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Adairs

DB:1FQ
Snowflake Description

Flawless balance sheet with solid track record and pays a dividend.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
1FQ
DB
A$323M
Market Cap
  1. Home
  2. DE
  3. Retail
Company description

Adairs Limited operates as a specialty retailer of homewares and home furnishings in Australia and New Zealand. The last earnings update was 88 days ago. More info.


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1FQ Share Price and Events
7 Day Returns
18%
DB:1FQ
0.6%
DE Specialty Retail
-0.6%
DE Market
1 Year Returns
-19.3%
DB:1FQ
-22.9%
DE Specialty Retail
-10.8%
DE Market
1FQ Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Adairs (1FQ) 18% 3.8% -5.2% -19.3% - -
DE Specialty Retail 0.6% 2.3% 5.7% -22.9% -52.3% -53.1%
DE Market -0.6% -3.3% 2.3% -10.8% 8% 8%
1 Year Return vs Industry and Market
  • 1FQ outperformed the Specialty Retail industry which returned -22.9% over the past year.
  • 1FQ underperformed the Market in Germany which returned -10.8% over the past year.
Price Volatility
1FQ
Industry
5yr Volatility vs Market

1FQ Value

 Is Adairs 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 Adairs 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 Adairs.

DB:1FQ Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 7 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 6%
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:1FQ
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year DE Govt Bond Rate 0.2%
Equity Risk Premium S&P Global 6%
Specialty Retail Unlevered Beta Simply Wall St/ S&P Global 0.9
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.899 (1 + (1- 30%) (7.71%))
0.965
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.96
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 0.23% + (0.965 * 5.96%)
5.98%

Discounted Cash Flow Calculation for DB:1FQ using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Adairs 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:1FQ DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (AUD, Millions) Source Present Value
Discounted (@ 5.98%)
2019 29.00 Analyst x4 27.36
2020 29.15 Analyst x4 25.95
2021 35.88 Analyst x4 30.14
2022 38.77 Est @ 8.06% 30.73
2023 40.98 Est @ 5.71% 30.65
2024 42.64 Est @ 4.06% 30.10
2025 43.89 Est @ 2.91% 29.23
2026 44.81 Est @ 2.11% 28.16
2027 45.50 Est @ 1.54% 26.98
2028 46.02 Est @ 1.15% 25.75
Present value of next 10 years cash flows A$285.06
DB:1FQ DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= A$46.02 × (1 + 0.23%) ÷ (5.98% – 0.23%)
A$802.16
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= A$802.16 ÷ (1 + 5.98%)10
A$448.82
DB:1FQ Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= A$285.06 + A$448.82
A$733.88
Equity Value per Share
(AUD)
= Total value / Shares Outstanding
= A$733.88 / 165.88
A$4.42
DB:1FQ Discount to Share Price
Calculation Result
Non-primary Listing Adjustment Factor 1 share in DB:1FQ represents 0.61282x of ASX:ADH
(This could be a different class, a depositary receipt, a different currency, or all of these things.)
0.61282x
Value per Share
(Listing Adjusted, EUR)
= Value per Share (AUD) x Listing Adjustment Factor
= A$ 4.42 x 0.61282
€2.71
Value per share (EUR) From above. €2.71
Current discount Discount to share price of €1.20
= -1 x (€1.20 - €2.71) / €2.71
55.9%

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

Current Discount
Amount off the current price Adairs is available for.
Intrinsic value
>50%
Share price is €1.2 vs Future cash flow value of €2.71
Current Discount Checks
For Adairs to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Adairs's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • Adairs's share price is below the future cash flow value, and at a substantial discount (> 40%).
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 Adairs's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Adairs's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
DB:1FQ PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-12-30) in AUD A$0.19
ASX:ADH Share Price ** ASX (2019-05-23) in AUD A$1.95
Germany Specialty Retail Industry PE Ratio Median Figure of 6 Publicly-Listed Specialty Retail Companies 21.07x
Germany Market PE Ratio Median Figure of 422 Publicly-Listed Companies 20.28x

