DB:GIO

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Giordano International

Executive Summary

Giordano International Limited, an investment holding company, engages in the retail and distribution of men’s, women’s, and children’s fashion apparel and accessories worldwide.


Snowflake Analysis

Very undervalued with excellent balance sheet.


Similar Companies

Share Price & News

How has Giordano International's share price performed over time and what events caused price changes?


Latest Share Price and Events

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


Market Performance


7 Day Return

-4.2%

GIO

4.1%

DE Specialty Retail

2.2%

DE Market


1 Year Return

-64.9%

GIO

1.5%

DE Specialty Retail

5.6%

DE Market

Return vs Industry: GIO underperformed the German Specialty Retail industry which returned -0.1% over the past year.

Return vs Market: GIO underperformed the German Market which returned 3.4% over the past year.


Shareholder returns

GIOIndustryMarket
7 Day-4.2%4.1%2.2%
30 Day-0.9%10.4%7.3%
90 Day-29.4%27.8%22.1%
1 Year-61.6%-64.9%1.8%1.5%7.9%5.6%
3 Year-70.1%-76.8%-19.2%-23.3%4.5%-3.8%
5 Year-63.4%-75.4%-11.3%-54.6%12.5%-2.7%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

Is Giordano International undervalued compared to its fair value and its price relative to the market?

27.3%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: GIO (€0.11) is trading below our estimate of fair value (€0.16)

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


Price To Earnings Ratio

PE vs Industry: GIO is good value based on its PE Ratio (8x) compared to the XE Specialty Retail industry average (13x).

PE vs Market: GIO is good value based on its PE Ratio (8x) compared to the German market (20.9x).


Price to Earnings Growth Ratio

PEG Ratio: GIO is good value based on its PEG Ratio (0.4x)


Price to Book Ratio

PB vs Industry: GIO is good value based on its PB Ratio (0.7x) compared to the DE Specialty Retail industry average (1x).


Next Steps

Future Growth

How is Giordano International forecast to perform in the next 1 to 3 years based on estimates from 3 analysts?

21.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: GIO's forecast earnings growth (21.1% per year) is above the savings rate (0.2%).

Earnings vs Market: GIO's earnings (21.1% per year) are forecast to grow slower than the German market (22.4% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: GIO's revenue is expected to decline over the next 3 years (-0.2% per year).

High Growth Revenue: GIO's revenue is forecast to decline over the next 3 years (-0.2% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: GIO's Return on Equity is forecast to be low in 3 years time (10%).


Next Steps

Past Performance

How has Giordano International performed over the past 5 years?

-2.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: GIO has high quality earnings.

Growing Profit Margin: GIO's current net profit margins (4.7%) are lower than last year (8.7%).


Past Earnings Growth Analysis

Earnings Trend: GIO's earnings have declined by 2.2% per year over the past 5 years.

Accelerating Growth: GIO's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: GIO had negative earnings growth (-52.1%) over the past year, making it difficult to compare to the Specialty Retail industry average (-4.6%).


Return on Equity

High ROE: GIO's Return on Equity (10.2%) is considered low.


Next Steps

Financial Health

How is Giordano International's financial position?


Financial Position Analysis

Short Term Liabilities: GIO's short term assets (HK$2.4B) exceed its short term liabilities (HK$1.7B).

Long Term Liabilities: GIO's short term assets (HK$2.4B) exceed its long term liabilities (HK$697.0M).


Debt to Equity History and Analysis

Debt Level: GIO's debt to equity ratio (9.3%) is considered satisfactory.

Reducing Debt: Insufficient data to determine if GIO's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: GIO's debt is well covered by operating cash flow (403%).

Interest Coverage: GIO's interest payments on its debt are well covered by EBIT (13.1x coverage).


Balance Sheet


Next Steps

Dividend

What is Giordano International current dividend yield, its reliability and sustainability?

7.52%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: GIO's dividend (7.52%) is higher than the bottom 25% of dividend payers in the German market (1.25%).

High Dividend: GIO's dividend (7.52%) is in the top 25% of dividend payers in the German market (3.78%)


Stability and Growth of Payments

Stable Dividend: GIO's dividend payments have been volatile in the past 10 years.

