CHIA:HIL

Stock Analysis Report

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Executive Summary

Hills Limited supplies technology solutions to the health, security, surveillance, and IT markets in Australia and New Zealand. More Details


Snowflake Analysis

Adequate balance sheet and fair value.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: HIL is not significantly more volatile than the rest of Australian stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: HIL's weekly volatility has decreased from 13% to 6% over the past year.


Market Performance


7 Day Return

2.9%

HIL

2.2%

AU Electronic

-0.3%

AU Market


1 Year Return

-58.8%

HIL

35.9%

AU Electronic

-1.6%

AU Market

Return vs Industry: HIL underperformed the Australian Electronic industry which returned 35.9% over the past year.

Return vs Market: HIL underperformed the Australian Market which returned -1.6% over the past year.


Shareholder returns

HILIndustryMarket
7 Day2.9%2.2%-0.3%
30 Day2.9%8.2%0.5%
90 Day6.1%10.5%10.1%
1 Year-58.8%-58.8%39.3%35.9%1.7%-1.6%
3 Year-30.0%-30.0%132.3%115.9%26.2%10.7%
5 Year-30.7%-30.7%210.5%184.1%68.7%35.5%

Long-Term Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

Is Hills 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: HIL (A$0.18) is trading below our estimate of fair value (A$2.2)

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


Price To Earnings Ratio

PE vs Industry: HIL is unprofitable, so we can't compare its PE Ratio to the XO Electronic industry average.

PE vs Market: HIL 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 HIL's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: HIL is good value based on its PB Ratio (0.9x) compared to the AU Electronic industry average (4.2x).


Next Steps

Future Growth

How is Hills forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

25.0%

Forecasted Tech industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Hills has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has Hills performed over the past 5 years?

72.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: HIL is currently unprofitable.

Growing Profit Margin: HIL is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: HIL is unprofitable, but has reduced losses over the past 5 years at a rate of 72.3% per year.

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

Earnings vs Industry: HIL is unprofitable, making it difficult to compare its past year earnings growth to the Electronic industry (-0.9%).


Return on Equity

High ROE: HIL has a negative Return on Equity (-13.79%), as it is currently unprofitable.


Next Steps

Financial Health

How is Hills's financial position?


Financial Position Analysis

Short Term Liabilities: HIL's short term assets (A$77.6M) exceed its short term liabilities (A$49.8M).

Long Term Liabilities: HIL's short term assets (A$77.6M) exceed its long term liabilities (A$26.7M).


Debt to Equity History and Analysis

Debt Level: HIL's debt to equity ratio (45.7%) is considered high.

Reducing Debt: HIL's debt to equity ratio has increased from 37.9% to 45.7% 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 HIL has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: HIL is unprofitable but has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 52.1% per year.


Next Steps

Dividend

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


Dividend Yield vs Market

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

High Dividend: Unable to evaluate HIL'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 HIL's dividends per share have been stable in the past.

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


Current Payout to Shareholders

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


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of HIL'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?

6.1yrs

Average management tenure


CEO

David John Lenz (57 yo)

4.33yrs

Tenure

AU$437,578

Compensation

Mr. David John Joseph Lenz has been the Chief Executive Officer of Hills Limited since September 1, 2016 and has been its Managing Director since February 19, 2019. Mr. Lenz has vast experience gained thro...


CEO Compensation Analysis

Compensation vs Market: David John's total compensation ($USD337.74K) is about average for companies of similar size in the Australian market ($USD294.44K).

Compensation vs Earnings: David John's compensation has increased whilst the company is unprofitable.


Leadership Team

NamePositionTenureCompensationOwnership
David John Lenz
CEO, MD & Executive Director4.33yrsAU$437.58k0.28%
A$ 112.0k
David Fox
General Counsel & Company Secretary7.83yrsAU$274.31k0.65%
A$ 255.0k
Andy Hall
Head of Healthno dataAU$276.18k0.17%
A$ 66.9k
Peter Steel
Interim Acting Chief Financial Officer0.33yrno datano data
Alan Kinkade
Consultantno dataAU$24.92kno data
L. Francis
Executive Director of Hills & Communications7.83yrsAU$303.83kno data

6.1yrs

Average Tenure

Experienced Management: HIL's management team is seasoned and experienced (6.1 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
David John Lenz
CEO, MD & Executive Director4.33yrsAU$437.58k0.28%
A$ 112.0k
Jennifer Hill-Ling
Non-Independent Non-Executive Chairman of the Board15.25yrsAU$105.61k0.17%
A$ 66.2k
Fiona Rosalyn Bennett
Independent Non-Executive Director10.67yrsAU$61.88k0.16%
A$ 64.3k
David Chambers
Independent Non-Executive Director0.50yrno data0.032%
A$ 12.8k
Kenneth Dwyer
Independent Non-Executive Director4.33yrsAU$53.50k0.24%
A$ 93.5k

4.3yrs

Average Tenure

60yo

Average Age

Experienced Board: HIL's board of directors are considered experienced (4.3 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 not been meaningfully diluted in the past year.


Top Shareholders

Company Information

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


Key Information

  • Name: Hills Limited
  • Ticker: HIL
  • Exchange: CHIA
  • Founded: 1945
  • Industry: Electronic Equipment and Instruments
  • Sector: Tech
  • Market Cap: AU$39.438m
  • Shares outstanding: 231.99m
  • Website: https://www.hills.com.au

Number of Employees


Location

  • Hills Limited
  • Building F
  • Unit 1
  • Lidcombe
  • New South Wales
  • 2141
  • Australia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
HILASX (Australian Securities Exchange)YesOrdinary SharesAUAUDJan 1992
HILCHIA (Chi-X Australia)YesOrdinary SharesAUAUDJan 1992
HIQDB (Deutsche Boerse AG)YesOrdinary SharesDEEURJan 1992

Biography

Hills Limited supplies technology solutions to the health, security, surveillance, and IT markets in Australia and New Zealand. The company operates through Hills Health Solutions and Hills Distribution. I...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/01/17 07:32
End of Day Share Price2021/01/15 00:00
Earnings2020/06/30
Annual Earnings2020/06/30


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.