ASX:HVN

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Harvey Norman Holdings

Executive Summary

Harvey Norman Holdings Limited engages in the integrated retail, franchise, property, and digital system businesses. More Details


Snowflake Analysis

Solid track record with excellent balance sheet 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 +/- 4% a week.

Volatility Over Time: HVN's weekly volatility (4%) has been stable over the past year.


Market Performance


7 Day Return

2.4%

HVN

0.4%

AU Multiline Retail

-0.6%

AU Market


1 Year Return

11.9%

HVN

19.8%

AU Multiline Retail

0.009%

AU Market

Return vs Industry: HVN underperformed the Australian Multiline Retail industry which returned 19.8% over the past year.

Return vs Market: HVN exceeded the Australian Market which returned 0% over the past year.


Shareholder returns

HVNIndustryMarket
7 Day2.4%0.4%-0.6%
30 Day6.1%8.9%11.0%
90 Day5.4%4.6%8.8%
1 Year18.3%11.9%24.3%19.8%3.4%0.009%
3 Year46.1%12.7%79.3%13.6%23.0%7.8%
5 Year72.3%17.3%118.7%26.4%58.4%26.1%

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

Valuation

Is Harvey Norman Holdings undervalued compared to its fair value and its price relative to the market?

11.6%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: HVN (A$4.69) is trading below our estimate of fair value (A$5.3)

Significantly Below Fair Value: HVN is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: HVN is good value based on its PE Ratio (12x) compared to the XX Multiline Retail industry average (26.1x).

PE vs Market: HVN is good value based on its PE Ratio (12x) compared to the Australian market (22.7x).


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 is good value based on its PB Ratio (1.7x) compared to the XO Multiline Retail industry average (2x).


Next Steps

Future Growth

How is Harvey Norman Holdings forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?

-4.1%

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 (-4.1% per year).

Earnings vs Market: HVN's earnings are forecast to decline over the next 3 years (-4.1% per year).

High Growth Earnings: HVN's earnings are forecast to decline over the next 3 years.

Revenue vs Market: HVN's revenue (11.4% per year) is forecast to grow faster than the Australian market (5.1% per year).

High Growth Revenue: HVN's revenue (11.4% 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 (11.9%).


Next Steps

Past Performance

How has Harvey Norman Holdings performed over the past 5 years?

6.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: HVN has high quality earnings.

Growing Profit Margin: HVN's current net profit margins (20.9%) are higher than last year (18%).


Past Earnings Growth Analysis

Earnings Trend: HVN's earnings have grown by 6.1% per year over the past 5 years.

Accelerating Growth: HVN's earnings growth over the past year (19.5%) exceeds its 5-year average (6.1% per year).

Earnings vs Industry: HVN earnings growth over the past year (19.5%) exceeded the Multiline Retail industry -32.7%.


Return on Equity

High ROE: HVN's Return on Equity (14%) is considered low.


Next Steps

Financial Health

How is Harvey Norman Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: HVN's short term assets (A$1.3B) exceed its short term liabilities (A$785.4M).

Long Term Liabilities: HVN's short term assets (A$1.3B) do not cover its long term liabilities (A$1.6B).


Debt to Equity History and Analysis

Debt Level: HVN's debt to equity ratio (8.6%) is considered satisfactory.

Reducing Debt: HVN's debt to equity ratio has reduced from 27.2% to 8.6% over the past 5 years.

Debt Coverage: HVN's debt is well covered by operating cash flow (354.9%).

Interest Coverage: HVN's interest payments on its debt are well covered by EBIT (32.3x coverage).


Balance Sheet


Next Steps

Dividend

What is Harvey Norman Holdings's current dividend yield, its reliability and sustainability?

3.84%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: HVN's dividend (3.84%) is higher than the bottom 25% of dividend payers in the Australian market (2.06%).

High Dividend: HVN's dividend (3.84%) is low compared to the top 25% of dividend payers in the Australian market (5.03%).


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 reasonably low payout ratio (45.9%), HVN's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: HVN's dividends in 3 years are forecast to be covered by earnings (76.7% payout ratio).


Next Steps

Management

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

9.0yrs

Average management tenure


CEO

Katie Page (63 yo)

21.83yrs

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 ($USD2.44M) is about average for companies of similar size in the Australian market ($USD1.88M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Gerald Harvey
Co-Founder33.92yrsAU$858.95k33.86%
A$ 2.0b
Kay Lesley Page
CEO & Executive Director21.83yrsAU$3.32m1.59%
A$ 92.5m
Chris Mentis
Executive Director13.33yrsAU$1.84m0.090%
A$ 5.2m
John Slack-Smith
Executive Director & COO19.83yrsAU$2.28m0.088%
A$ 5.2m
Glen Gregory
General Manager of Technology & Entertainment1.25yrsAU$459.82kno data
Gordon Dingwall
Chief Information Officer9yrsAU$533.40kno data
David Ackery
Executive Director15yrsAU$2.28m0.051%
A$ 3.0m
Martin Anderson
General Manager of Advertisingno dataAU$360.68kno data
Thomas Scott
General Manager of Property14.67yrsAU$604.42k0.00080%
A$ 46.7k
Lachlan Roach
General Manager of Home Appliances3.17yrsAU$446.83k0.00080%
A$ 46.7k
Ajay Calpakam
General Manager of Audio Visual3.33yrsAU$362.76kno data
Emmanuel Hohlastos
General Manager of Audio Visual0.58yrAU$425.41kno data

9.0yrs

Average Tenure

60yo

Average Age

Experienced Management: HVN's management team is seasoned and experienced (9 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Gerald Harvey
Co-Founder33.92yrsAU$858.95k33.86%
A$ 2.0b
Kay Lesley Page
CEO & Executive Director21.83yrsAU$3.32m1.59%
A$ 92.5m
Chris Mentis
Executive Director13.33yrsAU$1.84m0.090%
A$ 5.2m
John Slack-Smith
Executive Director & COO19.83yrsAU$2.28m0.088%
A$ 5.2m
David Ackery
Executive Director15yrsAU$2.28m0.051%
A$ 3.0m
Christopher Brown
Non-Executive Director33.92yrsAU$152.00k0.0097%
A$ 567.4k
Kenneth Gunderson-Briggs
Non-Executive Independent Director17.5yrsAU$293.09k0.00081%
A$ 47.2k
Michael Harvey
Non-Executive Director27.92yrsAU$57.00k0.27%
A$ 15.6m
Luisa Catanzaro
Independent Non-Executive Director0.083yrno datano data
Maurice Craven
Independent Non-Executive Director1.75yrsAU$137.75k0.0025%
A$ 143.5k

18.7yrs

Average Tenure

59.5yo

Average Age

Experienced Board: HVN's board of directors are seasoned and experienced ( 18.7 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: HVN 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$5.831b
  • 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

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
HNNDB (Deutsche Boerse AG)YesOrdinary SharesDEEURJan 1992
HVNASX (Australian Securities Exchange)YesOrdinary SharesAUAUDJan 1992
HVNCHIA (Chi-X Australia)YesOrdinary SharesAUAUDJan 1992
HNOR.YOTCPK (Pink Sheets LLC)UNSPONSORED ADRUSUSDDec 2008

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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/12/02 07:04
End of Day Share Price2020/12/02 00:00
Earnings2020/06/30
Annual Earnings2020/06/30


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.