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ADH

Adairs ASX:ADH Stock Report

Last Price

AU$2.13

Market Cap

AU$364.9m

7D

12.7%

1Y

-43.8%

Updated

05 Oct, 2022

Data

Company Financials +
ADH fundamental analysis
Snowflake Score
Valuation5/6
Future Growth4/6
Past Performance3/6
Financial Health3/6
Dividends4/6

ADH Stock 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$2.13
52 Week HighAU$4.19
52 Week LowAU$1.65
Beta1.62
1 Month Change5.97%
3 Month Change-7.39%
1 Year Change-43.80%
3 Year Change12.70%
5 Year Change29.88%
Change since IPO-19.62%

Recent News & Updates

Sep 16
Adairs (ASX:ADH) Takes On Some Risk With Its Use Of Debt

Adairs (ASX:ADH) Takes On Some Risk With Its Use Of Debt

Legendary fund manager Li Lu (who Charlie Munger backed) once said, 'The biggest investment risk is not the volatility...

Aug 24
Adairs (ASX:ADH) Has Announced A Dividend Of A$0.10

Adairs (ASX:ADH) Has Announced A Dividend Of A$0.10

Adairs Limited's ( ASX:ADH ) investors are due to receive a payment of A$0.10 per share on 22nd of September. Based on...

Shareholder Returns

ADHAU Specialty RetailAU Market
7D12.7%4.3%3.6%
1Y-43.8%-20.4%-8.0%

Return vs Industry: ADH underperformed the Australian Specialty Retail industry which returned -20.4% over the past year.

Return vs Market: ADH underperformed the Australian Market which returned -8% over the past year.

Price Volatility

Is ADH's price volatile compared to industry and market?
ADH volatility
ADH Average Weekly Movement9.3%
Specialty Retail Industry Average Movement7.2%
Market Average Movement9.4%
10% most volatile stocks in AU Market16.5%
10% least volatile stocks in AU Market4.2%

Stable Share Price: ADH is not significantly more volatile than the rest of Australian stocks over the past 3 months, typically moving +/- 9% a week.

Volatility Over Time: ADH's weekly volatility (9%) 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 through three segments: Adairs, Mocka and Focus. The company offers bedroom products, such as bedlinen, bedding, and bedroom furniture and accessories; bathroom products, consisting of towels, bath mats, bathrobes and slippers, bathroom accessories, and laundry and home care products; furniture products, such as bedroom, office, living room, and kids furniture; homewares comprising home styling, home care and gifting, pets, and kitchen products; kid’s products, including kids bedlinen, bedding, décor, bathroom, furniture, toys, and nursery; as well as gifting products.

Adairs Fundamentals Summary

How do Adairs's earnings and revenue compare to its market cap?
ADH fundamental statistics
Market CapAU$364.90m
Earnings (TTM)AU$44.89m
Revenue (TTM)AU$564.48m

8.1x

P/E Ratio

0.6x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
ADH income statement (TTM)
RevenueAU$564.48m
Cost of RevenueAU$255.61m
Gross ProfitAU$308.87m
Other ExpensesAU$263.98m
EarningsAU$44.89m

Last Reported Earnings

Jun 26, 2022

Next Earnings Date

n/a

Earnings per share (EPS)0.26
Gross Margin54.72%
Net Profit Margin7.95%
Debt/Equity Ratio60.3%

How did ADH perform over the long term?

See historical performance and comparison

Dividends

8.5%

Current Dividend Yield

68%

Payout Ratio
We’ve recently updated our valuation analysis.

Valuation

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

Valuation Score

5/6

Valuation Score 5/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

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

Other financial metrics that can be useful for relative valuation.

ADH 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/Revenue1.1x
Enterprise Value/EBITDA8.2x
PEG Ratio0.8x

Price to Earnings Ratio vs Peers

How does ADH's PE Ratio compare to its peers?

ADH PE Ratio vs Peers
The above table shows the PE ratio for ADH vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average13.9x
NCK Nick Scali
11.1x3.2%AU$828.6m
JYC Joyce
11.8xn/aAU$107.4m
UNI Universal Store Holdings
17.3x17.0%AU$356.5m
CCX City Chic Collective
15.5x14.7%AU$344.7m
ADH Adairs
8.1x10.0%AU$364.9m

Price-To-Earnings vs Peers: ADH is good value based on its Price-To-Earnings Ratio (8.1x) compared to the peer average (13.9x).


Price to Earnings Ratio vs Industry

How does ADH's PE Ratio compare vs other companies in the AU Specialty Retail Industry?

