DB:38N

Stock Analysis Report

Executive Summary

Nameson Holdings Limited, an investment holding company, designs, manufactures, and sells knitwear products, knitted upper for footwear, and knitted upper shoes.

Rewards

Trading at 62.9% below its fair value

Earnings are forecast to grow 55.65% per year

Risk Analysis

Interest payments are not well covered by earnings

Dividend of 14.1% is not well covered by earnings

Highly volatile share price over past 3 months



Snowflake Analysis

Reasonable growth potential and fair value.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: 38N's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-13.1%

38N

-0.9%

DE Luxury

0.7%

DE Market


1 Year Return

-5.6%

38N

35.0%

DE Luxury

15.1%

DE Market

Return vs Industry: 38N underperformed the German Luxury industry which returned 35% over the past year.

Return vs Market: 38N underperformed the German Market which returned 15.1% over the past year.


Shareholder returns

38NIndustryMarket
7 Day-13.1%-0.9%0.7%
30 Day-2.5%1.2%-0.7%
90 Day41.7%0.5%5.9%
1 Year1.9%-5.6%37.1%35.0%18.7%15.1%
3 Year-63.7%-69.5%93.4%83.6%19.2%8.6%
5 Yearn/a265.8%223.4%39.0%20.1%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

Is Nameson 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: 38N (€0.06) is trading below our estimate of fair value (€0.16)

Significantly Below Fair Value: 38N is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 38N is unprofitable, so we can't compare its PE Ratio to the Luxury industry average.

PE vs Market: 38N is unprofitable, so we can't compare its PE Ratio to the German market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 38N's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 38N is good value based on its PB Ratio (0.6x) compared to the DE Luxury industry average (1.7x).


Next Steps

Future Growth

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

55.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 38N is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (-0.4%).

Earnings vs Market: 38N is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: 38N's is expected to become profitable in the next 3 years.

Revenue vs Market: 38N's revenue (8.1% per year) is forecast to grow faster than the German market (4.9% per year).

High Growth Revenue: 38N's revenue (8.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 38N's Return on Equity is forecast to be low in 3 years time (13.2%).


Next Steps

Past Performance

How has Nameson Holdings performed over the past 5 years?

-34.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 38N is currently unprofitable.

Growing Profit Margin: 38N is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: 38N is unprofitable, and losses have increased over the past 5 years at a rate of -34.1% per year.

Accelerating Growth: Unable to compare 38N's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: 38N is unprofitable, making it difficult to compare its past year earnings growth to the Luxury industry (-0.9%).


Return on Equity

High ROE: 38N has a negative Return on Equity (-11.25%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Nameson Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: 38N's short term assets (HK$2.5B) exceed its short term liabilities (HK$1.1B).

Long Term Liabilities: 38N's short term assets (HK$2.5B) exceed its long term liabilities (HK$1.7B).


Debt to Equity History and Analysis

Debt Level: 38N's debt to equity ratio (68.3%) is considered high.

Reducing Debt: 38N's debt to equity ratio has increased from 66.9% to 68.3% over the past 5 years.

Debt Coverage: 38N's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: 38N is unprofitable, therefore interest payments are not well covered by earnings.


Balance Sheet

Inventory Level: 38N has a high level of physical assets or inventory.

Debt Coverage by Assets: 38N's debt is covered by short term assets (assets are 1.5x debt).


Next Steps

Dividend

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

14.10%

Current Dividend Yield


Dividend Yield vs Market

company14.1%marketbottom25%1.4%markettop25%3.6%industryaverage1.4%forecastin3Years9.8%

Current dividend yield vs market & industry

Notable Dividend: 38N's dividend (14.1%) is higher than the bottom 25% of dividend payers in the German market (1.38%).

High Dividend: 38N's dividend (14.1%) is in the top 25% of dividend payers in the German market (3.61%)


Stability and Growth of Payments

Stable Dividend: 38N has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: 38N's dividend payments have increased, but the company has only paid a dividend for 3 years.


