ASX:MYR

Stock Analysis Report

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Executive Summary

Myer Holdings Limited, together with its subsidiaries, operates department stores in Australia. More Details

Rewards

Trading at 54.1% below our estimate of its fair value

Earnings are forecast to grow 94.64% per year

Risk Analysis

No risks detected for MYR from our risk checks.


Snowflake Analysis

Reasonable growth potential and fair value.


Similar Companies

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

14.3%

MYR

-2.5%

AU Multiline Retail

-0.3%

AU Market


1 Year Return

-56.8%

MYR

13.5%

AU Multiline Retail

-6.9%

AU Market

Return vs Industry: MYR underperformed the Australian Multiline Retail industry which returned 13.5% over the past year.

Return vs Market: MYR underperformed the Australian Market which returned -6.9% over the past year.


Shareholder returns

MYRIndustryMarket
7 Day14.3%-2.5%-0.3%
30 Day6.7%2.6%3.7%
90 Day20.0%2.6%3.8%
1 Year-56.8%-56.8%17.8%13.5%-3.5%-6.9%
3 Year-68.6%-68.6%78.4%12.5%18.1%3.0%
5 Year-71.7%-74.3%102.0%16.4%44.2%15.1%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Myer 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: MYR (A$0.24) is trading below our estimate of fair value (A$0.52)

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


Price To Earnings Ratio

PE vs Industry: MYR is unprofitable, so we can't compare its PE Ratio to the XX Multiline Retail industry average.

PE vs Market: MYR is unprofitable, so we can't compare its PE Ratio to the Australian market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate MYR's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: MYR is good value based on its PB Ratio (1.1x) compared to the XO Multiline Retail industry average (1.9x).


Next Steps

Future Growth

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

94.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: MYR is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (2.3%).

Earnings vs Market: MYR is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: MYR's is expected to become profitable in the next 3 years.

Revenue vs Market: MYR's revenue (4.7% per year) is forecast to grow faster than the Australian market (4.6% per year).

High Growth Revenue: MYR's revenue (4.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: MYR's Return on Equity is forecast to be low in 3 years time (12.6%).


Next Steps

Past Performance

How has Myer Holdings performed over the past 5 years?

-23.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: MYR is currently unprofitable.

Growing Profit Margin: MYR is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: MYR is unprofitable, and losses have increased over the past 5 years at a rate of 23.6% per year.

Accelerating Growth: Unable to compare MYR's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: MYR is unprofitable, making it difficult to compare its past year earnings growth to the Multiline Retail industry (-29.4%).


Return on Equity

High ROE: MYR has a negative Return on Equity (-99.02%), as it is currently unprofitable.


Next Steps

Financial Health

How is Myer Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: MYR's short term assets (A$407.7M) do not cover its short term liabilities (A$659.0M).

Long Term Liabilities: MYR's short term assets (A$407.7M) do not cover its long term liabilities (A$1.6B).


Debt to Equity History and Analysis

Debt Level: MYR's debt to equity ratio (45.1%) is considered high.

Reducing Debt: MYR's debt to equity ratio has reduced from 50.6% to 45.1% over the past 5 years.


Balance Sheet


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: Whilst unprofitable MYR has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: MYR is unprofitable but has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 9.4% per year.


Next Steps

Dividend

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

3.69%

Forecast Dividend Yield


Dividend Yield vs Market

Notable Dividend: Unable to evaluate MYR's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate MYR's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if MYR's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if MYR's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: MYR is not paying a notable dividend for the Australian market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of MYR's dividend in 3 years as they are not forecast to pay a notable one for the Australian market.


Next Steps

Management

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

2.1yrs

Average management tenure


CEO

John King (57 yo)

2.33yrs

Tenure

AU$1,591,275

Compensation

Mr. John Anthony King has been the Chief Executive Officer, Managing Director and Director of Myer Holdings Limited since June 4, 2018. He has overall accountability for Myer strategy and performance. Mr. ...


CEO Compensation Analysis

Compensation vs Market: John's total compensation ($USD1.13M) is above average for companies of similar size in the Australian market ($USD277.63K).

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


Leadership Team

NamePositionTenureCompensationOwnership
John King
CEO, MD & Director2.33yrsAU$1.59m0.12%
A$ 230.0k
Nigel Chadwick
Chief Financial Officer2.75yrsAU$835.94k0.043%
A$ 80.5k
Allan Winstanley
Chief Merchandise Officer2.33yrsAU$904.76k0.061%
A$ 115.0k
A. Sutton
Executive General Manager of Stores & Retail Operations1.75yrsAU$701.62k0.0032%
A$ 6.0k
Davina Gunn
General Manager of Investor Relationsno datano datano data
Paul Morris
General Counsel & Company Secretary0.67yrno datano data
Martin Barr
General Manager of Corporate Affairs & Communicationsno datano datano data
Tabitha Pearson
Executive General Manager of People & Culture2.08yrsno datano data
Geoff Ikin
Chief Customer Officer1.75yrsno datano data

2.1yrs

Average Tenure

Experienced Management: MYR's management team is considered experienced (2.1 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
John King
CEO, MD & Director2.33yrsAU$1.59m0.12%
A$ 230.0k
Margaret Cattermole
Independent Non-Executive Director2yrsAU$98.33k0.18%
A$ 340.8k
Garry Hounsell
Independent Chairman2.92yrsAU$245.83k0.17%
A$ 322.0k
Jacquieline Naylor
Independent Non-Executive Director1.42yrsAU$98.33k0.015%
A$ 27.8k
JoAnne Stephenson
Independent Non-Executive Director3.92yrsAU$115.00k0.023%
A$ 42.5k
David Whittle
Independent Non-Executive Director4.92yrsAU$98.33k0.0081%
A$ 15.3k
Julie Morrison
Independent Non-Executive Director3yrsAU$101.54k0.018%
A$ 33.8k

2.9yrs

Average Tenure

65yo

Average Age

Experienced Board: MYR's board of directors are not considered experienced ( 2.9 years average tenure), which suggests a new board.


Ownership

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


Insider Trading Volume

Insider Buying: MYR 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

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


Key Information

  • Name: Myer Holdings Limited
  • Ticker: MYR
  • Exchange: ASX
  • Founded: 1900
  • Industry: Department Stores
  • Sector: Retail
  • Market Cap: AU$188.577m
  • Shares outstanding: 819.90m
  • Website: https://www.myer.com.au

Number of Employees


Location

  • Myer Holdings Limited
  • 800 Collins Street
  • Level 7
  • Docklands
  • Victoria
  • 3008
  • Australia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
MYRASX (Australian Securities Exchange)YesOrdinary SharesAUAUDNov 2009
30MDB (Deutsche Boerse AG)YesOrdinary SharesDEEURNov 2009
MYRCHIA (Chi-X Australia)YesOrdinary SharesAUAUDNov 2009
MYRS.YOTCPK (Pink Sheets LLC)SPONSORED ADRUSUSDJan 2013

Biography

Myer Holdings Limited, together with its subsidiaries, operates department stores in Australia. The company offers men, women, beauty, kids and babies, home, entertainment, and gift products, as well as to ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/26 10:38
End of Day Share Price2020/10/26 00:00
Earnings2020/07/25
Annual Earnings2020/07/25


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.