Executive Summary
Harvey Norman Holdings Limited engages in the integrated retail, franchise, property, and digital system businesses. More Details
Rewards
Risk Analysis
Earnings are forecast to decline by an average of 11.6% per year for the next 3 years
Snowflake Analysis
Flawless balance sheet with solid track record and pays a dividend.
Similar Companies
Share Price & News
How has Harvey Norman Holdings's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: HVN is less volatile than 75% of Australian stocks over the past 3 months, typically moving +/- 3% a week.
Volatility Over Time: HVN's weekly volatility (3%) has been stable over the past year.
Market Performance
7 Day Return
3.3%
HVN
3.6%
AU Multiline Retail
0.3%
AU Market
1 Year Return
56.9%
HVN
34.7%
AU Multiline Retail
25.8%
AU Market
Return vs Industry: HVN exceeded the Australian Multiline Retail industry which returned 34.7% over the past year.
Return vs Market: HVN exceeded the Australian Market which returned 25.8% over the past year.
Shareholder returns
| HVN | Industry | Market | |
|---|---|---|---|
| 7 Day | 3.3% | 3.6% | 0.3% |
| 30 Day | 8.5% | 6.0% | 1.3% |
| 90 Day | 1.3% | 9.2% | 4.2% |
| 1 Year | 68.6%56.9% | 40.0%34.7% | 30.4%25.8% |
| 3 Year | 105.2%58.2% | 101.2%27.2% | 32.8%16.6% |
| 5 Year | 70.9%15.7% | 135.1%36.8% | 64.3%32.3% |
Long-Term Price Volatility Vs. Market
How volatile is Harvey Norman Holdings's share price compared to the market and industry in the last 5 years?
Simply Wall St News
1 week ago | Simply Wall St
Harvey Norman Holdings (ASX:HVN) Has Compensated Shareholders With A Respectable 99% Return On Their Investment3 weeks ago | Simply Wall St
Could The Harvey Norman Holdings Limited (ASX:HVN) Ownership Structure Tell Us Something Useful?1 month ago | Simply Wall St
Declining Stock and Solid Fundamentals: Is The Market Wrong About Harvey Norman Holdings Limited (ASX:HVN)?Valuation
Is Harvey Norman Holdings undervalued compared to its fair value and its price relative to the market?
25.6%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: HVN (A$5.6) is trading below our estimate of fair value (A$7.53)
Significantly Below Fair Value: HVN is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: HVN is good value based on its PE Ratio (9.6x) compared to the Global Multiline Retail industry average (20.5x).
PE vs Market: HVN is good value based on its PE Ratio (9.6x) compared to the Australian market (20.8x).
Price to Earnings Growth Ratio
PEG Ratio: HVN's earnings are forecast to decline next year, so we can't calculate its PEG ratio.
Price to Book Ratio
PB vs Industry: HVN's PB Ratio (1.9x) is in line with the XO Multiline Retail industry average.
Future Growth
How is Harvey Norman Holdings forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?
-11.6%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: HVN's earnings are forecast to decline over the next 3 years (-11.6% per year).
Earnings vs Market: HVN's earnings are forecast to decline over the next 3 years (-11.6% per year).
High Growth Earnings: HVN's earnings are forecast to decline over the next 3 years.
Revenue vs Market: HVN's revenue (3.7% per year) is forecast to grow slower than the Australian market (5% per year).
High Growth Revenue: HVN's revenue (3.7% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: HVN's Return on Equity is forecast to be low in 3 years time (12.6%).
Past Performance
How has Harvey Norman Holdings performed over the past 5 years?
9.1%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: HVN has high quality earnings.
Growing Profit Margin: HVN's current net profit margins (28.8%) are higher than last year (17.1%).
Past Earnings Growth Analysis
Earnings Trend: HVN's earnings have grown by 9.1% per year over the past 5 years.
Accelerating Growth: HVN's earnings growth over the past year (85.2%) exceeds its 5-year average (9.1% per year).
Earnings vs Industry: HVN earnings growth over the past year (85.2%) exceeded the Multiline Retail industry 17.1%.
Return on Equity
High ROE: HVN's Return on Equity (19.6%) is considered low.
Financial Health
How is Harvey Norman Holdings's financial position?
Financial Position Analysis
Short Term Liabilities: HVN's short term assets (A$1.6B) exceed its short term liabilities (A$1.1B).
Long Term Liabilities: HVN's short term assets (A$1.6B) exceed its long term liabilities (A$1.4B).
Debt to Equity History and Analysis
Debt Level: HVN's debt to equity ratio (7%) is considered satisfactory.
Reducing Debt: HVN's debt to equity ratio has reduced from 23.8% to 7% over the past 5 years.
Debt Coverage: HVN's debt is well covered by operating cash flow (440.7%).
Interest Coverage: HVN's interest payments on its debt are well covered by EBIT (45x coverage).
Balance Sheet
Dividend
What is Harvey Norman Holdings's current dividend yield, its reliability and sustainability?
7.14%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: HVN's dividend (7.14%) is higher than the bottom 25% of dividend payers in the Australian market (2%).
High Dividend: HVN's dividend (7.14%) is in the top 25% of dividend payers in the Australian market (5.02%)
Stability and Growth of Payments
Stable Dividend: HVN's dividend payments have been volatile in the past 10 years.
Growing Dividend: HVN's dividend payments have increased over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its reasonable payout ratio (64.9%), HVN's dividend payments are covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: HVN's dividends in 3 years are forecast to be covered by earnings (74.4% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
9.6yrs
Average management tenure
CEO
Katie Page (64 yo)
22.42yrs
Tenure
AU$3,320,591
Compensation
Ms. Kay Lesley Harvey Page, also known as Katie, has been the Chief Executive Officer of Harvey Norman Holdings Limited since February 1999 and has overall executive responsibility for the operations of th...
CEO Compensation Analysis
Compensation vs Market: Katie's total compensation ($USD2.45M) is about average for companies of similar size in the Australian market ($USD1.94M).
Compensation vs Earnings: Katie's compensation has been consistent with company performance over the past year.
Leadership Team
Experienced Management: HVN's management team is seasoned and experienced (9.6 years average tenure).
Board Members
Experienced Board: HVN's board of directors are seasoned and experienced ( 19.3 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.
Recent Insider Transactions
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Top Shareholders
Company Information
Harvey Norman Holdings Limited's company bio, employee growth, exchange listings and data sources
Key Information
- Name: Harvey Norman Holdings Limited
- Ticker: HVN
- Exchange: ASX
- Founded: 1982
- Industry: General Merchandise Stores
- Sector: Retail
- Market Cap: AU$6.978b
- Shares outstanding: 1.25b
- Website: https://www.harveynormanholdings.com.au
Number of Employees
Location
- Harvey Norman Holdings Limited
- A1 Richmond Road
- Homebush West
- New South Wales
- 2140
- Australia
Listings
Biography
Harvey Norman Holdings Limited engages in the integrated retail, franchise, property, and digital system businesses. Its franchises and sells products in various categories, including electrical goods, fur...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/07/23 16:39 |
| End of Day Share Price | 2021/07/23 00:00 |
| Earnings | 2020/12/31 |
| Annual Earnings | 2020/06/30 |
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.