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

** Primary Listing of Adairs.

DB:1FQ PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= ASX:ADH Share Price ÷ EPS (both in AUD)

= 1.95 ÷ 0.19

10.26x

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

  • Adairs is good value based on earnings compared to the DE Specialty Retail industry average.
  • Adairs is good value based on earnings compared to the Germany market.
Price based on expected Growth
Does Adairs's expected growth come at a high price?
Raw Data
DB:1FQ PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 10.26x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 7 Analysts
8.1%per year
Germany Specialty Retail Industry PEG Ratio Median Figure of 6 Publicly-Listed Specialty Retail Companies 0.8x
Germany Market PEG Ratio Median Figure of 271 Publicly-Listed Companies 1.51x

*Line of best fit is calculated by linear regression .

DB:1FQ PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 10.26x ÷ 8.1%

1.27x

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

  • Adairs is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Adairs's assets?
Raw Data
DB:1FQ PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-12-30) in AUD A$0.70
ASX:ADH Share Price * ASX (2019-05-23) in AUD A$1.95
Germany Specialty Retail Industry PB Ratio Median Figure of 6 Publicly-Listed Specialty Retail Companies 0.92x
Germany Market PB Ratio Median Figure of 576 Publicly-Listed Companies 1.78x
DB:1FQ PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= ASX:ADH Share Price ÷ Book Value per Share (both in AUD)

= 1.95 ÷ 0.70

2.8x

* Primary Listing of Adairs.

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

  • Adairs is overvalued based on assets compared to the DE Specialty Retail industry average.
X
Value checks
We assess Adairs'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 Specialty Retail 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 Specialty Retail industry average (and greater than 0)? (1 check)
  5. Adairs 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.

1FQ Future Performance

 How is Adairs expected to perform in the next 1 to 3 years based on estimates from 7 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
8.1%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Adairs expected to grow at an attractive rate?
  • Adairs's earnings growth is expected to exceed the low risk savings rate of 0.2%.
Growth vs Market Checks
  • Adairs's earnings growth is positive but not above the Germany market average.
  • Adairs's revenue growth is expected to exceed the Germany market average.
Annual Growth Rates Comparison
Raw Data
DB:1FQ Future Growth Rates Data Sources
Data Point Source Value (per year)
DB:1FQ Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 7 Analysts 8.1%
DB:1FQ Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 7 Analysts 6.6%
Germany Specialty Retail Industry Earnings Growth Rate Market Cap Weighted Average 17.5%
Germany Specialty Retail Industry Revenue Growth Rate Market Cap Weighted Average 3.8%
Germany Market Earnings Growth Rate Market Cap Weighted Average 13.2%
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:1FQ Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (4 months ago) See Below
Future Estimates Average of up to 7 Analyst Estimates (S&P Global) See Below
All numbers in AUD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
DB:1FQ Future Estimates Data
Date (Data in AUD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2023-06-30 434 1
2022-06-30 420 1
2021-06-30 406 46 38 7
2020-06-30 377 42 35 7
2019-06-30 348 38 32 7
DB:1FQ Past Financials Data
Date (Data in AUD Millions) Revenue Cash Flow Net Income *
2018-12-30 330 37 32
2018-09-30 322 38 31
2018-07-01 315 39 31
2018-04-01 302 38 28
2017-12-31 289 37 26
2017-09-30 277 32 24
2017-07-02 265 28 21
2017-04-02 262 30 22
2017-01-01 260 32 22
2016-10-01 257 28 25
2016-07-03 253 24 27

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Adairs's earnings are expected to grow by 8.1% yearly, however this is not considered high growth (20% yearly).
  • Adairs's revenue is expected to grow by 6.6% 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:1FQ 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 7 Analyst Estimates (S&P Global) See Below

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

DB:1FQ Future Estimates Data
Date (Data in AUD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2023-06-30
2022-06-30
2021-06-30 0.23 0.25 0.21 6.00
2020-06-30 0.21 0.22 0.20 6.00
2019-06-30 0.19 0.21 0.18 6.00
DB:1FQ Past Financials Data
Date (Data in AUD Millions) EPS *
2018-12-30 0.19
2018-09-30 0.19
2018-07-01 0.18
2018-04-01 0.17
2017-12-31 0.16
2017-09-30 0.14
2017-07-02 0.13
2017-04-02 0.13
2017-01-01 0.14
2016-10-01 0.15
2016-07-03 0.16

*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.
  • Adairs is expected to efficiently use shareholders’ funds in the future (Return on Equity greater than 20%).
X
Future performance checks
We assess Adairs'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.
Adairs has a total score of 3/6, 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.

