SGX:AGS

Stock Analysis Report

Executive Summary

The Hour Glass Limited, an investment holding company, retails and distributes watches, jewelry, and other luxury products in South East Asia, Australia, and North East Asia.

Rewards

Trading at 78.8% below its fair value

Earnings grew by 21.6% over the past year

Pays a reliable dividend of 3.87%

Risk Analysis

No risks detected for AGS from our risk checks.


Snowflake Analysis

Flawless balance sheet, undervalued and pays a dividend.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: AGS has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-0.6%

AGS

-0.1%

SG Specialty Retail

1.4%

SG Market


1 Year Return

21.1%

AGS

-1.2%

SG Specialty Retail

-2.4%

SG Market

Return vs Industry: AGS exceeded the SG Specialty Retail industry which returned -1.9% over the past year.

Return vs Market: AGS exceeded the SG Market which returned -1.8% over the past year.


Shareholder returns

AGSIndustryMarket
7 Day-0.6%-0.1%1.4%
30 Day-3.7%-2.4%-2.9%
90 Day-5.5%0.8%-1.1%
1 Year25.6%21.1%1.3%-1.2%1.5%-2.4%
3 Year31.3%19.2%-9.6%-17.2%9.7%-1.9%
5 Year23.0%6.2%-30.2%-37.4%9.5%-8.9%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: AGS (SGD0.78) is trading below our estimate of fair value (SGD3.65)

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


Price To Earnings Ratio

PE vs Industry: AGS is good value based on its PE Ratio (7x) compared to the Specialty Retail industry average (10.4x).

PE vs Market: AGS is good value based on its PE Ratio (7x) compared to the SG market (13.3x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate AGS's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: AGS is good value based on its PB Ratio (0.9x) compared to the SG Specialty Retail industry average (0.9x).


Next Steps

Future Growth

How is Hour Glass forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

9.5%

Forecasted Retail industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Hour Glass has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has Hour Glass performed over the past 5 years?

6.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: AGS has high quality earnings.

Growing Profit Margin: AGS's current net profit margins (10.3%) are higher than last year (8.9%).


Past Earnings Growth Analysis

Earnings Trend: AGS's earnings have grown by 6.2% per year over the past 5 years.

Accelerating Growth: AGS's earnings growth over the past year (21.6%) exceeds its 5-year average (6.2% per year).

Earnings vs Industry: AGS earnings growth over the past year (21.6%) exceeded the Specialty Retail industry -5.6%.


Return on Equity

High ROE: AGS's Return on Equity (13.1%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Hour Glass's financial position?


Financial Position Analysis

Short Term Liabilities: AGS's short term assets (SGD496.5M) exceed its short term liabilities (SGD122.5M).

Long Term Liabilities: AGS's short term assets (SGD496.5M) exceed its long term liabilities (SGD85.8M).


Debt to Equity History and Analysis

Debt Level: AGS's debt to equity ratio (5.2%) is considered satisfactory.

Reducing Debt: AGS's debt to equity ratio has reduced from 19.3% to 5.2% over the past 5 years.

Debt Coverage: AGS's debt is well covered by operating cash flow (348.2%).

Interest Coverage: AGS's interest payments on its debt are well covered by EBIT (101.7x coverage).


Balance Sheet

Inventory Level: AGS has a high level of physical assets or inventory.

Debt Coverage by Assets: AGS's debt is covered by short term assets (assets are 15.8x debt).


Next Steps

Dividend

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

3.87%

Current Dividend Yield


Dividend Yield vs Market

company3.9%marketbottom25%2.5%markettop25%5.7%industryaverage4.9%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: AGS's dividend (3.87%) is higher than the bottom 25% of dividend payers in the SG market (2.53%).

High Dividend: AGS's dividend (3.87%) is low compared to the top 25% of dividend payers in the SG market (5.71%).


Stability and Growth of Payments

Stable Dividend: AGS's dividends per share have been stable in the past 10 years.

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


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (27.1%), AGS's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

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

11.3yrs

Average management tenure


CEO

Kenny Chan (66yo)

10.7yrs

Tenure

0

Dr. Swee Kheng Chan, also known as Kenny, has been the Group Managing Director of Hour Glass Limited since June 2009. Dr. Chan served as the Group Chief Operating Officer of Hour Glass Ltd. since July 1, 2 ...


Leadership Team

NamePositionTenureCompensationOwnership
Yun Tay
Co-Founder & Executive Chairman32.3yrsno data9.35% SGD51.1m
Swee Chan
Group MD & Executive Director10.7yrsno data0.45% SGD2.5m
Wee Jin Tay
Group MD & Executive Director14.5yrsno data3.8% SGD20.8m
Siak Yong Ng
Chief Financial Officer11.8yrsno datano data
Tun Ho
Group General Manager0yrsno datano data
Meng Yook Chan
Company Secretary0yrsno datano data
Wai Yang Chung
Managing Director of the Hour Glass (HK) Limited0yrsno datano data
John Glajz
Managing Director of Glajz-THG Pte Ltd0yrsno datano data
Atsushi Momoi
GM of the Hour Glass Japan Ltd & Director of the Hour Glass Japan Ltd0yrsno datano data

11.3yrs

Average Tenure

58yo

Average Age

Experienced Management: AGS's management team is seasoned and experienced (11.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Yun Tay
Co-Founder & Executive Chairman32.3yrsno data9.35% SGD51.1m
Swee Chan
Group MD & Executive Director10.7yrsno data0.45% SGD2.5m
Wee Jin Tay
Group MD & Executive Director14.5yrsno data3.8% SGD20.8m
Atsushi Momoi
GM of the Hour Glass Japan Ltd & Director of the Hour Glass Japan Ltd0yrsno datano data
Boon Wee Kuah
Lead Independent Non-Executive Director6.6yrsno datano data
Chung Guy
Independent Non-Executive Director8.8yrsno datano data
Choon Wei Liew
Independent Non Executive Director2.8yrsno datano data
Yu Chern Lee
Independent Non-Executive Director2.3yrsno datano data

8.8yrs

Average Tenure

55yo

Average Age

Experienced Board: AGS's board of directors are considered experienced (8.8 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

Ownership Breakdown

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


Top Shareholders

Company Information

The Hour Glass Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: The Hour Glass Limited
  • Ticker: AGS
  • Exchange: SGX
  • Founded: 1979
  • Industry: Specialty Stores
  • Sector: Retail
  • Market Cap: S$546.384m
  • Shares outstanding: 705.01m
  • Website: https://www.thehourglass.com

Location

  • The Hour Glass Limited
  • No. 11-01 Tong Building
  • 302 Orchard Road
  • Singapore
  • 238862
  • Singapore

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
AGSSGX (Singapore Exchange)YesOrdinary SharesSGSGDJan 1992

Biography

The Hour Glass Limited, an investment holding company, retails and distributes watches, jewelry, and other luxury products in South East Asia, Australia, and North East Asia. The company also invests in properties. It operates 40 boutiques. The company was founded in 1979 and is based in Singapore. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/17 12:48
End of Day Share Price2020/02/17 00:00
Earnings2019/12/31
Annual Earnings2019/03/31


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.