NYSE:NOAH

Stock Analysis Report

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Executive Summary

Noah Holdings Limited, through its subsidiaries, operates as a wealth and asset management service provider with focus on wealth investment and asset allocation services for high net worth individuals and enterprises in the People's Republic of China. More Details

Rewards

Trading at 14.2% below our estimate of its fair value

Earnings are forecast to grow 13.19% per year

Risk Analysis

No risks detected for NOAH from our risk checks.


Snowflake Analysis

Flawless balance sheet and good value.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: NOAH is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: NOAH's weekly volatility (5%) has been stable over the past year.


Market Performance


7 Day Return

5.2%

NOAH

1.2%

US Capital Markets

-0.06%

US Market


1 Year Return

5.4%

NOAH

9.0%

US Capital Markets

19.0%

US Market

Return vs Industry: NOAH underperformed the US Capital Markets industry which returned 9% over the past year.

Return vs Market: NOAH underperformed the US Market which returned 19% over the past year.


Shareholder returns

NOAHIndustryMarket
7 Day5.2%1.2%-0.06%
30 Day17.5%6.7%4.4%
90 Day17.7%8.4%6.3%
1 Year5.4%5.4%11.7%9.0%21.7%19.0%
3 Year-31.1%-31.1%32.0%21.8%46.4%36.7%
5 Year-1.2%-1.2%79.3%56.8%91.0%69.9%

Long-Term Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

14.2%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: NOAH ($32.51) is trading below our estimate of fair value ($37.9)

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


Price To Earnings Ratio

PE vs Industry: NOAH is good value based on its PE Ratio (15.7x) compared to the US Capital Markets industry average (22.6x).

PE vs Market: NOAH is good value based on its PE Ratio (15.7x) compared to the US market (19.5x).


Price to Earnings Growth Ratio

PEG Ratio: NOAH is poor value based on its PEG Ratio (1.2x)


Price to Book Ratio

PB vs Industry: NOAH is good value based on its PB Ratio (1.7x) compared to the US Capital Markets industry average (4.7x).


Next Steps

Future Growth

How is Noah Holdings forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

13.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: NOAH's forecast earnings growth (13.2% per year) is above the savings rate (2.2%).

Earnings vs Market: NOAH's earnings (13.2% per year) are forecast to grow slower than the US market (21.9% per year).

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

Revenue vs Market: NOAH's revenue (12.5% per year) is forecast to grow faster than the US market (10.2% per year).

High Growth Revenue: NOAH's revenue (12.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: NOAH's Return on Equity is forecast to be low in 3 years time (13.8%).


Next Steps

Past Performance

How has Noah Holdings performed over the past 5 years?

10.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: NOAH has high quality earnings.

Growing Profit Margin: NOAH's current net profit margins (26.8%) are higher than last year (26.2%).


Past Earnings Growth Analysis

Earnings Trend: NOAH's earnings have grown by 10.2% per year over the past 5 years.

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

Earnings vs Industry: NOAH had negative earnings growth (-6.8%) over the past year, making it difficult to compare to the Capital Markets industry average (3%).


Return on Equity

High ROE: NOAH's Return on Equity (11.2%) is considered low.


Next Steps

Financial Health

How is Noah Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: NOAH's short term assets (CN¥6.2B) exceed its short term liabilities (CN¥1.1B).

Long Term Liabilities: NOAH's short term assets (CN¥6.2B) exceed its long term liabilities (CN¥406.2M).


Debt to Equity History and Analysis

Debt Level: NOAH is debt free.

Reducing Debt: NOAH has no debt compared to 5 years ago when its debt to equity ratio was 21.8%.

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

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


Balance Sheet


Next Steps

Dividend

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


Dividend Yield vs Market

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

High Dividend: Unable to evaluate NOAH'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 NOAH's dividends per share have been stable in the past.

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


Current Payout to Shareholders

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


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of NOAH'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?

2.5yrs

Average management tenure


CEO

Jingbo Wang (48 yo)

15.83yrs

Tenure

Ms. Jingbo Wang co-founded Noah Holdings Limited since 2005 and has been Chairman of the Board of Directors and Chief Executive Officer at Noah Holdings Limited since its inception in 2005. She serves as C...


Leadership Team

NamePositionTenureCompensationOwnership
Jingbo Wang
Co-Founder15.83yrsno data22.12%
CN¥ 443.0m
Yi Zhao
Group Presidentno datano datano data
Boquan He
Co-Founder & Independent Director13.25yrsno data5.32%
CN¥ 106.6m
Zhe Yin
Co-Founder & Director15.83yrsno data5.53%
CN¥ 110.8m
Qing Pan
Chief Financial Officer1yrno datano data
Yang Gao
Chief Operating Officer2.25yrsno datano data
Steve Zeng
Investor Relation Contactno datano datano data
Chia-Yue Chang
Executive Director & Chief Marketing Officer13.25yrsno data6.67%
CN¥ 133.5m
Chun Xia
Managing Director of Research Center for Hong Kong Business Center2.83yrsno datano data
Xintai Yu
President of Noah Fortune North Chinano datano datano data
Wenchao Liang
President of Noah Fortune West Regionno datano datano data
Ligao Zhou
Chief Risk Officer0.83yrno datano data

2.5yrs

Average Tenure

47yo

Average Age

Experienced Management: NOAH's management team is considered experienced (2.5 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Jingbo Wang
Co-Founder15.83yrsno data22.12%
CN¥ 443.0m
Boquan He
Co-Founder & Independent Director13.25yrsno data5.32%
CN¥ 106.6m
Zhe Yin
Co-Founder & Director15.83yrsno data5.53%
CN¥ 110.8m
Chia-Yue Chang
Executive Director & Chief Marketing Officer13.25yrsno data6.67%
CN¥ 133.5m
Tze-Kaing Yang
Independent Director5.5yrsno datano data
Nanpeng Shen
Director4.83yrsno data0.66%
CN¥ 13.2m
Zhiwu Chen
Independent Director6.83yrsno datano data
May Yihong Wu
Independent Director10yrsno datano data
Jinbo Yao
Independent Director6yrsno datano data

10.0yrs

Average Tenure

53yo

Average Age

Experienced Board: NOAH's board of directors are seasoned and experienced ( 10 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.


Top Shareholders

Company Information

Noah Holdings Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Noah Holdings Limited
  • Ticker: NOAH
  • Exchange: NYSE
  • Founded: 2005
  • Industry: Asset Management and Custody Banks
  • Sector: Diversified Financials
  • Market Cap: US$2.003b
  • Shares outstanding: 61.60m
  • Website: https://www.noahgroup.com

Number of Employees


Location

  • Noah Holdings Limited
  • Building 2
  • No. 1687 Changyang Road
  • Shanghai
  • Shanghai Province
  • 200090
  • China

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
NOAHNYSE (New York Stock Exchange)YesADR EA REPR 0.5 CL A ORD SHSUSUSDNov 2010
6NODB (Deutsche Boerse AG)YesADR EA REPR 0.5 CL A ORD SHSDEEURNov 2010

Biography

Noah Holdings Limited, through its subsidiaries, operates as a wealth and asset management service provider with focus on wealth investment and asset allocation services for high net worth individuals and ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/11/24 00:03
End of Day Share Price2020/11/23 00:00
Earnings2020/06/30
Annual Earnings2019/12/31


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.