AllHome (PSE:HOME) - Share price, News & Analysis

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

HOME (₱4.92) is trading below our estimate of [[fair value]] (₱5.67)

HOME fundamental analysis
Snowflake Score
Valuation	3/6
Future Growth	4/6
Past Performance	1/6
Financial Health	6/6
Dividends	1/6

HOME Stock Overview

AllHome Corp. operates as a home improvement retailer in the Philippines.

Rewards

Trading at 13.3% below our estimate of its fair value

Earnings are forecast to grow 34.37% per year

Risk Analysis

Large one-off items impacting financial results

AllHome Competitors

Wilcon Depot

PSE:WLCON

₱126.9b

SSI Group

PSE:SSI

₱5.0b

Beacon Lighting Group

ASX:BLX

AU$491.3m

Bourrelier Group

ENXTPA:ALBOU

€298.6m

Price History & Performance

Summary of all time highs, changes and price drops for AllHome
Historical stock prices
Current Share Price	₱4.92
52 Week High	₱11.08
52 Week Low	₱4.29
Beta	1.94
1 Month Change	14.69%
3 Month Change	-15.46%
1 Year Change	-33.51%
3 Year Change	n/a
5 Year Change	n/a
Change since IPO	-57.44%

Shareholder Returns

	HOME	PH Specialty Retail	PH Market
7D	0.4%	1.5%	4.9%
1Y	-33.5%	-10.4%	4.0%

Return vs Industry: HOME underperformed the PH Specialty Retail industry which returned -10.4% over the past year.

Return vs Market: HOME underperformed the PH Market which returned 4% over the past year.

Price Volatility

Is HOME's price volatile compared to industry and market?
HOME volatility
HOME Average Weekly Movement	6.7%
Specialty Retail Industry Average Movement	5.0%
Market Average Movement	5.5%
10% most volatile stocks in PH Market	10.0%
10% least volatile stocks in PH Market	3.0%

Stable Share Price: HOME is not significantly more volatile than the rest of PH stocks over the past 3 months, typically moving +/- 7% a week.

Volatility Over Time: HOME's weekly volatility (7%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
2013	639	Benjamarie Serrano	https://allhome.com.ph

AllHome Corp. operates as a home improvement retailer in the Philippines. It offers office, living, dining, bedroom, outdoor, and children’s furniture; hardware products, such as electrical supplies and accessories, lighting, plumbing, paints and sundries, hardware, power and hand tools, automotive, and lawn and garden products; and appliances, including air-conditioners, refrigerators and freezers, washing machines, TVs, sounds systems, kitchen appliances, and small appliances, as well as digital items, including mobile phones and gadgets. The company also provides tiles and sanitary wares comprising indoor and outdoor tiles, decorative tiles, mosaic tiles, engineered wood, laminated flooring, vinyl, pavers, decking, water closets and lavatories, bathtubs, shower enclosures, and partitions; linens, such as comforters, duvets, bedsheets, curtains, and pillows; construction materials, such as building materials, wood, and mouldings; and homewares, including tableware, kitchenware, storage and organizers, and décor.

AllHome Fundamentals Summary

How do AllHome's earnings and revenue compare to its market cap?
HOME fundamental statistics
Market Cap	₱18.45b
Earnings (TTM)	₱1.03b
Revenue (TTM)	₱13.87b

18.0x

P/E Ratio

1.3x

P/S Ratio

Is HOME overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
HOME income statement (TTM)
Revenue	₱13.87b
Cost of Revenue	₱0
Gross Profit	₱0
Other Expenses	-₱1.03b
Earnings	₱1.03b

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	0.27
Gross Margin	36.22%
Net Profit Margin	7.40%
Debt/Equity Ratio	36.6%

How did HOME perform over the long term?

See historical performance and comparison

Dividends

1.1%

Current Dividend Yield

18%

Payout Ratio

We’ve recently updated our valuation analysis.

Valuation

Is HOME 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 HOME?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for HOME. This is calculated by dividing HOME's market cap by their current preferred multiple.
What is HOME's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	₱18.45b

HOME 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/Revenue	1.9x
Enterprise Value/EBITDA	9.8x
PEG Ratio	0.5x

Price to Earnings Ratio vs Peers

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

HOME PE Ratio vs Peers

The above table shows the PE ratio for HOME vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PE	Estimated Growth	Market Cap
Peer Average	20.5x
WLCON Wilcon Depot	40x	14.6%	₱126.9b
SSI SSI Group	15.7x	n/a	₱5.0b
BLX Beacon Lighting Group	12.9x	3.2%	AU$491.3m
ALBOU Bourrelier Group	13.4x	n/a	€298.6m
HOME AllHome	18x	34.4%	₱18.5b

Price-To-Earnings vs Peers: HOME is good value based on its Price-To-Earnings Ratio (18x) compared to the peer average (20.5x).

