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Li & Fung

DB:LIUB
Snowflake Description

Good value average dividend payer.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
LIUB
DB
HK$11B
Market Cap
  1. Home
  2. DE
  3. Consumer Durables
Company description

Li & Fung Limited, an investment holding company, engages in managing the supply chain for retailers and brands worldwide. The last earnings update was 35 days ago. More info.


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  • Li & Fung has significant price volatility in the past 3 months.
LIUB Share Price and Events
7 Day Returns
0%
DB:LIUB
1.8%
DE Luxury
-0%
DE Market
1 Year Returns
-60.1%
DB:LIUB
21.1%
DE Luxury
-11.5%
DE Market
LIUB Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Li & Fung (LIUB) 0% 0% 0% -60.1% -71.2% -
DE Luxury 1.8% 7.5% 22% 21.1% 104.4% 136%
DE Market -0% -3.3% 2.1% -11.5% 8.9% 8.1%
1 Year Return vs Industry and Market
  • LIUB underperformed the Luxury industry which returned 21.1% over the past year.
  • LIUB underperformed the Market in Germany which returned -11.5% over the past year.
Price Volatility
LIUB
Industry
5yr Volatility vs Market

LIUB Value

 Is Li & Fung undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Li & Fung to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Li & Fung.

DB:LIUB Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 4 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 7.4%
Perpetual Growth Rate 10-Year DE Government Bond Rate 0.2%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for DB:LIUB
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year DE Govt Bond Rate 0.2%
Equity Risk Premium S&P Global 6.7%
Luxury Unlevered Beta Simply Wall St/ S&P Global 0.72
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.72 (1 + (1- 25%) (75.1%))
1.084
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.08
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 0.23% + (1.084 * 6.65%)
7.44%

Discounted Cash Flow Calculation for DB:LIUB using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Li & Fung is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

DB:LIUB DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 7.44%)
2019 45.50 Analyst x2 42.35
2020 266.00 Analyst x2 230.45
2021 117.50 Analyst x2 94.75
2022 53.84 Est @ -54.18% 40.41
2023 33.46 Est @ -37.86% 23.38
2024 24.61 Est @ -26.43% 16.01
2025 20.08 Est @ -18.43% 12.15
2026 17.50 Est @ -12.84% 9.86
2027 15.94 Est @ -8.92% 8.36
2028 14.96 Est @ -6.17% 7.30
Present value of next 10 years cash flows $485.02
DB:LIUB DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= $14.96 × (1 + 0.23%) ÷ (7.44% – 0.23%)
$207.98
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $207.98 ÷ (1 + 7.44%)10
$101.52
DB:LIUB Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $485.02 + $101.52
$586.54
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $586.54 / 8,506.59
$0.66
DB:LIUB Discount to Share Price
Calculation Result
Exchange Rate USD/HKD
(Reporting currency to currency of SEHK:494)
7.85
Value per Share
(HKD)
= Value per Share in USD x Exchange Rate (USD/HKD)
= $0.07 x 7.85
HK$0.54
Non-primary Listing Adjustment Factor 1 share in DB:LIUB represents 0.10476x of SEHK:494
(This could be a different class, a depositary receipt, a different currency, or all of these things.)
0.10476x
Value per Share
(Listing Adjusted, EUR)
= Value per Share (HKD) x Listing Adjustment Factor
= HK$ 0.54 x 0.10476
€0.06
Value per share (EUR) From above. €0.06
Current discount Discount to share price of €0.13
= -1 x (€0.13 - €0.06) / €0.06
-132.8%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of Li & Fung is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Li & Fung's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Li & Fung's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
DB:LIUB PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-12-31) in USD $0.02
SEHK:494 Share Price ** SEHK (2019-05-22) in HKD HK$1.26
SEHK:494 Share Price converted to USD reporting currency Exchange rate (HKD/ USD) 0.127 $0.16
Germany Luxury Industry PE Ratio Median Figure of 7 Publicly-Listed Luxury Companies 23.04x
Germany Market PE Ratio Median Figure of 422 Publicly-Listed Companies 20.26x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Li & Fung.

