SEHK:1316

Stock Analysis Report

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.

Snowflake

Fundamentals

Flawless balance sheet and undervalued.

Risks

  • Nexteer Automotive Group has significant price volatility in the past 3 months.

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


Market Performance


7 Day Return

-1.9%

1316

-3.7%

HK Auto Components

-2.7%

HK Market


1 Year Return

-46.3%

1316

-27.9%

HK Auto Components

-9.4%

HK Market

1316 underperformed the Auto Components industry which returned -27.9% over the past year.

1316 underperformed the Market in Hong Kong which returned -9.4% over the past year.


Share holder returns

1316IndustryMarket
7 Day-1.9%-3.7%-2.7%
30 Day7.7%5.7%2.0%
90 Day-29.5%-3.1%-5.8%
1 Year-44.9%-46.3%-25.5%-27.9%-6.1%-9.4%
3 Year-33.4%-37.2%-14.6%-21.0%14.3%2.7%
5 Year8.9%-0.3%27.2%13.0%16.7%-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 based on future cash flows and its price relative to the stock market?

45%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Nexteer Automotive Group's share price is below the future cash flow value, and at a moderate discount (> 20%).

Nexteer Automotive Group's share price is below the future cash flow value, and at a substantial discount (> 40%).


Price Based on Earnings

Nexteer Automotive Group is good value based on earnings compared to the HK Auto Components industry average.

Nexteer Automotive Group is good value based on earnings compared to the Hong Kong market.


Price Based on Expected Growth

Nexteer Automotive Group is good value based on expected growth next year.


Price Based on Value of Assets

Nexteer Automotive Group is overvalued based on assets compared to the HK Auto Components industry average.


Next Steps

Future Growth

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

7.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Nexteer Automotive Group's revenue is expected to grow by 4.2% yearly, however this is not considered high growth (20% yearly).

Nexteer Automotive Group's earnings are expected to grow by 7.6% yearly, however this is not considered high growth (20% yearly).

Nexteer Automotive Group's revenue growth is positive but not above the Hong Kong market average.

Nexteer Automotive Group's earnings growth is positive but not above the Hong Kong market average.

Nexteer Automotive Group's earnings growth is expected to exceed the low risk savings rate of 2%.


Earnings per Share Growth Estimates


Future Return on Equity

Nexteer Automotive Group is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


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


Past Earnings Growth Analysis

Nexteer Automotive Group's year on year earnings growth rate has been positive over the past 5 years.

Nexteer Automotive Group's 1-year earnings growth is negative, it can't be compared to the 5-year average.

Nexteer Automotive Group's 1-year earnings growth is negative, it can't be compared to the HK Auto Components industry average.


Return on Equity

Nexteer Automotive Group has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Nexteer Automotive Group used its assets more efficiently than the HK Auto Components industry average last year based on Return on Assets.


Return on Capital Employed

Nexteer Automotive Group's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Nexteer Automotive Group's financial position?


Financial Position Analysis

Nexteer Automotive Group is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Nexteer Automotive Group's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

Nexteer Automotive Group's level of debt (19.2%) compared to net worth is satisfactory (less than 40%).

The level of debt compared to net worth has been reduced over the past 5 years (86.5% vs 19.2% today).

Debt is well covered by operating cash flow (156.9%, greater than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 116.1x coverage).


Balance Sheet

High level of physical assets or inventory.

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?

3.06%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Nexteer Automotive Group's pays a higher dividend yield than the bottom 25% of dividend payers in Hong Kong (2.21%).

Nexteer Automotive Group's dividend is below the markets top 25% of dividend payers in Hong Kong (6.17%).

Whilst dividend payments have been stable, Nexteer Automotive Group has been paying a dividend for less than 10 years.

Dividend payments have increased, but Nexteer Automotive Group only paid a dividend in the past 6 years.


Current Payout to Shareholders

Dividends paid are well covered by earnings (4x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be well covered by earnings (4.7x coverage).


Next Steps

Management

What is the CEO of Nexteer Automotive Group's salary, the management and board of directors tenure and is there insider trading?

2.9yrs

Average management tenure


CEO

Guibin Zhao (55yo)

7.3yrs

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

Guibin's remuneration is higher than average for companies of similar size in Hong Kong.

Guibin's compensation has increased by more than 20% in the past year whilst earnings fell less than 20%.


Management Age and Tenure

2.9yrs

Average Tenure

54yo

Average Age

The tenure for the Nexteer Automotive Group management team is about average.


Board Age and Tenure

2.1yrs

Average Tenure

53yo

Average Age

The average tenure for the Nexteer Automotive Group board of directors is less than 3 years, this suggests a new board.


Insider Trading

No 3 month open market individual insider trading information.


Ownership Breakdown


Management Team

  • Guibin Zhao (55yo)

    Vice Chairman & CEO

    • Tenure: 7.3yrs
    • Compensation: US$1.18m
  • Mike Richardson (63yo)

    President & Executive Director

    • Tenure: 6.3yrs
    • Compensation: US$1.27m
  • Yi Fan (53yo)

    VP, Joint Company Secretary & Executive Director

    • Tenure: 7.1yrs
    • Compensation: US$584.00k
  • Tao Liu (54yo)

    Senior VP & Global COO

    • Tenure: 2.9yrs
  • Peter Ziparo (49yo)

    VP & General Counsel

    • Tenure: 2.8yrs
  • William Quigley (57yo)

    Senior VP & CFO

    • Tenure: 3.3yrs
  • Ot Benson (44yo)

    Vice President of Global Sales & Marketing

    • Tenure: 0.7yrs
  • Robin Milavec

    Senior VP

    • Tenure: 0.7yrs
  • Cameron Wang

    Investor Relations Director

    • Tenure: 0yrs
  • Lynn Pavlawk

    Executive Director of Global Marketing

    • Tenure: 0yrs

Board Members

  • Simon Yick (61yo)

    Independent Non-Executive Director

    • Tenure: 2.1yrs
    • Compensation: US$65.00k
  • Guibin Zhao (55yo)

    Vice Chairman & CEO

    • Tenure: 7.3yrs
    • Compensation: US$1.18m
  • Kevin Wei (51yo)

    Independent Non-Executive Director

    • Tenure: 6.3yrs
    • Compensation: US$65.00k
  • Mike Richardson (63yo)

    President & Executive Director

    • Tenure: 6.3yrs
    • Compensation: US$1.27m
  • Jian Wang (57yo)

    Non-Executive Chairman

    • Tenure: 0.3yrs
  • Yi Fan (53yo)

    VP, Joint Company Secretary & Executive Director

    • Tenure: 7.1yrs
    • Compensation: US$584.00k
  • Jianjun Liu (51yo)

    Independent Non-Executive Director

    • Tenure: 6.3yrs
    • Compensation: US$53.00k
  • Jianxun Zhang (39yo)

    Non-Executive Director

    • Tenure: 1.5yrs
    • Compensation: US$30.00k
  • Ping Liu (51yo)

    Non-Executive Director

    • Tenure: 0.3yrs

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$16.675b
  • 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 Analysis2019/09/23 12:52
End of Day Share Price2019/09/23 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.