ASX:MHJ

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Michael Hill International

Executive Summary

Michael Hill International Limited owns and operates retail jewelry stores, and provides related services in Australia, New Zeeland, and Canada.


Snowflake Analysis

Flawless balance sheet, undervalued and pays a dividend.

Share Price & News

How has Michael Hill International's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: MHJ's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-1.5%

MHJ

8.0%

AU Specialty Retail

4.8%

AU Market


1 Year Return

-39.2%

MHJ

-7.7%

AU Specialty Retail

-10.6%

AU Market

Return vs Industry: MHJ underperformed the Australian Specialty Retail industry which returned -7% over the past year.

Return vs Market: MHJ underperformed the Australian Market which returned -9.4% over the past year.


Shareholder returns

MHJIndustryMarket
7 Day-1.5%8.0%4.8%
30 Day-4.3%16.0%5.5%
90 Day-41.1%-8.8%-10.1%
1 Year-35.4%-39.2%-4.3%-7.7%-7.0%-10.6%
3 Year-67.1%-72.2%36.8%19.6%10.3%-4.3%
5 Yearn/a35.5%9.4%28.3%0.7%

Price Volatility Vs. Market

How volatile is Michael Hill International's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Michael Hill International undervalued compared to its fair value and its price relative to the market?

11.7%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: MHJ (A$0.33) is trading below our estimate of fair value (A$0.37)

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


Price To Earnings Ratio

PE vs Industry: MHJ is good value based on its PE Ratio (6.4x) compared to the Specialty Retail industry average (12.2x).

PE vs Market: MHJ is good value based on its PE Ratio (6.4x) compared to the Australian market (15.4x).


Price to Earnings Growth Ratio

PEG Ratio: MHJ is good value based on its PEG Ratio (0.2x)


Price to Book Ratio

PB vs Industry: MHJ is good value based on its PB Ratio (0.7x) compared to the AU Specialty Retail industry average (1.8x).


Next Steps

Future Growth

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

35.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: MHJ's forecast earnings growth (35.6% per year) is above the savings rate (2.3%).

Earnings vs Market: MHJ's earnings (35.6% per year) are forecast to grow faster than the Australian market (14.4% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: MHJ's revenue (2% per year) is forecast to grow slower than the Australian market (4.2% per year).

High Growth Revenue: MHJ's revenue (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 (14.5%).


Next Steps

Past Performance

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

-5.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: MHJ has high quality earnings.

Growing Profit Margin: MHJ's current net profit margins (3.4%) are higher than last year (3.4%).


Past Earnings Growth Analysis

Earnings Trend: MHJ's earnings have declined by -5.9% per year over the past 5 years.

Accelerating Growth: MHJ's earnings growth over the past year (4.8%) exceeds its 5-year average (-5.9% per year).

Earnings vs Industry: MHJ earnings growth over the past year (4.8%) exceeded the Specialty Retail industry -2.2%.


Return on Equity

High ROE: MHJ's Return on Equity (11.1%) is considered low.


Next Steps

Financial Health

How is Michael Hill International's financial position?


Financial Position Analysis

Short Term Liabilities: MHJ's short term assets (A$273.3M) exceed its short term liabilities (A$169.7M).

Long Term Liabilities: MHJ's short term assets (A$273.3M) exceed its long term liabilities (A$234.1M).


Debt to Equity History and Analysis

Debt Level: MHJ's debt to equity ratio (18.3%) is considered satisfactory.

Reducing Debt: MHJ's debt to equity ratio has reduced from 23.2% to 18.3% over the past 5 years.

Debt Coverage: MHJ's debt is well covered by operating cash flow (246.4%).

Interest Coverage: MHJ's interest payments on its debt are well covered by EBIT (9.4x coverage).


Balance Sheet


Next Steps

Dividend

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

9.09%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: MHJ's dividend (9.09%) is higher than the bottom 25% of dividend payers in the Australian market (2.68%).