1FQ Past Performance

  How has Adairs 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 Adairs's growth in the last year to its industry (Specialty Retail).
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.
  • Adairs has delivered over 20% year on year earnings growth in the past 5 years.
  • Adairs's 1-year earnings growth is less than its 5-year average (19.6% vs 33.1%)
  • Adairs's earnings growth has exceeded the DE Specialty Retail industry average in the past year (19.6% vs -9.9%).
Earnings and Revenue History
Adairs'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 Adairs Company Filings, last reported 4 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

DB:1FQ Past Revenue, Cash Flow and Net Income Data
Date (Data in AUD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-12-30 330.10 31.51 126.02
2018-09-30 322.43 31.04 123.02
2018-07-01 314.77 30.56 120.02
2018-04-01 302.12 28.47 116.25
2017-12-31 289.46 26.38 112.48
2017-09-30 277.21 23.70 109.42
2017-07-02 264.96 21.02 106.35
2017-04-02 262.44 21.76 104.35
2017-01-01 259.91 22.50 102.35
2016-10-01 256.55 24.84 99.58
2016-07-03 253.18 27.17 96.80
2015-12-27 231.72 12.14 91.29
2015-09-27 221.30 7.54 87.90
2015-06-28 210.88 2.94 84.50
2014-12-28 185.20 6.35 76.35
2014-09-28 176.56 6.57 73.83
2014-06-29 167.92 6.78 71.32
2013-06-30 207.02 -0.87 97.43
2012-07-01 195.09 -3.61 90.55

*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.
  • Adairs has efficiently used shareholders’ funds last year (Return on Equity greater than 20%).
  • Adairs used its assets more efficiently than the DE Specialty Retail industry average last year based on Return on Assets.
  • Adairs has improved its use of capital last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Adairs'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 Specialty Retail 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.
Adairs has a total score of 5/6, 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.

1FQ Health

 How is Adairs'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 Adairs's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Adairs is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Adairs's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Adairs'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.
  • High level of physical assets or inventory.
  • 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 Adairs Company Filings, last reported 4 months ago.

DB:1FQ Past Debt and Equity Data
Date (Data in AUD Millions) Total Equity Total Debt Cash & Short Term Investments
2018-12-30 115.64 24.95 14.84
2018-09-30 115.64 24.95 14.84
2018-07-01 116.18 24.96 12.72
2018-04-01 116.18 24.96 12.72
2017-12-31 106.96 29.93 12.98
2017-09-30 106.96 29.93 12.98
2017-07-02 100.31 41.91 14.31
2017-04-02 100.31 41.91 14.31
2017-01-01 95.00 41.86 9.55
2016-10-01 95.00 41.86 9.55
2016-07-03 95.59 41.80 14.68
2015-12-27 90.95 41.74 7.85
2015-09-27 90.95 41.74 7.85
2015-06-28 77.95 41.68 9.64
2014-12-28 51.36 99.94 15.90
2014-09-28 51.36 99.94 15.90
2014-06-29 41.90 113.38 24.66
2013-06-30 34.84 107.02 9.28
2012-07-01 34.59 106.58 7.15
  • Adairs's level of debt (21.6%) compared to net worth is satisfactory (less than 40%).
  • The level of debt compared to net worth has been reduced over the past 5 years (287% vs 21.6% today).
  • Debt is well covered by operating cash flow (147.4%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 35.2x coverage).
X
Financial health checks
We assess Adairs'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. Adairs has a total score of 6/6, 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.

