NasdaqCM:HAPP

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Executive Summary

Happiness Biotech Group Limited engages in the research, development, manufacture, and sale of nutraceutical and dietary supplements products made of Lucidum spore powder and others in the People’s Republic of China.


Snowflake Analysis

Very undervalued with excellent balance sheet.


Similar Companies

Share Price & News

How has Happiness Biotech Group's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: HAPP's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

1.9%

HAPP

9.4%

US Personal Products

2.8%

US Market


1 Year Return

n/a

HAPP

3.3%

US Personal Products

9.3%

US Market

Return vs Industry: Insufficient data to determine how HAPP performed against the US Personal Products industry.

Return vs Market: Insufficient data to determine how HAPP performed against the US Market.


Shareholder returns

HAPPIndustryMarket
7 Day1.9%9.4%2.8%
30 Day-5.2%12.7%8.9%
90 Day-36.9%-1.0%-0.5%
1 Yearn/a4.6%3.3%11.8%9.3%
3 Yearn/a42.3%35.3%31.4%22.7%
5 Yearn/a39.4%24.3%58.7%40.9%

Price Volatility Vs. Market

How volatile is Happiness Biotech Group's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Happiness Biotech Group 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: HAPP ($2.75) is trading below our estimate of fair value ($6.86)

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


Price To Earnings Ratio

PE vs Industry: HAPP is good value based on its PE Ratio (3.4x) compared to the Personal Products industry average (16.3x).

PE vs Market: HAPP is good value based on its PE Ratio (3.4x) compared to the US market (15.7x).


Price to Earnings Growth Ratio

PEG Ratio: HAPP is good value based on its PEG Ratio (0.3x)


Price to Book Ratio

PB vs Industry: HAPP is good value based on its PB Ratio (1x) compared to the US Personal Products industry average (3.1x).


Next Steps

Future Growth

How is Happiness Biotech Group forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

11.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: HAPP's forecast earnings growth (11.3% per year) is above the savings rate (2.2%).

Earnings vs Market: HAPP's earnings (11.3% per year) are forecast to grow slower than the US market (22% per year).

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

Revenue vs Market: HAPP's revenue (4.8% per year) is forecast to grow slower than the US market (8.8% per year).

High Growth Revenue: HAPP's revenue (4.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

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


Next Steps

Past Performance

How has Happiness Biotech Group performed over the past 5 years?

3.3%

Last years earnings growth


Earnings and Revenue History

Quality Earnings: HAPP has high quality earnings.

Growing Profit Margin: HAPP's current net profit margins (28.7%) are higher than last year (27.7%).


Past Earnings Growth Analysis

Earnings Trend: Insufficient data to determine if HAPP's year-on-year earnings growth rate was positive over the past 5 years.

Accelerating Growth: Insufficient data to compare HAPP's past year earnings growth to its 5-year average.

Earnings vs Industry: HAPP earnings growth over the past year (3.3%) underperformed the Personal Products industry 18.7%.


Return on Equity

High ROE: HAPP's Return on Equity (27.7%) is considered high.


Next Steps

Financial Health

How is Happiness Biotech Group's financial position?


Financial Position Analysis

Short Term Liabilities: HAPP's short term assets ($59.5M) exceed its short term liabilities ($5.1M).

Long Term Liabilities: HAPP has no long term liabilities.


Debt to Equity History and Analysis

Debt Level: HAPP's debt to equity ratio (3.1%) is considered satisfactory.

Reducing Debt: Insufficient data to determine if HAPP's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: HAPP's debt is well covered by operating cash flow (510.1%).

Interest Coverage: HAPP's interest payments on its debt are well covered by EBIT (898x coverage).


Balance Sheet


Next Steps

Dividend

What is Happiness Biotech Group's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

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

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

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


Current Payout to Shareholders

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


Future Payout to Shareholders

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

0.7yrs

Average board tenure


CEO

Xuezhu Wang (35yo)

1.83yrs

Tenure

US$21,717

Compensation

Mr. Xuezhu Wang has been Chief Executive Officer and Executive Director of Happiness Biotech Group Limited since August 28, 2018. He has been the Chief Executive Officer of Fujian Happiness, Chinese subsid ...


CEO Compensation Analysis

Compensation vs Market: Xuezhu's total compensation ($USD21.72K) is below average for companies of similar size in the US market ($USD593.36K).

Compensation vs Earnings: Xuezhu's compensation has been consistent with company performance over the past year.


Board Members

NamePositionTenureCompensationOwnership
Xuezhu Wang
CEO & Director1.83yrsUS$21.72k48.18% $33.1m
Jonathan F. Levy
Independent Director0.67yrno datano data
Xianfu Wang
Chairman1.83yrsno datano data
Wanhe Zhang
Independent Director0.67yrno datano data
Rui Qiang
Independent Director0.67yrno datano data

0.7yrs

Average Tenure

56yo

Average Age

Experienced Board: HAPP's board of directors are not considered experienced ( 0.7 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: HAPP only recently listed within the past 12 months.


Top Shareholders

Company Information

Happiness Biotech Group Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Happiness Biotech Group Limited
  • Ticker: HAPP
  • Exchange: NasdaqCM
  • Founded: 2004
  • Industry: Personal Products
  • Sector: Household
  • Market Cap: US$68.750m
  • Shares outstanding: 25.00m
  • Website: https://www.happ.org.cn

Location

  • Happiness Biotech Group Limited
  • No. 11, Dongjiao East Road
  • Shuangxi
  • Nanping
  • Fujian Province
  • 353200
  • China

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
HAPPNasdaqCM (Nasdaq Capital Market)Ordinary SharesUSUSDOct 2019
HAPPNasdaqCM (Nasdaq Capital Market)YesOrdinary SharesUSUSDOct 2019
2UO1BST (Boerse-Stuttgart)YesOrdinary SharesDEEUROct 2019
2UO1DB (Deutsche Boerse AG)YesOrdinary SharesDEEUROct 2019

Biography

Happiness Biotech Group Limited engages in the research, development, manufacture, and sale of nutraceutical and dietary supplements products made of Lucidum spore powder and others in the People’s Republic of China. It also offers edible fungi. In addition, the company produces disinfectant products. The company was founded in 2004 and is based in Nanping, China. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/06/02 12:23
End of Day Share Price2020/06/01 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.