Price-To-Earnings vs Industry: ADH is good value based on its Price-To-Earnings Ratio (8.1x) compared to the Australian Specialty Retail industry average (9.5x)


Price to Earnings Ratio vs Fair Ratio

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

ADH PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio8.1x
Fair PE Ratio13.4x

Price-To-Earnings vs Fair Ratio: ADH is good value based on its Price-To-Earnings Ratio (8.1x) compared to the estimated Fair Price-To-Earnings Ratio (13.4x).


Share Price vs Fair Value

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

Below Fair Value: ADH (A$2.13) is trading below our estimate of fair value (A$8.3)

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


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Target price is more than 20% higher than the current share price, but analysts are not within a statistically confident range of agreement.


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Future Growth

How is Adairs forecast to perform in the next 1 to 3 years based on estimates from 10 analysts?

Future Growth Score

4/6

Future Growth Score 4/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


10.0%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ADH's forecast earnings growth (10% per year) is above the savings rate (1.8%).

Earnings vs Market: ADH's earnings (10% per year) are forecast to grow faster than the Australian market (6.5% per year).

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

Revenue vs Market: ADH's revenue (7.4% per year) is forecast to grow faster than the Australian market (3.6% per year).

High Growth Revenue: ADH's revenue (7.4% 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 (24.6%)


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Past Performance

How has Adairs performed over the past 5 years?

Past Performance Score

3/6

Past Performance Score 3/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


16.8%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: ADH has high quality earnings.

Growing Profit Margin: ADH's current net profit margins (8%) are lower than last year (12.8%).


Past Earnings Growth Analysis

Earnings Trend: ADH's earnings have grown by 16.8% per year over the past 5 years.

Accelerating Growth: ADH's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: ADH had negative earnings growth (-29.6%) over the past year, making it difficult to compare to the Specialty Retail industry average (-0.5%).


Return on Equity

High ROE: ADH's Return on Equity (22.7%) is considered high.


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Financial Health

How is Adairs's financial position?

Financial Health Score

3/6

Financial Health Score 3/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: ADH's short term assets (A$156.9M) exceed its short term liabilities (A$135.3M).

Long Term Liabilities: ADH's short term assets (A$156.9M) do not cover its long term liabilities (A$294.2M).


Debt to Equity History and Analysis

Debt Level: ADH's net debt to equity ratio (46.7%) is considered high.

Reducing Debt: ADH's debt to equity ratio has increased from 41.8% to 60.3% over the past 5 years.

Debt Coverage: ADH's debt is well covered by operating cash flow (51.3%).

Interest Coverage: ADH's interest payments on its debt are well covered by EBIT (8.6x coverage).


Balance Sheet


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Dividend

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

Dividend Score

4/6

Dividend Score 4/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Cash Flow Coverage


8.45%

Current Dividend Yield

Dividend Yield vs Market

Adairs Dividend Yield vs Market
How does Adairs dividend yield compare to the market?
SegmentDividend Yield
Company (Adairs)8.5%
Market Bottom 25% (AU)2.8%
Market Top 25% (AU)7.0%
Industry Average (Specialty Retail)6.1%
Analyst forecast in 3 Years (Adairs)10.1%

Notable Dividend: ADH's dividend (8.45%) is higher than the bottom 25% of dividend payers in the Australian market (2.79%).

High Dividend: ADH's dividend (8.45%) is in the top 25% of dividend payers in the Australian market (6.98%)


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 7 years.


Earnings Payout to Shareholders

Earnings Coverage: With its reasonable payout ratio (68.2%), ADH's dividend payments are covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: With its reasonable cash payout ratio (59.1%), ADH's dividend payments are covered by cash flows.


Discover strong dividend paying companies

Management

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

4.0yrs

Average management tenure


CEO

Mark Ronan

5.33yrs

Tenure

AU$1,158,720

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

Mark Ronan's Compensation vs Adairs Earnings
How has Mark Ronan's remuneration changed compared to Adairs's earnings?
DateTotal Comp.SalaryCompany Earnings
Jun 26 2022AU$1mAU$686k

