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6858

Honma Golf SEHK:6858 Stock Report

Last Price

HK$3.40

Market Cap

HK$2.1b

7D

4.6%

1Y

-22.0%

Updated

25 Jun, 2022

Data

Company Financials
6858 fundamental analysis
Snowflake Score
Valuation4/6
Future Growth0/6
Past Performance2/6
Financial Health6/6
Dividends3/6

6858 Stock Overview

Honma Golf Limited, an investment holding company, designs, develops, manufactures, and sells a range of golf club equipment in Asia, North America, Europe, and internationally.

Honma Golf Competitors

 

 

 

 

 

 

 

 

 

 

 

 

Price History & Performance

Summary of all time highs, changes and price drops for Honma Golf
Historical stock prices
Current Share PriceHK$3.40
52 Week HighHK$5.70
52 Week LowHK$2.86
Beta0.56
1 Month Change8.63%
3 Month Change7.60%
1 Year Change-22.02%
3 Year Change-49.85%
5 Year Change-55.03%
Change since IPO-66.67%

Recent News & Updates

Jun 08
The Returns On Capital At Honma Golf (HKG:6858) Don't Inspire Confidence

The Returns On Capital At Honma Golf (HKG:6858) Don't Inspire Confidence

To find a multi-bagger stock, what are the underlying trends we should look for in a business? One common approach is...

Shareholder Returns

6858HK LeisureHK Market
7D4.6%-1.1%2.1%
1Y-22.0%-29.0%-23.3%

Return vs Industry: 6858 exceeded the Hong Kong Leisure industry which returned -29% over the past year.

Return vs Market: 6858 exceeded the Hong Kong Market which returned -23.3% over the past year.

Price Volatility

Is 6858's price volatile compared to industry and market?
6858 volatility
6858 Average Weekly Movement4.7%
Leisure Industry Average Movement8.2%
Market Average Movement7.0%
10% most volatile stocks in HK Market13.8%
10% least volatile stocks in HK Market3.3%

Stable Share Price: 6858 is less volatile than 75% of Hong Kong stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: 6858's weekly volatility (5%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
1959737Jianguo Liuhttps://honmagolf.com/int

Honma Golf Limited, an investment holding company, designs, develops, manufactures, and sells a range of golf club equipment in Asia, North America, Europe, and internationally. It offers driver, fairway wood, utility, iron, wedge, and putter clubs; golf balls, golf bags, golf club head covers, gloves, shoes, belts and socks, and other golf-related accessories; and apparel for men and women under the BERES, TOUR WORLD, Be ZEAL, and HONMA brands. The company distributes its products through HONMA-branded self-operated stores; third-party retailers, including sports megastores; and wholesale distributors that on-sell to other third parties.

Honma Golf Fundamentals Summary

How do Honma Golf's earnings and revenue compare to its market cap?
6858 fundamental statistics
Market CapJP¥35.44b
Earnings (TTM)JP¥4.01b
Revenue (TTM)JP¥25.55b

8.8x

P/E Ratio

1.4x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
6858 income statement (TTM)
RevenueJP¥25.55b
Cost of RevenueJP¥12.18b
Gross ProfitJP¥13.37b
Other ExpensesJP¥9.36b
EarningsJP¥4.01b

Last Reported Earnings

Sep 30, 2021

Next Earnings Date

Jun 28, 2022

Earnings per share (EPS)6.62
Gross Margin52.33%
Net Profit Margin15.70%
Debt/Equity Ratio31.9%

How did 6858 perform over the long term?

See historical performance and comparison

Dividends

5.5%

Current Dividend Yield

48%

Payout Ratio
We’ve recently updated our valuation analysis.

Valuation

Is 6858 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 6858?

Other financial metrics that can be useful for relative valuation.

6858 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/Revenue1.2x
Enterprise Value/EBITDA7.5x
PEG Ration/a

Price to Earnings Ratio vs Peers

How does 6858's PE Ratio compare to its peers?

6858 PE Ratio vs Peers
The above table shows the PE ratio for 6858 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average23.1x

Price-To-Earnings vs Peers: 6858 is good value based on its Price-To-Earnings Ratio (8.8x) compared to the peer average (23.1x).


Price to Earnings Ratio vs Industry

How does 6858's PE Ratio compare vs other companies in the Leisure Industry?

