Nexteer Automotive Group
Market Cap
HK$16.1b
Last Updated
2020/02/24 13:28 UTC
Data Sources
Company Financials +
Executive Summary
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.
Rewards
Risk Analysis
Snowflake Analysis
Flawless balance sheet and good value.
Similar Companies
Share Price & News
How has Nexteer Automotive Group's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: 1316 has not had significant price volatility in the past 3 months.
Market Performance
7 Day Return
-8.7%
1316
-2.4%
HK Auto Components
-0.6%
HK Market
1 Year Return
-46.2%
1316
-26.5%
HK Auto Components
-7.6%
HK Market
Return vs Industry: 1316 underperformed the Hong Kong Auto Components industry which returned -26.5% over the past year.
Return vs Market: 1316 underperformed the Hong Kong Market which returned -7.6% over the past year.
Shareholder returns
| 1316 | Industry | Market | |
|---|---|---|---|
| 7 Day | -8.7% | -2.4% | -0.6% |
| 30 Day | 0.3% | -2.8% | -1.4% |
| 90 Day | -13.1% | -8.7% | 2.0% |
| 1 Year | -44.8%-46.2% | -23.8%-26.5% | -4.2%-7.6% |
| 3 Year | -34.6%-38.3% | -19.6%-25.5% | 12.9%1.5% |
| 5 Year | -13.3%-20.6% | 28.0%13.8% | 13.1%-5.6% |
Price Volatility Vs. Market
How volatile is Nexteer Automotive Group's share price compared to the market and industry in the last 5 years?
Simply Wall St News
6 days ago | Simply Wall St
Does Nexteer Automotive Group Limited's (HKG:1316) P/E Ratio Signal A Buying Opportunity?3 weeks ago | Simply Wall St
Why You Should Like Nexteer Automotive Group Limited’s (HKG:1316) ROCE1 month ago | Simply Wall St
Is Nexteer Automotive Group (HKG:1316) A Risky Investment?Valuation
Is Nexteer Automotive Group undervalued compared to its fair value and its price relative to the market?
>50%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: 1316 (HK$6.26) is trading below our estimate of fair value (HK$13.09)
Significantly Below Fair Value: 1316 is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: 1316 is good value based on its PE Ratio (6.5x) compared to the Auto Components industry average (10.3x).
PE vs Market: 1316 is good value based on its PE Ratio (6.5x) compared to the Hong Kong market (10.1x).
Price to Earnings Growth Ratio
PEG Ratio: 1316 is poor value based on its PEG Ratio (1x)
Price to Book Ratio
PB vs Industry: 1316 is overvalued based on its PB Ratio (1.2x) compared to the HK Auto Components industry average (1x).
Next Steps
Future Growth
How is Nexteer Automotive Group forecast to perform in the next 1 to 3 years based on estimates from 16 analysts?
6.4%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: 1316's forecast earnings growth (6.4% per year) is above the savings rate (1.6%).
Earnings vs Market: 1316's earnings (6.4% per year) are forecast to grow slower than the Hong Kong market (11.8% per year).
High Growth Earnings: 1316's earnings are forecast to grow, but not significantly.
Revenue vs Market: 1316's revenue (4% per year) is forecast to grow slower than the Hong Kong market (9.6% per year).
High Growth Revenue: 1316's revenue (4% 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 (14.8%).
Next Steps
Past Performance
How has Nexteer Automotive Group performed over the past 5 years?
18.8%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: 1316 has high quality earnings.
Growing Profit Margin: 1316's current net profit margins (8.4%) are lower than last year (9.4%).
Past Earnings Growth Analysis
Earnings Trend: 1316's earnings have grown by 18.8% per year over the past 5 years.
Accelerating Growth: 1316's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: 1316 had negative earnings growth (-16.3%) over the past year, making it difficult to compare to the Auto Components industry average (-0.7%).
Return on Equity
High ROE: 1316's Return on Equity (17.8%) is considered low.
Return on Assets
Return on Capital Employed
Next Steps
Financial Health
How is Nexteer Automotive Group's financial position?
Financial Position Analysis
Short Term Liabilities: 1316's short term assets ($1.5B) exceed its short term liabilities ($819.3M).
Long Term Liabilities: 1316's short term assets ($1.5B) exceed its long term liabilities ($568.9M).
Debt to Equity History and Analysis
Debt Level: 1316's debt to equity ratio (19.2%) is considered satisfactory.
Reducing Debt: 1316's debt to equity ratio has reduced from 86.5% to 19.2% over the past 5 years.
Debt Coverage: 1316's debt is well covered by operating cash flow (156.9%).
Interest Coverage: 1316's interest payments on its debt are well covered by EBIT (116.1x coverage).
Balance Sheet
Inventory Level: 1316 has a high level of physical assets or inventory.
Debt Coverage by Assets: 1316's debt is covered by short term assets (assets are 4.4x debt).
Next Steps
Dividend
What is Nexteer Automotive Group's current dividend yield, its reliability and sustainability?
3.86%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: 1316's dividend (3.86%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.29%).
