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HGH

Heartland Group Holdings NZSE:HGH Stock Report

Last Price

NZ$1.63

Market Cap

NZ$1.1b

7D

-9.4%

1Y

-29.7%

Updated

29 Sep, 2022

Data

Company Financials +
HGH fundamental analysis
Snowflake Score
Valuation3/6
Future Growth3/6
Past Performance4/6
Financial Health3/6
Dividends5/6

HGH Stock Overview

Heartland Group Holdings Limited provides various financial services in New Zealand and Australia.

Heartland Group Holdings Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Heartland Group Holdings
Historical stock prices
Current Share PriceNZ$1.63
52 Week HighNZ$2.59
52 Week LowNZ$1.62
Beta1.14
1 Month Change-9.95%
3 Month Change-14.66%
1 Year Change-29.74%
3 Year Change2.52%
5 Year Change-8.43%
Change since IPO89.54%

Recent News & Updates

Aug 24
Should You Be Adding Heartland Group Holdings (NZSE:HGH) To Your Watchlist Today?

Should You Be Adding Heartland Group Holdings (NZSE:HGH) To Your Watchlist Today?

Investors are often guided by the idea of discovering 'the next big thing', even if that means buying 'story stocks...

Shareholder Returns

HGHNZ BanksNZ Market
7D-9.4%-3.0%-3.4%
1Y-29.7%-11.5%-19.1%

Return vs Industry: HGH underperformed the NZ Banks industry which returned -11.5% over the past year.

Return vs Market: HGH underperformed the NZ Market which returned -19.1% over the past year.

Price Volatility

Is HGH's price volatile compared to industry and market?
HGH volatility
HGH Average Weekly Movement4.7%
Banks Industry Average Movement3.6%
Market Average Movement3.9%
10% most volatile stocks in NZ Market7.7%
10% least volatile stocks in NZ Market2.8%

Stable Share Price: HGH is not significantly more volatile than the rest of NZ stocks over the past 3 months, typically moving +/- 5% a week.

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

About the Company

FoundedEmployeesCEOWebsite
1875n/aJeff Greensladehttps://shareholders.heartland.co.nz

Heartland Group Holdings Limited provides various financial services in New Zealand and Australia. The company offers savings accounts, term deposits, and direct and business call accounts. It also provides home loans, business loans, term loans, revolving credit, car loans, and reverse mortgage lending and other financial services.

Heartland Group Holdings Fundamentals Summary

How do Heartland Group Holdings's earnings and revenue compare to its market cap?
HGH fundamental statistics
Market CapNZ$1.14b
Earnings (TTM)NZ$95.13m
Revenue (TTM)NZ$253.79m

12.1x

P/E Ratio

1.4x

P/B Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
HGH income statement (TTM)
RevenueNZ$253.79m
Cost of RevenueNZ$0
Gross ProfitNZ$253.79m
Other ExpensesNZ$158.67m
EarningsNZ$95.13m

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

n/a

Earnings per share (EPS)0.13
Gross Margin100.00%
Net Profit Margin37.48%
Debt/Equity Ratio319.6%

How did HGH perform over the long term?

See historical performance and comparison

Dividends

6.7%

Current Dividend Yield

68%

Payout Ratio
We’ve recently updated our valuation analysis.

Valuation

Is HGH undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for HGH?

Other financial metrics that can be useful for relative valuation.

HGH 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/Revenuen/a
Enterprise Value/EBITDAn/a
PEG Ratio1.4x

Price to Earnings Ratio vs Peers

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

HGH PE Ratio vs Peers
The above table shows the PE ratio for HGH vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average7.4x
2897 O-Bank
12.6xn/aNT$22.0b
BJTM Bank Pembangunan Daerah Jawa Timur
7x19.3%Rp10.7t
ALR Alior Bank
5.1x13.0%zł3.2b
RCB Rizal Commercial Banking
4.7xn/a₱42.2b
HGH Heartland Group Holdings
12.1x8.5%NZ$1.1b

Price-To-Earnings vs Peers: HGH is expensive based on its Price-To-Earnings Ratio (12.1x) compared to the peer average (7.4x).


Price to Earnings Ratio vs Industry

How does HGH's PE Ratio compare vs other companies in the Global Banks Industry?

Price-To-Earnings vs Industry: HGH is expensive based on its Price-To-Earnings Ratio (12.1x) compared to the Global Banks industry average (8.9x)


Price to Earnings Ratio vs Fair Ratio

What is HGH'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.

