Hoftex Group (MUN:NBH) - Share price, News & Analysis

NBH fundamental analysis
Snowflake Score
Valuation	5/6
Future Growth	0/6
Past Performance	2/6
Financial Health	5/6
Dividends	1/6

NBH Stock Overview

Hoftex Group AG, through its subsidiaries, develops, manufactures, and sells textile products for various applications in Germany and internationally.

Rewards

Trading at 29.4% below our estimate of its fair value

Became profitable this year

Risk Analysis

Earnings have declined by 17.8% per year over past 5 years

Latest financial reports are more than 6 months old

Does not have a meaningful market cap (€61M)

Hoftex Group Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Hoftex Group
Historical stock prices
Current Share Price	€11.20
52 Week High	€13.40
52 Week Low	€11.10
Beta	0.22
1 Month Change	0.90%
3 Month Change	-8.94%
1 Year Change	-6.67%
3 Year Change	-17.04%
5 Year Change	-26.41%
Change since IPO	-31.57%

Recent News & Updates

May 24

Returns On Capital At Hoftex Group (MUN:NBH) Have Hit The Brakes

If we want to find a potential multi-bagger, often there are underlying trends that can provide clues. Typically, we'll...

Shareholder Returns

	NBH	DE Luxury	DE Market
7D	0%	5.6%	4.2%
1Y	-6.7%	-33.0%	-11.4%

Return vs Industry: NBH exceeded the German Luxury industry which returned -34.6% over the past year.

Return vs Market: NBH exceeded the German Market which returned -12.4% over the past year.

Price Volatility

Is NBH's price volatile compared to industry and market?
NBH volatility
NBH Average Weekly Movement	3.4%
Luxury Industry Average Movement	7.0%
Market Average Movement	6.4%
10% most volatile stocks in DE Market	10.8%
10% least volatile stocks in DE Market	3.5%

Stable Share Price: NBH is less volatile than 75% of German stocks over the past 3 months, typically moving +/- 3% a week.

Volatility Over Time: NBH's weekly volatility (3%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1853	1,046	Klaus Steger	https://www.hoftexgroup.com

Hoftex Group AG, through its subsidiaries, develops, manufactures, and sells textile products for various applications in Germany and internationally. It operates through HOFTEX, NEUTEX, and TENOWO divisions. The company offers dyed yarns and threads, and numerous specialty yarns; and decorative fabrics as yard goods, as well as ready-made home textiles It also engages in weaving, dyeing, and finishing of decorative fabrics.

Hoftex Group Fundamentals Summary

How do Hoftex Group's earnings and revenue compare to its market cap?
NBH fundamental statistics
Market Cap	€60.98m
Earnings (TTM)	€9.09m
Revenue (TTM)	€148.80m

6.7x

P/E Ratio

0.4x

P/S Ratio

Is NBH overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
NBH income statement (TTM)
Revenue	€148.80m
Cost of Revenue	€66.78m
Gross Profit	€82.02m
Other Expenses	€72.93m
Earnings	€9.09m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)	1.67
Gross Margin	55.12%
Net Profit Margin	6.11%
Debt/Equity Ratio	47.7%

How did NBH perform over the long term?

See historical performance and comparison

Dividends

1.3%

Current Dividend Yield

9%

Payout Ratio

Valuation

Is Hoftex Group undervalued compared to its fair value and its price relative to the market?

Valuation Score

5/6

Valuation Score 5/6

Below Fair Value
Significantly Below Fair Value
PE vs Industry
PE vs Market
PEG Ratio
PB vs Industry

29.4%

Undervalued compared to fair value

Share Price vs. Fair Value

Below Fair Value: NBH (€11.2) is trading below our estimate of fair value (€15.87)

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

Price To Earnings Ratio

PE vs Industry: NBH is good value based on its PE Ratio (6.7x) compared to the German Luxury industry average (15.4x).

PE vs Market: NBH is good value based on its PE Ratio (6.7x) compared to the German market (17.5x).

Price to Earnings Growth Ratio

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

Price to Book Ratio

PB vs Industry: NBH is good value based on its PB Ratio (0.5x) compared to the DE Luxury industry average (1.5x).

Future Growth

How is Hoftex Group forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

Future Growth Score

0/6

Future Growth Score 0/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

15.3%

Forecasted Consumer Durables 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 Hoftex Group 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.

Past Performance

How has Hoftex Group performed over the past 5 years?

Past Performance Score

2/6

Past Performance Score 2/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

-17.8%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: NBH has high quality earnings.

Growing Profit Margin: NBH became profitable in the past.

Past Earnings Growth Analysis

Earnings Trend: NBH's earnings have declined by 17.8% per year over the past 5 years.

Accelerating Growth: NBH has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: NBH has become profitable in the last year, making it difficult to compare its past year earnings growth to the Luxury industry (95%).

Return on Equity

High ROE: NBH's Return on Equity (8.2%) is considered low.

Financial Health

How is Hoftex Group's financial position?

Financial Health Score

5/6

Financial Health Score 5/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: NBH's short term assets (€81.4M) exceed its short term liabilities (€38.3M).

Long Term Liabilities: NBH's short term assets (€81.4M) exceed its long term liabilities (€71.1M).

Debt to Equity History and Analysis

Debt Level: NBH's net debt to equity ratio (24.6%) is considered satisfactory.

Reducing Debt: NBH's debt to equity ratio has increased from 15.4% to 47.7% over the past 5 years.

Debt Coverage: NBH's debt is well covered by operating cash flow (31.5%).

Interest Coverage: NBH's interest payments on its debt are well covered by EBIT (13.2x coverage).

Balance Sheet

Dividend

What is Hoftex Group current dividend yield, its reliability and sustainability?

Dividend Score

1/6

Dividend Score 1/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

1.34%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: NBH's dividend (1.34%) isn’t notable compared to the bottom 25% of dividend payers in the German market (1.38%).

High Dividend: NBH's dividend (1.34%) is low compared to the top 25% of dividend payers in the German market (4.31%).

Stability and Growth of Payments

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

Growing Dividend: NBH has only been paying a dividend for 9 years, and since then payments have not increased.

Earnings Payout to Shareholders

Earnings Coverage: With its low payout ratio (8.7%), NBH's dividend payments are thoroughly covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: Insufficient data to calculate cash payout ratio to determine if its dividend payments are covered by cash flows.

Next Steps

Explore strong dividend paying companies in the Consumer Durables industry.

Management

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

6.8yrs

Average board tenure

CEO

Klaus Steger

no data

Tenure

Mr. Klaus Steger serves as the Chief Executive Officer and Chairman of the Management Board at Hoftex Group AG (a/k/a, Textilgruppe Hof AG). Mr. Steger serves as the Chairman of ERWO Holding AG and Manager...

Board Members

Experienced Board: NBH's board of directors are considered experienced (6.8 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.

Ownership Breakdown

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

Data	Last Updated (UTC time)
Company Analysis	2022/05/17 00:00
End of Day Share Price	2022/05/12 00:00
Earnings	2021/06/30
Annual Earnings	2020/12/31