ASX:HVN

Stock Analysis Report

Harvey Norman Holdings

Executive Summary

Harvey Norman Holdings Limited grants franchises to independent franchisees.

Snowflake

Fundamentals

Flawless balance sheet with acceptable track record.

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


Market Performance


7 Day Return

3.2%

ASX:HVN

-1.6%

AU Multiline Retail

0.7%

AU Market


1 Year Return

30.9%

ASX:HVN

-19.5%

AU Multiline Retail

6.2%

AU Market

HVN outperformed the Multiline Retail industry which returned -19.5% over the past year.

HVN outperformed the Market in Australia which returned 6.2% over the past year.


Share holder returns

HVNIndustryMarket
7 Day3.2%-1.6%0.7%
30 Day-2.6%1.2%3.8%
90 Day11.6%6.2%0.4%
1 Year45.6%30.9%17.6%-19.5%12.4%6.2%
3 Year12.3%-12.7%38.3%-13.1%40.9%21.9%
5 Year88.4%25.8%60.6%-10.8%49.8%16.3%

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 based on future cash flows and its price relative to the stock market?

20%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Harvey Norman Holdings's share price is below the future cash flow value, but not at a moderate discount (< 20%).

Harvey Norman Holdings's share price is below the future cash flow value, but not at a substantial discount (< 40%).


Price Based on Earnings

Harvey Norman Holdings is good value based on earnings compared to the Global Multiline Retail industry average.

Harvey Norman Holdings is good value based on earnings compared to the Australia market.


Price Based on Expected Growth

Harvey Norman Holdings earnings are not expected to grow next year, we can't assess if its growth is good value.


Price Based on Value of Assets

Harvey Norman Holdings is overvalued based on assets compared to the Oceania Multiline Retail industry average.


Next Steps

Future Growth

How is Harvey Norman Holdings expected to perform in the next 1 to 3 years based on estimates from 7 analysts?

-2.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Harvey Norman Holdings's revenue is expected to grow by 15.7% yearly, however this is not considered high growth (20% yearly).

Harvey Norman Holdings's earnings are expected to decrease over the next 1-3 years, this is not considered high growth.

Harvey Norman Holdings's revenue growth is expected to exceed the Australia market average.

Harvey Norman Holdings's earnings are expected to decrease over the next 1-3 years, this is below the Australia market average.

Harvey Norman Holdings's earnings are expected to decrease over the next 1-3 years, this is below the low risk savings rate of 2.3%.


Earnings per Share Growth Estimates


Future Return on Equity

Harvey Norman Holdings is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


Next Steps

Past Performance

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

11.2%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Harvey Norman Holdings's year on year earnings growth rate has been positive over the past 5 years.

Harvey Norman Holdings's 1-year earnings growth is less than its 5-year average (7.2% vs 11.2%)

Harvey Norman Holdings's earnings growth has exceeded the Global Multiline Retail industry average in the past year (7.2% vs -6.4%).


Return on Equity

Harvey Norman Holdings has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Harvey Norman Holdings used its assets more efficiently than the Global Multiline Retail industry average last year based on Return on Assets.


Return on Capital Employed

Harvey Norman Holdings's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Harvey Norman Holdings's financial position?


Financial Position Analysis

Harvey Norman Holdings is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Harvey Norman Holdings's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

Harvey Norman Holdings's level of debt (26.2%) compared to net worth is satisfactory (less than 40%).

The level of debt compared to net worth has been reduced over the past 5 years (28.4% vs 26.2% today).

Debt is well covered by operating cash flow (44.5%, greater than 20% of total debt).

Harvey Norman Holdings earns more interest than it pays, coverage of interest payments is not a concern.


Balance Sheet

High level of physical assets or inventory.

Debt is covered by short term assets, assets are 1.7x debt.


Next Steps

Dividend

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

5.93%

Expected Dividend Yield


Upcoming Dividend Payment

Purchase Harvey Norman Holdings before the 'Buy Limit' to receive their next dividend payment.


Dividend Yield and Payments Analysis

Harvey Norman Holdings's pays a higher dividend yield than the bottom 25% of dividend payers in Australia (2.47%).

Harvey Norman Holdings's dividend is above the markets top 25% of dividend payers in Australia (5.58%).

Dividends per share have been volatile in the past 10 years (annual drop of over 20%).

Dividends per share have increased over the past 10 years.


Current Payout to Shareholders

Dividends paid are not well covered by earnings (1.1x coverage).


Future Payout to Shareholders

Dividends after 3 years are not well covered by earnings (1x coverage).


Next Steps

Management

What is the CEO of Harvey Norman Holdings's salary, the management and board of directors tenure and is there insider trading?

13.4yrs

Average management tenure


CEO

Katie Page (62yo)

20.6yrs

Tenure

AU$3,128,446

Compensation

Ms. Kay Lesley Harvey Page, also known as Katie, has been the Chief Executive Officer and Managing Director of Harvey Norman Holdings Limited since February 1999 and has overall executive responsibility fo ...


CEO Compensation Analysis

Katie's remuneration is about average for companies of similar size in Australia.

Katie's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

13.4yrs

Average Tenure

59yo

Average Age

The average tenure for the Harvey Norman Holdings management team is over 5 years, this suggests they are a seasoned and experienced team.


Board Age and Tenure

17.4yrs

Average Tenure

59yo

Average Age

The average tenure for the Harvey Norman Holdings board of directors is over 10 years, this suggests they are a seasoned and experienced board.


Insider Trading

More shares have been bought than sold by Harvey Norman Holdings individual insiders in the past 3 months, but not in substantial volumes.


