SEHK:493

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GOME Retail Holdings

Executive Summary

GOME Retail Holdings Limited, together with its subsidiaries, engages in the retail of home appliances and consumer electronic products in the People’s Republic of China. More Details


Snowflake Analysis

Mediocre balance sheet with weak fundamentals.


Similar Companies

Share Price & News

How has GOME Retail Holdings's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 493's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-9.3%

493

-4.8%

HK Specialty Retail

-5.5%

HK Market


1 Year Return

38.6%

493

44.0%

HK Specialty Retail

-1.9%

HK Market

Return vs Industry: 493 underperformed the Hong Kong Specialty Retail industry which returned 44.7% over the past year.

Return vs Market: 493 exceeded the Hong Kong Market which returned -1.5% over the past year.


Shareholder returns

493IndustryMarket
7 Day-9.3%-4.8%-5.5%
30 Day-16.4%3.7%-7.7%
90 Day-34.5%9.4%-1.5%
1 Year38.6%38.6%47.0%44.0%2.1%-1.9%
3 Year10.2%10.2%25.3%11.6%-8.4%-18.3%
5 Year-25.4%-27.1%84.3%50.2%16.1%-3.5%

Price Volatility Vs. Market

How volatile is GOME Retail Holdings's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is GOME Retail Holdings undervalued compared to its fair value and its price relative to the market?

1.91x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: 493 (HK$0.97) is trading above our estimate of fair value (HK$0.97)

Significantly Below Fair Value: 493 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 493 is unprofitable, so we can't compare its PE Ratio to the HK Specialty Retail industry average.

PE vs Market: 493 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 493's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 493 is overvalued based on its PB Ratio (1.9x) compared to the HK Specialty Retail industry average (1.1x).


Next Steps

Future Growth

How is GOME Retail Holdings forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

51.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 493 is forecast to remain unprofitable over the next 3 years.

Earnings vs Market: 493 is forecast to remain unprofitable over the next 3 years.

High Growth Earnings: 493 is forecast to remain unprofitable over the next 3 years.

Revenue vs Market: 493's revenue (11.7% per year) is forecast to grow slower than the Hong Kong market (13.2% per year).

High Growth Revenue: 493's revenue (11.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 493 is forecast to be unprofitable in 3 years.


Next Steps

Past Performance

How has GOME Retail Holdings performed over the past 5 years?

-71.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 493 is currently unprofitable.

Growing Profit Margin: 493 is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: 493 is unprofitable, and losses have increased over the past 5 years at a rate of 71% per year.

Accelerating Growth: Unable to compare 493's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: 493 is unprofitable, making it difficult to compare its past year earnings growth to the Specialty Retail industry (-27.4%).


Return on Equity

High ROE: 493 has a negative Return on Equity (-94.93%), as it is currently unprofitable.


Next Steps

Financial Health

How is GOME Retail Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: 493's short term assets (CN¥36.9B) do not cover its short term liabilities (CN¥48.8B).

Long Term Liabilities: 493's short term assets (CN¥36.9B) exceed its long term liabilities (CN¥19.3B).


Debt to Equity History and Analysis

Debt Level: 493's debt to equity ratio (555.3%) is considered high.

Reducing Debt: 493's debt to equity ratio has increased from 9% to 555.3% over the past 5 years.


Balance Sheet


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: Whilst unprofitable 493 has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: 493 is unprofitable but has sufficient cash runway for more than 3 years, even with free cash flow being positive and shrinking by 34.1% per year.


Next Steps

Dividend

What is GOME Retail Holdings's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate 493's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate 493's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if 493's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 493's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: 493 is not paying a notable dividend for the Hong Kong market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of 493's dividend in 3 years as they are not forecast to pay a notable one for the Hong Kong market.


Next Steps

Management

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

9.0yrs

Average management tenure


CEO

Jun Zhou Wang (58 yo)

no data

Tenure

CN¥3,091,000

Compensation

Mr. Junzhou Wang has been the Chief executive and President of GOME Retail Holdings Limited (formerly known as GOME Electrical Appliances Holding Limited) and Gome Holdings Group Co., Ltd., since June 28, ...


CEO Compensation Analysis

Compensation vs Market: Jun Zhou's total compensation ($USD454.22K) is about average for companies of similar size in the Hong Kong market ($USD508.18K).

Compensation vs Earnings: Jun Zhou's compensation has increased whilst the company is unprofitable.


Leadership Team

NamePositionTenureCompensationOwnership
Jun Zhou Wang
CEO & Presidentno dataCN¥3.09mno data
Xiao Chun Zou
Executive Director9.75yrsCN¥352.00kno data
Wei Fang
Chief Financial Officer9yrsno datano data
Qiu Li Wei
Senior Vice President13.83yrsCN¥6.67mno data
Yang Qing He
Senior Vice President8.25yrsno datano data
Bo Wang
Senior Vice President0.67yrno datano data
King Pui Szeto
Company Secretary9.67yrsno datano data
Cheng Yik
Financial Controllerno datano datano data

9.0yrs

Average Tenure

55yo

Average Age

Experienced Management: 493's management team is seasoned and experienced (9 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Xiao Chun Zou
Executive Director9.75yrsCN¥352.00kno data
Kong Wai Lee
Independent Non-Executive Director9.5yrsCN¥352.00kno data
Da Zhong Zhang
Chairman of the Board9.5yrsCN¥352.00kno data
Hong Yu Liu
Independent Non-Executive Director7.25yrsCN¥352.00kno data
Xiu Hong Huang
Non-Executive Director5.25yrsCN¥352.00kno data
Gao Wang
Independent Non-Executive Director5.25yrsCN¥352.00kno data
Sing Wong Yu
Non-Executive Director5.25yrsCN¥352.00kno data

7.3yrs

Average Tenure

57yo

Average Age

Experienced Board: 493's board of directors are considered experienced (7.3 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.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

GOME Retail Holdings Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: GOME Retail Holdings Limited
  • Ticker: 493
  • Exchange: SEHK
  • Founded: 1987
  • Industry: Computer and Electronics Retail
  • Sector: Retail
  • Market Cap: HK$19.464b
  • Shares outstanding: 20.07b
  • Website: https://www.gome.com.hk

Number of Employees


Location

  • GOME Retail Holdings Limited
  • Eagle Plaza
  • 19A/F, Block B
  • Beijing
  • 100016
  • China

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
493SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDSep 2004
GMEL.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDSep 2004
CKS2DB (Deutsche Boerse AG)YesOrdinary SharesDEEURSep 2004
CKS2BST (Boerse-Stuttgart)YesOrdinary SharesDEEURSep 2004
493SHSC (Stock Exchange of Hong Kong Limited - Shanghai - Hong Kong Stock Connect)YesOrdinary SharesHKHKDSep 2004
493SZSC (The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect)YesOrdinary SharesHKHKDSep 2004
GMEL.YOTCPK (Pink Sheets LLC)UNSPONSORED ADRUSUSDNov 2008

Biography

GOME Retail Holdings Limited, together with its subsidiaries, engages in the retail of home appliances and consumer electronic products in the People’s Republic of China. The company is also involved in th ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/09/25 20:48
End of Day Share Price2020/09/25 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.