Current Payout to Shareholders

Dividend Coverage: 38N is paying a dividend but the company is unprofitable.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

What is the CEO of Nameson Holdings's salary, the management and board of directors tenure and is there insider trading?

3.9yrs

Average board tenure


CEO

Ting Chung Wong (57yo)

0yrs

Tenure

HK$4,067,000

Compensation

Mr. Wong Ting Chung, BBS, JP, serves as Chairman of the Board and Chief Executive Officer of Nameson Holdings Limited and has been its Executive Director since August 11, 2015. Mr. Wong is a co-founders of ...


CEO Compensation Analysis

Compensation vs Market: Ting Chung's total compensation ($USD519.63K) is about average for companies of similar size in the German market ($USD610.23K).

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


Board Age and Tenure

3.9yrs

Average Tenure

55.5yo

Average Age

Experienced Board: 38N's board of directors are considered experienced (3.9 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Management Team

  • Chi Tao (48yo)

    Group CFO & Company Secretary

    • Tenure: 0yrs
  • Ting Chung Wong (57yo)

    Chairman of the Board & CEO

    • Tenure: 0yrs
    • Compensation: HK$4.07m
  • Ting Wong (53yo)

    Chief Production Officer & Executive Director

    • Tenure: 4.3yrs
    • Compensation: HK$3.60m
  • Po Li (54yo)

    Group Chief Sales Officer & Executive Director

    • Tenure: 4.3yrs
    • Compensation: HK$3.01m
  • Wai Wong (37yo)

    Vice Chairman

    • Tenure: 2.1yrs
    • Compensation: HK$1.94m

Board Members

  • Alan Ong (49yo)

    Independent Non-Executive Director

    • Tenure: 3.9yrs
    • Compensation: HK$429.00k
  • Tony Kan (68yo)

    Independent Non-Executive Director

    • Tenure: 3.9yrs
    • Compensation: HK$429.00k
  • David Tam (69yo)

    Non-Executive Director

    • Tenure: 4.3yrs
    • Compensation: HK$515.00k
  • Andrew Fan (40yo)

    Independent Non-Executive Director

    • Tenure: 3.9yrs
    • Compensation: HK$429.00k
  • Fanny Law (66yo)

    Independent Non-Executive Director

    • Tenure: 3.9yrs
    • Compensation: HK$429.00k
  • Ting Chung Wong (57yo)

    Chairman of the Board & CEO

    • Tenure: 0yrs
    • Compensation: HK$4.07m
  • Ting Wong (53yo)

    Chief Production Officer & Executive Director

    • Tenure: 4.3yrs
    • Compensation: HK$3.60m
  • Po Li (54yo)

    Group Chief Sales Officer & Executive Director

    • Tenure: 4.3yrs
    • Compensation: HK$3.01m
  • Ting Wong (57yo)

    Non-Executive Director

    • Tenure: 4.3yrs
    • Compensation: HK$1.47m
  • Wai Wong (37yo)

    Vice Chairman

    • Tenure: 2.1yrs
    • Compensation: HK$1.94m

Company Information

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


Key Information

  • Name: Nameson Holdings Limited
  • Ticker: 38N
  • Exchange: DB
  • Founded: 1990
  • Industry: Apparel, Accessories and Luxury Goods
  • Sector: Consumer Durables
  • Market Cap: HK$1.390b
  • Listing Market Cap: HK$160.117m
  • Shares outstanding: 2.28b
  • Website: https://www.namesonholdings.com

Number of Employees


Location

  • Nameson Holdings Limited
  • Units A–C, Tai Ping Industrial Centre
  • 21st Floor
  • Tai Po
  • New Territories
  • Hong Kong

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
1982SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDApr 2016
38NDB (Deutsche Boerse AG)YesOrdinary SharesDEEURApr 2016

Biography

Nameson Holdings Limited, an investment holding company, designs, manufactures, and sells knitwear products, knitted upper for footwear, and knitted upper shoes. The company offers women's wear and men's w ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/10 22:51
End of Day Share Price2019/12/10 00:00
Earnings2019/09/30
Annual Earnings2019/03/31


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.