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MHI

Merchant House International ASX:MHI Stock Report

Last Price

AU$0.062

Market Cap

AU$5.8m

7D

0%

1Y

-19.5%

Updated

24 Jun, 2022

Data

Company Financials
MHI fundamental analysis
Snowflake Score
Valuation2/6
Future Growth0/6
Past Performance0/6
Financial Health5/6
Dividends0/6

MHI Stock Overview

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

Merchant House International Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Merchant House International
Historical stock prices
Current Share PriceAU$0.062
52 Week HighAU$0.13
52 Week LowAU$0.05
Beta0.076
1 Month Change14.82%
3 Month Change-36.74%
1 Year Change-19.48%
3 Year Change-31.11%
5 Year Change-66.49%
Change since IPO-65.56%

Recent News & Updates

Shareholder Returns

MHIAU LuxuryAU Market
7D0%2.4%0.3%
1Y-19.5%-22.2%-12.2%

Return vs Industry: MHI exceeded the Australian Luxury industry which returned -22.2% over the past year.

Return vs Market: MHI underperformed the Australian Market which returned -12.2% over the past year.

Price Volatility

Is MHI's price volatile compared to industry and market?
MHI volatility
MHI Average Weekly Movementn/a
Luxury Industry Average Movement6.2%
Market Average Movement9.6%
10% most volatile stocks in AU Market16.2%
10% least volatile stocks in AU Market4.2%

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$5.84m
Earnings (TTM)-AU$8.48m
Revenue (TTM)AU$22.91m

0.3x

P/S Ratio

-0.7x

P/E Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
MHI income statement (TTM)
RevenueAU$22.91m
Cost of RevenueAU$24.67m
Gross Profit-AU$1.76m
Other ExpensesAU$6.72m
Earnings-AU$8.48m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)-0.09
Gross Margin-7.70%
Net Profit Margin-37.04%
Debt/Equity Ratio6.2%

How did MHI perform over the long term?

See historical performance and comparison
We’ve recently updated our valuation analysis.

Valuation

Is MHI undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

  • Price-To-Sales vs Peers

  • Price-To-Sales vs Industry

  • Price-To-Sales vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for MHI?

Other financial metrics that can be useful for relative valuation.

MHI key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenuen/a
Enterprise Value/EBITDAn/a
PEG Ration/a

Price to Sales Ratio vs Peers

How does MHI's PS Ratio compare to its peers?

MHI PS Ratio vs Peers
The above table shows the PS ratio for MHI vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPSEstimated GrowthMarket Cap
Peer Average2.3x
CYQ Cycliq Group
0.6xn/aAU$3.8m
ATP Atlas Pearls
0.6xn/aAU$14.4m
GLE GLG
0.08xn/aAU$22.2m
AUA Audeara
7.7x50.8%AU$12.1m
MHI Merchant House International
0.3xn/aAU$5.8m

Price-To-Sales vs Peers: MHI is good value based on its Price-To-Sales Ratio (0.3x) compared to the peer average (2.3x).


Price to Earnings Ratio vs Industry

How does MHI's PE Ratio compare vs other companies in the Global Luxury Industry?

Price-To-Sales vs Industry: MHI is good value based on its Price-To-Sales Ratio (0.3x) compared to the Global Luxury industry average (0.7x)


Price to Sales Ratio vs Fair Ratio

What is MHI's PS Ratio compared to its Fair PS Ratio? This is the expected PS Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

MHI PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio0.3x
Fair PS Ration/a

Price-To-Sales vs Fair Ratio: Insufficient data to calculate MHI's Price-To-Sales Fair Ratio for valuation analysis.


Share Price vs Fair Value

What is the Fair Price of MHI when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: Insufficient data to calculate MHI's fair value for valuation analysis.

Significantly Below Fair Value: Insufficient data to calculate MHI's fair value for valuation analysis.


Price to Earnings Growth Ratio

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


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Future Growth

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

Future Growth Score

0/6

Future Growth Score 0/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


14.4%

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.


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  • Examine Merchant House International's financial health to determine how well-positioned it is against times of financial stress by looking at its level of debt over time and how much cash it has left.
  • Merchant House International competitive advantages and company strategy can generally be found in its financial reports archived here.

Past Performance

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

Past Performance Score

0/6

Past Performance Score 0/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


-54.7%

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 54.7% 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 (61.7%).


Return on Equity

High ROE: MHI has a negative Return on Equity (-21.7%), as it is currently unprofitable.


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Financial Health

How is Merchant House International's financial position?

Financial Health Score

5/6

Financial Health Score 5/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Stable Cash Runway

  • Forecast Cash Runway

Financial Position Analysis

Short Term Liabilities: MHI's short term assets (A$18.5M) exceed its short term liabilities (A$7.2M).

Long Term Liabilities: MHI's short term assets (A$18.5M) exceed its long term liabilities (A$151.0K).


Debt to Equity History and Analysis

Debt Level: MHI has more cash than its total debt.

Reducing Debt: MHI's debt to equity ratio has increased from 2.3% to 6.2% 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 sufficient cash runway for more than a year based on its current free cash flow.

Forecast Cash Runway: MHI has sufficient cash runway for 1.2 years if free cash flow continues to reduce at historical rates of 37% each year.


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Dividend

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

Dividend Score

0/6

Dividend Score 0/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Future Dividend Coverage

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.


Earnings Payout to Shareholders

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


Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as MHI has not reported any payouts.


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Management

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

27.9yrs

Average board tenure


CEO

Loretta Bic Lee

27.92yrs

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 ( 27.9 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
  • Implied Market Cap: AU$5.845m
  • 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 Analysis2022/06/24 00:00
End of Day Share Price2022/06/17 00:00
Earnings2022/03/31
Annual Earnings2022/03/31


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.