DB:HF5

Stock Analysis Report

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

Fundamentals

Very undervalued with excellent balance sheet.

Risks

  • Honma Golf is covered by less than 3 analysts.

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

2.7%

DB:HF5

1.6%

DE Leisure

-0.7%

DE Market


1 Year Return

-9.0%

DB:HF5

-14.6%

DE Leisure

-7.6%

DE Market

HF5 underperformed the Leisure industry which returned 14.5% over the past year.

HF5 underperformed the Market in Germany which returned -7.6% over the past year.


Share holder returns

HF5IndustryMarket
7 Day2.7%1.6%-0.7%
30 Day-0.5%0.5%-0.8%
90 Day-5.4%8.1%-3.8%
1 Year-4.6%-9.0%-14.6%-14.6%-4.7%-7.6%
3 Yearn/a104.9%104.9%18.4%8.2%
5 Yearn/a33.3%26.1%28.8%11.1%

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 based on future cash flows and its price relative to the stock market?

>50%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Honma Golf's share price is below the future cash flow value, and at a moderate discount (> 20%).

Honma Golf's share price is below the future cash flow value, and at a substantial discount (> 40%).


Price Based on Earnings

Honma Golf is good value based on earnings compared to the Europe Leisure industry average.

Honma Golf is good value based on earnings compared to the Germany market.


Price Based on Expected Growth

Honma Golf is good value based on expected growth next year.


Price Based on Value of Assets

Honma Golf is good value based on assets compared to the Europe Leisure industry average.


Next Steps

Future Growth

How is Honma Golf expected to perform in the next 1 to 3 years based on estimates from 2 analysts?

18.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Honma Golf's revenue is expected to grow by 13.3% yearly, however this is not considered high growth (20% yearly).

Honma Golf's earnings are expected to grow by 18.9% yearly, however this is not considered high growth (20% yearly).

Honma Golf's revenue growth is expected to exceed the Germany market average.

Honma Golf's earnings growth is expected to exceed the Germany market average.

Honma Golf's earnings growth is expected to exceed the low risk savings rate of 0.2%.


Earnings per Share Growth Estimates


Future Return on Equity

Honma Golf is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


Next Steps

Past Performance

How has Honma Golf performed over the past 5 years?

12.4%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Honma Golf's year on year earnings growth rate has been positive over the past 5 years.

Honma Golf's 1-year earnings growth is less than its 5-year average (7% vs 12.4%)

Honma Golf's earnings growth has not exceeded the Europe Leisure industry average in the past year (7% vs 21.4%).


Return on Equity

Honma Golf has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Honma Golf used its assets more efficiently than the Europe Leisure industry average last year based on Return on Assets.


Return on Capital Employed

Honma Golf's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Honma Golf's financial position?


Financial Position Analysis

Honma Golf is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Honma Golf's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

Honma Golf's level of debt (13%) compared to net worth is satisfactory (less than 40%).

The level of debt compared to net worth has increased over the past 5 years (7% vs 13% today).

Debt is well covered by operating cash flow (68.7%, greater than 20% of total debt).

Honma Golf earns more interest than it pays, coverage of interest payments is not a concern.


Balance Sheet

High level of physical assets or inventory.

Debt is covered by short term assets, assets are 8.7x debt.


Next Steps

Dividend

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

5.15%

Expected Dividend Yield


Upcoming Dividend Payment

Purchase Honma Golf before the 'Buy Limit' to receive their next dividend payment.


Dividend Yield and Payments Analysis

Honma Golf's pays a higher dividend yield than the bottom 25% of dividend payers in Germany (1.48%).

Honma Golf's dividend is below the markets top 25% of dividend payers in Germany (3.92%).

Whilst dividend payments have been stable, Honma Golf has been paying a dividend for less than 10 years.

Dividend payments have increased, but Honma Golf only paid a dividend in the past 2 years.


Current Payout to Shareholders

Dividends paid are well covered by earnings (2x coverage).


