SEHK:1316

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Nexteer Automotive Group

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. More Details


Snowflake Analysis

Flawless balance sheet with moderate growth potential.


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's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

31.2%

1316

4.8%

HK Auto Components

1.9%

HK Market


1 Year Return

8.7%

1316

27.3%

HK Auto Components

1.5%

HK Market

Return vs Industry: 1316 underperformed the Hong Kong Auto Components industry which returned 29.9% over the past year.

Return vs Market: 1316 exceeded the Hong Kong Market which returned 2% over the past year.


Shareholder returns

1316IndustryMarket
7 Day31.2%4.8%1.9%
30 Day41.2%13.5%3.6%
90 Day48.7%29.2%2.8%
1 Year13.9%8.7%31.5%27.3%5.8%1.5%
3 Year-48.9%-53.3%-13.7%-20.7%-5.0%-15.4%
5 Year0.1%-11.3%45.2%28.4%17.1%-2.8%

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

Valuation

Is Nexteer Automotive Group undervalued compared to its fair value and its price relative to the market?

8.1%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 1316 (HK$7.27) is trading below our estimate of fair value (HK$7.91)

Significantly Below Fair Value: 1316 is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: 1316 is poor value based on its PE Ratio (22.9x) compared to the HK Auto Components industry average (14.1x).

PE vs Market: 1316 is poor value based on its PE Ratio (22.9x) compared to the Hong Kong market (11.1x).


Price to Earnings Growth Ratio

PEG Ratio: 1316 is good value based on its PEG Ratio (0.7x)


Price to Book Ratio

PB vs Industry: 1316 is overvalued based on its PB Ratio (1.4x) compared to the HK Auto Components industry average (1.1x).


Next Steps

Future Growth

How is Nexteer Automotive Group forecast to perform in the next 1 to 3 years based on estimates from 17 analysts?

34.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 1316's forecast earnings growth (34.7% per year) is above the savings rate (1.6%).

Earnings vs Market: 1316's earnings (34.7% per year) are forecast to grow faster than the Hong Kong market (22.3% per year).

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

Revenue vs Market: 1316's revenue (9.9% per year) is forecast to grow slower than the Hong Kong market (13.3% per year).

High Growth Revenue: 1316's revenue (9.9% 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 (11.7%).


Next Steps

Past Performance

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

1.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 1316 has a large one-off loss of $63.1M impacting its June 30 2020 financial results.

Growing Profit Margin: 1316's current net profit margins (3.5%) are lower than last year (8.4%).


Past Earnings Growth Analysis

Earnings Trend: 1316's earnings have grown by 1.6% 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 (-67%) over the past year, making it difficult to compare to the Auto Components industry average (-17.7%).


Return on Equity

High ROE: 1316's Return on Equity (6%) is considered low.


Next Steps

Financial Health

How is Nexteer Automotive Group's financial position?


Financial Position Analysis

Short Term Liabilities: 1316's short term assets ($1.2B) exceed its short term liabilities ($649.8M).

Long Term Liabilities: 1316's short term assets ($1.2B) exceed its long term liabilities ($491.7M).


Debt to Equity History and Analysis

Debt Level: 1316's debt to equity ratio (17.3%) is considered satisfactory.

Reducing Debt: 1316's debt to equity ratio has reduced from 88.2% to 17.3% over the past 5 years.

Debt Coverage: 1316's debt is well covered by operating cash flow (73.7%).

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


Balance Sheet


Next Steps

Dividend

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

3.46%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 1316's dividend (3.46%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.23%).

High Dividend: 1316's dividend (3.46%) is low compared to the top 25% of dividend payers in the Hong Kong market (6.86%).


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 7 years.


Current Payout to Shareholders

Dividend Coverage: At its current payout ratio (79.4%), 1316's payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 1316's dividends in 3 years are forecast to be well covered by earnings (35.1% payout ratio).


Next Steps

Management

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

3.1yrs

Average management tenure


CEO

Guibin Zhao (56 yo)

8.33yrs

Tenure

US$1,680,000

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 ($USD1.68M) is above average for companies of similar size in the Hong Kong market ($USD559.67K).

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

NamePositionTenureCompensationOwnership
Guibin Zhao
Executive Vice Chairman & CEO8.33yrsUS$1.68mno data
Yi Fan
VP, Company Secretary & Executive Director8.17yrsUS$423.00kno data
Tao Liu
President & Global COO0.75yrno datano data
William Quigley
Senior VP & CFO4.33yrsno datano data
Robin Milavec
Senior VP0.33yrno datano data
Cameron Wang
Investor Relations Directorno datano datano data
Peter Ziparo
VP & General Counsel3.83yrsno datano data
Lynn Pavlawk
Executive Director of Global Marketingno datano datano data
Ot Benson
Vice President of Global Sales & Marketing1.75yrsno datano data
Cathy Xu
Vice President of Global Human Resources2.33yrsno datano data
Dennis Hoeg
VP & North America Division President1.58yrsno datano data
Herve Boyer
VP and Europe4.58yrsno datano data

3.1yrs

Average Tenure

53yo

Average Age

Experienced Management: 1316's management team is considered experienced (3.1 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Guibin Zhao
Executive Vice Chairman & CEO8.33yrsUS$1.68mno data
Yi Fan
VP, Company Secretary & Executive Director8.17yrsUS$423.00kno data
Robin Milavec
Senior VP0.33yrno datano data
Wing Fat Yick
Independent Non-Executive Director3.17yrsUS$65.00kno data
Cheng Wei
Independent Non-Executive Director7.33yrsUS$65.00kno data
Jian Wang
Non-Executive Chairman1.33yrsUS$58.00kno data
Jianjun Liu
Independent Non-Executive Director7.33yrsUS$53.00kno data
Jianxun Zhang
Non-Executive Director2.58yrsUS$40.00kno data
Ping Liu
Non-Executive Director1.33yrsUS$23.00kno data

2.6yrs

Average Tenure

52yo

Average Age

Experienced Board: 1316's board of directors are not considered experienced ( 2.6 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$18.180b
  • 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

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
1316SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDOct 2013
NTXV.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDOct 2013
1316SHSC (Stock Exchange of Hong Kong Limited - Shanghai - Hong Kong Stock Connect)YesOrdinary SharesHKHKDOct 2013
1316SZSC (The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect)YesOrdinary SharesHKHKDOct 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 automo ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/22 12:54
End of Day Share Price2020/10/22 00:00
Earnings2020/06/30
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.