Michael Hill International Limited

ASX:MHJ Stock Report

Market Cap: AU$220.3m

Michael Hill International Valuation

Is MHJ undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

5/6

Valuation Score 5/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Sales vs Peers

  • Price-To-Sales vs Industry

  • Price-To-Sales vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of MHJ when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: MHJ (A$0.59) is trading below our estimate of fair value (A$3.57)

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

Key Valuation Metric

Which metric is best to use when looking at relative valuation for MHJ?

Key metric: As MHJ is unprofitable we use its Price-To-Sales Ratio for relative valuation analysis.

The above table shows the Price to Sales ratio for MHJ. This is calculated by dividing MHJ's market cap by their current revenue.
What is MHJ's PS Ratio?
PS Ratio0.3x
SalesAU$646.60m
Market CapAU$220.27m

Price to Sales Ratio vs Peers

How does MHJ's PS Ratio compare to its peers?

The above table shows the PS ratio for MHJ vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PSEstimated GrowthMarket Cap
Peer Average0.6x
BBN Baby Bunting Group
0.5x6.9%AU$228.6m
SSG Shaver Shop Group
0.8x4.0%AU$174.2m
ABY Adore Beauty Group
0.5x9.7%AU$92.1m
DSK Dusk Group
0.6x7.2%AU$78.5m
MHJ Michael Hill International
0.3x3.0%AU$220.3m

Price-To-Sales vs Peers: MHJ is good value based on its Price-To-Sales Ratio (0.3x) compared to the peer average (0.6x).

Price to Sales Ratio vs Industry

How does MHJ's PS Ratio compare vs other companies in the AU Specialty Retail Industry?

5 CompaniesPrice / SalesEstimated GrowthMarket Cap
PWR Peter Warren Automotive Holdings
0.1x2.6%US$194.34m
BKG Booktopia Group
0.06xn/aUS$6.97m
MOZ Mosaic Brands
0.01xn/aUS$4.15m
HT8 Harris Technology Group
0.1xn/aUS$1.74m
MHJ 0.3xIndustry Avg. 0.7xNo. of Companies5PS00.61.21.82.43+
5 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Sales vs Industry: MHJ is good value based on its Price-To-Sales Ratio (0.3x) compared to the Australian Specialty Retail industry average (0.7x).

Price to Sales Ratio vs Fair Ratio

What is MHJ's PS Ratio compared to its Fair PS Ratio? This is the expected PS Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

MHJ PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio0.3x
Fair PS Ratio0.7x

Price-To-Sales vs Fair Ratio: MHJ is good value based on its Price-To-Sales Ratio (0.3x) compared to the estimated Fair Price-To-Sales Ratio (0.7x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst MHJ forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentAU$0.58
AU$0.63
+6.8%
15.0%AU$0.73AU$0.50n/a4
Nov ’25AU$0.60
AU$0.63
+4.2%
15.0%AU$0.73AU$0.50n/a4
Oct ’25AU$0.48
AU$0.63
+30.2%
15.0%AU$0.73AU$0.50n/a4
Sep ’25AU$0.56
AU$0.64
+14.7%
17.5%AU$0.81AU$0.50n/a4
Aug ’25AU$0.56
AU$0.64
+14.7%
17.5%AU$0.81AU$0.50n/a4
Jul ’25AU$0.45
AU$0.65
+45.0%
19.5%AU$0.85AU$0.50n/a4
Jun ’25AU$0.44
AU$0.65
+48.3%
19.5%AU$0.85AU$0.50n/a4
May ’25AU$0.65
AU$1.02
+58.7%
7.4%AU$1.10AU$0.92n/a3
Apr ’25AU$0.70
AU$1.02
+46.2%
7.4%AU$1.10AU$0.92n/a3
Mar ’25AU$0.72
AU$1.02
+41.1%
7.4%AU$1.10AU$0.92n/a3
Feb ’25AU$0.83
AU$1.05
+26.9%
13.5%AU$1.20AU$0.86n/a3
Jan ’25AU$0.91
AU$1.24
+37.0%
24.3%AU$1.60AU$0.79n/a4
Dec ’24AU$0.81
AU$1.24
+53.1%
24.3%AU$1.60AU$0.79n/a4
Nov ’24AU$0.83
AU$1.27
+53.3%
20.0%AU$1.60AU$0.92AU$0.604
Oct ’24AU$0.89
AU$1.27
+43.0%
20.0%AU$1.60AU$0.92AU$0.484
Sep ’24AU$0.95
AU$1.28
+34.2%
19.7%AU$1.60AU$0.93AU$0.564
Aug ’24AU$0.91
AU$1.17
+28.2%
16.4%AU$1.40AU$0.93AU$0.563
Jul ’24AU$0.90
AU$1.16
+29.6%
17.3%AU$1.40AU$0.91AU$0.453
Jun ’24AU$0.94
AU$1.28
+35.8%
7.3%AU$1.40AU$1.17AU$0.443
May ’24AU$1.03
AU$1.25
+21.7%
8.5%AU$1.40AU$1.15AU$0.653
Apr ’24AU$0.98
AU$1.25
+27.2%
8.5%AU$1.40AU$1.15AU$0.703
Mar ’24AU$1.05
AU$1.54
+46.7%
18.1%AU$1.86AU$1.18AU$0.723
Feb ’24AU$1.04
AU$1.54
+48.1%
18.1%AU$1.86AU$1.18AU$0.833
Jan ’24AU$1.10
AU$1.56
+42.1%
18.2%AU$1.86AU$1.18AU$0.913
Dec ’23AU$1.18
AU$1.56
+32.5%
18.2%AU$1.86AU$1.18AU$0.813
Nov ’23AU$1.25
AU$1.56
+25.6%
18.2%AU$1.86AU$1.18AU$0.833

Analyst Forecast: Target price is less than 20% higher than the current share price.

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