DB:LIUB PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= SEHK:494 Share Price ÷ EPS (both in USD)

= 0.16 ÷ 0.02

10.43x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Li & Fung is good value based on earnings compared to the DE Luxury industry average.
  • Li & Fung is good value based on earnings compared to the Germany market.
Price based on expected Growth
Does Li & Fung's expected growth come at a high price?
Raw Data
DB:LIUB PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 10.43x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 4 Analysts
12.1%per year
Europe Luxury Industry PEG Ratio Median Figure of 39 Publicly-Listed Luxury Companies 1.59x
Germany Market PEG Ratio Median Figure of 271 Publicly-Listed Companies 1.49x

*Line of best fit is calculated by linear regression .

DB:LIUB PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 10.43x ÷ 12.1%

0.86x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Li & Fung is good value based on expected growth next year.
Price based on value of assets
What value do investors place on Li & Fung's assets?
Raw Data
DB:LIUB PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-12-31) in USD $0.22
SEHK:494 Share Price * SEHK (2019-05-22) in HKD HK$1.26
SEHK:494 Share Price converted to USD reporting currency Exchange rate (HKD/ USD) 0.127 $0.16
Germany Luxury Industry PB Ratio Median Figure of 11 Publicly-Listed Luxury Companies 1.4x
Germany Market PB Ratio Median Figure of 576 Publicly-Listed Companies 1.78x
DB:LIUB PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= SEHK:494 Share Price ÷ Book Value per Share (both in USD)

= 0.16 ÷ 0.22

0.73x

* Primary Listing of Li & Fung.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Li & Fung is good value based on assets compared to the DE Luxury industry average.
X
Value checks
We assess Li & Fung's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Luxury industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Luxury industry average (and greater than 0)? (1 check)
  5. Li & Fung has a total score of 4/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

LIUB Future Performance

 How is Li & Fung expected to perform in the next 1 to 3 years based on estimates from 4 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
12.1%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Li & Fung expected to grow at an attractive rate?
  • Li & Fung's earnings growth is expected to exceed the low risk savings rate of 0.2%.
Growth vs Market Checks
  • Li & Fung's earnings growth is positive but not above the Germany market average.
  • Li & Fung's revenue growth is positive but not above the Germany market average.
Annual Growth Rates Comparison
Raw Data
DB:LIUB Future Growth Rates Data Sources
Data Point Source Value (per year)
DB:LIUB Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 4 Analysts 12.1%
DB:LIUB Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 4 Analysts 0.6%
Germany Luxury Industry Earnings Growth Rate Market Cap Weighted Average 11.5%
Germany Luxury Industry Revenue Growth Rate Market Cap Weighted Average 6.6%
Germany Market Earnings Growth Rate Market Cap Weighted Average 13.1%
Germany Market Revenue Growth Rate Market Cap Weighted Average 4.9%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
DB:LIUB Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (4 months ago) See Below
Future Estimates Average of up to 4 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
DB:LIUB Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2021-12-31 12,909 204 175 4
2020-12-31 12,531 349 152 4
2019-12-31 12,393 125 118 4
DB:LIUB Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2018-12-31 12,701 137 129
2018-09-30 12,807 226 129
2018-06-30 12,913 315 130
2018-03-31 13,224 440 149
2017-12-31 13,534 564 168
2017-06-30 13,239 381 179
2017-03-31 13,995 379 170
2016-12-31 14,751 377 160
2016-09-30 17,431 453 284
2016-06-30 18,189 516 345
2016-03-31 18,510 530 383

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Li & Fung's earnings are expected to grow by 12.1% yearly, however this is not considered high growth (20% yearly).
  • Li & Fung's revenue is expected to grow by 0.6% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
DB:LIUB Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (4 months ago) See Below
Future Estimates Average of up to 4 Analyst Estimates (S&P Global) See Below

