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MHJ

Michael Hill InternationalASX:MHJ Stock Report

Market Cap

AU$394.1m

7D

1.5%

1Y

99.0%

Updated

21 Oct, 2021

Data

Company Financials +
MHJ fundamental analysis
Snowflake Score
Valuation5/6
Future Growth0/6
Past Performance4/6
Financial Health6/6
Dividends4/6

MHJ Overview

Michael Hill International Limited owns and operates jewelry stores and provides related services.

Michael Hill International Competitors

Baby Bunting Group

ASX:BBN

AU$725.5m

Wesfarmers

ASX:WES

AU$63.0b

Coles Group

ASX:COL

AU$23.8b

Harvey Norman Holdings

ASX:HVN

AU$6.2b

Price History & Performance

Summary of all time highs, changes and price drops for Michael Hill International
Historical stock prices
Current Share PriceAU$1.02
52 Week HighAU$0.48
52 Week LowAU$1.03
Beta1.59
1 Month Change20.83%
3 Month Change16.00%
1 Year Change99.02%
3 Year Change52.63%
5 Year Change-35.35%
Change since IPO-18.80%

Recent News & Updates

Oct 16
If You Like EPS Growth Then Check Out Michael Hill International (ASX:MHJ) Before It's Too Late

If You Like EPS Growth Then Check Out Michael Hill International (ASX:MHJ) Before It's Too Late

For beginners, it can seem like a good idea (and an exciting prospect) to buy a company that tells a good story to...

May 04
At AU$0.81, Is It Time To Put Michael Hill International Limited (ASX:MHJ) On Your Watch List?

At AU$0.81, Is It Time To Put Michael Hill International Limited (ASX:MHJ) On Your Watch List?

While Michael Hill International Limited ( ASX:MHJ ) might not be the most widely known stock at the moment, it...

Apr 11
Michael Hill International (ASX:MHJ) Could Be Struggling To Allocate Capital

Michael Hill International (ASX:MHJ) Could Be Struggling To Allocate Capital

If you're not sure where to start when looking for the next multi-bagger, there are a few key trends you should keep an...

Shareholder Returns

MHJAU Specialty RetailAU Market
7D1.5%2.1%1.5%
1Y99.0%25.1%21.1%

Return vs Industry: MHJ exceeded the Australian Specialty Retail industry which returned 25.1% over the past year.

Return vs Market: MHJ exceeded the Australian Market which returned 21.1% over the past year.

Price Volatility

Is MHJ's price volatile compared to industry and market?
MHJ volatility
MHJ Beta1.59
Industry Beta1.2
Market Beta1

Stable Share Price: MHJ is less volatile than 75% of Australian stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: MHJ's weekly volatility (5%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
1979n/aDaniel Brackenhttps://www.michaelhill.com.au

Michael Hill International Limited owns and operates jewelry stores and provides related services. The company’s store offers rings, earrings, bracelets and bangles, necklaces and pendants, chains, watches, collections, and gifts, as well as birthstones. It also provides care plans and diamond warranty services.

Michael Hill International Fundamentals Summary

How do Michael Hill International's earnings and revenue compare to its market cap?
MHJ fundamental statistics
Market CapAU$394.11m
Earnings (TTM)AU$45.33m
Revenue (TTM)AU$556.49m

8.7x

P/E Ratio

0.7x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
MHJ income statement (TTM)
RevenueAU$556.49m
Cost of RevenueAU$207.57m
Gross ProfitAU$348.92m
ExpensesAU$303.59m
EarningsAU$45.33m

Last Reported Earnings

Jun 27, 2021

Next Earnings Date

n/a

Earnings per share (EPS)0.12
Gross Margin62.70%
Net Profit Margin8.15%
Debt/Equity Ratio0%

How did MHJ perform over the long term?

See historical performance and comparison

Dividends

5.9%

Current Dividend Yield

39%

Payout Ratio

Valuation

Is Michael Hill International 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: MHJ (A$1.02) is trading below our estimate of fair value (A$14.09)

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


Price To Earnings Ratio

PE vs Industry: MHJ is good value based on its PE Ratio (8.7x) compared to the Australian Specialty Retail industry average (11.3x).

