NYSE:NTP

Stock Analysis Report

Executive Summary

Nam Tai Property Inc., through its subsidiaries, operates as a property development company in the People’s Republic of China.

Rewards

Trading at 94.2% below its fair value

Risk Analysis

Earnings have declined by -4.76% per year over past 5 years

Currently unprofitable and not forecast to become profitable over the next 3 years

Does not have meaningful revenue ($3M)



Snowflake Analysis

Excellent balance sheet and slightly overvalued.

Share Price & News

How has Nam Tai Property's share price performed over time and what events caused price changes?


Latest Share Price and Events

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


Market Performance


7 Day Return

0.9%

NTP

2.9%

US Real Estate

2.0%

US Market


1 Year Return

-2.2%

NTP

16.0%

US Real Estate

23.5%

US Market

Return vs Industry: NTP underperformed the US Real Estate industry which returned 17.2% over the past year.

Return vs Market: NTP underperformed the US Market which returned 24.7% over the past year.


Shareholder returns

NTPIndustryMarket
7 Day0.9%2.9%2.0%
30 Day-0.3%1.2%4.3%
90 Day-4.1%13.0%12.2%
1 Year-2.2%-2.2%17.0%16.0%26.1%23.5%
3 Year20.3%14.4%41.2%37.7%53.1%43.2%
5 Year101.1%84.6%20.7%16.6%75.5%56.1%

Price Volatility Vs. Market

How volatile is Nam Tai Property's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Nam Tai Property 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: NTP ($8.48) is trading below our estimate of fair value ($145.27)

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


Price To Earnings Ratio

PE vs Industry: NTP is unprofitable, so we can't compare its PE Ratio to the Real Estate industry average.

PE vs Market: NTP is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: NTP is overvalued based on its PB Ratio (1.6x) compared to the US Real Estate industry average (1.5x).


Next Steps

Future Growth

How is Nam Tai Property forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

14.2%

Forecasted Real Estate 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 Nam Tai Property 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 Nam Tai Property performed over the past 5 years?

-4.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: NTP is currently unprofitable.

Growing Profit Margin: NTP is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: NTP is unprofitable, and losses have increased over the past 5 years at a rate of -4.8% per year.

Accelerating Growth: Unable to compare NTP's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: NTP is unprofitable, making it difficult to compare its past year earnings growth to the Real Estate industry (-25%).


Return on Equity

High ROE: NTP has a negative Return on Equity (-8.3%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

  • Explore strong past performing companies in the Real Estate industry.

Financial Health

How is Nam Tai Property's financial position?


Financial Position Analysis

Short Term Liabilities: NTP's short term assets ($74.4M) do not cover its short term liabilities ($106.3M).

Long Term Liabilities: NTP's short term assets ($74.4M) exceed its long term liabilities ($7.1M).


Debt to Equity History and Analysis

Debt Level: NTP's debt to equity ratio (3.3%) is considered satisfactory.

Reducing Debt: NTP's debt to equity ratio has reduced from 12.1% to 3.3% over the past 5 years.


Balance Sheet

Inventory Level: NTP has a high level of physical assets or inventory.

Debt Coverage by Assets: NTP's debt is covered by short term assets (assets are 10.5x debt).


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: Whilst unprofitable NTP has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: NTP is unprofitable but has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 85.8% per year.


Next Steps

Dividend

What is Nam Tai Property's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

company0%marketbottom25%1.4%markettop25%3.7%industryaverage2.2%forecastin3Yearsn/a

Current dividend yield vs market & industry

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

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

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


Current Payout to Shareholders

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


Future Payout to Shareholders

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


Next Steps

Management

What is the CEO of Nam Tai Property's salary, the management and board of directors tenure and is there insider trading?

1.9yrs

Average management tenure


CEO

Chi Kwok Ying (52yo)

1.9yrs

Tenure

US$1,754,368

Compensation

Mr. Chi Kwok Ying has been the Chief Executive Officer at Nam Tai Property Inc. since February 1, 2018 and its Executive Chairman since June 4, 2018. He serves as Executive Director at Nam Tai Property Inc ...


