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.

Snowflake

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

Rewards

Trading at 5.9% below its fair value

Earnings grew by 29.6% over the past year

Pays a reliable dividend of 3.66%

Risk Analysis

No risks detected for AGS from our risk checks.

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

1.6%

SG Specialty Retail

-0.6%

SG Market


1 Year Return

27.1%

AGS

0.3%

SG Specialty Retail

3.8%

SG Market

Return vs Industry: AGS exceeded the SG Specialty Retail industry which returned 0.3% over the past year.

Return vs Market: AGS exceeded the SG Market which returned 3.8% over the past year.


Shareholder returns

AGSIndustryMarket
7 Day0.6%1.6%-0.6%
30 Day2.5%1.0%2.8%
90 Day4.5%-0.2%2.9%
1 Year31.9%27.1%3.4%0.3%8.0%3.8%
3 Year31.8%19.7%-14.2%-21.7%19.8%7.0%
5 Year45.8%25.8%-31.7%-39.0%11.5%-7.1%

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?

5.9%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: AGS (SGD0.82) is trading below our estimate of fair value (SGD0.87)

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


Price To Earnings Ratio

PE vs Industry: AGS is good value based on its PE Ratio (7.4x) compared to the Specialty Retail industry average (10.1x).

PE vs Market: AGS is good value based on its PE Ratio (7.4x) 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 overvalued based on its PB Ratio (1x) 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?

0.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: AGS's forecast earnings growth (0.9% per year) is below the savings rate (2.3%).

Earnings vs Market: AGS's earnings (0.9% per year) are forecast to grow slower than the SG market (5.5% per year).

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

Revenue vs Market: Insufficient data to determine if AGS's revenue is forecast to grow faster than the SG market.

High Growth Revenue: Insufficient data to determine if AGS's revenue is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if AGS's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Hour Glass performed over the past 5 years?

4.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: AGS has high quality earnings.

Growing Profit Margin: AGS's current net profit margins (10.4%) are higher than last year (8.4%).


Past Earnings Growth Analysis

Earnings Trend: AGS's earnings have grown by 4.4% per year over the past 5 years.

Accelerating Growth: AGS's earnings growth over the past year (29.6%) exceeds its 5-year average (4.4% per year).

Earnings vs Industry: AGS earnings growth over the past year (29.6%) exceeded the Specialty Retail industry -5.6%.


Return on Equity

High ROE: AGS's Return on Equity (13.4%) 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 (SGD469.1M) exceeds its short term liabilities (SGD107.6M)

Long Term Liabilities: AGS's short term assets (469.1M) exceeds its long term liabilities (95.9M)


Debt to Equity History and Analysis

Debt Level: AGS's debt to equity ratio (5.8%) is considered satisfactory

Reducing Debt: AGS's debt to equity ratio has reduced from 11.1% to 5.8% over the past 5 years.

Debt Coverage: AGS's debt is well covered by operating cash flow (227%).

Interest Coverage: AGS's interest payments on its debt are well covered by EBIT (415.4x 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 13.8x debt).


Next Steps

Dividend

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

3.66%

Current Dividend Yield


Dividend Yield vs Market

company3.7%marketbottom25%2.5%markettop25%5.5%industryaverage5.0%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: AGS's dividend (3.66%) is higher than the bottom 25% of dividend payers in the SG market (2.51%).

High Dividend: AGS's dividend (3.66%) is low compared to the top 25% of dividend payers in the SG market (5.52%).


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 (27.2%), 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

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

11.0yrs

Average management tenure


CEO

Kenny Chan (66yo)

10.4yrs

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 ...


Management Age and Tenure

11.0yrs

Average Tenure

58yo

Average Age

Experienced Management: AGS's management team is seasoned and experienced (11 years average tenure).


Board Age and Tenure

8.6yrs

Average Tenure

55yo

Average Age

Experienced Board: AGS's board of directors are considered experienced (8.6 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyS$124,25409 Jul 19
FMR LLC
EntityCompany
Shares151,300
Max PriceS$0.82
BuyS$6,901,90317 Apr 19
Yun Tay
EntityIndividual
Role
Chairman of the Board
Co-Founder & Executive Chairman
Shares9,721,000
Max PriceS$0.71
BuyS$335,00005 Apr 19
Yun Tay
EntityIndividual
Role
Chairman of the Board
Co-Founder & Executive Chairman
Shares500,000
Max PriceS$0.67

Ownership Breakdown

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


Management Team

  • Christine Chan

    Company Secretary

    • Tenure: 0yrs
  • Henry Tay (75yo)

    Co-Founder & Executive Chairman

    • Tenure: 32.1yrs
  • Kenny Chan (66yo)

    Group MD & Executive Director

    • Tenure: 10.4yrs
  • Michael Tay (44yo)

    Group MD & Executive Director

    • Tenure: 14.3yrs
  • Wai Yang Chung

    Managing Director of the Hour Glass (HK) Limited

    • Tenure: 0yrs
  • Atsushi Momoi

    GM of the Hour Glass Japan Ltd & Director of the Hour Glass Japan Ltd

    • Tenure: 0yrs
  • Siak Yong Ng (50yo)

    Chief Financial Officer

    • Tenure: 11.6yrs
  • John Glajz

    Managing Director of Glajz-THG Pte Ltd

    • Tenure: 0yrs
  • Norman Ho

    Group General Manager

    • Tenure: 0yrs

Board Members

  • Henry Tay (75yo)

    Co-Founder & Executive Chairman

    • Tenure: 32.1yrs
  • Boon Wee Kuah (52yo)

    Lead Independent Non-Executive Director

    • Tenure: 6.3yrs
  • Kenny Chan (66yo)

    Group MD & Executive Director

    • Tenure: 10.4yrs
  • Michael Tay (44yo)

    Group MD & Executive Director

    • Tenure: 14.3yrs
  • Atsushi Momoi

    GM of the Hour Glass Japan Ltd & Director of the Hour Glass Japan Ltd

    • Tenure: 0yrs
  • Pascal Demierre Guy (45yo)

    Independent Non-Executive Director

    • Tenure: 8.6yrs
  • Choon Wei Liew (65yo)

    Independent Non Executive Director

    • Tenure: 2.6yrs
  • Jeffry Lee (55yo)

    Independent Non-Executive Director

    • Tenure: 2.1yrs

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$578.110m
  • 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 pr ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/11/16 12:43
End of Day Share Price2019/11/15 00:00
Earnings2019/09/30
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.