Executive Summary
Hills Limited supplies technology solutions to the health, security, surveillance, and IT markets in Australia and New Zealand. More Details
Rewards
Risk Analysis
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
| HIL | Industry | Market | |
|---|---|---|---|
| 7 Day | 2.9% | 2.2% | -0.3% |
| 30 Day | 2.9% | 8.2% | 0.5% |
| 90 Day | 6.1% | 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
- Examine whether Hills is trading at an attractive price based on how much it is expected to earn in the future, and relative to its industry peers and the wider market.
- Explore growth companies in the Tech industry.
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
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| CEO, MD & Executive Director | 4.33yrs | AU$437.58k | 0.28% A$ 112.0k | |
| General Counsel & Company Secretary | 7.83yrs | AU$274.31k | 0.65% A$ 255.0k | |
| Head of Health | no data | AU$276.18k | 0.17% A$ 66.9k | |
| Interim Acting Chief Financial Officer | 0.33yr | no data | no data | |
| Consultant | no data | AU$24.92k | no data | |
| Executive Director of Hills & Communications | 7.83yrs | AU$303.83k | no data |
6.1yrs
Average Tenure
Experienced Management: HIL's management team is seasoned and experienced (6.1 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| CEO, MD & Executive Director | 4.33yrs | AU$437.58k | 0.28% A$ 112.0k | |
| Non-Independent Non-Executive Chairman of the Board | 15.25yrs | AU$105.61k | 0.17% A$ 66.2k | |
| Independent Non-Executive Director | 10.67yrs | AU$61.88k | 0.16% A$ 64.3k | |
| Independent Non-Executive Director | 0.50yr | no data | 0.032% A$ 12.8k | |
| Independent Non-Executive Director | 4.33yrs | AU$53.50k | 0.24% A$ 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
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| HIL | ASX (Australian Securities Exchange) | Yes | Ordinary Shares | AU | AUD | Jan 1992 |
| HIL | CHIA (Chi-X Australia) | Yes | Ordinary Shares | AU | AUD | Jan 1992 |
| HIQ | DB (Deutsche Boerse AG) | Yes | Ordinary Shares | DE | EUR | Jan 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
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/01/17 07:32 |
| End of Day Share Price | 2021/01/15 00:00 |
| Earnings | 2020/06/30 |
| Annual Earnings | 2020/06/30 |
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.