CEO Compensation Analysis

Compensation vs Market: Chi Kwok's total compensation ($USD1.75M) is about average for companies of similar size in the US market ($USD1.70M).

Compensation vs Earnings: Insufficient data to compare Chi Kwok's compensation with company performance.


Management Age and Tenure

1.9yrs

Average Tenure

50.5yo

Average Age

Experienced Management: NTP's management team is not considered experienced ( 1.9 years average tenure), which suggests a new team.


Board Age and Tenure

9.0yrs

Average Tenure

57yo

Average Age

Experienced Board: NTP's board of directors are considered experienced (9 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.


Ownership Breakdown

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


Management Team

  • Chi Kwok Ying (52yo)

    Executive Chairman & CEO

    • Tenure: 1.9yrs
    • Compensation: US$1.75m
  • C. Chuang (89yo)

    Consultant

    • Pi Liu (56yo)

      Administrative Consultant

      • Tenure: 2.7yrs
      • Compensation: US$88.20k
    • Lin Julian (49yo)

      President

      • Tenure: 1.9yrs
      • Compensation: US$1.27m
    • Zhang Yu (39yo)

      Chief Financial Officer

      • Tenure: 1.9yrs
      • Compensation: US$426.25k
    • Shirley Xiaoxia (42yo)

      Project Director

      • Tenure: 2.3yrs

    Board Members

    • Peter Kellogg (77yo)

      Independent Non-Executive Director

      • Tenure: 19.6yrs
      • Compensation: US$99.28k
    • William Lo (58yo)

      Independent Non-Executive Director

      • Tenure: 16.5yrs
      • Compensation: US$101.68k
    • Mark Waslen (59yo)

      Independent Non-Executive Director

      • Tenure: 16.5yrs
      • Compensation: US$102.48k
    • Chi Kwok Ying (52yo)

      Executive Chairman & CEO

      • Tenure: 1.9yrs
      • Compensation: US$1.75m
    • Si Wu (67yo)

      Independent Non Executive Director

      • Vincent Fok (49yo)

        Independent Non-Executive Director

        • Tenure: 1.6yrs
        • Compensation: US$130.59k
      • Aiping Lyu (56yo)

        Independent Non-executive Director

        • Xu Hao (35yo)

          Non-Executive Director

          • Tenure: 1.4yrs
          • Compensation: US$87.81k

        Company Information

        Nam Tai Property Inc.'s company bio, employee growth, exchange listings and data sources


        Key Information

        • Name: Nam Tai Property Inc.
        • Ticker: NTP
        • Exchange: NYSE
        • Founded: 1975
        • Industry: Real Estate Operating Companies
        • Sector: Real Estate
        • Market Cap: US$328.845m
        • Shares outstanding: 38.19m
        • Website: https://www.namtai.com

        Number of Employees


        Location

        • Nam Tai Property Inc.
        • Nam Tai Estate
        • No. 2, Namtai Road
        • Shenzhen
        • Guangdong Province
        • China

        Listings

        TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
        NTPNYSE (New York Stock Exchange)YesCommon SharesUSUSDMar 1988
        NT1DB (Deutsche Boerse AG)YesCommon SharesDEEURMar 1988

        Biography

        Nam Tai Property Inc., through its subsidiaries, operates as a property development company in the People’s Republic of China. The company owns and develops technology parks. It focuses on developing two parcels of land into commercial complexes in Gushu and Guangming, Shenzhen, as well as renting commercial complexes. The company was formerly known as Nam Tai Electronics, Inc. and changed its name to Nam Tai Property Inc. in April 2014. Nam Tai Property Inc. was founded in 1975 and is headquartered in Shenzhen, the People’s Republic of China. 


        Company Analysis and Financial Data Status

        All financial data provided by Standard & Poor's Capital IQ.
        DataLast Updated (UTC time)
        Company Analysis2020/01/17 23:49
        End of Day Share Price2020/01/17 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.