Growing Dividend: GIO's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (100.2%), GIO's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: GIO's dividends in 3 years are not forecast to be well covered by earnings (99.4% payout ratio).


Next Steps

Management

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

6.8yrs

Average management tenure


CEO

Peter Lau (67yo)

26.42yrs

Tenure

HK$11,990,000

Compensation

Mr. Kwok Kuen Lau, also known as Peter, CA, CMA, MBA, DBA, serves as the Chairman and Managing Director of Giordano International Limited and has been its Chief Executive Officer since February 8, 1994. Mr ...


CEO Compensation Analysis

Compensation vs Market: Peter's total compensation ($USD1.55M) is above average for companies of similar size in the German market ($USD735.88K).

Compensation vs Earnings: Peter's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Kwok Kuen Lau
Chairman26.42yrsHK$11.99m1.74% HK$3.7m
Ka Wai Chan
COO & Executive Director6.08yrsHK$3.38m0.038% HK$79.7k
Mark Alan Loynd
General Counsel3.33yrsHK$3.07m0.015% HK$31.3k
Wing Yam
Group CFO & Group Financial Controller4.33yrsno datano data
Chuen Chi Lam
Senior Vice President of International Business21.5yrsno datano data

6.8yrs

Average Tenure

53.5yo

Average Age

Experienced Management: GIO's management team is seasoned and experienced (6.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Kwok Kuen Lau
Chairman26.42yrsHK$11.99m1.74% HK$3.7m
Ka Wai Chan
COO & Executive Director6.08yrsHK$3.38m0.038% HK$79.7k
Mark Alan Loynd
General Counsel3.33yrsHK$3.07m0.015% HK$31.3k
Barry John Buttifant
Independent Non-Executive Director25.33yrsHK$420.00kno data
Chi-Kong Cheng
Non-Executive Director8.17yrsHK$200.00kno data
Ki Chi Kwong
Independent Non-Executive Director16.25yrsHK$360.00kno data
Sai-Cheong Chan
Non-Executive Director8.17yrsHK$200.00kno data
Yuk Wong
Independent Non-Executive Director4.67yrsHK$390.00kno data
Alison Elizabeth Lloyd
Independent Non-Executive Director1.33yrsHK$308.00kno data

7.1yrs

Average Tenure

50yo

Average Age

Experienced Board: GIO's board of directors are considered experienced (7.1 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

Giordano International Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Giordano International Limited
  • Ticker: GIO
  • Exchange: DB
  • Founded: 1981
  • Industry: Apparel Retail
  • Sector: Retail
  • Market Cap: HK$1.846b
  • Listing Market Cap: HK$209.543m
  • Shares outstanding: 1.58b
  • Website: https://www.giordano.com

Number of Employees


Location

  • Giordano International Limited
  • Tin On Industrial Building
  • 5th Floor
  • Kowloon
  • Kowloon
  • Hong Kong

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
GRDZ.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDMay 1994
709SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDMay 1994
GIODB (Deutsche Boerse AG)YesOrdinary SharesDEEURMay 1994
709SZSC (The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect)YesOrdinary SharesHKHKDMay 1994
709SHSC (Stock Exchange of Hong Kong Limited - Shanghai - Hong Kong Stock Connect)YesOrdinary SharesHKHKDMay 1994

Biography

Giordano International Limited, an investment holding company, engages in the retail and distribution of men’s, women’s, and children’s fashion apparel and accessories worldwide. It operates through two segments, Retail and Distribution; and Wholesales to Overseas Franchisees. The company sells its products under the Giordano, Giordano Junior, Giordano Ladies, BSX, and other owned and licensed brands through its own stores, as well as third party franchisees. As of December 31, 2019, the company operated a network of 2,375 stores. The company is also involved in the manufacture and retail of apparel and accessories; provision of management services; and licensing of trademarks. Giordano International Limited was founded in 1981 and is based in Kowloon, Hong Kong. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/07/15 21:25
End of Day Share Price2020/07/15 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


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.