NZSE:KMD

Stock Analysis Report

Kathmandu Holdings

Executive Summary

Kathmandu Holdings Limited, together with its subsidiaries, designs, markets, and retails clothing and equipment for travel and adventure in New Zealand, Australia, the United States, and the United Kingdom.

Snowflake

Fundamentals

Flawless balance sheet with solid track record and pays a dividend.


Similar Companies

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

-2.4%

NZSE:KMD

-0.9%

NZ Specialty Retail

-0.7%

NZ Market


1 Year Return

-22.2%

NZSE:KMD

-9.2%

NZ Specialty Retail

11.1%

NZ Market

KMD underperformed the Specialty Retail industry which returned -8.7% over the past year.

KMD underperformed the Market in New Zealand which returned 10.5% over the past year.


Share holder returns

KMDIndustryMarket
7 Day-2.4%-0.9%-0.7%
30 Day13.9%4.9%-0.2%
90 Day10.3%3.8%4.1%
1 Year-16.9%-22.2%-2.3%-9.2%16.1%11.1%
3 Year45.8%19.4%32.9%9.2%41.8%22.5%
5 Year4.9%-23.8%54.3%11.9%102.2%56.2%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Kathmandu Holdings undervalued based on future cash flows and its price relative to the stock market?

6%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Kathmandu Holdings's share price is below the future cash flow value, but not at a moderate discount (< 20%).

Kathmandu Holdings's share price is below the future cash flow value, but not at a substantial discount (< 40%).


Price Based on Earnings

Kathmandu Holdings is good value based on earnings compared to the NZ Specialty Retail industry average.

Kathmandu Holdings is good value based on earnings compared to the New Zealand market.


Price Based on Expected Growth

Kathmandu Holdings is poor value based on expected growth next year.


Price Based on Value of Assets

Kathmandu Holdings is good value based on assets compared to the NZ Specialty Retail industry average.


Next Steps

Future Growth

How is Kathmandu Holdings expected to perform in the next 1 to 3 years based on estimates from 6 analysts?

3.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Kathmandu Holdings's revenue is expected to grow by 4.9% yearly, however this is not considered high growth (20% yearly).

Kathmandu Holdings's earnings are expected to grow by 3.6% yearly, however this is not considered high growth (20% yearly).

Kathmandu Holdings's revenue growth is expected to exceed the New Zealand market average.

Kathmandu Holdings's earnings growth is positive but not above the New Zealand market average.

Kathmandu Holdings's earnings growth is expected to exceed the low risk savings rate of 2.4%.


Earnings per Share Growth Estimates


Future Return on Equity

Kathmandu Holdings is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


Next Steps

Past Performance

How has Kathmandu Holdings performed over the past 5 years?

7.3%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Kathmandu Holdings's year on year earnings growth rate has been positive over the past 5 years.

Kathmandu Holdings's 1-year earnings growth exceeds its 5-year average (29.5% vs 7.3%)

Kathmandu Holdings's earnings growth has exceeded the NZ Specialty Retail industry average in the past year (29.5% vs 0.3%).


Return on Equity

Kathmandu Holdings has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Kathmandu Holdings used its assets more efficiently than the NZ Specialty Retail industry average last year based on Return on Assets.


Return on Capital Employed

Kathmandu Holdings has improved its use of capital last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Kathmandu Holdings's financial position?


Financial Position Analysis

Kathmandu Holdings is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Kathmandu Holdings's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

Kathmandu Holdings's level of debt (20.9%) compared to net worth is satisfactory (less than 40%).

The level of debt compared to net worth has been reduced over the past 5 years (30% vs 20.9% today).

Debt is well covered by operating cash flow (50.7%, greater than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 46.8x coverage).


Balance Sheet

High level of physical assets or inventory.

Debt is covered by short term assets, assets are 2.1x debt.


Next Steps

Dividend

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

6.71%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Kathmandu Holdings's pays a higher dividend yield than the bottom 25% of dividend payers in New Zealand (3.25%).

Kathmandu Holdings's dividend is above the markets top 25% of dividend payers in New Zealand (5.92%).

Kathmandu Holdings has been paying a dividend for less than 10 years and during this time payments have been volatile (annual drop of over 20%).

Dividend payments have increased, but Kathmandu Holdings only paid a dividend in the past 9 years.


Current Payout to Shareholders

Dividends paid are covered by earnings (1.6x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be covered by earnings (1.6x coverage).


Next Steps

Management

What is the CEO of Kathmandu Holdings's salary, the management and board of directors tenure and is there insider trading?

