Hywin Holdings (NasdaqGM:HYW) - Share price, News & Analysis

HYW fundamental analysis
Snowflake Score
Valuation	5/6
Future Growth	3/6
Past Performance	4/6
Financial Health	6/6
Dividends	0/6

HYW Stock Overview

Hywin Holdings Ltd., through its subsidiaries, provides wealth management, insurance brokerage, and asset management service in China.

Rewards

Trading at 65.6% below our estimate of its fair value

Earnings are forecast to grow 12.65% per year

Earnings have grown 37.1% per year over the past 5 years

Risk Analysis

No risks detected for HYW from our risk checks.

Hywin Holdings Competitors

Noah Holdings

NYSE:NOAH

US$930.8m

Jupai Holdings

NYSE:JP

US$15.6m

Price History & Performance

Summary of all time highs, changes and price drops for Hywin Holdings
Historical stock prices
Current Share Price	US$6.45
52 Week High	US$8.25
52 Week Low	US$5.15
Beta	0
1 Month Change	-13.42%
3 Month Change	5.57%
1 Year Change	-10.43%
3 Year Change	n/a
5 Year Change	n/a
Change since IPO	-34.85%

Shareholder Returns

	HYW	US Capital Markets	US Market
7D	-6.9%	0.7%	0.7%
1Y	-10.4%	-15.2%	-10.8%

Return vs Industry: HYW exceeded the US Capital Markets industry which returned -14.2% over the past year.

Return vs Market: HYW matched the US Market which returned -10.4% over the past year.

Price Volatility

Is HYW's price volatile compared to industry and market?
HYW volatility
HYW Average Weekly Movement	6.4%
Capital Markets Industry Average Movement	0.4%
Market Average Movement	7.8%
10% most volatile stocks in US Market	16.8%
10% least volatile stocks in US Market	2.9%

Stable Share Price: HYW is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: HYW's weekly volatility (6%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
2006	2,284	Dian Wang	https://ir.hywinwealth.com

Hywin Holdings Ltd., through its subsidiaries, provides wealth management, insurance brokerage, and asset management service in China. It distributes private market investment products comprising asset-backed products, such as real estate securitization products, and equity investments in real estate projects or private project companies; venture capital, private equity, and hedge funds; and supply chain financing products, cash management products, and funds managed by its subsidiaries. The company also offers public market investment products, including money market funds, such as government bonds, central bank bills, term deposits, certificates of deposits, and corporate commercial papers; government bonds, corporate bonds, convertible bonds, and other traded debt instruments; and equities and multi-strategy funds.

Hywin Holdings Fundamentals Summary

How do Hywin Holdings's earnings and revenue compare to its market cap?
HYW fundamental statistics
Market Cap	CN¥1.23b
Earnings (TTM)	CN¥194.33m
Revenue (TTM)	CN¥1.85b

6.3x

P/E Ratio

0.7x

P/S Ratio

Is HYW overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
HYW income statement (TTM)
Revenue	CN¥1.85b
Cost of Revenue	CN¥0
Gross Profit	CN¥1.85b
Other Expenses	CN¥1.65b
Earnings	CN¥194.33m

Last Reported Earnings

Dec 31, 2021

Next Earnings Date

n/a

Earnings per share (EPS)	6.94
Gross Margin	100.00%
Net Profit Margin	10.53%
Debt/Equity Ratio	0.0%

How did HYW perform over the long term?

See historical performance and comparison

Valuation

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

Valuation Score

5/6

Valuation Score 5/6

Below Fair Value
Significantly Below Fair Value
PE vs Industry
PE vs Market
PEG Ratio
PB vs Industry

>50%

Undervalued compared to fair value

Share Price vs. Fair Value

Below Fair Value: HYW ($6.45) is trading below our estimate of fair value ($18.73)

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

Price To Earnings Ratio

PE vs Industry: HYW is good value based on its PE Ratio (6.3x) compared to the US Capital Markets industry average (35.4x).

PE vs Market: HYW is good value based on its PE Ratio (6.3x) compared to the US market (15.5x).

Price to Earnings Growth Ratio

PEG Ratio: HYW is good value based on its PEG Ratio (0.5x)

Price to Book Ratio

PB vs Industry: HYW is overvalued based on its PB Ratio (1.5x) compared to the US Capital Markets industry average (-16.2x).

Future Growth

How is Hywin Holdings forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

Future Growth Score

3/6

Future Growth Score 3/6

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

12.6%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: HYW's forecast earnings growth (12.6% per year) is above the savings rate (1.9%).

Earnings vs Market: HYW's earnings (12.6% per year) are forecast to grow faster than the US market (12.6% per year).

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

Revenue vs Market: HYW's revenue (11.2% per year) is forecast to grow faster than the US market (8% per year).

High Growth Revenue: HYW's revenue (11.2% per year) is forecast to grow slower than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: HYW's Return on Equity is forecast to be low in 3 years time (18.1%).

Past Performance

How has Hywin Holdings performed over the past 5 years?

Past Performance Score

4/6

Past Performance Score 4/6

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

37.1%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: HYW has high quality earnings.

Growing Profit Margin: HYW's current net profit margins (10.5%) are higher than last year (9.4%).

Past Earnings Growth Analysis

Earnings Trend: HYW's earnings have grown significantly by 37.1% per year over the past 5 years.

Accelerating Growth: HYW's earnings growth over the past year (34.6%) is below its 5-year average (37.1% per year).

Earnings vs Industry: HYW earnings growth over the past year (34.6%) underperformed the Capital Markets industry 47.5%.

Return on Equity

High ROE: HYW's Return on Equity (24.5%) is considered high.

Financial Health

How is Hywin Holdings'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: HYW's short term assets (CN¥1.2B) exceed its short term liabilities (CN¥737.6M).

Long Term Liabilities: HYW's short term assets (CN¥1.2B) exceed its long term liabilities (CN¥7.3M).

Debt to Equity History and Analysis

Debt Level: HYW is debt free.

Reducing Debt: HYW had no debt 5 years ago.

Debt Coverage: HYW has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: HYW has no debt, therefore coverage of interest payments is not a concern.

Balance Sheet

Dividend

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

Dividend Score

0/6

Dividend Score 0/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

Dividend Yield vs Market

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

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

Stability and Growth of Payments

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

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

Earnings Payout to Shareholders

Earnings Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as HYW has not reported any payouts.

Next Steps

Explore strong dividend paying companies in the Diversified Financials industry.

Management

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

2.7yrs

Average management tenure

CEO

Dian Wang (52 yo)

2.67yrs

Tenure

Ms. Dian Wang serves as Chief Executive Officer at Hywin Holdings Ltd. since September 2019 and serves as its Director since July 2019. Ms. Wang has served as the chief executive officer of Hywin Wealth Ma...

Leadership Team

Experienced Management: HYW's management team is considered experienced (2.7 years average tenure).

Board Members

Experienced Board: HYW's board of directors are not considered experienced ( 2.7 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.

Ownership Breakdown

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

Data	Last Updated (UTC time)
Company Analysis	2022/05/16 00:00
End of Day Share Price	2022/05/16 00:00
Earnings	2021/12/31
Annual Earnings	2021/06/30