1FQ Dividends

 What is Adairs'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
7.44%
Current annual income from Adairs dividends. Estimated to be 8.41% next year.
If you bought €2,000 of Adairs shares you are expected to receive €149 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?
  • Adairs's pays a higher dividend yield than the bottom 25% of dividend payers in Germany (1.42%).
  • Adairs's dividend is above the markets top 25% of dividend payers in Germany (3.88%).
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:1FQ 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 7 Analyst Estimates (S&P Global) See Below
Europe Specialty Retail Industry Average Dividend Yield Market Cap Weighted Average of 60 Stocks 3.9%
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:1FQ Future Dividends Estimate Data
Date (Data in A$) Dividend per Share (annual) Avg. No. Analysts
2023-06-30 0.20 1.00
2022-06-30 0.19 1.00
2021-06-30 0.18 7.00
2020-06-30 0.16 7.00
2019-06-30 0.15 7.00
DB:1FQ Past Annualized Dividends Data
Date (Data in A$) Dividend per share (annual) Avg. Yield (%)
2019-02-25 0.145 8.214
2018-08-27 0.160 8.156
2017-08-28 0.080 4.183
2016-08-25 0.130 10.460
2016-02-25 0.100 4.094

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

  • Adairs has been paying a dividend for less than 10 years and during this time payments have been volatile (annual drop of over 20%).
  • Dividend payments have increased, but Adairs only paid a dividend in the past 3 years.
Current Payout to shareholders
What portion of Adairs's earnings are paid to the shareholders as a dividend.
  • Dividends paid are covered by earnings (1.3x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be covered by earnings (1.3x coverage).
X
Income/ dividend checks
We assess Adairs'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 Adairs afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Adairs 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.

1FQ Management

 What is the CEO of Adairs'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
Mark Ronan
COMPENSATION A$809,730
TENURE AS CEO 2.5 years
CEO Bio

Mr. Mark Ronan has been the Chief Executive Officer and Managing Director of Adairs Limited since November 18, 2016. Mr. Ronan served as Chief Operating Officer of Adairs Limited since 2014 until November 18, 2016 and served as its Company secretary from May 2015 to November 3, 2016. Mr. Ronan joined Adairs as Finance Manager in 2007 and has also held the roles of Head of Merchandise Planning and General Manager - Retail Operations. He previously served as Finance and Operations Manager with the Sovereign Hotel Group, Financial Controller at River Capital and Manager at Deloitte. He is qualified as a Chartered Accountant and graduated from the University of Melbourne with a Bachelor of Commerce.

CEO Compensation
  • Mark's compensation has increased by more than 20% in the past year whilst earnings grew less than 20%.
  • Mark's remuneration is about average for companies of similar size in Germany.
Management Team

Mark Ronan

TITLE
MD, CEO & Executive Director
COMPENSATION
A$810K
TENURE
2.5 yrs

Mandy Drake

TITLE
CFO & Company Secretary
COMPENSATION
A$531K
TENURE
2.6 yrs

Michael Cherubino

TITLE
Executive Director Property & Business Development and Executive Director
COMPENSATION
A$642K
Board of Directors Tenure

Average tenure and age of the Adairs board of directors in years:

4
Average Tenure
54
Average Age
  • The tenure for the Adairs board of directors is about average.
Board of Directors

Michael Butler

TITLE
Independent Non-Executive Chairman
COMPENSATION
A$137K
AGE
62
TENURE
4.1 yrs

Mark Ronan

TITLE
MD, CEO & Executive Director
COMPENSATION
A$810K
TENURE
1.9 yrs

Michael Cherubino

TITLE
Executive Director Property & Business Development and Executive Director
COMPENSATION
A$642K
TENURE
9.3 yrs

