NYSE:HMI

Stock Analysis Report

Executive Summary

Huami Corporation, a biometric and activity data-driven company, develops, manufactures, and sells smart wearable technological devices in the People’s Republic of China.


Snowflake Analysis

Flawless balance sheet and undervalued.


Similar Companies

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

-2.9%

HMI

-0.9%

US Electronic

0.5%

US Market


1 Year Return

-17.6%

HMI

8.9%

US Electronic

20.3%

US Market

Return vs Industry: HMI underperformed the US Electronic industry which returned 8.9% over the past year.

Return vs Market: HMI underperformed the US Market which returned 20.3% over the past year.


Shareholder returns

HMIIndustryMarket
7 Day-2.9%-0.9%0.5%
30 Day-9.2%-4.6%2.0%
90 Day35.0%2.4%9.4%
1 Year-17.6%-17.6%10.0%8.9%22.8%20.3%
3 Yearn/a37.1%33.4%50.1%40.4%
5 Yearn/a69.1%60.8%73.1%54.1%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Huami 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: HMI ($13.59) is trading below our estimate of fair value ($27.26)

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


Price To Earnings Ratio

PE vs Industry: HMI is good value based on its PE Ratio (11.9x) compared to the Electronic industry average (19.8x).

PE vs Market: HMI is good value based on its PE Ratio (11.9x) compared to the US market (18.3x).


Price to Earnings Growth Ratio

PEG Ratio: HMI is good value based on its PEG Ratio (0.4x)


Price to Book Ratio

PB vs Industry: HMI is overvalued based on its PB Ratio (2.5x) compared to the US Electronic industry average (1.9x).


Next Steps

Future Growth

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

28.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: HMI's forecast earnings growth (28.5% per year) is above the savings rate (1.7%).

Earnings vs Market: HMI's earnings (28.5% per year) are forecast to grow faster than the US market (14.2% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: HMI's revenue (17.6% per year) is forecast to grow faster than the US market (7.6% per year).

High Growth Revenue: HMI's revenue (17.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: HMI's Return on Equity is forecast to be high in 3 years time (24.3%)


Next Steps

Past Performance

How has Huami performed over the past 5 years?

83.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: HMI has a high level of non-cash earnings.

Growing Profit Margin: HMI's current net profit margins (9.7%) are higher than last year (0.8%).


Past Earnings Growth Analysis

Earnings Trend: HMI's earnings have grown significantly by 83% per year over the past 5 years.

Accelerating Growth: HMI's earnings growth over the past year (1815.8%) exceeds its 5-year average (83% per year).

Earnings vs Industry: HMI earnings growth over the past year (1815.8%) exceeded the Electronic industry 14.6%.


Return on Equity

High ROE: HMI's Return on Equity (21.4%) is considered high.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Huami's financial position?


Financial Position Analysis

Short Term Liabilities: HMI's short term assets (CN¥4.0B) exceed its short term liabilities (CN¥2.3B).

Long Term Liabilities: HMI's short term assets (CN¥4.0B) exceed its long term liabilities (CN¥197.7M).


Debt to Equity History and Analysis

Debt Level: HMI is debt free.

Reducing Debt: HMI had no debt 5 years ago.

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

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


Balance Sheet

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

Debt Coverage by Assets: Insufficient data to determine if HMI's debt is covered by short term assets.


Next Steps

Dividend

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


Dividend Yield vs Market

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

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

Growing Dividend: Insufficient data to determine if HMI'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 HMI'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?

5.2yrs

Average management tenure


CEO

Wang Huang (43yo)

7.1yrs

Tenure

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 experie ...


Leadership Team

NamePositionTenureCompensationOwnership
Wang Huang
Founder7.1yrsno data34.89% CN¥290.6m
David Cui
Chief Financial Officer2.5yrsno datano data
Mike Yan Yeung
Chief Operating Officer5.1yrsno datano data
Zhang Grace Yujia
Director of Investor Relations0yrsno datano data
Xiao Wu
Compliance Officer0yrsno datano data
Pengtao Yu
Chief Industrial Designer5.3yrsno datano data

5.2yrs

Average Tenure

45.5yo

Average Age

Experienced Management: HMI's management team is seasoned and experienced (5.2 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Wang Huang
Founder7.1yrsno data34.89% CN¥290.6m
Jimmy Y. Lai
Independent Director2yrsno datano data
Hongjiang Zhang
Independent Director2yrsno datano data
Xiaojun Zhang
Director4.8yrsno datano data
Yunfen Lu
Director4.8yrsno data1.41% CN¥11.7m
De Liu
Director4.8yrsno datano data

4.8yrs

Average Tenure

50yo

Average Age

Experienced Board: HMI's board of directors are considered experienced (4.8 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 been diluted in the past year, with total shares outstanding growing by 36.8%.


Top Shareholders

Company Information

Huami Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Huami Corporation
  • Ticker: HMI
  • Exchange: NYSE
  • Founded: 2013
  • Industry: Electronic Equipment and Instruments
  • Sector: Tech
  • Market Cap: US$832.948m
  • Shares outstanding: 61.29m
  • Website: https://www.huami.com

Number of Employees


Location

  • Huami Corporation
  • Building H8
  • No. 2800, Chuangxin Road
  • Hefei
  • Anhui Province
  • 230088
  • China

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
HMINYSE (New York Stock Exchange)YesSPONSORED ADSUSUSDFeb 2018

Biography

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 strategic collaborations with Timex Group to develop smart watches; McLaren Applied Technologies to develop co-branded intelligent, data-driven, and customized performance optimization solutions and wearable technologies; and AliveCor, Inc. to deliver a medical functionality to wearable devices. The company was founded in 2013 and is headquartered in Hefei, 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 Analysis2020/02/20 02:25
End of Day Share Price2020/02/19 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.