Huami Corporation, a biometric and activity data-driven company, develops, manufactures, and sells smart wearable technological devices in the People’s Republic of China.
The last earnings update was 42 days ago.
Discounted Cash Flow Calculation for NYSE:HMI using 2 Stage Free Cash Flow to Equity Model
The calculations below outline how an intrinsic value for
is arrived at by discounting future cash flows to their present value using the 2 stage method.
We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.
NYSE:HMI DCF 1st Stage: Next 10 year cash flow forecast
Amount off the current price
is available for.
Share price is
vs Future cash flow value of
Current Discount Checks
to be considered undervalued it must be available for at least 20% below the
current price. Less than 40% is even better.
Huami's share price is below the future cash flow value, and at a moderate discount (> 20%).
Huami's share price is below the future cash flow value, and at a substantial discount (> 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for
it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing
when they are out of season, or how much your home is worth.
The amount the stock market is willing to pay for
is considered below, and whether this is a fair price.
Price based on past earnings
Huami's earnings available for a low price, and how does
this compare to other companies in the same industry?
Huami's earnings are expected to grow significantly at over 20% yearly.
Huami's revenue is expected to grow significantly at over 20% yearly.
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can
be gauged below. We look back 3 years and see if they were any good at
predicting what actually occurred. We also show the highest and lowest estimates
looking forward to see if there is a wide range.
Huami's performance over the past 5 years by checking for:
Has earnings increased in past 5 years? (1 check)
Has the earnings growth in the last year exceeded that of the
industry? (1 check)
Is the recent earnings growth over the last year higher than the average annual growth over the
past 5 years? (1 check)
Is the Return on Equity (ROE) higher than 20%? (1 check)
Is the Return on Assets (ROA) above industry average? (1 check)
Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent
earnings report. Some checks require at least 3 or 5 years worth of data.
has a total score of
2/6, see the detailed checks below.
Note: We use GAAP Net Income excluding extraordinary items in all our calculations.
Management is one of the most important areas of a company. We look at
unreasonable CEO compensation, how long the team and board of directors have
been around for and insider trading.
TENURE AS CEO
Mr. Huang Wang is founder and serves as the Chairman of board of Directors and Chief Executive Officer of Huami Corp. (the “Company”) since 2013. Mr. Huang is a serial entrepreneur with significant experience and expertise in the technology and Internet sectors in China. Mr. Huang founded Anhui Huami in December 2013 to develop, manufacture and sell smart wearable devices. Prior to that, Mr. Huang founded Hefei Huaheng Electronic Technology Co., Ltd. In 2002, Mr. Huang founded Hefei Huakai Yuanheng Information Technology Co., Ltd. Mr. Huang previously was a research and development engineer at Huawei Technologies Co. Ltd. Mr. Huang has received many honors in the business world as well. To name a few, he was awarded “Anhui Economic Person of the Year 2015,” “Leading Talents of Strategic Emerging Industry Technology in Anhui” and “Hefei Youth Entrepreneurship.” Mr. Huang received his bachelor’s degree in applied physics from the University of Science and Technology of China in 1997. Mr. Huang was appointed as a Director to the Company by HHtech Holdings Limited, Haiyu Holding Limited, Fandler Holding Limited, Forest Mountain Holding Limited, Wenshui Holding Limited and Shu Hill Holdings.
Insufficient data for Wang to compare compensation growth.
Insufficient data for Wang to establish whether their remuneration is reasonable compared to companies of similar size in United States of America.
Management Team Tenure
Average tenure and age of the
management team in years:
The tenure for the Huami management team is about average.
Chief Financial Officer
Mike Yan Yeung
Chief Operating Officer
Zhang Grace Yujia
Director of Investor Relations
Chief Industrial Designer
Board of Directors Tenure
Average tenure and age of the
board of directors in years:
The tenure for the Huami board of directors is about average.
A Spotlight On Huami Corporation's (NYSE:HMI) Fundamentals
High growth potential with excellent balance sheet One reason why investors are attracted to HMI is its notable earnings growth potential in the near future of 40%. … This is also a good indication as to whether debt is properly covered by the company’s cash flows. … NYSE:HMI Past and Future Earnings, May 21st 2019 Next Steps: For Huami, there are three important aspects you should look at: Historical Performance: What has HMI's returns been like over the past?
Should We Be Delighted With Huami Corporation's (NYSE:HMI) ROE Of 17%?
Our data shows Huami has a return on equity of 17% for the last year. … One way to conceptualize this, is that for each $1 of shareholders' equity it has, the company made $0.17 in profit. … Return on Equity = Net Profit ÷ Shareholders' Equity
Why Huami Corporation (NYSE:HMI) Looks Like A Quality Company
With that in mind, this article will work through how we can use Return On Equity (ROE) to better understand a business. … Another way to think of that is that for every $1 worth of equity in the company, it was able to earn $0.15. … Return on Equity = Net Profit ÷ Shareholders' Equity
Is Huami Corporation (NYSE:HMI) Attractive At This PE Ratio?
While HMI might seem like an attractive stock to buy, it is important to understand the assumptions behind the P/E ratio before you make any investment decisions. … I will explain what the P/E ratio is as well as what you should look out for when using it … Breaking down the P/E ratio
What You Must Know About Huami Corporation's (NYSE:HMI) ROE
and want to learn about Return on Equity using a real-life example. … Sustainability can be gauged by a company’s financial leverage – the more debt it has, the higher ROE is pumped up in the short term, at the expense of long term interest payment burden. … Breaking down Return on Equity
An Intrinsic Calculation For Huami Corporation (NYSE:HMI) Shows It's 27.3% Undervalued
How far off is Huami Corporation (NYSE:HMI) from its intrinsic value? … by estimating the company's future cash flows and discounting them to their present value. … Anyone interested in learning a bit more about intrinsic value should have a read of the Simply Wall St analysis model
Why Huami Corporation (NYSE:HMI) Is Truly A Standout Investment
I've been keeping an eye on Huami Corporation (NYSE:HMI) because I'm attracted to its fundamentals. … Looking at the company as a whole, as a potential stock investment, I believe HMI has a lot to offer. … is a company with
Huami Corporation, a biometric and activity data-driven company, develops, manufactures, and sells smart wearable technological devices in the People’s Republic of China. It operates through two segments, Xiaomi Wearable Products, and Self-Branded Products and Others. The company offers smart bands, watches, and scales; and a range of accessories, including bands, watch straps, necklaces, sportswear, etc. under the Xiaomi and Amazfit brands. It provides charts and graphs to display analysis of the activity and biometric data collected from users through its Mi Fit and Amazfit mobile apps. Huami Corporation has a strategic collaboration with Timex Group to develop smart watches; and McLaren Applied Technologies to develop co-branded intelligent, data-driven, and customized performance optimization solutions and wearable technologies. The company was founded in 2013 and is headquartered in Hefei, the People’s Republic of China.
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