DB:3CPA

Stock Analysis Report

Executive Summary

Xiaomi Corporation, an Internet company, provides hardware, software, and Internet services in Mainland China and internationally.


Snowflake Analysis

Excellent balance sheet with moderate growth potential.


Similar Companies

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

4.6%

3CPA

32.4%

DE Tech

-0.6%

DE Market


1 Year Return

-9.3%

3CPA

55.2%

DE Tech

-20.9%

DE Market

Return vs Industry: 3CPA underperformed the German Tech industry which returned 55.2% over the past year.

Return vs Market: 3CPA exceeded the German Market which returned -20.9% over the past year.


Shareholder returns

3CPAIndustryMarket
7 Day4.6%32.4%-0.6%
30 Day-15.6%16.2%-18.6%
90 Day-2.4%-2.2%-26.2%
1 Year-9.3%-9.3%55.7%55.2%-18.6%-20.9%
3 Yearn/a70.3%67.9%-19.0%-25.8%
5 Yearn/a62.5%43.2%-21.2%-31.8%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

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

44.3%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 3CPA (€6.05) is trading below our estimate of fair value (€10.87)

Significantly Below Fair Value: 3CPA is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 3CPA is poor value based on its PE Ratio (22.2x) compared to the Tech industry average (16.1x).

PE vs Market: 3CPA is poor value based on its PE Ratio (22.2x) compared to the German market (16.6x).


Price to Earnings Growth Ratio

PEG Ratio: 3CPA is poor value based on its PEG Ratio (1.5x)


Price to Book Ratio

PB vs Industry: 3CPA is overvalued based on its PB Ratio (2.7x) compared to the XE Tech industry average (1.2x).


Next Steps

Future Growth

How is Xiaomi forecast to perform in the next 1 to 3 years based on estimates from 28 analysts?

15.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 3CPA's forecast earnings growth (15.2% per year) is above the savings rate (-0.4%).

Earnings vs Market: 3CPA's earnings (15.2% per year) are forecast to grow faster than the German market (14.1% per year).

High Growth Earnings: 3CPA's earnings are forecast to grow, but not significantly.

Revenue vs Market: 3CPA's revenue (15.5% per year) is forecast to grow faster than the German market (3.9% per year).

High Growth Revenue: 3CPA's revenue (15.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 3CPA's Return on Equity is forecast to be low in 3 years time (14.7%).


Next Steps

Past Performance

How has Xiaomi performed over the past 5 years?

48.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 3CPA has a large one-off gain of CN¥3.8B impacting its December 31 2019 financial results.

Growing Profit Margin: 3CPA's current net profit margins (4.9%) are lower than last year (7.7%).


Past Earnings Growth Analysis

Earnings Trend: 3CPA has become profitable over the past 5 years, growing earnings by 48.5% per year.

Accelerating Growth: 3CPA's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 3CPA had negative earnings growth (-25.9%) over the past year, making it difficult to compare to the Tech industry average (3%).


Return on Equity

High ROE: 3CPA's Return on Equity (12.4%) is considered low.


Next Steps

Financial Health

How is Xiaomi's financial position?


Financial Position Analysis

Short Term Liabilities: 3CPA's short term assets (CN¥137.5B) exceed its short term liabilities (CN¥92.2B).

Long Term Liabilities: 3CPA's short term assets (CN¥137.5B) exceed its long term liabilities (CN¥9.8B).


Debt to Equity History and Analysis

Debt Level: 3CPA's debt to equity ratio (20.4%) is considered satisfactory.

Reducing Debt: Insufficient data to determine if 3CPA's debt to equity ratio has reduced over the past 5 years.


Balance Sheet

Inventory Level: 3CPA has a high level of physical assets or inventory.

Debt Coverage by Assets: 3CPA's debt is covered by short term assets (assets are 8.3x debt).


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: 3CPA is profitable, therefore cash runway is not a concern.

Forecast Cash Runway: 3CPA is profitable, therefore cash runway is not a concern.


Next Steps

Dividend

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

0.033%

Forecast Dividend Yield


Dividend Yield vs Market

Notable Dividend: Unable to evaluate 3CPA's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate 3CPA's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if 3CPA's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 3CPA's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of 3CPA's dividend in 3 years as they are not forecast to pay a notable one for the German market.


Next Steps

Management

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

1.3yrs

Average management tenure


CEO

Jun Lei (50yo)

no data

Tenure

Mr. Lei Jun serves as the Chairman of the Board and Chief Executive Officer of Xiaomi Corporation and has been its Executive Director since May 3, 2010. Mr. Lei co-founded Xiaomi Corporation in 2010. He is ...