All data from Li & Fung Company Filings, last reported 4 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

DB:LIUB Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2021-12-31 0.02 0.03 0.02 4.00
2020-12-31 0.02 0.02 0.02 4.00
2019-12-31 0.02 0.02 0.01 4.00
DB:LIUB Past Financials Data
Date (Data in USD Millions) EPS *
2018-12-31 0.02
2018-09-30 0.02
2018-06-30 0.02
2018-03-31 0.02
2017-12-31 0.02
2017-06-30 0.02
2017-03-31 0.02
2016-12-31 0.02
2016-09-30 0.03
2016-06-30 0.04
2016-03-31 0.05

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Li & Fung is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Li & Fung's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Germany market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Germany market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Li & Fung has a total score of 1/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

LIUB Past Performance

  How has Li & Fung performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Li & Fung's growth in the last year to its industry (Luxury).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Li & Fung's year on year earnings growth rate was negative over the past 5 years and the most recent earnings are below average.
  • Li & Fung's 1-year earnings growth is negative, it can't be compared to the 5-year average.
  • Li & Fung's 1-year earnings growth is negative, it can't be compared to the DE Luxury industry average.
Earnings and Revenue History
Li & Fung's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Li & Fung Company Filings, last reported 4 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

DB:LIUB Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-12-31 12,700.74 128.82 1,057.17
2018-09-30 12,807.02 129.40 1,043.25
2018-06-30 12,913.29 129.99 1,029.33
2018-03-31 13,223.75 149.23 1,029.88
2017-12-31 13,534.21 168.47 1,030.42
2017-06-30 13,238.98 179.12 888.10
2017-03-31 13,995.10 169.56 1,032.36
2016-12-31 14,751.22 160.01 1,176.63
2016-09-30 17,431.06 283.91 1,602.07
2016-06-30 18,188.73 344.68 1,654.16
2016-03-31 18,509.78 382.86 1,665.28
2015-12-31 18,830.84 421.05 1,676.40
2015-09-30 19,017.67 449.79 1,674.83
2015-06-30 19,204.51 478.52 1,673.26
2015-03-31 19,246.50 508.96 1,656.68
2014-12-31 19,288.50 539.40 1,640.09
2014-09-30 19,278.40 607.94 1,614.52
2014-06-30 19,268.30 676.47 1,588.95
2014-03-31 19,146.90 644.14 1,573.05
2013-12-31 19,025.51 611.81 1,557.15
2013-09-30 19,293.24 533.13 1,822.73
2013-06-30 19,560.97 454.45 2,088.31
2013-03-31 19,891.39 538.14 2,270.47
2012-12-31 20,221.81 621.83 2,452.62
2012-09-30 20,290.76 689.91 2,386.42
2012-06-30 20,359.70 757.99 2,320.22

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Li & Fung has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Li & Fung used its assets less efficiently than the DE Luxury industry average last year based on Return on Assets.
  • Li & Fung's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Li & Fung's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Luxury industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Li & Fung has a total score of 0/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

LIUB Health

 How is Li & Fung's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Li & Fung's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Li & Fung is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Li & Fung's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Li & Fung's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • Debt is covered by short term assets, assets are 2.7x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Li & Fung Company Filings, last reported 4 months ago.