Recent Insider Transactions

BuyAU$24,05403 Sep 19
Kay Lesley Page
EntityIndividual
Role
Chief Executive Officer
CEO & Executive Director
Shares5,442
Max PriceAU$4.42
SellAU$3,462,14105 Nov 18
Gerald Harvey
EntityIndividual
Role
Chairman of the Board
Co-Founder
Shares1,101,272
Max PriceAU$3.18
SellAU$9,13305 Nov 18
John Slack-Smith
EntityIndividual
Role
Member of the Board of Directors
COO & Executive Director
Shares2,881
Max PriceAU$3.17
SellAU$29,50705 Nov 18
Michael Harvey
EntityIndividual
Role
Member of the Board of Directors
Non-Executive Director
Shares9,495
Max PriceAU$3.11
SellAU$1,07205 Nov 18
Christopher Brown
EntityIndividual
Role
Member of the Board of Directors
Non-Executive Director
Shares345
Max PriceAU$3.11
SellAU$6405 Nov 18
Kenneth Gunderson-Briggs
EntityIndividual
Role
Member of the Board of Directors
Non-Executive Independent Director
Shares20
Max PriceAU$3.18
SellAU$173,78405 Nov 18
Kay Lesley Page
EntityIndividual
Role
Chief Executive Officer
CEO & Executive Director
Shares55,928
Max PriceAU$3.14
SellAU$9,28205 Nov 18
Chris Mentis
EntityIndividual
Role
Member of the Board of Directors
CFO, Company Secretary & Executive Director
Shares2,922
Max PriceAU$3.18
SellAU$4,95705 Nov 18
David Ackery
EntityIndividual
Role
Member of the Board of Directors
Executive Director
Shares1,581
Max PriceAU$3.17
SellAU$1,821,88305 Nov 18
Estate of Ian John Norman
EntityCompany
Shares584,767
Max PriceAU$3.12
BuyAU$19,43727 Sep 18
Gerald Harvey
EntityIndividual
Role
Chairman of the Board
Co-Founder
Shares5,642
Max PriceAU$3.44
BuyAU$987,76227 Sep 18
Gerald Harvey
EntityIndividual
Role
Chairman of the Board
Co-Founder
Shares286,796
Max PriceAU$3.44
BuyAU$3,413,72721 Sep 18
Gerald Harvey
EntityIndividual
Role
Chairman of the Board
Co-Founder
Shares990,915
Max PriceAU$3.45

Ownership Breakdown


Management Team

  • Katie Page (62yo)

    CEO & Executive Director

    • Tenure: 20.6yrs
    • Compensation: AU$3.13m
  • John Slack-Smith (50yo)

    COO & Executive Director

    • Tenure: 18.6yrs
    • Compensation: AU$2.14m
  • Gerry Harvey (80yo)

    Co-Founder

    • Tenure: 32.7yrs
    • Compensation: AU$955.80k
  • Chris Mentis (53yo)

    CFO, Company Secretary & Executive Director

    • Tenure: 12.1yrs
    • Compensation: AU$1.74m
  • Martin Anderson

    General Manager of Advertising

    • Tenure: 0yrs
    • Compensation: AU$347.73k
  • David Ackery (59yo)

    Executive Director

    • Tenure: 13.8yrs
    • Compensation: AU$2.14m
  • Thomas Scott

    General Manager of Property

    • Tenure: 13.4yrs
    • Compensation: AU$604.43k
  • Gordon Dingwall

    Chief Information Officer

    • Tenure: 7.8yrs
    • Compensation: AU$492.75k
  • Frank Robinson

    General Manager of Technology & Entertainment

    • Tenure: 2.1yrs
    • Compensation: AU$526.25k
  • Lachlan Roach

    General Manager of Home Appliances

    • Tenure: 1.9yrs
    • Compensation: AU$418.15k

Board Members

  • Chris Brown (69yo)

    Non-Executive Director

    • Tenure: 32.7yrs
    • Compensation: AU$145.00k
  • Ken Gunderson-Briggs (58yo)

    Non-Executive Independent Director

    • Tenure: 16.3yrs
    • Compensation: AU$173.87k
  • Michael Harvey (54yo)

    Non-Executive Director

    • Tenure: 26.7yrs
    • Compensation: AU$60.00k
  • Katie Page (62yo)

    CEO & Executive Director

    • Tenure: 20.6yrs
    • Compensation: AU$3.13m
  • John Slack-Smith (50yo)

    COO & Executive Director

    • Tenure: 18.6yrs
    • Compensation: AU$2.14m
  • Gerry Harvey (80yo)

    Co-Founder

    • Tenure: 32.7yrs
    • Compensation: AU$955.80k
  • Chris Mentis (53yo)

    CFO, Company Secretary & Executive Director

    • Tenure: 12.1yrs
    • Compensation: AU$1.74m
  • Graham Paton (74yo)

    Senior Independent Director

    • Tenure: 3.8yrs
    • Compensation: AU$145.00k
  • David Ackery (59yo)

    Executive Director

    • Tenure: 13.8yrs
    • Compensation: AU$2.14m
  • John Craven

    Independent Non-Executive Director

    • Tenure: 0.5yrs

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$5.285b
  • Shares outstanding: 1.18b
  • 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
HVNNBASX (Australian Securities Exchange)NPV DFD 18/10/19(EX-RIGHTS)AUAUDNo data
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 grants franchises to independent franchisees. Its franchisees sell products in various categories, including electrical goods, furniture, computers and communications, beddin ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/09/19 10:33
End of Day Share Price2019/09/19 00:00
Earnings2019/06/30
Annual Earnings2019/06/30


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.