High Dividend: 1316's dividend (3.86%) is low compared to the top 25% of dividend payers in the Hong Kong market (6.34%).
Stability and Growth of Payments
Stable Dividend: Whilst dividend payments have been stable, 1316 has been paying a dividend for less than 10 years.
Growing Dividend: 1316's dividend payments have increased, but the company has only paid a dividend for 6 years.
Current Payout to Shareholders
Dividend Coverage: With its low payout ratio (25%), 1316's dividend payments are well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: 1316's dividends in 3 years are forecast to be well covered by earnings (24.3% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
2.4yrs
Average management tenure
CEO
Guibin Zhao (55yo)
7.7yrs
Tenure
US$1,184,000
Compensation
Mr. Guibin Zhao has been Chief Executive Officer of Nexteer Automotive Group Limited since June 2012 and has been its Vice Chairman since June 3, 2019. Mr. Zhao is responsible for setting Nexteer's strateg ...
CEO Compensation Analysis
Compensation vs Market: Guibin's total compensation ($USD1.18M) is above average for companies of similar size in the Hong Kong market ($USD558.57K).
Compensation vs Earnings: Guibin's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Vice Chairman & CEO | 7.7yrs | US$1.18m | no data | |
| VP, Joint Company Secretary & Executive Director | 7.5yrs | US$584.00k | no data | |
| President | 0.08yrs | no data | no data | |
| Senior VP & CFO | 3.7yrs | no data | no data | |
| Senior VP | 1.1yrs | no data | no data | |
| Investor Relations Director | 0yrs | no data | no data | |
| VP & General Counsel | 3.2yrs | no data | no data | |
| Executive Director of Global Marketing | 0yrs | no data | no data | |
| Vice President of Global Sales & Marketing | 1.1yrs | no data | no data | |
| Vice President of Global Human Resources | 1.7yrs | no data | no data |
2.4yrs
Average Tenure
53yo
Average Age
Experienced Management: 1316's management team is considered experienced (2.4 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Vice Chairman & CEO | 7.7yrs | US$1.18m | no data | |
| VP, Joint Company Secretary & Executive Director | 7.5yrs | US$584.00k | no data | |
| President | 0.08yrs | no data | no data | |
| Independent Non-Executive Director | 2.5yrs | US$65.00k | no data | |
| Independent Non-Executive Director | 6.7yrs | US$65.00k | no data | |
| Non-Executive Chairman | 0.7yrs | no data | no data | |
| Independent Non-Executive Director | 6.7yrs | US$53.00k | no data | |
| Non-Executive Director | 1.9yrs | US$30.00k | no data | |
| Non-Executive Director | 0.7yrs | no data | no data |
1.9yrs
Average Tenure
53yo
Average Age
Experienced Board: 1316's board of directors are not considered experienced ( 1.9 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 not been meaningfully diluted in the past year.
Top Shareholders
Company Information
Nexteer Automotive Group Limited's company bio, employee growth, exchange listings and data sources
Key Information
- Name: Nexteer Automotive Group Limited
- Ticker: 1316
- Exchange: SEHK
- Founded: 1906
- Industry: Auto Parts and Equipment
- Sector: Automobiles
- Market Cap: HK$16.149b
- Shares outstanding: 2.51b
- Website: https://www.nexteer.com
Number of Employees
Location
- Nexteer Automotive Group Limited
- 1272 Doris Road
- Auburn Hills
- Michigan
- 48326
- United States
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| 1316 | SEHK (The Stock Exchange of Hong Kong Ltd.) | Yes | Ordinary Shares | HK | HKD | Oct 2013 |
| NTXV.F | OTCPK (Pink Sheets LLC) | Yes | Ordinary Shares | US | USD | Oct 2013 |
| 1316 | SHSC (Stock Exchange of Hong Kong Limited - Shanghai - Hong Kong Stock Connect) | Yes | Ordinary Shares | HK | HKD | Oct 2013 |
| 1316 | SZSC (The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect) | Yes | Ordinary Shares | HK | HKD | Oct 2013 |
Biography
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. The company offers electric power steering (EPS) products, such as column, pinion, and rack assist; 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. It also provides steering columns products, including power tilts and telescopes, power rakes and telescopes, one-touch adjustable columns, manual rakes and telescopes, non-adjustable columns, intermediate shafts, and transmission shifters, as well as electronics, modules, and sub-assemblies. In addition, the company offers front and rear wheel halfshafts, intermediate drive shafts, and propeller shaft constant velocity joints. Further, it provides advanced driver assistance systems and automated driving technologies comprising Steering on Demand system, Quiet Wheel Steering, and high availability EPS for resilient operational availability, as well as offers customer support and engineering center services. Nexteer Automotive Group Limited operates in North America, the Asia Pacific, Europe, the Middle East, Africa, and South America. The company was founded in 1906 and is headquartered in Auburn Hills, Michigan. Nexteer Automotive Group Limited operates as a subsidiary of Pacific Century Motors.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/02/24 13:28 |
| End of Day Share Price | 2020/02/24 00:00 |
| Earnings | 2019/06/30 |
| Annual Earnings | 2018/12/31 |
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.