Nexteer Automotive Group (SEHK:1316) - Share price, News & Analysis

1316 fundamental analysis
Snowflake Score
Valuation	4/6
Future Growth	3/6
Past Performance	3/6
Financial Health	6/6
Dividends	0/6

1316 Stock Overview

Rewards

Trading at 57.5% below our estimate of its fair value

Earnings are forecast to grow 27.75% per year

Earnings grew by 1.4% over the past year

Risk Analysis

No risks detected for 1316 from our risk checks.

Nexteer Automotive Group Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Nexteer Automotive Group
Historical stock prices
Current Share Price	HK$5.81
52 Week High	HK$12.44
52 Week Low	HK$3.84
Beta	1.29
1 Month Change	30.27%
3 Month Change	18.33%
1 Year Change	-47.47%
3 Year Change	-40.23%
5 Year Change	-52.53%
Change since IPO	126.07%

Recent News & Updates

Jun 23

These 4 Measures Indicate That Nexteer Automotive Group (HKG:1316) Is Using Debt Reasonably Well

David Iben put it well when he said, 'Volatility is not a risk we care about. What we care about is avoiding the...

Jun 06

At HK$5.26, Is Nexteer Automotive Group Limited (HKG:1316) Worth Looking At Closely?

While Nexteer Automotive Group Limited ( HKG:1316 ) might not be the most widely known stock at the moment, it led the...

Shareholder Returns

	1316	HK Auto Components	HK Market
7D	14.8%	11.8%	2.1%
1Y	-47.5%	-30.9%	-23.3%

Return vs Industry: 1316 underperformed the Hong Kong Auto Components industry which returned -30.9% over the past year.

Return vs Market: 1316 underperformed the Hong Kong Market which returned -23.3% over the past year.

Price Volatility

Is 1316's price volatile compared to industry and market?
1316 volatility
1316 Average Weekly Movement	9.7%
Auto Components Industry Average Movement	7.4%
Market Average Movement	7.0%
10% most volatile stocks in HK Market	13.8%
10% least volatile stocks in HK Market	3.3%

Stable Share Price: 1316 is not significantly more volatile than the rest of Hong Kong stocks over the past 3 months, typically moving +/- 10% a week.

Volatility Over Time: 1316's weekly volatility (10%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1906	11,900	n/a	https://www.nexteer.com

Nexteer Automotive Group Limited, an investment holding company, designs, develops, manufactures, and distributes steering and driveline systems and components for automobile manufacturers and other automotive-related companies. It offers electric power steering (EPS) products, such as column, pinion, and rack assist, as well as dual pinion EPS; EPS remanufacturing products, intermediate shafts, and modular power packs; and hydraulic power steering products, such as magnetic torque overlay, smart flow pumps, power steering pumps and reservoirs, rack and pinion steering gears, and recirculating ball steering gears, as well as aftermarket products. The company also provides steering columns, including power tilts and telescopes, power rakes and telescopes, one-touch adjustable columns, manual rakes and telescopes, non-adjustable columns, intermediate shafts, transmission shifters, and stowable steering column, as well as electronics, modules, and sub-assemblies.

Nexteer Automotive Group Fundamentals Summary

How do Nexteer Automotive Group's earnings and revenue compare to its market cap?
1316 fundamental statistics
Market Cap	US$1.86b
Earnings (TTM)	US$118.44m
Revenue (TTM)	US$3.36b

15.7x

P/E Ratio

0.6x

P/S Ratio

Is 1316 overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
1316 income statement (TTM)
Revenue	US$3.36b
Cost of Revenue	US$3.00b
Gross Profit	US$363.43m
Other Expenses	US$244.99m
Earnings	US$118.44m

Last Reported Earnings

Dec 31, 2021

Next Earnings Date

n/a

Earnings per share (EPS)	0.047
Gross Margin	10.82%
Net Profit Margin	3.53%
Debt/Equity Ratio	4.2%

How did 1316 perform over the long term?

See historical performance and comparison

Dividends

1.3%

Current Dividend Yield

20%

Payout Ratio

We’ve recently updated our valuation analysis.

Valuation

Is 1316 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

4/6

Valuation Score 4/6

Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 1316?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for 1316. This is calculated by dividing 1316's market cap by their current preferred multiple.
What is 1316's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	US$1.86b

1316 key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	0.5x
Enterprise Value/EBITDA	7.1x
PEG Ratio	0.6x

Price to Earnings Ratio vs Peers

How does 1316's PE Ratio compare to its peers?

1316 PE Ratio vs Peers

The above table shows the PE ratio for 1316 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PE	Estimated Growth	Market Cap
Peer Average	71.6x

Forward PE

Price-To-Earnings vs Peers: 1316 is good value based on its Price-To-Earnings Ratio (15.7x) compared to the peer average (71.6x).

