NZSE:HGH

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Heartland Group Holdings

Market Cap

NZ$1.2b

Last Updated

2021/06/13 07:00 UTC

Data Sources

Company Financials +

Executive Summary

Heartland Group Holdings Limited operates as the bank holding company for Heartland Bank Limited that provides various financial services in New Zealand and Australia. More Details


Snowflake Analysis

Adequate balance sheet second-rate dividend payer.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: HGH is less volatile than 75% of NZ stocks over the past 3 months, typically moving +/- 2% a week.

Volatility Over Time: HGH's weekly volatility (2%) has been stable over the past year.


Market Performance


7 Day Return

1.5%

HGH

-2.3%

NZ Banks

-0.3%

NZ Market


1 Year Return

50.4%

HGH

47.7%

NZ Banks

14.0%

NZ Market

Return vs Industry: HGH exceeded the NZ Banks industry which returned 47.7% over the past year.

Return vs Market: HGH exceeded the NZ Market which returned 14% over the past year.


Shareholder returns

HGHIndustryMarket
7 Day1.5%-2.3%-0.3%
30 Day5.9%4.2%-0.2%
90 Day7.1%8.2%-1.4%
1 Year57.9%50.4%53.6%47.7%17.2%14.0%
3 Year37.1%13.2%32.0%14.0%37.7%21.2%
5 Year110.3%52.7%50.7%15.8%80.1%38.2%

Long-Term Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Heartland Group Holdings undervalued compared to its fair value and its price relative to the market?

5.1%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: HGH (NZ$1.97) is trading below our estimate of fair value (NZ$2.08)

Significantly Below Fair Value: HGH is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: HGH's PE Ratio (15x) is in line with the Oceanic Banks industry average.

PE vs Market: HGH is good value based on its PE Ratio (15x) compared to the NZ market (22.2x).


Price to Earnings Growth Ratio

PEG Ratio: HGH is poor value based on its PEG Ratio (2.3x)


Price to Book Ratio

PB vs Industry: HGH is overvalued based on its PB Ratio (1.6x) compared to the XO Banks industry average (0.9x).


Future Growth

How is Heartland Group Holdings forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

6.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: HGH's forecast earnings growth (6.4% per year) is above the savings rate (2.1%).

Earnings vs Market: HGH's earnings (6.4% per year) are forecast to grow slower than the NZ market (13.2% per year).

High Growth Earnings: HGH's earnings are forecast to grow, but not significantly.

Revenue vs Market: HGH's revenue (5.3% per year) is forecast to grow slower than the NZ market (6% per year).

High Growth Revenue: HGH's revenue (5.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: HGH's Return on Equity is forecast to be low in 3 years time (11.4%).


Past Performance

How has Heartland Group Holdings performed over the past 5 years?

8.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: HGH has high quality earnings.

Growing Profit Margin: HGH's current net profit margins (35.1%) are lower than last year (38.6%).


Past Earnings Growth Analysis

Earnings Trend: HGH's earnings have grown by 8.3% per year over the past 5 years.

Accelerating Growth: HGH's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: HGH had negative earnings growth (-5.1%) over the past year, making it difficult to compare to the Banks industry average (-5.1%).


Return on Equity

High ROE: HGH's Return on Equity (10.3%) is considered low.


Financial Health

How is Heartland Group Holdings's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet


Financial Institutions Analysis

Asset Level: HGH's Assets to Equity ratio (7.4x) is low.

Allowance for Bad Loans: HGH has a low allowance for bad loans (67%).

Low Risk Liabilities: 70% of HGH's liabilities are made up of primarily low risk sources of funding.

Loan Level: HGH has an appropriate level of Loans to Assets ratio (86%).

Low Risk Deposits: HGH's Loans to Deposits ratio (142%) is high.

Level of Bad Loans: HGH has an appropriate level of bad loans (1.8%).


Dividend

What is Heartland Group Holdings's current dividend yield, its reliability and sustainability?

3.30%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: HGH's dividend (3.3%) is higher than the bottom 25% of dividend payers in the NZ market (2.34%).

High Dividend: HGH's dividend (3.3%) is low compared to the top 25% of dividend payers in the NZ market (4.53%).


Stability and Growth of Payments

Stable Dividend: HGH has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: HGH's dividend payments have increased, but the company has only paid a dividend for 8 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (49.5%), HGH's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: HGH's dividends in 3 years are forecast to be covered by earnings (71.7% payout ratio).


Next Steps

Management

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

1.3yrs

Average management tenure


CEO

Jeff Greenslade

no data

Tenure

NZ$2,118,612

Compensation

Mr. Jeffrey Kenneth Greenslade, also known as Jeff, LLB, serves as Chief Executive Officer of Heartland Group Holdings Ltd. He serves as Non-Independent Non-Executive Director of Heartland Bank Limited and...


CEO Compensation Analysis

Compensation vs Market: Insufficient data to establish whether Jeff's total compensation is reasonable compared to companies of similar size in the NZ market.

Compensation vs Earnings: Jeff's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Leadership Team

Experienced Management: HGH's management team is not considered experienced ( 1.3 years average tenure), which suggests a new team.


Board Members

Experienced Board: HGH's board of directors are not considered experienced ( 2.7 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: HGH insiders have sold more shares than they have bought 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

Heartland Group Holdings Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Heartland Group Holdings Limited
  • Ticker: HGH
  • Exchange: NZSE
  • Founded: 1875
  • Industry: Diversified Banks
  • Sector: Banks
  • Market Cap: NZ$1.154b
  • Shares outstanding: 585.90m
  • Website: https://www.heartland.co.nz

Number of Employees


Location

  • Heartland Group Holdings Limited
  • Heartland House
  • Level 3
  • Auckland
  • 1023
  • New Zealand

Listings


Biography

Heartland Group Holdings Limited operates as the bank holding company for Heartland Bank Limited that provides various financial services in New Zealand and Australia. The company offers savings accounts, ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/06/13 07:00
End of Day Share Price2021/06/11 00:00
Earnings2020/12/31
Annual Earnings2020/06/30


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.