Trent Peterson

TITLE
Non-Executive Director
COMPENSATION
A$70K

Kate Spargo

TITLE
Independent Non-Executive Director
COMPENSATION
A$70K
AGE
67
TENURE
4 yrs

David MacLean

TITLE
Independent Non-Executive Director
COMPENSATION
A$70K
TENURE
9.3 yrs

Simon West

TITLE
Independent Non-Executive Director
AGE
43
TENURE
0.3 yrs

Kiera Grant

TITLE
Independent Non-Executive Director
AGE
46
TENURE
0.3 yrs
Who owns this company?
Recent Insider Trading
  • More shares have been bought than sold by Adairs insiders in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (€) Value (€)
17. May 19 Sell Challenger Limited Company 27. Feb 19 02. Apr 19 -168,111 €1.19 €-195,941
17. May 19 Buy Challenger Limited Company 27. Feb 19 27. Feb 19 102,877 €1.13 €116,710
17. May 19 Sell Lennox Capital Partners Company 16. Apr 19 16. Apr 19 -134,557 €1.09 €-147,048
17. May 19 Buy Lennox Capital Partners Company 28. Feb 19 30. Apr 19 1,179,373 €1.07 €1,259,773
18. Apr 19 Buy Trent Peterson Individual 18. Apr 19 18. Apr 19 90,000 €1.10 €99,307
16. Apr 19 Buy Michael Butler Individual 09. Apr 19 09. Apr 19 35,866 €1.00 €36,023
09. Apr 19 Buy Michael Butler Individual 05. Apr 19 05. Apr 19 75,000 €1.04 €78,024
05. Mar 19 Sell QVG Capital Pty Ltd Company 29. Aug 18 01. Mar 19 -1,982,166 €1.15 €-2,271,239
05. Mar 19 Buy QVG Capital Pty Ltd Company 29. Aug 18 01. Mar 19 365,014 €1.10 €401,642
01. Mar 19 Buy Lennox Capital Partners Company 06. Nov 18 27. Feb 19 2,600,285 €1.13 €2,940,901
01. Mar 19 Buy Grahger Capital Securities Management Pty Ltd Company 11. Jan 19 11. Jan 19 200,000 €1.09 €217,434
28. Feb 19 Buy Trent Peterson Individual 28. Feb 19 28. Feb 19 130,000 €1.17 €152,539
13. Feb 19 Sell Brett Blundy Individual 05. Feb 19 12. Feb 19 -2,100,000 €1.23 €-2,508,651
10. Jan 19 Buy Brett Blundy Individual 08. Jan 19 08. Jan 19 5,000,000 €1.03 €5,139,630
08. Jan 19 Sell Grahger Capital Securities Pty Ltd., Asset Management Arm Company 29. Nov 18 30. Nov 18 -155,428 €1.12 €-174,756
08. Jan 19 Buy Grahger Capital Securities Pty Ltd., Asset Management Arm Company 02. Nov 18 27. Dec 18 6,855,428 €1.06 €7,243,515
08. Jan 19 Buy Grahger Capital Securities Management Pty Ltd Company 26. Oct 18 12. Dec 18 1,000,000 €1.06 €1,064,217
08. Jan 19 Buy Penny McDonald Individual 08. Nov 18 26. Nov 18 50,000 €1.11 €55,667
21. Dec 18 Buy Brett Blundy Individual 03. Nov 16 19. Dec 18 5,354,068 €1.06 €5,664,325
17. Dec 18 Buy Realindex Investments Pty Limited Company 29. Aug 18 14. Dec 18 545,907 €1.26 €686,991
17. Dec 18 Buy Colonial First State Asset Management (Australia) Limited Company 12. Oct 18 28. Nov 18 84,482 €1.15 €96,792
07. Dec 18 Sell Perennial Value Management Limited Company 07. Sep 18 18. Oct 18 -2,307,656 €1.51 €-3,495,609
07. Dec 18 Buy Perennial Value Management Limited Company 15. Oct 18 05. Dec 18 3,347,634 €1.15 €3,843,358
23. Nov 18 Buy Trent Peterson Individual 23. Nov 18 23. Nov 18 100,000 €1.05 €105,232
20. Nov 18 Buy Trent Peterson Individual 20. Nov 18 20. Nov 18 50,000 €1.08 €54,029
26. Oct 18 Sell Wilson Asset Management (International) Pty Limited Company 27. Aug 18 24. Oct 18 -3,094,478 €1.30 €-3,996,620
26. Oct 18 Buy Wilson Asset Management (International) Pty Limited Company 14. Jun 18 19. Oct 18 938,078 €2.15 €1,408,202
26. Oct 18 Sell MAM Pty Limited Company 27. Aug 18 24. Oct 18 -922,827 €1.34 €-1,236,578
26. Oct 18 Buy MAM Pty Limited Company 06. Jul 18 15. Oct 18 198,834 €1.31 €259,956
07. Sep 18 Sell Michael Cherubino Individual 05. Sep 18 05. Sep 18 -150,000 €1.53 €-229,368
03. Sep 18 Buy JPMorgan Chase & Co, Brokerage and Securities Investments Company 28. Aug 18 30. Aug 18 29,596 €1.62 €46,961
05. Sep 18 Sell David Briskin Individual 04. Sep 18 04. Sep 18 -28,334 €1.53 €-43,227
29. Aug 18 Sell JPMorgan Chase & Co, Brokerage and Securities Investments Company 01. May 18 27. Jul 18 -44,405 €1.48 €-60,418
29. Aug 18 Buy JPMorgan Chase & Co, Brokerage and Securities Investments Company 30. Apr 18 27. Aug 18 1,082,362 €1.53 €1,524,602
30. Aug 18 Buy QVG Capital Pty Ltd Company 28. Apr 18 28. Aug 18 8,439,858 €1.41 €11,937,534
30. Aug 18 Sell David Briskin Individual 28. Aug 18 28. Aug 18 -180,000 €1.53 €-275,051
29. Jun 18 Sell Yarra Funds Management Limited Company 11. May 17 27. Jun 18 -3,005,973 €1.22 €-3,667,142
29. Jun 18 Buy Yarra Funds Management Limited Company 11. May 17 27. Jun 18 1,256,716 €1.15 €1,447,542
29. May 18 Sell David MacLean Individual 28. May 18 28. May 18 -1,600,000 €1.46 €-2,340,618
X
Management checks
We assess Adairs'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. Adairs 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.