Price to Earnings Ratio vs Industry

How does HOME's PE Ratio compare vs other companies in the Asian Specialty Retail Industry?

Price-To-Earnings vs Industry: HOME is expensive based on its Price-To-Earnings Ratio (18x) compared to the Asian Specialty Retail industry average (14.3x)

Price to Earnings Ratio vs Fair Ratio

What is HOME'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.

HOME PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	18x
Fair PE Ratio	34.4x

Price-To-Earnings vs Fair Ratio: HOME is good value based on its Price-To-Earnings Ratio (18x) compared to the estimated Fair Price-To-Earnings Ratio (34.4x).

Share Price vs Fair Value

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

Below Fair Value: HOME (₱4.92) is trading below our estimate of fair value (₱5.67)

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

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, but analysts are not within a statistically confident range of agreement.

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Future Growth

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

Future Growth Score

4/6

Future Growth Score 4/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

34.4%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: HOME's forecast earnings growth (34.4% per year) is above the savings rate (5%).

Earnings vs Market: HOME's earnings (34.4% per year) are forecast to grow faster than the PH market (20.3% per year).

High Growth Earnings: HOME's earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: HOME's revenue (17.5% per year) is forecast to grow faster than the PH market (9.9% per year).

High Growth Revenue: HOME's revenue (17.5% per year) is forecast to grow slower than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: HOME's Return on Equity is forecast to be low in 3 years time (12.9%).

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Past Performance

How has AllHome performed over the past 5 years?

Past Performance Score

1/6

Past Performance Score 1/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

22.1%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: HOME has a large one-off loss of ₱362.5M impacting its June 30 2022 financial results.

Growing Profit Margin: HOME's current net profit margins (7.4%) are lower than last year (9.5%).

Past Earnings Growth Analysis

Earnings Trend: HOME's earnings have grown significantly by 22.1% per year over the past 5 years.

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

Earnings vs Industry: HOME had negative earnings growth (-24.2%) over the past year, making it difficult to compare to the Specialty Retail industry average (12%).

Return on Equity

High ROE: HOME's Return on Equity (6.9%) is considered low.

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Financial Health

How is AllHome's financial position?

Financial Health Score

6/6

Financial Health Score 6/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: HOME's short term assets (₱10.6B) exceed its short term liabilities (₱4.3B).

Long Term Liabilities: HOME's short term assets (₱10.6B) exceed its long term liabilities (₱6.6B).

Debt to Equity History and Analysis

Debt Level: HOME's net debt to equity ratio (27.9%) is considered satisfactory.

Reducing Debt: HOME's debt to equity ratio has reduced from 149.8% to 36.6% over the past 5 years.

Debt Coverage: HOME's debt is well covered by operating cash flow (32.4%).

Interest Coverage: HOME's interest payments on its debt are well covered by EBIT (5.3x coverage).

Balance Sheet

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Dividend

What is AllHome current dividend yield, its reliability and sustainability?

Dividend Score

1/6

Dividend Score 1/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Cash Flow Coverage

1.07%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: HOME's dividend (1.07%) isn’t notable compared to the bottom 25% of dividend payers in the PH market (1.4%).

High Dividend: HOME's dividend (1.07%) is low compared to the top 25% of dividend payers in the PH market (5.11%).

Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, HOME has been paying a dividend for less than 10 years.

Growing Dividend: HOME's dividend payments have increased, but the company has only paid a dividend for 2 years.

Earnings Payout to Shareholders

Earnings Coverage: With its low payout ratio (18.4%), HOME's dividend payments are well covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: HOME is paying a dividend but the company has no free cash flows.

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Management

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

1.2yrs

Average management tenure

CEO

Benjamarie Serrano (59 yo)

no data

Tenure

Ms. Benjamarie Therese-Noei Serrano is a Director at AllDay Marts, Inc. She serves as President and Chief Executive Officer of AllHome Corp. Ms. Serrano served as the President of Vistamalls, Incorporated...

Leadership Team

Experienced Management: HOME's management team is not considered experienced ( 1.2 years average tenure), which suggests a new team.

Board Members

Experienced Board: HOME's board of directors are considered experienced (3.3 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.

Ownership Breakdown

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

Data	Last Updated (UTC time)
Company Analysis	2022/08/17 00:00
End of Day Share Price	2022/08/17 00:00
Earnings	2022/06/30
Annual Earnings	2021/12/31