Leadership Team

NamePositionTenureCompensationOwnership
Jun Lei
Founderno datano data27.72% CN¥8.2b
Bin Lin
Co-Founder0.50yrno data11.41% CN¥3.4b
Xiang Wang
President0.42yrno datano data
Yan Luo
General Manager1.08yrsno datano data
Shou Zi Chew
Senior VP0.50yrno data0.18% CN¥54.4m
Murlikrishnan B.
Chief Operating Officer of India1.75yrsno datano data
Yan Qi
Senior VP of Leading Platformno datano datano data
Anuj Sharma
Marketing Head for India1.58yrsno datano data
Weibing Lu
President of China Region0.33yrno datano data
Steve Lin
Joint Company Secretary2yrsno datano data

1.3yrs

Average Tenure

51yo

Average Age

Experienced Management: 3CPA's management team is not considered experienced ( 1.3 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Jun Lei
Founderno datano data27.72% CN¥8.2b
Bin Lin
Co-Founder0.50yrno data11.41% CN¥3.4b
Shou Zi Chew
Senior VP0.50yrno data0.18% CN¥54.4m
Shun Wong
Independent Non-Executive Director1.83yrsno datano data
Chen Dongsheng
Independent Non-Executive Director1.83yrsno datano data
Liu Qin
Non-Executive Director1.25yrsno datano data
Wai Cheung Tong
Independent Non-Executive Director0.67yrno datano data

1.0yrs

Average Tenure

51yo

Average Age

Experienced Board: 3CPA's board of directors are not considered experienced ( 1 years average tenure), which suggests a new board.


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 been diluted in the past year, with total shares outstanding growing by 47.8%.


Top Shareholders

Company Information

Xiaomi Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Xiaomi Corporation
  • Ticker: 3CPA
  • Exchange: DB
  • Founded: 2010
  • Industry: Technology Hardware, Storage and Peripherals
  • Sector: Tech
  • Market Cap: HK$246.639b
  • Listing Market Cap: HK$29.487b
  • Shares outstanding: 24.04b
  • Website: https://www.mi.com

Number of Employees


Location

  • Xiaomi Corporation
  • Rainbow City Office Building
  • 68 Qinghe Middle Street
  • Beijing
  • China

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
1810SEHK (The Stock Exchange of Hong Kong Ltd.)YesClass B Ordinary SharesHKHKDJul 2018
XIAC.FOTCPK (Pink Sheets LLC)YesClass B Ordinary SharesUSUSDJul 2018
3CPDB (Deutsche Boerse AG)YesClass B Ordinary SharesDEEURJul 2018
1810SHSC (Stock Exchange of Hong Kong Limited - Shanghai - Hong Kong Stock Connect)YesClass B Ordinary SharesHKHKDJul 2018
1810SZSC (The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect)YesClass B Ordinary SharesHKHKDJul 2018
XIAC.YOTCPK (Pink Sheets LLC)UNSPONSORED ADSUSUSDAug 2018
3CPADB (Deutsche Boerse AG)UNSPONSORED ADSDEEURAug 2018

Biography

Xiaomi Corporation, an Internet company, provides hardware, software, and Internet services in Mainland China and internationally. It operates through Smartphones, IoT and Lifestyle Products, Internet Services, and Others segments. The Smartphones segment sells smartphones. The IoT and Lifestyle Products segment offers smart TVs, laptops, AI speakers, and smart routers; various IoT and other smart hardware products; and lifestyle products. The Internet Services segment provides advertising services and Internet value-added services. The Others segment offers hardware repair services for its products. The company also engages in the wholesale and retail of smartphones and ecosystem partners’ products; investment holding and investment activities; development of software and hardware; procurement and sale of smartphones, ecosystem partners’ products, and spare parts; procurement of raw materials; and operation of retail stores. It is also involved in the research and development of computer software and information technology; property management and commercial factoring activities; e-commerce business; research and development of computer software and market research; sale of e-books; and provision of customer, Internet finance, consumer loan, software related, technology, logistics, electronic payment, and Internet services. The company has a strategic cooperation agreement with Meitu, Inc.; and a strategic partnership with TCL Corporation, as well as Firework. Xiaomi Corporation was founded in 2010 and is headquartered in Beijing, the People’s Republic of China. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/05 06:44
End of Day Share Price2020/04/03 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.