Adairs Limited operates as a specialty retailer of home decoration and furnishing products in Australia and New Zealand.
Price History & Performance
|Historical stock prices|
|Current Share Price||AU$4.06|
|52 Week High||AU$3.04|
|52 Week Low||AU$4.97|
|1 Month Change||8.85%|
|3 Month Change||-4.47%|
|1 Year Change||26.48%|
|3 Year Change||59.22%|
|5 Year Change||53.21%|
|Change since IPO||53.21%|
Recent News & Updates
|ADH||AU Specialty Retail||AU Market|
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.
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
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
|ADH fundamental statistics|
Is ADH overvalued?See Fair Value and valuation analysis
Earnings & Revenue
|ADH income statement (TTM)|
|Cost of Revenue||AU$196.47m|
Last Reported Earnings
Jun 27, 2021
Next Earnings Date
|Earnings per share (EPS)||0.38|
|Net Profit Margin||12.75%|
How did ADH perform over the long term?See historical performance and comparison
5.7%Current Dividend Yield
Is Adairs undervalued compared to its fair value and its price relative to the market?
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).
How is Adairs forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?
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%)
How has Adairs performed over the past 5 years?
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.
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$90.4M).
Debt to Equity History and Analysis
Debt Level: ADH is debt free.
Reducing Debt: ADH has no debt compared to 5 years ago when its debt to equity ratio was 43.8%.
Debt Coverage: ADH has no debt, therefore it does not need to be covered by operating cash flow.
Interest Coverage: ADH has no debt, therefore coverage of interest payments is not a concern.
What is Adairs's current dividend yield, its reliability and sustainability?
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: ADH's dividend (5.67%) is higher than the bottom 25% of dividend payers in the Australian market (2.31%).
High Dividend: ADH's dividend (5.67%) is in the top 25% of dividend payers in the Australian market (5.45%)
Stability and Growth of Payments
Stable Dividend: ADH has been paying a dividend for less than 10 years and during this time payments have been volatile.
Growing Dividend: ADH's dividend payments have increased, but the company has only paid a dividend for 6 years.
Current Payout to Shareholders
Dividend Coverage: With its reasonable payout ratio (61%), ADH's dividend payments are covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: ADH's dividends in 3 years are forecast to be covered by earnings (65.1% payout ratio).
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Mr. Mark Ronan has been the Chief Executive Officer and Managing Director of Adairs Limited since November 18, 2016 and serves as its Executive Director. Mr. Ronan served as Chief Operating Officer of Adai...
CEO Compensation Analysis
Compensation vs Market: Mark's total compensation ($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.
Experienced Management: ADH's management team is considered experienced (3 years average tenure).
Experienced Board: ADH's board of directors are considered experienced (4.3 years average tenure).
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
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Adairs Limited's employee growth, exchange listings and data sources
- 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
- Adairs Limited
- 2 International Court
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2021/09/27 15:44|
|End of Day Share Price||2021/09/27 00:00|
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.