DB:HIQ

Stock Analysis Report

Executive Summary

Hills Limited manufactures and distributes technology products and services that connect, entertain, and secure.


Snowflake Analysis

Adequate balance sheet with weak fundamentals.

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

-2.9%

HIQ

-2.4%

DE Electronic

-0.2%

DE Market


1 Year Return

145.5%

HIQ

8.1%

DE Electronic

13.7%

DE Market

Return vs Industry: HIQ exceeded the German Electronic industry which returned 8.1% over the past year.

Return vs Market: HIQ exceeded the German Market which returned 13.7% over the past year.


Shareholder returns

HIQIndustryMarket
7 Day-2.9%-2.4%-0.2%
30 Day13.4%9.1%0.3%
90 Day44.4%6.8%3.7%
1 Year145.5%145.5%10.5%8.1%17.2%13.7%
3 Yearn/a48.0%43.1%15.4%5.3%
5 Yearn/a113.5%98.2%21.3%4.7%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

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

2.02x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate HIQ's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate HIQ's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: HIQ is unprofitable, so we can't compare its PE Ratio to the Electronic industry average.

PE vs Market: HIQ is unprofitable, so we can't compare its PE Ratio to the German market.


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: HIQ is overvalued based on its PB Ratio (2x) compared to the DE Electronic industry average (1.9x).


Next Steps

Future Growth

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

16.5%

Forecasted Tech 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 Hills 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.


Next Steps

Past Performance

How has Hills performed over the past 5 years?

29.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: HIQ is currently unprofitable.

Growing Profit Margin: HIQ is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: HIQ is unprofitable, but has reduced losses over the past 5 years at a rate of 29.2% per year.

Accelerating Growth: Unable to compare HIQ's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: HIQ is unprofitable, making it difficult to compare its past year earnings growth to the Electronic industry (-3.9%).


Return on Equity

High ROE: HIQ has a negative Return on Equity (-16.86%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Hills's financial position?


Financial Position Analysis

Short Term Liabilities: HIQ's short term assets (A$111.7M) exceed its short term liabilities (A$65.4M).

Long Term Liabilities: HIQ's short term assets (A$111.7M) exceed its long term liabilities (A$28.0M).


Debt to Equity History and Analysis

Debt Level: HIQ's debt to equity ratio (75%) is considered high.

Reducing Debt: HIQ's debt to equity ratio has increased from 15.3% to 75% over the past 5 years.


Balance Sheet

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

Debt Coverage by Assets: HIQ's debt is covered by short term assets (assets are 2.8x 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: HIQ has sufficient cash runway for more than a year based on its current free cash flow.

Forecast Cash Runway: HIQ has sufficient cash runway for 1.1 years if free cash flow continues to reduce at historical rates of -9.6% each year.


Next Steps

Dividend

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


Dividend Yield vs Market

company0%marketbottom25%1.3%markettop25%3.7%industryaverage1.2%forecastin3Yearsn/a

Current dividend yield vs market & industry

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

High Dividend: Unable to evaluate HIQ'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 HIQ's dividends per share have been stable in the past.

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


Current Payout to Shareholders

Dividend Coverage: HIQ is not paying a notable dividend for the German market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of HIQ'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?

3.4yrs

Average management tenure


CEO

David John Lenz (56yo)

3.4yrs

Tenure

AU$408,969

Compensation

Mr. David John Joseph Lenz has been the Chief Executive Officer of Hills Limited since September 1, 2016 and has been its Managing Director since February 19, 2018. Mr. Lenz has over 25 years of experience ...


CEO Compensation Analysis

Compensation vs Market: David John's total compensation ($USD270.43K) is below average for companies of similar size in the German market ($USD412.50K).

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


Leadership Team

NamePositionTenureCompensationOwnership
David John Lenz
CEO, MD & Director3.4yrsAU$408.97k0.16% A$106.4k
Christopher Jacka
Chief Financial Officer3.3yrsAU$285.43kno data
David Fox
General Counsel & Company Secretary6.9yrsAU$310.82k0.36% A$232.5k
Andy Hall
Head of Health0yrsAU$474.29kno data
Alan Kinkade
Consultant0yrsAU$24.92kno data
R. Edgar
Head of Security1.6yrsAU$292.51kno data
L. Francis
Executive Director of Hills & Communications6.9yrsAU$303.83kno data

3.4yrs

Average Tenure

Experienced Management: HIQ's management team is considered experienced (3.4 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
David John Lenz
CEO, MD & Director3.4yrsAU$408.97k0.16% A$106.4k
Jennifer Hill-Ling
Chairman of the Board14.3yrsAU$160.00k0.16% A$105.6k
Fiona Rosalyn Bennett
Independent Non-Executive Director9.8yrsAU$96.00k0.16% A$105.5k
Philip Bullock
Lead Independent Director3.4yrsAU$104.00k0.13% A$83.6k
Kenneth Dwyer
Independent Non-Executive Director3.4yrsAU$88.00k0.15% A$97.6k

3.4yrs

Average Tenure

61yo

Average Age

Experienced Board: HIQ's board of directors are considered experienced (3.4 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

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


Key Information

  • Name: Hills Limited
  • Ticker: HIQ
  • Exchange: DB
  • Founded: 1945
  • Industry: Electronic Equipment and Instruments
  • Sector: Tech
  • Market Cap: AU$105.553m
  • Listing Market Cap: AU$64.674m
  • Shares outstanding: 231.99m
  • Website: https://www.hills.com.au

Number of Employees


Location

  • Hills Limited
  • Building F
  • Unit 1
  • Lidcombe
  • New South Wales
  • 2141
  • Australia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
HILASX (Australian Securities Exchange)YesOrdinary SharesAUAUDJan 1992
HILCHIA (Chi-X Australia)YesOrdinary SharesAUAUDJan 1992
HIQDB (Deutsche Boerse AG)YesOrdinary SharesDEEURJan 1992

Biography

Hills Limited manufactures and distributes technology products and services that connect, entertain, and secure. It designs, supplies, and installs health technology, nurse call, patient entertainment, and related solutions, including security, Wi-Fi, and telephony solutions for the health and aged care sectors. The company also distributes access control solutions, alarms and intruder solutions, card access controls, CCTV cameras, video management solutions, wireless and networking solutions, analytics software for facial recognition and people counting solutions, asset management, fire detectors and alarms, antennas, set top boxes, digital TV systems, and satellite dishes, as well as provides pre and post installation services for security, surveillance, and IT sectors. In addition, it offers audio-visual products, such as unified communication, hearing augmentation, professional LCD display, and projector solutions; and professional audio solutions for indoor and outdoor applications. Further, the company provides solutions for home, hospitals and healthcare facilities, places of learning, entertainment venues, retail spaces, houses of worship, banking and finance, automation, and corporate and government institutions, as well as transport, infrastructure, and utility. It offers its products in Australia, New Zealand, the Pacific Islands, the Middle East, Europe, Asia, and North America. The company was formerly known as Hills Holding Limited and changed its name to Hills Limited in December 2013. Hills Limited was founded in 1945 and is headquartered in Lidcombe, Australia. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/20 23:25
End of Day Share Price2020/02/20 00:00
Earnings2019/06/30
Annual Earnings2019/06/30


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.