Price-To-Earnings vs Industry: 6858 is good value based on its Price-To-Earnings Ratio (8.8x) compared to the Hong Kong Leisure industry average (13.7x)


Price to Earnings Ratio vs Fair Ratio

What is 6858'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.

6858 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio8.8x
Fair PE Ration/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate 6858's Price-To-Earnings Fair Ratio for valuation analysis.


Share Price vs Fair Value

What is the Fair Price of 6858 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 6858 (HK$3.4) is trading below our estimate of fair value (HK$22.76)

Significantly Below Fair Value: 6858 is trading below fair value by more than 20%.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 6858's PEG Ratio to determine if it is good value.


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Future Growth

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

Future Growth Score

0/6

Future Growth Score 0/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


12.2%

Forecasted Consumer Durables 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 Honma Golf 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.


Discover growth companies

  • Examine whether Honma Golf is trading at an attractive price based on how much it is expected to earn in the future, and relative to its industry peers and the wider market.
  • Honma Golf competitive advantages and company strategy can generally be found in its financial reports archived here.

Past Performance

How has Honma Golf performed over the past 5 years?

Past Performance Score

2/6

Past Performance Score 2/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


-26.5%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: 6858 has high quality earnings.

Growing Profit Margin: 6858 became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: 6858's earnings have declined by 26.5% per year over the past 5 years.

Accelerating Growth: 6858 has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: 6858 has become profitable in the last year, making it difficult to compare its past year earnings growth to the Leisure industry (-10.5%).


Return on Equity

High ROE: 6858's Return on Equity (18.5%) is considered low.


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Financial Health

How is Honma Golf'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: 6858's short term assets (¥29.4B) exceed its short term liabilities (¥13.8B).

Long Term Liabilities: 6858's short term assets (¥29.4B) exceed its long term liabilities (¥2.0B).


Debt to Equity History and Analysis

Debt Level: 6858 has more cash than its total debt.

Reducing Debt: 6858's debt to equity ratio has reduced from 232.5% to 31.9% over the past 5 years.

Debt Coverage: 6858's debt is well covered by operating cash flow (74%).

Interest Coverage: 6858's interest payments on its debt are well covered by EBIT (47.5x coverage).


Balance Sheet


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Dividend

What is Honma Golf current dividend yield, its reliability and sustainability?

Dividend Score

2/6

Dividend Score 2/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Future Dividend Coverage


5.47%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: 6858's dividend (5.47%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.74%).

High Dividend: 6858's dividend (5.47%) is low compared to the top 25% of dividend payers in the Hong Kong market (7.89%).


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, 6858 has been paying a dividend for less than 10 years.

Growing Dividend: 6858's dividend payments have increased, but the company has only paid a dividend for 5 years.


Earnings Payout to Shareholders

Earnings Coverage: With its reasonably low payout ratio (48.3%), 6858's dividend payments are well covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: With its reasonably low cash payout ratio (40.3%), 6858's dividend payments are well covered by cash flows.


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Management

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

6.0yrs

Average management tenure


CEO

Jianguo Liu (52 yo)

6yrs

Tenure

JP¥26,747,000

Compensation

Mr. Jianguo Liu has been Executive Chairman of the Board and President of Honma Golf Limited and Honma Golf Co., Ltd., since June 14, 2016. Mr. Liu is responsible for formulating the overall development st...


CEO Compensation Analysis

Compensation vs Market: Jianguo's total compensation ($USD197.98K) is below average for companies of similar size in the Hong Kong market ($USD305.47K).

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


Leadership Team

Experienced Management: 6858's management team is seasoned and experienced (6 years average tenure).


Board Members

Experienced Board: 6858's board of directors are considered experienced (5.8 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.


Top Shareholders

Company Information

Honma Golf Limited's employee growth, exchange listings and data sources


Key Information

  • Name: Honma Golf Limited
  • Ticker: 6858
  • Exchange: SEHK
  • Founded: 1959
  • Industry: Leisure Products
  • Sector: Consumer Durables
  • Implied Market Cap: HK$2.059b
  • Shares outstanding: 605.64m
  • Website: https://honmagolf.com/int

Number of Employees


Location

  • Honma Golf Limited
  • Roppongi Hills Mori Tower
  • 35th Floor
  • Tokyo
  • Tokyo
  • 106-6135
  • Japan

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/06/25 00:00
End of Day Share Price2022/06/24 00:00
Earnings2021/09/30
Annual Earnings2021/03/31


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.