SEHK:1337

Stock Analysis Report

Executive Summary

Razer Inc. designs, develops, and sells gaming hardware, software, and services under the Razer brand for gamers worldwide.

Rewards

Earnings are forecast to grow 108.65% per year

Risk Analysis

Highly volatile share price over past 3 months

Shareholders have been diluted in the past year



Snowflake Analysis

Flawless balance sheet with reasonable growth potential.


Similar Companies

Share Price & News

How has Razer's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 1337's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-2.4%

1337

2.1%

HK Tech

0.9%

HK Market


1 Year Return

8.9%

1337

-25.9%

HK Tech

-1.5%

HK Market

Return vs Industry: 1337 exceeded the Hong Kong Tech industry which returned -25.9% over the past year.

Return vs Market: 1337 exceeded the Hong Kong Market which returned -1.5% over the past year.


Shareholder returns

1337IndustryMarket
7 Day-2.4%2.1%0.9%
30 Day-18.5%-1.4%-3.7%
90 Day-21.2%-2.6%-0.1%
1 Year8.9%8.9%-25.2%-25.9%2.0%-1.5%
3 Yearn/a-2.7%-11.3%17.3%5.4%
5 Yearn/a-32.3%-45.8%17.1%-2.2%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Razer undervalued compared to its fair value and its price relative to the market?

2.32x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate 1337's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate 1337's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: 1337 is unprofitable, so we can't compare its PE Ratio to the Tech industry average.

PE vs Market: 1337 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 1337's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 1337 is overvalued based on its PB Ratio (2.3x) compared to the HK Tech industry average (0.9x).


Next Steps

Future Growth

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

108.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 1337 is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (1.6%).

Earnings vs Market: 1337 is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: 1337's is expected to become profitable in the next 3 years.

Revenue vs Market: 1337's revenue (18.8% per year) is forecast to grow faster than the Hong Kong market (9.7% per year).

High Growth Revenue: 1337's revenue (18.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 1337's Return on Equity is forecast to be low in 3 years time (4.1%).


Next Steps

Past Performance

How has Razer performed over the past 5 years?

-30.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 1337 is currently unprofitable.

Growing Profit Margin: 1337 is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: 1337 is unprofitable, and losses have increased over the past 5 years at a rate of -30.5% per year.

Accelerating Growth: Unable to compare 1337's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: 1337 is unprofitable, making it difficult to compare its past year earnings growth to the Tech industry (21.5%).


Return on Equity

High ROE: 1337 has a negative Return on Equity (-14.78%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Razer's financial position?


Financial Position Analysis

Short Term Liabilities: 1337's short term assets ($783.2M) exceed its short term liabilities ($319.9M).

Long Term Liabilities: 1337's short term assets ($783.2M) exceed its long term liabilities ($18.0M).


Debt to Equity History and Analysis

Debt Level: 1337 is debt free.

Reducing Debt: 1337 had no debt 5 years ago.


Balance Sheet

Inventory Level: 1337 has a low level of unsold assets or inventory.

Debt Coverage by Assets: 1337's debt is covered by short term assets (assets are 4.4090015171975E+17x 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: 1337 has sufficient cash runway for more than 3 years based on its current free cash flow.

Forecast Cash Runway: 1337 has sufficient cash runway for more than 3 years if free cash flow continues to reduce at historical rates of -46.1% each year


Next Steps

Dividend

What is Razer's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%2.2%markettop25%6.3%industryaverage3.8%forecastin3Years0%

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate 1337's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate 1337'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 1337's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 1337'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 1337'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 Razer's salary, the management and board of directors tenure and is there insider trading?

6.5yrs

Average management tenure


CEO

Min-Liang Tan (41yo)

13.3yrs

Tenure

US$1,929,000

Compensation

Mr. Min-Liang Tan Co-founded Razer Inc. in 1998 and has been its Chief Executive Officer and Creative Director since September 1, 2006. He is Member of the Global Advisory Council at CyLon Limited since De ...


CEO Compensation Analysis

Compensation vs Market: Min-Liang's total compensation ($USD1.93M) is above average for companies of similar size in the Hong Kong market ($USD556.87K).