4.2yrs

Average management tenure


CEO

Xavier Simonet 0

4.2yrs

Tenure

NZ$1,806,952

Compensation

Mr. Xavier Simonet has been the Chief Executive Officer, Managing Director and Executive Director at Kathmandu Holdings Limited since June 29, 2015. Mr. Simonet has wide experience in retailing and brand d ...


CEO Compensation Analysis

Xavier's remuneration is higher than average for companies of similar size in New Zealand.

Xavier's compensation has increased by more than 20% in the past year whilst earnings grew less than 20%.


Management Age and Tenure

4.2yrs

Average Tenure

The tenure for the Kathmandu Holdings management team is about average.


Board Age and Tenure

4.8yrs

Average Tenure

62yo

Average Age

The tenure for the Kathmandu Holdings board of directors is about average.


Insider Trading

No 3 month open market individual insider trading information.


Recent Insider Transactions

SellNZ$218,03031 Jul 19
Accident Compensation Corporation, Asset Management Arm
EntityCompany
Shares100,000
Max PriceNZ$2.18
BuyNZ$1,811,30331 Jul 19
Accident Compensation Corporation, Asset Management Arm
EntityCompany
Shares846,858
Max PriceNZ$2.19

Ownership Breakdown


Management Team

  • Caleb Nicolson

    General Manager of Supply Chain

    • Tenure: 0.0yrs
    • Compensation: NZ$262.43k
  • Paul Stern

    General Manager of Marketing & Online

    • Tenure: 4.7yrs
    • Compensation: NZ$360.08k
  • Reuben Casey

    Chief Operating Officer

    • Tenure: 1.9yrs
    • Compensation: NZ$712.00k
  • Rebecca Edwards

    General Manager of Group Human Resources

    • Tenure: 5.3yrs
  • Xavier Simonet

    MD, CEO & Executive Director

    • Tenure: 4.2yrs
    • Compensation: NZ$1.81m
  • Jolann van Dyk

    Chief Information Officer

    • Tenure: 4.3yrs
  • Amy Beck

    President of Oboz/Kathmandu North America

    • Tenure: 0.6yrs
  • John Connelly

    Founder

    • Tenure: 0.0yrs
  • Chris Kinraid

    CFO & Company Secretary

    • Tenure: 0.3yrs

Board Members

  • Philip Bowman (66yo)

    Non-Executive Independent Director

    • Tenure: 1.8yrs
    • Compensation: NZ$105.20k
  • Sandra McPhee (73yo)

    Non-Executive Director

    • Tenure: 10.6yrs
    • Compensation: NZ$126.24k
  • David Kirk (58yo)

    Chairman

    • Tenure: 5.5yrs
    • Compensation: NZ$241.30k
  • Brent Scrimshaw (51yo)

    Non-Executive Independent Director

    • Tenure: 1.8yrs
    • Compensation: NZ$105.20k
  • Edward Harvey

    Non-Executive Director

    • Tenure: 9.8yrs
    • Compensation: NZ$126.24k
  • Xavier Simonet

    MD, CEO & Executive Director

    • Tenure: 4.2yrs
    • Compensation: NZ$1.81m
  • Andrea Martens

    Director

    • Tenure: 0.0yrs

Company Information

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


Key Information

  • Name: Kathmandu Holdings Limited
  • Ticker: KMD
  • Exchange: NZSE
  • Founded: 1987
  • Industry: Specialty Stores
  • Sector: Retail
  • Market Cap: NZ$560.047m
  • Shares outstanding: 226.74m
  • Website: https://www.kathmanduholdings.com

Number of Employees


Location

  • Kathmandu Holdings Limited
  • 223 Tuam Street
  • Christchurch Central
  • Christchurch
  • New Zealand

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
KMDNZSE (New Zealand Stock Exchange)YesNew Ordinary SharesNZNZDNov 2009
KMDASX (Australian Securities Exchange)YesNew Ordinary SharesAUAUDNov 2009
KD2BST (Boerse-Stuttgart)YesNew Ordinary SharesDEEURNov 2009
KMDCHIA (Chi-X Australia)YesNew Ordinary SharesAUAUDNov 2009

Biography

Kathmandu Holdings Limited, together with its subsidiaries, designs, markets, and retails clothing and equipment for travel and adventure in New Zealand, Australia, the United States, and the United Kingdo ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/08/20 10:35
End of Day Share Price2019/08/20 00:00
Earnings2019/01/31
Annual Earnings2018/07/31


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.