AU$45m

Mar 26 2022n/an/a

AU$41m

Dec 26 2021n/an/a

AU$37m

Sep 26 2021n/an/a

AU$51m

Jun 27 2021AU$2mAU$616k

AU$64m

Mar 27 2021n/an/a

AU$65m

Dec 27 2020n/an/a

AU$66m

Sep 27 2020n/an/a

AU$51m

Jun 28 2020AU$1mAU$552k

AU$35m

Mar 28 2020n/an/a

AU$32m

Dec 29 2019n/an/a

AU$28m

Sep 29 2019n/an/a

AU$29m

Jun 30 2019AU$620kAU$554k

AU$30m

Mar 31 2019n/an/a

AU$31m

Dec 30 2018n/an/a

AU$32m

Sep 30 2018n/an/a

AU$31m

Jul 01 2018AU$810kAU$480k

AU$31m

Apr 01 2018n/an/a

AU$28m

Dec 31 2017n/an/a

AU$26m

Sep 30 2017n/an/a

AU$24m

Jul 02 2017AU$488kAU$449k

AU$21m

Apr 02 2017n/an/a

AU$22m

Jan 01 2017n/an/a

AU$22m

Oct 01 2016n/an/a

AU$25m

Jul 03 2016AU$550kAU$356k

AU$27m

Compensation vs Market: Mark's total compensation ($USD752.90K) is about average for companies of similar size in the Australian market ($USD620.94K).

Compensation vs Earnings: Mark's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: ADH's management team is considered experienced (4 years average tenure).


Board Members

Experienced Board: ADH's board of directors are considered experienced (6.4 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.


Recent Insider Transactions

ASX:ADH Recent Insider Transactions by Companies or Individuals
DateValueNameEntityRoleSharesMax Price
26 Nov 21BuyAU$68,382Kathryn SpargoIndividual18,333AU$3.73
22 Nov 21BuyAU$5,773,476Vinva Investment Management LimitedCompany1,468,493AU$3.93
22 Nov 21SellAU$413,938Vinva Investment Management LimitedCompany105,110AU$3.94

Ownership Breakdown

What is the ownership structure of ADH?
Owner TypeNumber of SharesOwnership Percentage
Public Companies925,9550.5%
Private Companies1,346,4320.8%
Individual Insiders9,145,1155.3%
Institutions43,174,66425.2%
General Public116,724,26768.1%

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


Top Shareholders

Top 25 shareholders own 31.72% of the company
OwnershipNameSharesCurrent ValueChange %Portfolio %
4.95%
Vinva Investment Management Limited
8,476,722A$18.1m0%1.06%
4.81%
Challenger Limited
8,240,848A$17.6m0%0.38%
4.75%
Lennox Capital Partners
8,133,006A$17.3m0%6.97%
3.04%
First Sentier Investors (Australia) IM Ltd
5,212,508A$11.1m0%0.01%
3.03%
Mitsubishi UFJ Kokusai Asset Management Co., Ltd.
5,191,231A$11.1m0%0.01%
1.75%
David MacLean
2,993,486A$6.4m0%no data
1.39%
Dimensional Fund Advisors LP
2,385,455A$5.1m0.61%no data
1.34%
The Vanguard Group, Inc.
2,287,699A$4.9m0.04%no data
1.24%
Michael Cherubino
2,117,209A$4.5m0%no data
0.92%
Norges Bank Investment Management
1,569,989A$3.3m0%no data
0.9%
Trent Peterson
1,540,334A$3.3m0%no data
0.54%
Washington H. Soul Pattinson and Company Limited
925,955A$2.0m0%no data
0.48%
Michael Butler
820,000A$1.7m20.28%no data
0.46%
Mark Ronan
785,047A$1.7m0%no data
0.45%
Nch Pty Ltd
774,132A$1.6m0%no data
0.39%
WisdomTree Asset Management, Inc.
672,760A$1.4m1.07%0.01%
0.35%
Ashley Gardner
592,300A$1.3m3.49%no data
0.33%
JACM GARDNER INVESTMENTS PTY Ltd
572,300A$1.2m0%no data
0.16%
Eaton Vance Management
275,180A$586.1k0%no data
0.099%
Kiera Grant
170,427A$363.0k0%no data
0.085%
Grantham Mayo Van Otterloo & Co. LLC
146,115A$311.2k0%no data
0.081%
BNY Mellon Asset Management
138,094A$294.1k-0.96%no data
0.067%
Van Eck Associates Corporation
115,472A$246.0k10.63%no data
0.06%
BetaShares Capital Limited
103,078A$219.6k5.54%no data
0.058%
State Street Global Advisors, Inc.
100,105A$213.2k0.74%no data

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
  • Implied Market Cap: AU$364.904m
  • Shares outstanding: 171.32m
  • Website: https://www.adairs.com.au

Location

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


Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ADHCHIA (Chi-X Australia)YesOrdinary SharesAUAUDJun 2015
ADHASX (Australian Securities Exchange)YesOrdinary SharesAUAUDJun 2015
1FQDB (Deutsche Boerse AG)YesOrdinary SharesDEEURJun 2015

Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/10/05 00:00
End of Day Share Price2022/10/05 00:00
Earnings2022/06/26
Annual Earnings2022/06/26


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.