DB:LIUB Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2018-12-31 1,869.43 1,025.39 612.39
2018-09-30 1,869.43 1,025.39 612.39
2018-06-30 1,842.89 780.14 319.18
2018-03-31 1,842.89 780.14 319.18
2017-12-31 2,913.70 778.68 348.94
2017-06-30 3,465.83 788.66 416.27
2017-03-31 3,465.83 788.66 416.27
2016-12-31 3,458.98 1,305.23 985.04
2016-09-30 3,483.15 1,305.23 985.04
2016-06-30 2,872.41 1,491.96 530.96
2016-03-31 2,872.41 1,491.96 530.96
2015-12-31 3,010.17 1,483.32 342.24
2015-09-30 3,010.17 1,483.32 342.24
2015-06-30 2,949.96 1,476.60 315.03
2015-03-31 2,949.96 1,476.60 315.03
2014-12-31 3,110.08 1,468.05 538.53
2014-09-30 3,110.08 1,468.05 538.53
2014-06-30 5,312.52 1,494.13 543.80
2014-03-31 5,312.52 1,494.13 543.80
2013-12-31 5,549.69 1,503.89 459.56
2013-09-30 5,549.69 1,503.89 459.56
2013-06-30 5,009.60 1,497.18 418.77
2013-03-31 5,009.60 1,497.18 418.77
2012-12-31 5,137.32 1,508.65 680.38
2012-09-30 5,144.93 1,508.65 680.38
2012-06-30 4,458.39 1,546.47 307.05
  • Li & Fung's level of debt (54.9%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (27.1% vs 54.9% today).
  • Debt is not well covered by operating cash flow (13.3%, less than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 5.6x coverage).
X
Financial health checks
We assess Li & Fung's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Li & Fung has a total score of 3/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

LIUB Dividends

 What is Li & Fung's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
5.61%
Current annual income from Li & Fung dividends. Estimated to be 6.81% next year.
If you bought €2,000 of Li & Fung shares you are expected to receive €112 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Li & Fung's pays a higher dividend yield than the bottom 25% of dividend payers in Germany (1.43%).
  • Li & Fung's dividend is above the markets top 25% of dividend payers in Germany (3.86%).
Upcoming dividend payment

Purchase Li & Fung before the 'Buy Limit' to receive their next dividend payment.

Dividends are usually paid every 3 or 6 months, you can time your share purchase to take advantage of upcoming dividend payments.
Dividend payment calendar
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
DB:LIUB Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 4 Analyst Estimates (S&P Global) See Below
Germany Luxury Industry Average Dividend Yield Market Cap Weighted Average of 6 Stocks 1.5%
Germany Market Average Dividend Yield Market Cap Weighted Average of 326 Stocks 3.2%
Germany Minimum Threshold Dividend Yield 10th Percentile 0.8%
Germany Bottom 25% Dividend Yield 25th Percentile 1.4%
Germany Top 25% Dividend Yield 75th Percentile 3.9%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

DB:LIUB Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2021-12-31 0.01 5.00
2020-12-31 0.01 5.00
2019-12-31 0.01 5.00
DB:LIUB Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2019-03-21 0.009 5.201
2018-05-15 0.017 7.215
2018-04-12 0.017 3.290
2018-03-22 0.017 3.337
2017-04-27 0.030 6.620
2017-03-29 0.030 6.934
2016-04-18 0.036 7.431
2016-03-17 0.036 6.073
2015-04-20 0.044 6.086
2015-03-19 0.044 4.389
2014-04-09 0.063 5.346
2013-04-11 0.040 2.865
2013-03-21 0.040 2.922
2012-03-22 0.068 4.016
2011-03-24 0.058 2.893
2010-08-13 0.056 1.979
2010-04-16 0.048 2.064
2010-03-24 0.048 1.934

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Li & Fung has been paying a dividend for less than 10 years and during this time payments have been volatile (annual drop of over 20%).
  • Li & Fung has only been paying a dividend for 9 years, and since then dividends per share have fallen.
Current Payout to shareholders
What portion of Li & Fung's earnings are paid to the shareholders as a dividend.
  • Dividends paid are covered by earnings (1.7x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be covered by earnings (1.4x coverage).
X
Income/ dividend checks
We assess Li & Fung's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Li & Fung afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Li & Fung has a total score of 4/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

LIUB Management

 What is the CEO of Li & Fung's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Spencer Theodore Fung
COMPENSATION $2,134,000
AGE 45
TENURE AS CEO 4.8 years
CEO Bio