Price to Earnings Ratio vs Industry

How does 1316's PE Ratio compare vs other companies in the Auto Components Industry?

Price-To-Earnings vs Industry: 1316 is expensive based on its Price-To-Earnings Ratio (15.7x) compared to the Hong Kong Auto Components industry average (14.3x)

Price to Earnings Ratio vs Fair Ratio

What is 1316's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

1316 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	15.7x
Fair PE Ratio	13.1x

Price-To-Earnings vs Fair Ratio: 1316 is expensive based on its Price-To-Earnings Ratio (15.7x) compared to the estimated Fair Price-To-Earnings Ratio (13.1x).

Share Price vs Fair Value

What is the Fair Price of 1316 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 1316 (HK$5.81) is trading below our estimate of fair value (HK$13.67)

Significantly Below Fair Value: 1316 is trading below fair value by more than 20%.

Price to Earnings Growth Ratio

PEG Ratio: 1316 is good value based on its PEG Ratio (0.6x)

Discover undervalued companies

Future Growth

How is Nexteer Automotive Group forecast to perform in the next 1 to 3 years based on estimates from 16 analysts?

Future Growth Score

3/6

Future Growth Score 3/6

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

27.8%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: 1316's forecast earnings growth (27.8% per year) is above the savings rate (1.5%).

Earnings vs Market: 1316's earnings (27.8% per year) are forecast to grow faster than the Hong Kong market (17% per year).

High Growth Earnings: 1316's earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: 1316's revenue (10% per year) is forecast to grow slower than the Hong Kong market (10.2% per year).

High Growth Revenue: 1316's revenue (10% per year) is forecast to grow slower than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: 1316's Return on Equity is forecast to be low in 3 years time (11.9%).

Discover growth companies

Past Performance

How has Nexteer Automotive Group performed over the past 5 years?

Past Performance Score

3/6

Past Performance Score 3/6

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

-20.5%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: 1316 has high quality earnings.

Growing Profit Margin: 1316's current net profit margins (3.5%) are lower than last year (3.9%).

Past Earnings Growth Analysis

Earnings Trend: 1316's earnings have declined by 20.5% per year over the past 5 years.

Accelerating Growth: 1316's earnings growth over the past year (1.4%) exceeds its 5-year average (-20.5% per year).

Earnings vs Industry: 1316 earnings growth over the past year (1.4%) exceeded the Auto Components industry -29.7%.

Return on Equity

High ROE: 1316's Return on Equity (6.3%) is considered low.

Discover strong past performing companies

Financial Health

How is Nexteer Automotive Group's financial position?

Financial Health Score

6/6

Financial Health Score 6/6

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

Financial Position Analysis

Short Term Liabilities: 1316's short term assets ($1.4B) exceed its short term liabilities ($942.1M).

Long Term Liabilities: 1316's short term assets ($1.4B) exceed its long term liabilities ($261.8M).

Debt to Equity History and Analysis

Debt Level: 1316 has more cash than its total debt.

Reducing Debt: 1316's debt to equity ratio has reduced from 51.3% to 4.2% over the past 5 years.

Debt Coverage: 1316's debt is well covered by operating cash flow (340.5%).

Interest Coverage: 1316 earns more interest than it pays, so coverage of interest payments is not a concern.

Balance Sheet

Discover healthy companies

Dividend

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

Dividend Score

0/6

Dividend Score 0/6

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

1.28%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: 1316's dividend (1.28%) isn’t notable compared to the bottom 25% of dividend payers in the Hong Kong market (2.74%).

High Dividend: 1316's dividend (1.28%) is low compared to the top 25% of dividend payers in the Hong Kong market (7.89%).

Stability and Growth of Payments

Stable Dividend: 1316 is not paying a notable dividend for the Hong Kong market, therefore no need to check if payments are stable.

Growing Dividend: 1316 is not paying a notable dividend for the Hong Kong market, therefore no need to check if payments are increasing.

Earnings Payout to Shareholders

Earnings Coverage: 1316 is not paying a notable dividend for the Hong Kong market.

Cash Payout to Shareholders

Cash Flow Coverage: 1316 is paying a dividend but the company has no free cash flows.

Discover strong dividend paying companies

Management

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

1.4yrs

Average management tenure

CEO

Nexteer Automotive Group has no CEO, or we have no data on them.

Leadership Team

Experienced Management: 1316's management team is not considered experienced ( 1.4 years average tenure), which suggests a new team.

Board Members

Experienced Board: 1316's board of directors are considered experienced (3 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	2022/06/25 00:00
End of Day Share Price	2022/06/24 00:00
Earnings	2021/12/31
Annual Earnings	2021/12/31