HGH PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio12.1x
Fair PE Ration/a

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


Share Price vs Fair Value

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

Below Fair Value: HGH (NZ$1.63) is trading below our estimate of fair value (NZ$2.64)

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


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Target price is more than 20% higher than the current share price and analysts are within a statistically confident range of agreement.


Discover undervalued companies

Future Growth

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

Future Growth Score

3/6

Future Growth Score 3/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


8.5%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: HGH's forecast earnings growth (8.5% per year) is above the savings rate (2.1%).

Earnings vs Market: HGH's earnings (8.5% per year) are forecast to grow faster than the NZ market (6% per year).

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

Revenue vs Market: HGH's revenue (7.6% per year) is forecast to grow faster than the NZ market (5.6% per year).

High Growth Revenue: HGH's revenue (7.6% 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%).


Discover growth companies

Past Performance

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

Past Performance Score

4/6

Past Performance Score 4/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


8.3%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: HGH has a high level of non-cash earnings.

Growing Profit Margin: HGH's current net profit margins (37.5%) are higher than last year (36.8%).


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 earnings growth over the past year (9.3%) exceeds its 5-year average (8.3% per year).

Earnings vs Industry: HGH earnings growth over the past year (9.3%) exceeded the Banks industry 1.2%.


Return on Equity

High ROE: HGH's Return on Equity (11.8%) is considered low.


Discover strong past performing companies

Financial Health

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

Financial Health Score

3/6

Financial Health Score 3/6

  • Asset Level

  • Allowance for Bad Loans

  • Low Risk Liabilities

  • Loan Level

  • Low Risk Deposits

  • Level of Bad Loans

Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet


Financial Institutions Analysis

Asset Level: HGH's Assets to Equity ratio (8.8x) is low.

Allowance for Bad Loans: HGH has a low allowance for bad loans (38%).

Low Risk Liabilities: 57% 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 (87%).

Low Risk Deposits: HGH's Loans to Deposits ratio (171%) is high.

Level of Bad Loans: HGH has a high level of bad loans (2.2%).


Discover healthy companies

Dividend

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

Dividend Score

5/6

Dividend Score 5/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Future Dividend Coverage


6.75%

Current Dividend Yield

Dividend Yield vs Market

Heartland Group Holdings Dividend Yield vs Market
How does Heartland Group Holdings dividend yield compare to the market?
SegmentDividend Yield
Company (Heartland Group Holdings)6.7%
Market Bottom 25% (NZ)2.8%
Market Top 25% (NZ)6.3%
Industry Average (Banks)5.1%
Analyst forecast in 3 Years (Heartland Group Holdings)7.9%

Notable Dividend: HGH's dividend (6.75%) is higher than the bottom 25% of dividend payers in the NZ market (2.85%).

High Dividend: HGH's dividend (6.75%) is in the top 25% of dividend payers in the NZ market (6.28%)


Stability and Growth of Payments

Stable Dividend: HGH's dividend payments have been volatile in the past 10 years.

Growing Dividend: HGH's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Earnings Coverage: With its reasonable payout ratio (68.2%), HGH's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: HGH's dividends in 3 years are forecast to be covered by earnings (76.6% payout ratio).


Discover strong dividend paying companies

Management

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

0.4yrs

Average management tenure


CEO

Jeff Greenslade

4.17yrs

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

Jeff Greenslade's Compensation vs Heartland Group Holdings Earnings
How has Jeff Greenslade's remuneration changed compared to Heartland Group Holdings's earnings?
DateTotal Comp.SalaryCompany Earnings
Jun 30 2022n/an/a

NZ$95m

Mar 31 2022n/an/a

NZ$93m

Dec 31 2021n/an/a

NZ$90m

Sep 30 2021n/an/a

NZ$89m

Jun 30 2021n/an/a

NZ$87m

Mar 31 2021n/an/a

NZ$82m

Dec 31 2020n/an/a

NZ$76m

Sep 30 2020n/an/a

NZ$74m

Jun 30 2020n/an/a

NZ$72m

Mar 31 2020n/an/a

NZ$76m

Dec 31 2019n/an/a

NZ$80m

Sep 30 2019n/an/a

NZ$77m

Jun 30 2019n/an/a

NZ$74m

Mar 31 2019n/an/a

NZ$72m

Dec 31 2018n/an/a

NZ$70m

Sep 30 2018n/an/a

NZ$68m

Jun 30 2018n/an/a

NZ$68m

Mar 31 2018n/an/a

NZ$65m

Dec 31 2017n/an/a

NZ$63m

Sep 30 2017n/an/a

NZ$63m

Jun 30 2017n/an/a

NZ$61m

Mar 31 2017n/an/a

NZ$59m

Dec 31 2016n/an/a

NZ$58m

Sep 30 2016n/an/a

NZ$57m

Jun 30 2016NZ$2mNZ$900k

NZ$54m

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: Insufficient data to compare Jeff's compensation with company performance.