Mr. Spencer Theodore Fung has been the Group Chief Executive Officer of Li & Fung Limited since July 7, 2014 and its Executive Director of Li since July 1, 2008. Mr. Fung joined Li & Fung in 2001. He served as the Group Chief Operating Officer of Li & Fung Limited from April 2012 to July 7, 2014. He served as the President of LF Europe Ltd., until May 23, 2012. He serves as an Executive Director at Li & Fung (Trading) Limited, a wholly-owned subsidiary of Li & Fung and is in charge of a business unit with 800 staff in 19 countries and responsible for overall sourcing strategy and operating effectiveness of the unit. He is a Certified Public Accountant of the U.S. He has been an Independent Non-Executive Director of Swire Properties Limited since December 31, 2012. He is a member of Young Presidents’ Organization – Hong Kong Chapter, Limited He is a member of the General Committee of The Hong Kong Exporters’ Association and the Board of Trustees at Northeastern University. Mr. Fung holds a Bachelor of Arts Degree from Harvard College and Master of Science in Accounting and Master in Business Administration degrees from Northeastern University.

CEO Compensation
  • Spencer Theodore's compensation has been consistent with company performance over the past year, both up more than 20%.
  • Spencer Theodore's remuneration is about average for companies of similar size in Germany.
Management Team Tenure

Average tenure and age of the Li & Fung management team in years:

3.8
Average Tenure
53.5
Average Age
  • The tenure for the Li & Fung management team is about average.
Management Team

Spencer Theodore Fung

TITLE
CEO & Executive Director
COMPENSATION
$2M
AGE
45
TENURE
4.8 yrs

Joseph Phi

TITLE
Group President
AGE
56
TENURE
0.3 yrs

Edward Lam

TITLE
Chief Financial Officer
AGE
52
TENURE
6.5 yrs

Wilson Zhu

TITLE
Chief Operating Officer
AGE
65

Alison Law

TITLE
Director of Investor Relations
AGE
50

Jason Yeung

TITLE
Group Chief Compliance & Risk Management Officer
AGE
63
TENURE
3.8 yrs

Roger Young

TITLE
Chief Human Resources Officer
AGE
54
TENURE
2.5 yrs

Sean Coxall

TITLE
President of Supply Chain Solutions
AGE
53

Deepika Rana

TITLE
President of Supply Chain Solutions
AGE
57

Darren Palfrey

TITLE
Chief Digital Officer
AGE
41
Board of Directors Tenure

Average tenure and age of the Li & Fung board of directors in years:

6.5
Average Tenure
63.5
Average Age
  • The tenure for the Li & Fung board of directors is about average.
Board of Directors

William Fung

TITLE
Group Chairman
COMPENSATION
$2M
AGE
69
TENURE
7 yrs

Spencer Theodore Fung

TITLE
CEO & Executive Director
COMPENSATION
$2M
AGE
45
TENURE
10.8 yrs

Joseph Phi

TITLE
Group President
AGE
56
TENURE
1.3 yrs

Victor Fung

TITLE
Honorary Chairman
COMPENSATION
$58K
AGE
72
TENURE
7 yrs

Allan Wong

TITLE
Independent Non-Executive Director
COMPENSATION
$71K
AGE
67
TENURE
20.2 yrs

Martin Tang

TITLE
Independent Non Executive Director
COMPENSATION
$71K
AGE
69
TENURE
10.3 yrs