High Dividend: MHJ's dividend (9.09%) is in the top 25% of dividend payers in the Australian market (6.6%)


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 has only been paying a dividend for 4 years, and since then payments have fallen.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (58.1%), MHJ's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: MHJ's dividends in 3 years are forecast to be covered by earnings (87.7% payout ratio).


Next Steps

Management

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

1.4yrs

Average management tenure


CEO

Daniel Bracken (50yo)

1.42yrs

Tenure

AU$1,061,975

Compensation

Mr. Daniel Michael has been the CEO of Hill International Limited since November 15, 2018. He served as Managing Director and Director at Specialty Fashion Group Limited since September 30, 2018 until Octo ...


CEO Compensation Analysis

Compensation vs Market: Daniel's total compensation ($USD706.99K) is above average for companies of similar size in the Australian market ($USD254.05K).

Compensation vs Earnings: Insufficient data to compare Daniel's compensation with company performance.


Leadership Team

NamePositionTenureCompensationOwnership
Daniel Bracken
Chief Executive Officer1.42yrsAU$1.06m0.017% A$21.4k
Andrew Lowe
CFO & Company Secretary2.42yrsAU$483.61kno data
Andrea Slingsby
Chief Operating Officer1.33yrsAU$498.66kno data
Matt Keays
Chief Information Officerno dataAU$371.13kno data
Vanessa Brennan
Chief Brand & Customer Officer2.33yrsAU$293.89kno data
Galina Hirtzel
Group Executive of Supply Chainno dataAU$312.35k0.012% A$16.0k
Anthea Noble
Investor Relations Managerno datano datano data
Joanne Matthews
Chief People Officer1.33yrsno datano data
Brett Halliday
President of North Americano datano data0.0079% A$10.1k
Richard Amos
Company Secretary0.17yrno datano data

1.4yrs

Average Tenure

Experienced Management: MHJ's management team is not considered experienced ( 1.4 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Richard Hill
Founder & Non Executive Director3.83yrsAU$98.52kno data
Emma Hill
Non Executive Chairmanno dataAU$197.05k5.33% A$6.8m
Gary Smith
Non-Executive Independent Director4.17yrsAU$128.80k0.021% A$26.4k
Robert Fyfe
Non-Executive Independent Director3.83yrsAU$118.88k0.39% A$499.5k
Janine Allis
Non-Executive Independent Director3.83yrsAU$89.80k0.17% A$215.1k

3.8yrs

Average Tenure

58yo

Average Age

Experienced Board: MHJ's board of directors are considered experienced (3.9 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: MHJ 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

Michael Hill International Limited's company bio, 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$127.966m
  • Shares outstanding: 387.78m
  • Website: https://www.michaelhill.com.au

Location

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

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
MHJNZSE (New Zealand Stock Exchange)YesOrdinary SharesNZNZDJul 2016
MHJASX (Australian Securities Exchange)YesOrdinary SharesAUAUDJul 2016
MHJCHIA (Chi-X Australia)YesOrdinary SharesAUAUDJul 2016

Biography

Michael Hill International Limited owns and operates retail jewelry stores, and provides related services in Australia, New Zeeland, and Canada. The company operates its stores under the Michael Hill and Emma & Roe brand names. Its stores offer bracelets and bangles, earrings, pendants and necklaces, rings, chains, watches, gifts, and collections, as well as birthstones. As of June 30, 2019, Michael Hill International Limited operated 306 stores, including 305 Michael Hill stores and 1 Emma & Roe stores. It also offers professional care plans and in-house customer finance services; and operates Michael Hill and Emma & Roe e-commerce sites. The company was formerly known as Michael Hill New Zealand Limited and changed its name to Michael Hill International Limited in July 2016. Michael Hill International Limited was founded in 1979 and is based in Murarrie, Australia. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/05/31 10:49
End of Day Share Price2020/05/29 00:00
Earnings2019/12/29
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.