SEHK:787

Stock Analysis Report

Global Brands Group Holding

Executive Summary

Global Brands Group Holding Limited, an investment holding company, designs, develops, markets, and sells branded apparel, footwear, fashion accessories, and related lifestyle products for retailers in the Americas, Europe, the Middle East, and Asia.

Snowflake

Fundamentals

Overvalued with poor track record.

Share Price & News

How has Global Brands Group Holding's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 787 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-7.8%

787

0.2%

HK Luxury

-0.02%

HK Market


1 Year Return

-87.2%

787

20.9%

HK Luxury

0.6%

HK Market

Return vs Industry: 787 underperformed the Hong Kong Luxury industry which returned 20.9% over the past year.

Return vs Market: 787 underperformed the Hong Kong Market which returned 0.6% over the past year.


Shareholder returns

787IndustryMarket
7 Day-7.8%0.2%-0.02%
30 Day5.4%2.5%1.4%
90 Day5.4%8.3%3.8%
1 Year-51.3%-87.2%25.1%20.9%4.2%0.6%
3 Year-80.3%-94.8%50.3%32.4%20.4%8.3%
5 Year-87.0%-96.6%43.7%15.8%18.9%-0.9%

Price Volatility Vs. Market

How volatile is Global Brands Group Holding's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Global Brands Group Holding undervalued compared to its fair value and its price relative to the market?

0.16x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate 787's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate 787's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: 787 is unprofitable, so we can't compare its PE Ratio to the Luxury industry average.

PE vs Market: 787 is unprofitable, so we can't compare its PE Ratio to the Hong Kong market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 787's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 787 is good value based on its PB Ratio (0.2x) compared to the HK Luxury industry average (0.9x).


Next Steps

Future Growth

How is Global Brands Group Holding forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

17.8%

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 Global Brands Group Holding 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.


Next Steps

Past Performance

How has Global Brands Group Holding performed over the past 5 years?

-62.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 787 has high quality earnings.

Growing Profit Margin: 787 is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: 787 is unprofitable, and losses have increased over the past 5 years at a rate of -62.1% per year.

Accelerating Growth: Unable to compare 787's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: 787 is unprofitable, making it difficult to compare its past year earnings growth to the Luxury industry (-2.8%).


Return on Equity

High ROE: 787 has a negative Return on Equity (-28.03%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Global Brands Group Holding's financial position?


Financial Position Analysis

Short Term Liabilities: 787's short term assets ($847.8M) do not cover its short term liabilities ($1.4B)

Long Term Liabilities: 787's short term assets ($847.8M) do not cover its long term liabilities (1.1B)


Debt to Equity History and Analysis

Debt Level: 787's debt to equity ratio (72.9%) is considered high.

Reducing Debt: 787's debt to equity ratio has increased from 27% to 72.9% over the past 5 years.


Balance Sheet

Inventory Level: 787 has a high level of physical assets or inventory.

Debt Coverage by Assets: 787's debt is covered by short term assets (assets are 1.6x debt).


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: 787 has less than a year of cash runway based on its current free cash flow.

Forecast Cash Runway: 787 has sufficient cash runway for 1.033998 years if free cash flow continues to reduce at historical rates of -67.3% each year.


Next Steps

Dividend

What is Global Brands Group Holding's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%2.3%markettop25%6.3%industryaverage2.6%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate 787's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate 787's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if 787's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 787's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of 787's dividend in 3 years as they are not forecast to pay a notable one for the Hong Kong market.


Next Steps

Management

What is the CEO of Global Brands Group Holding's salary, the management and board of directors tenure and is there insider trading?

1.8yrs

Average management tenure


CEO

Rick Darling (66yo)

1.1yrs

Tenure

US$516,000

Compensation

Mr. Richard Nixon Darling, also known as Rick, has been Executive Director and Chief Executive Officer of Global Brands Group Holding Limited since October 30, 2018. He leads Global Brands Group Holding Li ...


CEO Compensation Analysis

Compensation vs Market: Rick's total compensation ($USD516.00K) is above average for companies of similar size in the Hong Kong market ($USD216.20K).

Compensation vs Earnings: Insufficient data to compare Rick's compensation with company performance.


