DB:HF5

Stock Analysis Report

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Executive Summary

Honma Golf Limited, an investment holding company, designs, develops, manufactures, and sells a range of golf club equipment in Asia, North America, Europe, and internationally.


Snowflake Analysis

Reasonable growth potential with imperfect balance sheet.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: HF5's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-3.3%

HF5

1.6%

DE Leisure

-3.6%

DE Market


1 Year Return

-54.9%

HF5

15.7%

DE Leisure

3.7%

DE Market

Return vs Industry: HF5 underperformed the German Leisure industry which returned 15.7% over the past year.

Return vs Market: HF5 underperformed the German Market which returned 3.8% over the past year.


Shareholder returns

HF5IndustryMarket
7 Day-3.3%1.6%-3.6%
30 Day-9.3%5.8%-2.0%
90 Day-20.1%34.5%13.3%
1 Year-48.4%-54.9%17.6%15.7%6.0%3.7%
3 Year-44.6%-55.1%48.6%38.4%1.1%-6.9%
5 Yearn/a100.7%74.9%7.8%-6.8%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

Is Honma Golf undervalued compared to its fair value and its price relative to the market?

1.27x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: HF5 (€0.35) is trading above our estimate of fair value (€0.17)

Significantly Below Fair Value: HF5 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: HF5 is unprofitable, so we can't compare its PE Ratio to the XE Leisure industry average.

PE vs Market: HF5 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 HF5's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: HF5 is good value based on its PB Ratio (1.3x) compared to the XE Leisure industry average (2.1x).


Next Steps

Future Growth

How is Honma Golf forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

84.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: HF5 is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (0.2%).

Earnings vs Market: HF5 is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: HF5's is expected to become profitable in the next 3 years.

Revenue vs Market: HF5's revenue (11.9% per year) is forecast to grow faster than the German market (5.9% per year).

High Growth Revenue: HF5's revenue (11.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: HF5's Return on Equity is forecast to be low in 3 years time (10.4%).


Next Steps

Past Performance

How has Honma Golf performed over the past 5 years?

-10.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: HF5 is currently unprofitable.

Growing Profit Margin: HF5 is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: HF5 is unprofitable, and losses have increased over the past 5 years at a rate of 10.9% per year.

Accelerating Growth: Unable to compare HF5's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: HF5 is unprofitable, making it difficult to compare its past year earnings growth to the Leisure industry (-8.2%).


Return on Equity

High ROE: HF5 has a negative Return on Equity (-3.44%), as it is currently unprofitable.


Next Steps

Financial Health

How is Honma Golf's financial position?


Financial Position Analysis

Short Term Liabilities: HF5's short term assets (¥29.7B) exceed its short term liabilities (¥15.3B).

Long Term Liabilities: HF5's short term assets (¥29.7B) exceed its long term liabilities (¥2.4B).


Debt to Equity History and Analysis

Debt Level: HF5's debt to equity ratio (40.4%) is considered high.

Reducing Debt: HF5's debt to equity ratio has increased from 38.6% to 40.4% over the past 5 years.

Debt Coverage: HF5's debt is not well covered by operating cash flow (6.5%).

Interest Coverage: HF5 is unprofitable, therefore interest payments are not well covered by earnings.


Balance Sheet


Next Steps

Dividend

What is Honma Golf current dividend yield, its reliability and sustainability?

6.69%

Current Dividend Yield


Upcoming Dividend Payment


Dividend Yield vs Market

Notable Dividend: HF5's dividend (6.69%) is higher than the bottom 25% of dividend payers in the German market (1.25%).

High Dividend: HF5's dividend (6.69%) is in the top 25% of dividend payers in the German market (3.83%)


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, HF5 has been paying a dividend for less than 10 years.

Growing Dividend: HF5 has only been paying a dividend for 3 years, and since then payments have not increased.