1FQ News

Simply Wall St News

1FQ Company Info

Description

Adairs Limited operates as a specialty retailer of homewares and home furnishings in Australia and New Zealand. The company’s product range includes categories, such as quilt covers and coverlets, sheets, cotton flannelettes, pillowcases, quilts, pillows, mattress protectors, pillow protectors, blankets, nursery products, valances and bedwraps, bedspreads, mattress toppers, bath mats, bath robes and slippers, kids beach products and towels, cushions, throws, gifts and toys, wall arts, rugs, laundry and home care products, chairs, bedheads, storage and shelves, ottomans and bench seats, and tables, as well as pots and plants, gifts, baskets, throws, home décor and fragrance products, mirrors, lighting products, and tableware and pets products. It operates various store formats comprising Adairs, Adairs Homemaker, Adairs Kids, and Urban Home Republic stores, as well as an online store. The company was formerly known as Home & Decor Holdings Pty Ltd and changed its name to Adairs Limited in May 2015. Adairs Limited was founded in 1918 and is based in Scoresby, Australia.

Details
Name: Adairs Limited
1FQ
Exchange: DB
Founded: 1918
A$199,762,119
165,875,000
Website: http://www.adairs.com.au
Address: Adairs Limited
2 International Court,
Scoresby,
Victoria, 3179,
Australia
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
ASX ADH Ordinary Shares Australian Securities Exchange AU AUD 17. Jun 2015
DB 1FQ Ordinary Shares Deutsche Boerse AG DE EUR 17. Jun 2015
CHIA ADH Ordinary Shares Chi-X Australia AU AUD 17. Jun 2015
Number of employees
Current staff
Staff numbers
0
Adairs employees.
Industry
Homefurnishing Retail
Retail
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/05/23 22:41
End of day share price update: 2019/05/23 00:00
Last estimates confirmation: 2019/05/14
Last earnings filing: 2019/02/24
Last earnings reported: 2018/12/30
Last annual earnings reported: 2018/07/01


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.