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ADH

AdairsASX:ADH Stock Report

Market Cap

AU$686.5m

7D

4.6%

1Y

26.5%

Updated

27 Sep, 2021

Data

Company Financials +
ADH fundamental analysis
Snowflake Score
Valuation4/6
Future Growth3/6
Past Performance5/6
Financial Health5/6
Dividends4/6

ADH Overview

Adairs Limited operates as a specialty retailer of home decoration and furnishing products in Australia and New Zealand.

Adairs Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Adairs
Historical stock prices
Current Share PriceAU$4.06
52 Week HighAU$3.04
52 Week LowAU$4.97
Beta1.38
1 Month Change8.85%
3 Month Change-4.47%
1 Year Change26.48%
3 Year Change59.22%
5 Year Change53.21%
Change since IPO53.21%

Recent News & Updates

Shareholder Returns

ADHAU Specialty RetailAU Market
7D4.6%-1.4%-0.8%
1Y26.5%35.4%25.3%

Return vs Industry: ADH underperformed the Australian Specialty Retail industry which returned 35.4% over the past year.

Return vs Market: ADH underperformed the Australian Market which returned 25.3% over the past year.

Price Volatility

Is ADH's price volatile compared to industry and market?
ADH volatility
ADH Beta1.38
Industry Beta1.21
Market Beta1

Stable Share Price: ADH is less volatile than 75% of Australian stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: ADH's weekly volatility (5%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
1918n/aMark Ronanhttps://www.adairs.com.au

Adairs Limited operates as a specialty retailer of home decoration and furnishing products in Australia and New Zealand. It operates in two segments, Adairs and Mocka. The company offers bedroom, bathroom, furniture, homewares, and kid’s products, as well as gifts.

Adairs Fundamentals Summary

How do Adairs's earnings and revenue compare to its market cap?
ADH fundamental statistics
Market CapAU$686.45m
Earnings (TTM)AU$63.74m
Revenue (TTM)AU$499.76m

10.8x

P/E Ratio

1.4x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
ADH income statement (TTM)
RevenueAU$499.76m
Cost of RevenueAU$196.47m
Gross ProfitAU$303.29m
ExpensesAU$239.55m
EarningsAU$63.74m

Last Reported Earnings

Jun 27, 2021

Next Earnings Date

n/a

Earnings per share (EPS)0.38
Gross Margin60.69%
Net Profit Margin12.75%
Debt/Equity Ratio0%

How did ADH perform over the long term?

See historical performance and comparison

Dividends

5.7%

Current Dividend Yield

61%

Payout Ratio

Valuation

Is Adairs undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: ADH (A$4.06) is trading below our estimate of fair value (A$8.78)

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


Price To Earnings Ratio

PE vs Industry: ADH is good value based on its PE Ratio (10.8x) compared to the Australian Specialty Retail industry average (11.3x).

PE vs Market: ADH is good value based on its PE Ratio (10.8x) compared to the Australian market (19.1x).


Price to Earnings Growth Ratio

PEG Ratio: ADH is poor value based on its PEG Ratio (1.9x)


Price to Book Ratio

PB vs Industry: ADH is overvalued based on its PB Ratio (4.2x) compared to the AU Specialty Retail industry average (3.9x).


Future Growth

How is Adairs forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?

5.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ADH's forecast earnings growth (5.7% per year) is above the savings rate (1.9%).

Earnings vs Market: ADH's earnings (5.7% per year) are forecast to grow slower than the Australian market (11.9% per year).

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

Revenue vs Market: ADH's revenue (6.6% per year) is forecast to grow faster than the Australian market (5.7% per year).

High Growth Revenue: ADH's revenue (6.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: ADH's Return on Equity is forecast to be high in 3 years time (32.9%)


Past Performance

How has Adairs performed over the past 5 years?

21.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ADH has high quality earnings.

Growing Profit Margin: ADH's current net profit margins (12.8%) are higher than last year (9.1%).


Past Earnings Growth Analysis

Earnings Trend: ADH's earnings have grown significantly by 21.4% per year over the past 5 years.

Accelerating Growth: ADH's earnings growth over the past year (80.9%) exceeds its 5-year average (21.4% per year).

Earnings vs Industry: ADH earnings growth over the past year (80.9%) underperformed the Specialty Retail industry 91.8%.


Return on Equity

High ROE: ADH's Return on Equity (38.7%) is considered high.


Financial Health

How is Adairs's financial position?


Financial Position Analysis

Short Term Liabilities: ADH's short term assets (A$106.4M) do not cover its short term liabilities (A$159.8M).

Long Term Liabilities: ADH's short term assets (A$106.4M) exceed its long term liabilities (A$90.4M).


Debt to Equity History and Analysis

Debt Level: ADH is debt free.

Reducing Debt: ADH has no debt compared to 5 years ago when its debt to equity ratio was 43.8%.

Debt Coverage: ADH has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: ADH has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet


Dividend

What is Adairs's current dividend yield, its reliability and sustainability?

5.67%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: ADH's dividend (5.67%) is higher than the bottom 25% of dividend payers in the Australian market (2.31%).

High Dividend: ADH's dividend (5.67%) is in the top 25% of dividend payers in the Australian market (5.45%)


Stability and Growth of Payments

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

Growing Dividend: ADH's dividend payments have increased, but the company has only paid a dividend for 6 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (61%), ADH's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: ADH's dividends in 3 years are forecast to be covered by earnings (65.1% payout ratio).


Next Steps

Management

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

3.0yrs

Average management tenure


CEO

Mark Ronan

4.83yrs

Tenure

AU$1,672,821

Compensation

Mr. Mark Ronan has been the Chief Executive Officer and Managing Director of Adairs Limited since November 18, 2016 and serves as its Executive Director. Mr. Ronan served as Chief Operating Officer of Adai...


CEO Compensation Analysis

Compensation vs Market: Mark's total compensation ($USD1.21M) is above average for companies of similar size in the Australian market ($USD754.90K).

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


Leadership Team

Experienced Management: ADH's management team is considered experienced (3 years average tenure).


Board Members

Experienced Board: ADH's board of directors are considered experienced (4.3 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: ADH 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

Adairs Limited's employee growth, exchange listings and data sources


Key Information

  • Name: Adairs Limited
  • Ticker: ADH
  • Exchange: ASX
  • Founded: 1918
  • Industry: Homefurnishing Retail
  • Sector: Retail
  • Market Cap: AU$686.453m
  • Shares outstanding: 169.08m
  • Website: https://www.adairs.com.au

Number of Employees


Location

  • Adairs Limited
  • 2 International Court
  • Scoresby
  • Victoria
  • 3179
  • Australia

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/09/27 15:44
End of Day Share Price2021/09/27 00:00
Earnings2021/06/27
Annual Earnings2021/06/27


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.