has only paid a dividend for 7 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (91%), HGH's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: HGH's dividends in 3 years are forecast to be covered by earnings (79.2% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

7.0yrs

Average board tenure


CEO

Jeff Greenslade

no data

Tenure

NZ$2,118,612

Compensation

Mr. Jeffrey Kenneth Greenslade, also known as Jeff, LLB, serves as Executive Director of Heartland Bank Limited. Mr. Greenslade serves as Chief Executive Officer of Heartland Group Holdings Ltd. He served  ...


CEO Compensation Analysis

Compensation vs Market: Jeff's total compensation ($USD0.00) is below average for companies of similar size in the Australian market ($USD815.27K).

Compensation vs Earnings: Jeff's compensation has increased by more than 20% in the past year.


Board Members

NamePositionTenureCompensationOwnership
Jeffrey Greenslade
CEO & Non-Independent Executive Directorno dataNZ$2.12m0.34% NZ$1.9m
Geoffrey Ricketts
Independent Chairman of the Board6.58yrsNZ$165.00kno data
Christopher Mace
Independent Non-Executive Director9.42yrsNZ$100.00k0.18% NZ$1.0m
Gregory Tomlinson
Independent Non-Executive Director7yrsNZ$100.00k10.05% NZ$56.9m
Ellen Comerford
Independent Non-Executive Director3.17yrsNZ$120.00kno data
Andrew Aitken
Director of MARAC Insurance Limitedno dataNZ$32.00kno data
Richard Udovenya
Director of Australian Seniors Finance Pty Limitedno dataNZ$35.79kno data
Kathryn Morrison
Independent Non-Executive Director - Heartland Bankno dataNZ$25.00kno data

7.0yrs

Average Tenure

Experienced Board: HGH's board of directors are considered experienced (7 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: HGH insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Heartland Group Holdings Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Heartland Group Holdings Limited
  • Ticker: HGH
  • Exchange: ASX
  • Founded: 1875
  • Industry: Diversified Banks
  • Sector: Banks
  • Market Cap: NZ$580.979m
  • Listing Market Cap: NZ$566.430m
  • Shares outstanding: 580.98m
  • Website: https://www.heartland.co.nz

Number of Employees


Location

  • Heartland Group Holdings Limited
  • Heartland House
  • Level 3
  • Auckland
  • 1023
  • New Zealand

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
HGHNZSE (New Zealand Stock Exchange)YesNew Ordinary SharesNZNZDFeb 2011
HGHASX (Australian Securities Exchange)YesNew Ordinary SharesAUAUDFeb 2011

Biography

Heartland Group Holdings Limited provides various financial services in New Zealand and Australia. The company offers various financial services for families, including term, transactional, and savings based deposit accounts; reverse mortgage lending services; and motor vehicle, and other financial services. It also provides term debt, plant and equipment finance, commercial mortgage lending, and working capital solutions for small-to-medium sized businesses. In addition, the company offers livestock finance, rural mortgage lending, seasonal and working capital financing, as well as leasing solutions to farmers. Further, it offers management and insurance services, as well as engages in the investment property holding activities. The company was founded in 1875 and is based in Auckland, New Zealand. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/03/31 11:15
End of Day Share Price2020/03/31 00:00
Earnings2019/12/31
Annual Earnings2019/06/30


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.