ASX:KMD

Stock Analysis Report

Kathmandu Holdings

Executive Summary

Kathmandu Holdings Limited, together with its subsidiaries, designs, markets, wholesales, and retails clothing, footwear, and equipment for travel and adventure in New Zealand, Australia, the United States, and the United Kingdom.


Snowflake Analysis

Very undervalued with flawless balance sheet.


Similar Companies

Share Price & News

How has Kathmandu Holdings's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: KMD has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-5.0%

KMD

-1.7%

AU Specialty Retail

-2.2%

AU Market


1 Year Return

33.1%

KMD

34.3%

AU Specialty Retail

11.6%

AU Market

Return vs Industry: KMD underperformed the Australian Specialty Retail industry which returned 34.3% over the past year.

Return vs Market: KMD exceeded the Australian Market which returned 11.6% over the past year.


Shareholder returns

KMDIndustryMarket
7 Day-5.0%-1.7%-2.2%
30 Day4.2%-1.2%-2.2%
90 Day14.8%2.5%2.2%
1 Year48.3%33.1%39.6%34.3%16.5%11.6%
3 Year119.8%72.5%33.9%16.9%36.2%18.1%
5 Year219.3%118.8%84.8%49.0%46.7%14.1%

Price Volatility Vs. Market

How volatile is Kathmandu Holdings's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

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

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: KMD (A$3.26) is trading below our estimate of fair value (A$10.4)

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


Price To Earnings Ratio

PE vs Industry: KMD is good value based on its PE Ratio (13.6x) compared to the Specialty Retail industry average (16.3x).

PE vs Market: KMD is good value based on its PE Ratio (13.6x) compared to the Australian market (18.6x).


Price to Earnings Growth Ratio

PEG Ratio: KMD is good value based on its PEG Ratio (0.9x)


Price to Book Ratio

PB vs Industry: KMD is good value based on its PB Ratio (1.8x) compared to the AU Specialty Retail industry average (2.3x).


Next Steps

Future Growth

How is Kathmandu Holdings forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?

15.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: KMD's forecast earnings growth (15.1% per year) is above the savings rate (1.1%).

Earnings vs Market: KMD's earnings (15.1% per year) are forecast to grow faster than the Australian market (9.4% per year).

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

Revenue vs Market: KMD's revenue (16.6% per year) is forecast to grow faster than the Australian market (4.2% per year).

High Growth Revenue: KMD's revenue (16.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: KMD's Return on Equity is forecast to be low in 3 years time (13.1%).


Next Steps

Past Performance

How has Kathmandu Holdings performed over the past 5 years?

14.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: KMD has high quality earnings.

Growing Profit Margin: KMD's current net profit margins (10.6%) are higher than last year (10.2%).


Past Earnings Growth Analysis

Earnings Trend: KMD's earnings have grown by 14.1% per year over the past 5 years.

Accelerating Growth: KMD's earnings growth over the past year (13.7%) is below its 5-year average (14.1% per year).

Earnings vs Industry: KMD earnings growth over the past year (13.7%) exceeded the Specialty Retail industry -2.3%.


Return on Equity

High ROE: KMD's Return on Equity (13%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Kathmandu Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: KMD's short term assets (NZ$148.2M) exceed its short term liabilities (NZ$81.1M).

Long Term Liabilities: KMD's short term assets (NZ$148.2M) exceed its long term liabilities (NZ$71.4M).


Debt to Equity History and Analysis

Debt Level: KMD's debt to equity ratio (5.8%) is considered satisfactory.

Reducing Debt: KMD's debt to equity ratio has reduced from 21% to 5.8% over the past 5 years.

Debt Coverage: KMD's debt is well covered by operating cash flow (240.8%).

Interest Coverage: KMD's interest payments on its debt are well covered by EBIT (45.2x coverage).


Balance Sheet

Inventory Level: KMD has a high level of physical assets or inventory.

Debt Coverage by Assets: KMD's debt is covered by short term assets (assets are 5.8x debt).


Next Steps

Dividend

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

4.60%

Current Dividend Yield


Dividend Yield vs Market

company4.6%marketbottom25%2.4%markettop25%5.5%industryaverage4.1%forecastin3Years5.5%

Current dividend yield vs market & industry

Notable Dividend: KMD's dividend (4.6%) is higher than the bottom 25% of dividend payers in the Australian market (2.37%).