Leadership Team

Experienced Management: HGH's management team is not considered experienced ( 0.4 years average tenure), which suggests a new team.


Board Members

Experienced Board: HGH's board of directors are considered experienced (3.9 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

NZSE:HGH Recent Insider Transactions by Companies or Individuals
DateValueNameEntityRoleSharesMax Price
24 Mar 22SellNZ$91,455Laura ByrneIndividual40,000NZ$2.29
15 Dec 21SellNZ$94,600Laura ByrneIndividual40,000NZ$2.36

Ownership Breakdown

What is the ownership structure of HGH?
Owner TypeNumber of SharesOwnership Percentage
Company Controlled Foundation6,475,9760.9%
Institutions70,341,51910.0%
Individual Insiders87,795,24312.4%
General Public540,708,65076.7%

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 19.6%.


Top Shareholders

Top 25 shareholders own 23.27% of the company
OwnershipNameSharesCurrent ValueChange %Portfolio %
9.83%
Gregory Tomlinson
69,335,936NZ$113.0m18.74%no data
2.12%
Oceania & Eastern Limited
14,933,951NZ$24.3m12.56%100%
1.97%
The Vanguard Group, Inc.
13,868,368NZ$22.6m8.27%no data
1.62%
Philip Carter
11,416,647NZ$18.6m0%no data
1.43%
Accident Compensation Corporation, Asset Management Arm
10,092,152NZ$16.5m0%0.39%
1.29%
Dimensional Fund Advisors LP
9,119,351NZ$14.9m-1.32%no data
1.09%
JPMorgan Chase & Co, Private Banking and Investment Banking Investments
7,676,933NZ$12.5m0%no data
0.92%
Heartland Trust, Endowment Arm
6,475,976NZ$10.6m0%100%
0.65%
Smartshares Limited
4,573,924NZ$7.5m0%1.02%
0.65%
Norges Bank Investment Management
4,566,990NZ$7.4m0%no data
0.47%
Public Trust of New Zealand, Asset Management Arm
3,292,937NZ$5.4m0%9.93%
0.35%
Jeffrey Greenslade
2,475,514NZ$4.0m24.21%no data
0.26%
Christopher Patrick Flood
1,862,066NZ$3.0m15.05%no data
0.15%
Christopher Mace
1,070,204NZ$1.7m0%no data
0.11%
Charles Schwab Investment Management, Inc.
759,734NZ$1.2m1.93%no data
0.093%
AXA Investment Managers S.A.
654,526NZ$1.1m0%no data
0.076%
Mary Irvine
532,829NZ$868.5k11.11%no data
0.048%
Andrew Dixson
338,796NZ$552.2k42.41%no data
0.029%
Eaton Vance Management
203,043NZ$331.0k0%no data
0.026%
State Street Global Advisors, Inc.
181,810NZ$296.4k0.9%no data
0.024%
Bruce Irvine
166,573NZ$271.5k20.46%no data
0.022%
Shelley Ruha
158,536NZ$258.4k0%no data
0.022%
Edward Harvey
157,971NZ$257.5k6.89%no data
0.016%
Michael Drumm
111,757NZ$182.2k512.37%no data
0.015%
Kathryn Mitchell
108,088NZ$176.2k103.6%no data

Company Information

Heartland Group Holdings Limited's 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
  • Implied Market Cap: NZ$1.143b
  • Shares outstanding: 705.32m
  • Website: https://shareholders.heartland.co.nz

Number of Employees


Location

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


Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
HGHNZSE (New Zealand Stock Exchange)YesNew Ordinary SharesNZNZDFeb 2011
HGHASX (Australian Securities Exchange)YesNew Ordinary SharesAUAUDFeb 2011
HGHCHIA (Chi-X Australia)YesNew Ordinary SharesAUAUDFeb 2011
73XBST (Boerse-Stuttgart)YesNew Ordinary SharesDEEURFeb 2011

Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/09/29 00:00
End of Day Share Price2022/09/29 00:00
Earnings2022/06/30
Annual Earnings2022/06/30


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.