PE vs Market: MHJ is good value based on its PE Ratio (8.7x) compared to the Australian market (19.7x).


Price to Earnings Growth Ratio

PEG Ratio: MHJ's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: MHJ is good value based on its PB Ratio (2x) compared to the AU Specialty Retail industry average (4x).


Future Growth

How is Michael Hill International forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

-4.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: MHJ's earnings are forecast to decline over the next 3 years (-4.4% per year).

Earnings vs Market: MHJ's earnings are forecast to decline over the next 3 years (-4.4% per year).

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

Revenue vs Market: MHJ's revenue (3.2% per year) is forecast to grow slower than the Australian market (5.4% per year).

High Growth Revenue: MHJ's revenue (3.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: MHJ's Return on Equity is forecast to be low in 3 years time (17.8%).


Past Performance

How has Michael Hill International performed over the past 5 years?

-6.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: MHJ has a large one-off gain of A$11.7M impacting its June 27 2021 financial results.

Growing Profit Margin: MHJ's current net profit margins (8.1%) are higher than last year (0.6%).


Past Earnings Growth Analysis

Earnings Trend: MHJ's earnings have declined by 6.8% per year over the past 5 years.

Accelerating Growth: MHJ's earnings growth over the past year (1338.5%) exceeds its 5-year average (-6.8% per year).

Earnings vs Industry: MHJ earnings growth over the past year (1338.5%) exceeded the Specialty Retail industry 91.8%.


Return on Equity

High ROE: MHJ's Return on Equity (23.4%) is considered high.


Financial Health

How is Michael Hill International's financial position?


Financial Position Analysis

Short Term Liabilities: MHJ's short term assets (A$271.1M) exceed its short term liabilities (A$151.5M).

Long Term Liabilities: MHJ's short term assets (A$271.1M) exceed its long term liabilities (A$163.2M).


Debt to Equity History and Analysis

Debt Level: MHJ is debt free.

Reducing Debt: MHJ has no debt compared to 5 years ago when its debt to equity ratio was 22.6%.

Debt Coverage: MHJ has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: MHJ has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet


Dividend

What is Michael Hill International current dividend yield, its reliability and sustainability?

5.91%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: MHJ's dividend (5.91%) is higher than the bottom 25% of dividend payers in the Australian market (2.29%).

High Dividend: MHJ's dividend (5.91%) is in the top 25% of dividend payers in the Australian market (5.31%)


Stability and Growth of Payments

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

Growing Dividend: MHJ's dividend payments have increased, but the company has only paid a dividend for 5 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (38.5%), MHJ's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: MHJ's dividends in 3 years are forecast to be covered by earnings (61.4% payout ratio).


Next Steps

Management

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

1.3yrs

Average management tenure


CEO

Daniel Bracken (52 yo)

2.92yrs

Tenure

AU$1,721,697

Compensation

Mr. Daniel Bracken has been the CEO of Hill International Limited since November 15, 2018 and has been its Managing Director and Director since June 28, 2021. He served as Managing Director and Director at...


CEO Compensation Analysis

Compensation vs Market: Daniel's total compensation ($USD1.29M) is above average for companies of similar size in the Australian market ($USD551.20K).

Compensation vs Earnings: Daniel's compensation has increased by more than 20% in the past year.


Leadership Team

Experienced Management: MHJ's management team is not considered experienced ( 1.3 years average tenure), which suggests a new team.


Board Members

Experienced Board: MHJ's board of directors are considered experienced (3.3 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: MHJ insiders have only sold shares 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

Michael Hill International Limited's employee growth, exchange listings and data sources


Key Information

  • Name: Michael Hill International Limited
  • Ticker: MHJ
  • Exchange: ASX
  • Founded: 1979
  • Industry: Specialty Stores
  • Sector: Retail
  • Market Cap: AU$394.110m
  • Shares outstanding: 388.29m
  • Website: https://www.michaelhill.com.au

Location

  • Michael Hill International Limited
  • Metroplex on Gateway
  • 7 Smallwood Place
  • Murarrie
  • Queensland
  • 4172
  • Australia

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/10/21 18:04
End of Day Share Price2021/10/21 00:00
Earnings2021/06/27
Annual Earnings2021/06/27


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.