High Dividend: KMD's dividend (4.6%) is low compared to the top 25% of dividend payers in the Australian market (5.46%).


Stability and Growth of Payments

Stable Dividend: KMD has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: KMD's dividend payments have increased, but the company has only paid a dividend for 9 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (62.7%), KMD's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: KMD's dividends in 3 years are forecast to be covered by earnings (63.2% payout ratio).


Next Steps

Management

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

0.8yrs

Average management tenure


CEO

Xavier Simonet 0

4.7yrs

Tenure

NZ$1,231,249

Compensation

Mr. Xavier Simonet serves as Group Chief Executive Officer at Kathmandu Holdings Limited since November 2019. Mr. Simonet served as the Chief Executive Officer since June 29, 2015 until November 2019, serv ...


CEO Compensation Analysis

Compensation vs Market: Xavier's total compensation ($USD781.65K) is about average for companies of similar size in the Australian market ($USD937.77K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Xavier Simonet
Group CEO4.7yrsNZ$1.23m0.28% NZ$2.7m
Chris Kinraid
Group CFO & Company Secretary0.8yrsNZ$271.29k0.0072% NZ$70.5k
Reuben Casey
Chief Executive of Outdoor Equipment & Clothing0yrsNZ$540.06k0.087% NZ$853.6k
Jolann van Dyk
Group Chief Information Officer0yrsno datano data
Tony Roberts
Group Legal Counsel0yrsno datano data
Caleb Nicolson
Group Chief Supply Chain Officer0yrsNZ$262.43kno data
Amy Beck
President of Oboz /Kathmandu North America0.8yrsno datano data
John Connelly
Founder0yrsno datano data
Michael Daly
Chief Executive Officer of Rip Curl0yrsno datano data

0.8yrs

Average Tenure

Experienced Management: KMD's management team is not considered experienced ( 0.8 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Xavier Simonet
Group CEO4.7yrsNZ$1.23m0.28% NZ$2.7m
Philip Bowman
Non-Executive Independent Director2.3yrsNZ$133.63k0.017% NZ$166.9k
David Kirk
Independent Non-Executive Chairman6yrsNZ$255.01k0.029% NZ$287.9k
Brent Scrimshaw
Non-Executive Independent Director2.3yrsNZ$133.63kno data
Edward Harvey
Non-Executive Director10.3yrsNZ$133.63k0.025% NZ$244.3k
Andrea Martens
Non Executive Director0.5yrsno datano data

3.5yrs

Average Tenure

58yo

Average Age

Experienced Board: KMD's board of directors are considered experienced (3.5 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 been diluted in the past year, with total shares outstanding growing by 7%.


Top Shareholders

Company Information

Kathmandu Holdings Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Kathmandu Holdings Limited
  • Ticker: KMD
  • Exchange: ASX
  • Founded: 1987
  • Industry: Specialty Stores
  • Sector: Retail
  • Market Cap: NZ$1.027b
  • Listing Market Cap: NZ$985.460m
  • Shares outstanding: 295.07m
  • Website: https://www.kathmanduholdings.com

Number of Employees


Location

  • Kathmandu Holdings Limited
  • 223 Tuam Street
  • Christchurch Central
  • Christchurch
  • 8011
  • New Zealand

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
KMDNZSE (New Zealand Stock Exchange)YesNew Ordinary SharesNZNZDNov 2009
KMDASX (Australian Securities Exchange)YesNew Ordinary SharesAUAUDNov 2009
KD2BST (Boerse-Stuttgart)YesNew Ordinary SharesDEEURNov 2009
KMDCHIA (Chi-X Australia)YesNew Ordinary SharesAUAUDNov 2009

Biography

Kathmandu Holdings Limited, together with its subsidiaries, designs, markets, wholesales, and retails clothing, footwear, and equipment for travel and adventure in New Zealand, Australia, the United States, and the United Kingdom. It offers a range of apparel, including waterproof jackets, down jackets, thermals, fleece jackets, shirts and pants, merino apparels, and thermals, as well as footwear and socks. The company also provides equipment comprising packs, bags, sleeping bags, tents, travel accessories, and camping accessories. It operates through 168 stores, as well as online. The company was founded in 1987 and is based in Christchurch, New Zealand. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/25 10:37
End of Day Share Price2020/02/25 00:00
Earnings2019/07/31
Annual Earnings2019/07/31


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.