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MHI

Merchant House InternationalASX:MHI Stock Report

Market Cap

AU$9.9m

7D

-19.2%

1Y

n/a

Updated

26 Oct, 2021

Data

Company Financials
MHI fundamental analysis
Snowflake Score
Valuation1/6
Future Growth0/6
Past Performance0/6
Financial Health2/6
Dividends0/6

MHI Overview

Merchant House International Limited designs, manufactures, and markets home textiles, seasonal and decorative products, and leather shoes.

Price History & Performance

Summary of all time highs, changes and price drops for Merchant House International
Historical stock prices
Current Share PriceAU$0.10
52 Week HighAU$0.04
52 Week LowAU$0.17
Beta-0.35
1 Month Change-19.23%
3 Month Change101.92%
1 Year Changen/a
3 Year Change-32.26%
5 Year Change-38.24%
Change since IPO-41.67%

Recent News & Updates

Jun 03
We Think You Should Be Aware Of Some Concerning Factors In Merchant House International's (ASX:MHI) Earnings

We Think You Should Be Aware Of Some Concerning Factors In Merchant House International's (ASX:MHI) Earnings

Following the solid earnings report from Merchant House International Limited ( ASX:MHI ), the market responded by...

May 30
Merchant House International (ASX:MHI) Could Become A Multi-Bagger

Merchant House International (ASX:MHI) Could Become A Multi-Bagger

Did you know there are some financial metrics that can provide clues of a potential multi-bagger? In a perfect world...

Mar 19
Does Merchant House International (ASX:MHI) Have A Healthy Balance Sheet?

Does Merchant House International (ASX:MHI) Have A Healthy Balance Sheet?

Howard Marks put it nicely when he said that, rather than worrying about share price volatility, 'The possibility of...

Dec 04
Is Merchant House International (ASX:MHI) Using Too Much Debt?

Is Merchant House International (ASX:MHI) Using Too Much Debt?

Some say volatility, rather than debt, is the best way to think about risk as an investor, but Warren Buffett famously...

Shareholder Returns

MHIAU LuxuryAU Market
7D-19.2%1.5%0.8%
1Yn/a43.3%24.4%

Return vs Industry: Insufficient data to determine how MHI performed against the Australian Luxury industry.

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

Price Volatility

Is MHI's price volatile compared to industry and market?
MHI volatility
MHI Beta-0.35
Industry Beta0.94
Market Beta1

Stable Share Price: Insufficient data to determine MHI's volatility over the past 3 months.

Volatility Over Time: Insufficient data to determine MHI's volatility change over the past year.

About the Company

FoundedEmployeesCEOWebsite
1978n/aLoretta Bic Leehttps://www.lorettalee.com.hk

Merchant House International Limited designs, manufactures, and markets home textiles, seasonal and decorative products, and leather shoes. It operates through Home Textile, Footwear Trading, and Footwear Manufacturing segments. The company offers kitchen items, tabletops, decorative pillows, seasonal decorations, and kitchen rugs; and footwear products, such as work, safety toe, security, motorcycle, hunting, farm and ranch, and western boots, as well as loggers and waterproof footwear for men.

Merchant House International Fundamentals Summary

How do Merchant House International's earnings and revenue compare to its market cap?
MHI fundamental statistics
Market CapAU$9.90m
Earnings (TTM)-AU$7.90m
Revenue (TTM)AU$18.57m

0.5x

P/S Ratio

-1.3x

P/E Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
MHI income statement (TTM)
RevenueAU$18.57m
Cost of RevenueAU$21.09m
Gross Profit-AU$2.52m
ExpensesAU$5.38m
Earnings-AU$7.90m

Last Reported Earnings

Mar 31, 2021

Next Earnings Date

n/a

Earnings per share (EPS)-0.084
Gross Margin-13.55%
Net Profit Margin-42.52%
Debt/Equity Ratio22.5%

How did MHI perform over the long term?

See historical performance and comparison

Valuation

Is Merchant House International undervalued compared to its fair value and its price relative to the market?

0.38x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate MHI's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate MHI's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: MHI is unprofitable, so we can't compare its PE Ratio to the Global Luxury industry average.

PE vs Market: MHI is unprofitable, so we can't compare its PE Ratio to the Australian market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate MHI's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: MHI is good value based on its PB Ratio (0.4x) compared to the XX Luxury industry average (1.2x).


Future Growth

How is Merchant House International forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

15.9%

Forecasted Consumer Durables industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Merchant House International has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Past Performance

How has Merchant House International performed over the past 5 years?

-77.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: MHI is currently unprofitable.

Growing Profit Margin: MHI is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: MHI is unprofitable, and losses have increased over the past 5 years at a rate of 77.1% per year.

Accelerating Growth: Unable to compare MHI's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: MHI is unprofitable, making it difficult to compare its past year earnings growth to the Luxury industry (49.9%).


Return on Equity

High ROE: MHI has a negative Return on Equity (-30.13%), as it is currently unprofitable.


Financial Health

How is Merchant House International's financial position?


Financial Position Analysis

Short Term Liabilities: MHI's short term assets (A$14.7M) do not cover its short term liabilities (A$18.7M).

Long Term Liabilities: MHI's short term assets (A$14.7M) exceed its long term liabilities (A$107.0K).


Debt to Equity History and Analysis

Debt Level: MHI's debt to equity ratio (22.5%) is considered satisfactory.

Reducing Debt: MHI's debt to equity ratio has increased from 2.4% to 22.5% over the past 5 years.


Balance Sheet


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: MHI has less than a year of cash runway based on its current free cash flow.

Forecast Cash Runway: MHI has less than a year of cash runway if free cash flow continues to reduce at historical rates of 28.8% each year


Dividend

What is Merchant House International current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate MHI's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate MHI's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if MHI's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if MHI's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: MHI is not paying a notable dividend for the Australian market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of MHI's dividend in 3 years as they are not forecast to pay a notable one for the Australian market.


Next Steps

Management

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

24.3yrs

Average board tenure


CEO

Loretta Bic Lee

27.25yrs

Tenure

AU$439,136

Compensation

Ms. Loretta Bic Hing Lee serves as Executive Chairperson of Merchant House International Ltd. She Founded Merchant House International Ltd. and served its Managing Director since 1994.She started her care...


Board Members

Experienced Board: MHI's board of directors are seasoned and experienced ( 24.3 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

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


Top Shareholders

Company Information

Merchant House International Limited's employee growth, exchange listings and data sources


Key Information

  • Name: Merchant House International Limited
  • Ticker: MHI
  • Exchange: ASX
  • Founded: 1978
  • Industry: Footwear
  • Sector: Consumer Durables
  • Market Cap: AU$9.898m
  • Shares outstanding: 94.27m
  • Website: https://www.lorettalee.com.hk

Location

  • Merchant House International Limited
  • E-Trade Plaza
  • 16th Floor
  • Chai Wan
  • Hong Kong

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/10/26 07:02
End of Day Share Price2021/10/22 00:00
Earnings2021/03/31
Annual Earnings2021/03/31


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.