Future Payout to Shareholders

Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.


Next Steps

Management

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

3.1yrs

Average management tenure


CEO

Jianguo Liu (50yo)

3.1yrs

Tenure

JP¥29,109,000

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

Jianguo's remuneration is lower than average for companies of similar size in Germany.

Jianguo's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

3.1yrs

Average Tenure

58yo

Average Age

The tenure for the Honma Golf management team is about average.


Board Age and Tenure

2.8yrs

Average Tenure

58yo

Average Age

The average tenure for the Honma Golf board of directors is less than 3 years, this suggests a new board.


Insider Trading

No 3 month individual insider trading information.


Recent Insider Transactions

Sell€91,27925 Mar 19
Yasuki Ito
EntityIndividual
Role
Chief Marketing Officer
Member of the Board of Directors
Shares97,000
Max Price€0.94
Sell€2,42722 Mar 19
Yasuki Ito
EntityIndividual
Role
Chief Marketing Officer
Member of the Board of Directors
Shares2,500
Max Price€0.97
Sell€19,11222 Mar 19
Yasuki Ito
EntityIndividual
Role
Chief Marketing Officer
Member of the Board of Directors
Shares20,500
Max Price€0.93

Ownership Breakdown


Management Team

  • Jianguo Liu (50yo)

    Chairman & President

    • Tenure: 3.1yrs
    • Compensation: ¥29.11m
  • Yasuki Ito (58yo)

    Chief Marketing Officer

    • Tenure: 3.1yrs
    • Compensation: ¥36.89m
  • Yuji Murai (59yo)

    Chief Sales Officer

    • Tenure: 3.1yrs
    • Compensation: ¥26.07m
  • Jun Zuo (46yo)

    Chief Administrative Officer

    • Tenure: 3.1yrs
    • Compensation: ¥20.84m
  • Hiroshi Suwa (63yo)

    Managing Executive Officer of Product Development

    • Tenure: 3.1yrs
  • Kenji Ueda (62yo)

    Director of Golf Club Manufacturing & Procurement Dept. and Executive Officer of Production

    • Tenure: 4.2yrs
  • Weiwen Bian (49yo)

    Chief Financial Officer

    • Tenure: 3.1yrs
  • Ying Sham

    Company Secretary

    • Tenure: 0.7yrs

Board Members

  • Yuji Murai (59yo)

    Chief Sales Officer

    • Tenure: 3.1yrs
    • Compensation: ¥26.07m
  • Jianguo Wang (59yo)

    Independent Non-Executive Director

    • Tenure: 2.8yrs
    • Compensation: ¥2.29m
  • Yasuki Ito (58yo)

    Chief Marketing Officer

    • Tenure: 3.1yrs
    • Compensation: ¥36.89m
  • Jianguo Liu (50yo)

    Chairman & President

    • Tenure: 3.1yrs
    • Compensation: ¥29.11m
  • Hui Xu (46yo)

    Independent Non-Executive Director

    • Tenure: 2.8yrs
    • Compensation: ¥2.29m
  • Jun Zuo (46yo)

    Chief Administrative Officer

    • Tenure: 3.1yrs
    • Compensation: ¥20.84m
  • Xiaoping Yang (55yo)

    Non Executive Director

    • Tenure: 1.2yrs
  • Christopher Lu (60yo)

    Independent Non-Executive Director

    • Tenure: 2.8yrs
    • Compensation: ¥3.81m
  • Robert Ho (70yo)

    Non-Executive Director

    • Tenure: 0.7yrs

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$4.403b
  • Listing Market Cap: HK$502.535m
  • Shares outstanding: 609.05m
  • Website: Click here

Number of Employees


Location

  • Honma Golf Limited
  • Roppongi Hills Mori Tower
  • 35th Floor
  • Tokyo
  • 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 drivers and fairw ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/07/22 22:10
End of Day Share Price2019/07/22 00:00
Earnings2019/03/31
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.