OTCPK:STLY

Stock Analysis Report

Executive Summary

HG Holdings, Inc., through its interest in HC Government Realty Trust, Inc., owns and operates real estate properties in the United States.


Snowflake Analysis

Flawless balance sheet and slightly overvalued.


Similar Companies

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

1.8%

STLY

-11.1%

US Consumer Durables

-10.6%

US Market


1 Year Return

-2.1%

STLY

16.8%

US Consumer Durables

5.2%

US Market

Return vs Industry: STLY underperformed the US Consumer Durables industry which returned 16.8% over the past year.

Return vs Market: STLY underperformed the US Market which returned 5.2% over the past year.


Shareholder returns

STLYIndustryMarket
7 Day1.8%-11.1%-10.6%
30 Day3.6%-10.5%-8.5%
90 Day3.6%-4.1%-4.6%
1 Year-2.1%-2.1%18.5%16.8%7.4%5.2%
3 Year-25.7%-25.7%15.7%10.3%31.7%23.2%
5 Year-67.0%-83.1%27.1%18.4%56.4%39.3%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

Is HG Holdings undervalued compared to its fair value and its price relative to the market?

15.96x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate STLY's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate STLY's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: STLY is poor value based on its PE Ratio (16x) compared to the Consumer Durables industry average (11.8x).

PE vs Market: STLY is good value based on its PE Ratio (16x) compared to the US market (16.9x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: STLY is good value based on its PB Ratio (0.6x) compared to the US Consumer Durables industry average (1.3x).


Next Steps

Future Growth

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

9.5%

Forecasted Consumer Durables 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 HG Holdings 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 HG Holdings performed over the past 5 years?

41.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: STLY has a large one-off loss of $777.0K impacting its September 30 2019 financial results.

Growing Profit Margin: Insufficient data to determine if STLY's profit margins have improved over the past year.


Past Earnings Growth Analysis

Earnings Trend: STLY has become profitable over the past 5 years, growing earnings by 41.7% per year.

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

Earnings vs Industry: STLY had negative earnings growth (-69.4%) over the past year, making it difficult to compare to the Consumer Durables industry average (9.8%).


Return on Equity

High ROE: STLY's Return on Equity (3.7%) is considered low.


Next Steps

Financial Health

How is HG Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: STLY's short term assets ($3.3M) exceed its short term liabilities ($188.0K).

Long Term Liabilities: STLY's short term assets ($3.3M) exceed its long term liabilities ($255.0K).


Debt to Equity History and Analysis

Debt Level: STLY is debt free.

Reducing Debt: STLY has not had any debt for past 5 years.


Balance Sheet

Inventory Level: STLY has a low level of unsold assets or inventory.

Debt Coverage by Assets: Insufficient data to determine if STLY's debt is covered by short term assets.


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: STLY is profitable, therefore cash runway is not a concern.

Forecast Cash Runway: STLY is profitable, therefore cash runway is not a concern.


Next Steps

Dividend

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


Dividend Yield vs Market

Notable Dividend: Unable to evaluate STLY's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate STLY's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if STLY's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if STLY's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: STLY is not paying a notable dividend for the US market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of STLY's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

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

2.3yrs

Average board tenure


CEO

Steve Hale (35yo)

1.9yrs

Tenure

US$312,500

Compensation

Mr. Steven A. Hale, II, also known as Steve, serves as Managing Partner of Hale Partnership Capital Management. Mr. Hale is Chief Executive Officer of HG Holdings, Inc. (formerly known as Stanley Furniture ...


CEO Compensation Analysis

Compensation vs Market: Steve's total compensation ($USD312.50K) is below average for companies of similar size in the US market ($USD535.60K).

Compensation vs Earnings: Steve's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Board Members

NamePositionTenureCompensationOwnership
Steven Hale
Chairman & CEO1.9yrsUS$312.50k2.23% $193.3k
Matthew Hultquist
Director1.7yrsUS$43.75k1.09% $94.2k
Jeffrey Gilliam
Independent Director5yrsUS$43.75k0.19% $16.8k

2.3yrs

Average Tenure

40yo

Average Age

Experienced Board: STLY's board of directors are not considered experienced ( 2.3 years average tenure), which suggests a new board.


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

HG Holdings, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: HG Holdings, Inc.
  • Ticker: STLY
  • Exchange: OTCPK
  • Founded: 1984
  • Industry: Home Furnishings
  • Sector: Consumer Durables
  • Market Cap: US$8.669m
  • Shares outstanding: 14.95m
  • Website: https://www.hgholdingsinc.net

Number of Employees


Location

  • HG Holdings, Inc.
  • 2115 East 7th Street
  • Suite 101
  • Charlotte
  • North Carolina
  • 28204
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
STLYOTCPK (Pink Sheets LLC)YesCommon StockUSUSDSep 1986

Biography

HG Holdings, Inc., through its interest in HC Government Realty Trust, Inc., owns and operates real estate properties in the United States. It owns and operates a portfolio of 16 single-tenant properties leased for the occupancy by federal agencies, including the Federal Bureau of Investigation, the Drug Enforcement Administration, the Social Security Administration, and the Department of Transportation. The company was formerly known as Stanley Furniture Company, Inc. and changed its name to HG Holdings, Inc. in March 2018. HG Holdings, Inc. was incorporated in 1984 and is headquartered in Charlotte, North Carolina. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/28 00:23
End of Day Share Price2020/02/27 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


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.