Management Age and Tenure

1.8yrs

Average Tenure

61.5yo

Average Age

Experienced Management: 787's management team is not considered experienced ( 1.8 years average tenure), which suggests a new team.


Board Age and Tenure

5.4yrs

Average Tenure

68.5yo

Average Age

Experienced Board: 787's board of directors are considered experienced (5.4 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyUS$654,16008 Jul 19
M&G Investment Management Limited
EntityCompany
Shares922,000
Max PriceUS$0.71
BuyUS$4,603,96314 May 19
M&G Investment Management Limited
EntityCompany
Shares5,618,000
Max PriceUS$0.82
BuyUS$990,83106 May 19
M&G Investment Management Limited
EntityCompany
Shares1,043,200
Max PriceUS$0.95
BuyUS$2,266,36009 Apr 19
M&G Investment Management Limited
EntityCompany
Shares2,244,000
Max PriceUS$1.01
BuyUS$1,209,96926 Mar 19
M&G Investment Management Limited
EntityCompany
Shares1,100,000
Max PriceUS$1.10
SellUS$39,136,59605 Feb 19
Capital Research and Management Company
EntityCompany
Shares9,918,000
Max PriceUS$3.95

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 35.9%.


Management Team

  • Jason Yeung (64yo)

    Group Chief Compliance & Risk Management Officer

    • Tenure: 4.3yrs
  • Rick Darling (66yo)

    CEO & Executive Director

    • Tenure: 1.1yrs
    • Compensation: US$516.00k
  • Ron Ventricelli (59yo)

    Global Chief Operating Officer & President of North America

    • Tenure: 1.8yrs
  • Jason Weisenfeld

    President of Seven Global

    • Tenure: 4.4yrs
  • Rob Sinclair (56yo)

    President of Sourcing

    • Tenure: 1.8yrs
  • Joyce Kuen

    Company Secretary

    • Tenure: 1.8yrs
  • Mark Caldwell

    Chief Financial Officer

    • Tenure: 0.9yrs

Board Members

  • Hau Leung Lee (67yo)

    Non-Executive Director

    • Tenure: 5.4yrs
    • Compensation: US$51.00k
  • Allan Zeman (71yo)

    Independent Non-Executive Director

    • Tenure: 5.4yrs
    • Compensation: US$57.00k
  • William Fung (70yo)

    Chairman of the Board

    • Tenure: 5.5yrs
    • Compensation: US$57.00k
  • Paul Selway-Swift (75yo)

    Independent Non-Executive Director

    • Tenure: 5.4yrs
    • Compensation: US$57.00k
  • Stephen Long (76yo)

    Independent Non-Executive Director

    • Tenure: 5.4yrs
    • Compensation: US$70.00k
  • Rick Darling (66yo)

    CEO & Executive Director

    • Tenure: 1.1yrs
    • Compensation: US$516.00k
  • Audrey Lo (65yo)

    Independent Non-Executive Director

    • Tenure: 5.4yrs
    • Compensation: US$64.00k
  • Ann Scichili (59yo)

    Independent Non-Executive Director

    • Tenure: 3.8yrs
    • Compensation: US$57.00k

Company Information

Global Brands Group Holding Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Global Brands Group Holding Limited
  • Ticker: 787
  • Exchange: SEHK
  • Founded: 2005
  • Industry: Apparel, Accessories and Luxury Goods
  • Sector: Consumer Durables
  • Market Cap: HK$627.479m
  • Shares outstanding: 1.03b
  • Website: https://www.globalbrandsgroup.com

Number of Employees


Location

  • Global Brands Group Holding Limited
  • LiFung Tower
  • 9th Floor
  • Kowloon
  • Kowloon
  • Hong Kong

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
787SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDJul 2014
27B1DB (Deutsche Boerse AG)YesOrdinary SharesDEEURJul 2014
GLBR.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJul 2014

Biography

Global Brands Group Holding Limited, an investment holding company, designs, develops, markets, and sells branded apparel, footwear, fashion accessories, and related lifestyle products for retailers in the ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/11/20 13:04
End of Day Share Price2019/11/20 00:00
Earnings2019/09/30
Annual Earnings2019/03/31


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.