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


Management Age and Tenure

6.5yrs

Average Tenure

49.5yo

Average Age

Experienced Management: 1337's management team is seasoned and experienced (6.5 years average tenure).


Board Age and Tenure

2.5yrs

Average Tenure

55.5yo

Average Age

Experienced Board: 1337's board of directors are not considered experienced ( 2.5 years average tenure), which suggests a new board.


Insider Trading

Insider Buying: 1337 insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellUS$1,907,72926 Nov 19
Thiong Joo Chan
EntityIndividual
Role
Member of the Board of Directors
CFO & Executive Director
Shares1,353,000
Max PriceUS$1.41
SellUS$2,569,92026 Nov 19
Thiong Joo Chan
EntityIndividual
Role
Member of the Board of Directors
CFO & Executive Director
Shares1,835,000
Max PriceUS$1.40
SellUS$117,749,32913 Nov 19
Min-Liang Tan
EntityIndividual
Role
Chief Executive Officer
Co-Founder
Shares83,510,000
Max PriceUS$1.41

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 21.3%.


Management Team

  • Khaw Joo (71yo)

    Chief Operating Officer

    • Tenure: 2.5yrs
    • Compensation: US$3.60m
  • Min-Liang Tan (41yo)

    Co-Founder

    • Tenure: 13.3yrs
    • Compensation: US$1.93m
  • Wei-Pin Choo (47yo)

    Chief Legal Officer & Joint Company Secretary

    • Tenure: 2.8yrs
  • Wai Chan (52yo)

    Joint Company Secretary

    • Tenure: 0yrs
  • Edwin Chan (42yo)

    CFO & Executive Director

    • Tenure: 2.5yrs
    • Compensation: US$2.27m
  • Patricia Liu (55yo)

    Executive Director & Chief of Staff

    • Tenure: 0.8yrs

Board Members

  • Kevin Chau (58yo)

    Independent Non-Executive Director

    • Tenure: 2.2yrs
    • Compensation: US$106.00k
  • Khaw Joo (71yo)

    Chief Operating Officer

    • Tenure: 2.5yrs
    • Compensation: US$3.60m
  • Yong Sun Lee (74yo)

    Independent Non-Executive Director

    • Tenure: 2.2yrs
    • Compensation: US$77.00k
  • Gideon Yu (48yo)

    Independent Non-Executive Director

    • Tenure: 2.2yrs
    • Compensation: US$191.00k
  • Ed Fries

    Member of Board of Advisors

    • Tenure: 8.9yrs
  • Rahul Sood

    Member of Board of Advisors

    • Tenure: 0yrs
  • Min-Liang Tan (41yo)

    Co-Founder

    • Tenure: 13.3yrs
    • Compensation: US$1.93m
  • Edwin Chan (42yo)

    CFO & Executive Director

    • Tenure: 2.5yrs
    • Compensation: US$2.27m
  • Kaling Lim (56yo)

    Non-Executive Director

    • Tenure: 2.5yrs
    • Compensation: US$94.00k
  • Patricia Liu (55yo)

    Executive Director & Chief of Staff

    • Tenure: 0.8yrs

Company Information

Razer Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Razer Inc.
  • Ticker: 1337
  • Exchange: SEHK
  • Founded: 2005
  • Industry: Technology Hardware, Storage and Peripherals
  • Sector: Tech
  • Market Cap: HK$11.074b
  • Shares outstanding: 8.93b
  • Website: https://www.razer.com

Number of Employees


Location

  • Razer Inc.
  • 201 3rd Street
  • Suite 900
  • San Francisco
  • California
  • 94103
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
5RZBST (Boerse-Stuttgart)YesOrdinary SharesDEEURNov 2017
1337SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDNov 2017
RAZF.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDNov 2017
RZZR.YOTCPK (Pink Sheets LLC)UNSPONSORD ADRUSUSDJan 2018

Biography

Razer Inc. designs, develops, and sells gaming hardware, software, and services under the Razer brand for gamers worldwide. The company operates through four segments: Peripherals, Systems, Software and Se ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/09 12:58
End of Day Share Price2019/12/09 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.