Current Payout to Shareholders

Dividend Coverage: HF5 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

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

4.2yrs

Average management tenure


CEO

Jianguo Liu (51yo)

4.17yrs

Tenure

JP¥19,444,000

Compensation

Mr. Jianguo Liu has been Chairman of the Board and President of Honma Golf Limited and Honma Golf Co., Ltd., since June 14, 2016. Mr. Liu is responsible for formulating the overall development strategies a ...


CEO Compensation Analysis

Compensation vs Market: Jianguo's total compensation ($USD184.00K) is below average for companies of similar size in the German market ($USD758.05K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Jianguo Liu
Chairman & President4.17yrsJP¥19.44m38.67% ¥84.0m
Jun Zuo
Chief Administrative Officer4.17yrsJP¥6.36m0.042% ¥91.1k
Ito Yasuki
Chief Marketing Officer4.17yrsJP¥13.56m0.018% ¥39.1k
Yuji Murai
Chief Sales Officer4.17yrsJP¥12.80m0.030% ¥65.8k
Weiwen Bian
CFO & COO4.17yrsno datano data
Julia Chen
Investor Relations Directorno datano datano data
Hiroshi Suwa
Managing Executive Officer of Product Development4.17yrsno datano data
Ying Man Sham
Company Secretary1.75yrsno datano data
Kenji Ueda
Director of Golf Club Manufacturing & Procurement Dept. and Executive Officer of Production5.25yrsno datano data

4.2yrs

Average Tenure

59yo

Average Age

Experienced Management: HF5's management team is considered experienced (4.2 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Jianguo Liu
Chairman & President4.17yrsJP¥19.44m38.67% ¥84.0m
Jun Zuo
Chief Administrative Officer4.17yrsJP¥6.36m0.042% ¥91.1k
Ito Yasuki
Chief Marketing Officer4.17yrsJP¥13.56m0.018% ¥39.1k
Yuji Murai
Chief Sales Officer4.17yrsJP¥12.80m0.030% ¥65.8k
Ho Ping-hsien
Non-Executive Director1.75yrsJP¥3.27mno data
Xiaoping Yang
Non Executive Director2.25yrsJP¥3.27mno data
Jianguo Wang
Independent Non-Executive Director3.92yrsJP¥4.87mno data
Pochin Lu
Independent Non-Executive Director3.92yrsJP¥8.17mno data
Hui Xu
Independent Non-Executive Director3.92yrsJP¥4.87mno data

3.9yrs

Average Tenure

59yo

Average Age

Experienced Board: HF5'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: 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

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


Key Information

  • Name: Honma Golf Limited
  • Ticker: HF5
  • Exchange: DB
  • Founded: 1959
  • Industry: Leisure Products
  • Sector: Consumer Durables
  • Market Cap: HK$1.993b
  • Listing Market Cap: HK$217.327m
  • Shares outstanding: 605.64m
  • Website: https://www.honmagolf.co.jp

Number of Employees


Location

  • Honma Golf Limited
  • Roppongi Hills Mori Tower
  • 35th Floor
  • Tokyo
  • 106-6135
  • Japan

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
6858SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDOct 2016
HF5DB (Deutsche Boerse AG)YesOrdinary SharesDEEUROct 2016
HNMG.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDOct 2016

Biography

Honma Golf Limited, an investment holding company, designs, develops, manufactures, and sells a range of golf club equipment in Asia, North America, Europe, and internationally. It offers driver, fairway wood, utility, iron, wedge, and putter clubs; golf balls, golf bags, golf club head covers, gloves, shoes, and other golf-related accessories; and apparel for men and women under the BERES, TOUR WORLD, Be ZEAL, and HONMA brands. The company distributes its products through HONMA-branded self-operated stores; third-party retailers, including sports megastores; and wholesale distributors that on-sell its products to other third parties. As of March 31, 2020, it had 79 HONMA-branded self-operated stores. Honma Golf Limited was founded in 1959 and is headquartered in Tokyo, Japan. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/08/02 21:45
End of Day Share Price2020/07/31 00:00
Earnings2020/03/31
Annual Earnings2020/03/31


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.