Margaret Leung Ko

TITLE
Independent Non Executive Director
COMPENSATION
$71K
AGE
66
TENURE
6.1 yrs

Marc Compagnon

TITLE
Non-Executive Director
COMPENSATION
$2M
AGE
59
TENURE
4.8 yrs

Chih Cheung

TITLE
Independent Non-Executive Director
COMPENSATION
$52K
AGE
47
TENURE
1.8 yrs

John Rice

TITLE
Independent Non-Executive Director
COMPENSATION
$52K
AGE
61
TENURE
1.3 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (€) Value (€)
14. May 19 Buy Silchester International Investors LLP Company 10. May 19 10. May 19 7,062,000 €0.14 €1,010,899
14. May 19 Sell Capital Research and Management Company Company 10. May 19 10. May 19 -3,968,000 €0.14 €-568,005
30. Mar 19 Sell Capital Research and Management Company Company 28. Mar 19 28. Mar 19 -2,698,000 €0.16 €-442,446
06. Mar 19 Buy Silchester International Investors LLP Company 06. Mar 19 06. Mar 19 5,418,000 €0.16 €854,666
06. Mar 19 Sell Colonial First State Asset Management (Australia) Limited Company 05. Mar 19 05. Mar 19 -7,836,000 €0.15 €-1,210,313
14. Jan 19 Buy Colonial First State Asset Management (Australia) Limited Company 10. Jan 19 10. Jan 19 86,394,000 €0.15 €13,211,714
28. Nov 18 Buy Silchester International Investors LLP Company 28. Nov 18 28. Nov 18 6,758,000 €0.19 €1,254,040
28. Aug 18 Buy First State Investment Management (UK) Limited Company 24. Aug 18 24. Aug 18 422,000 €0.27 €113,798
03. Sep 18 Sell First State Investment Management (UK) Limited Company 31. Aug 18 31. Aug 18 -7,150,000 €0.26 €-1,836,405
15. Oct 18 Buy Silchester International Investors LLP Company 12. Oct 18 12. Oct 18 7,500,000 €0.19 €1,393,251
24. Sep 18 Sell Colonial First State Asset Management (Australia) Limited Company 21. Sep 18 21. Sep 18 -235,654,000 €0.20 €-48,048,784
X
Management checks
We assess Li & Fung's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Li & Fung has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

LIUB News

Simply Wall St News

LIUB Company Info

Description

Li & Fung Limited, an investment holding company, engages in managing the supply chain for retailers and brands worldwide. The company operates through two segments, Services and Products. Its Services segment provides supply chain solutions, including product design, raw materials procurement, production and quality control, warehouse management, and last-mile delivery to retail stores or end-consumers. The Products segment engages in the onshore wholesale business. Li & Fung Limited is also involved in the distribution of security products and fireworks. In addition, the company provides management and consultancy services; and trade-related credit, accounting, and testing and technology consultation services, as well as laboratory services. Further, it provides design and marketing, freight forwarding, logistics, transportation, sourcing, export trading, accounting, management, and customs brokerage services. Further, it designs, sources, and delivers apparel, accessories, and household items. The company serves specialty stores, department stores, big box retailers, e-commerce companies, hypermarkets, off-price retailers, and clubs. It operates through a network of approximately 230 offices, 280 distribution centers, and approximately 16,800 people. Li & Fung Limited was founded in 1906 and is headquartered in Kowloon, Hong Kong.

Details
Name: Li & Fung Limited
LIUB
Exchange: DB
Founded: 1906
HK$1,224,368,668
8,506,586,006
Website: http://www.lifung.com
Address: Li & Fung Limited
LiFung Tower,
11th Floor,
Kowloon,
Kowloon, Hong Kong
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
SEHK 494 Common Stock The Stock Exchange of Hong Kong Ltd. HK HKD 02. Jul 1992
OTCPK LFUG.F Common Stock Pink Sheets LLC US USD 02. Jul 1992
DB LIUB Common Stock Deutsche Boerse AG DE EUR 02. Jul 1992
SHSC 494 Common Stock Stock Exchange of Hong Kong Limited - Shanghai - Hong Kong Stock Connect HK HKD 02. Jul 1992
SZSC 494 Common Stock The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect HK HKD 02. Jul 1992
OTCPK LFUG.Y ADR Pink Sheets LLC US USD 29. Oct 2008
Number of employees
Current staff
Staff numbers
16,840
Li & Fung employees.
Industry
Apparel, Accessories and Luxury Goods
Consumer Durables
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/05/22 20:53
End of day share price update: 2019/05/22 00:00
Last estimates confirmation: 2019/03/24
Last earnings filing: 2019/04/17
Last earnings reported: 2018/12/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.