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

Fundamentals

Very undervalued with flawless balance sheet.


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


Market Performance


7 Day Return

0.9%

HMI

2.5%

US Electronic

0.4%

US Market


1 Year Return

-3.7%

HMI

14.7%

US Electronic

6.9%

US Market

Return vs Industry: HMI underperformed the US Electronic industry which returned 14.7% over the past year.

Return vs Market: HMI underperformed the US Market which returned 6.9% over the past year.


Shareholder returns

HMIIndustryMarket
7 Day0.9%2.5%0.4%
30 Day-15.5%2.0%-1.1%
90 Day-13.7%4.1%-0.5%
1 Year-3.7%-3.7%15.8%14.7%9.3%6.9%
3 Yearn/a55.1%50.7%45.8%36.4%
5 Yearn/a87.6%78.5%62.9%45.1%

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

Undervalued: HMI ($8.92) is trading below our estimate of fair value ($25.52)

Significantly Undervalued: 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 (9.6x) compared to the Electronic industry average (19.1x).

PE vs Market: HMI is good value based on its PE Ratio (9.6x) compared to the US market (17.6x).


Price to Earnings Growth Ratio

Low PEG Ratio: HMI is good value based on its PEG Ratio (0.5x)


Price to Book Ratio

PB vs Industry: HMI is good value based on its PB Ratio (1.9x) compared to the US Electronic industry average (2x).


Next Steps

Future Growth

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

21.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: HMI's forecast earnings growth (21.1% per year) is above the savings rate (2.7%).

Earnings vs Market: HMI's earnings (21.1% per year) are forecast to grow faster than the US market (14.6% per year).

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

Revenue vs Market: HMI's revenue (19.3% per year) is forecast to grow faster than the US market (7.2% per year).

High Growth Revenue: HMI's revenue (19.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

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


Next Steps

Past Performance

How has Huami performed over the past 5 years?

79.4%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: HMI's earnings have grown significantly by 79.4% per year over the past 5 years.

Accelerating Growth: HMI's earnings growth over the past year (213.8%) exceeds its 5-year average (79.4% per year).

Earnings vs Industry: HMI earnings growth over the past year (213.8%) exceeded the Electronic industry 59.6%.


Return on Equity

High ROE: HMI's Return on Equity (19.5%) is considered low.


Return on Assets

ROA vs Industry: HMI has a higher Return on Assets than the Electronic industry average last year.


Return on Capital Employed

ROCE Improving: HMI's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is Huami's financial position?


Financial Position Analysis

Short Term Liabilities: HMI's short term assets (CN¥2.9B) exceeds its short term liabilities (CN¥1.4B)

Long Term Liabilities: HMI's short term assets (2.9B) exceeds its long term liabilities (129.9M)


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 low level of unsold assets or inventory.

Debt Coverage by Assets: HMI's debt is covered by short term assets (assets are 818452952555899274.323390x debt).


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.7%industryaverage1.5%forecastin3Years0%

Current dividend yield vs market & industry


Stability and Growth of Payments

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.

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

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

4.9yrs

Average management tenure


CEO

Wang Huang (43yo)

6.8yrs

Tenure

0

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 ...


Management Age and Tenure

4.9yrs

Average Tenure

45.5yo

Average Age

Experienced Management: HMI's management team is considered experienced (4.9 years average tenure).


Board Age and Tenure

4.5yrs

Average Tenure

50yo

Average Age

Experienced Board: HMI's board of directors are considered experienced (4.5 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


Management Team

  • David Cui (50yo)

    Chief Financial Officer

    • Tenure: 2.2yrs
  • Wang Huang (43yo)

    Founder

    • Tenure: 6.8yrs
  • Mike Yan Yeung (48yo)

    Chief Operating Officer

    • Tenure: 4.8yrs
  • Pengtao Yu (37yo)

    Chief Industrial Designer

    • Tenure: 5yrs
  • Xiao Wu

    Compliance Officer

    • Tenure: 0yrs
  • Zhang Grace Yujia

    Director of Investor Relations

    • Tenure: 0yrs

Board Members

  • Jimmy Y. Lai (63yo)

    Independent Director

    • Tenure: 1.7yrs
  • Hongjiang Zhang (59yo)

    Independent Director

    • Tenure: 1.7yrs
  • Wang Huang (43yo)

    Founder

    • Tenure: 6.8yrs
  • Xiaojun Zhang (47yo)

    Director

    • Tenure: 4.5yrs
  • Yunfen Lu (53yo)

    Director

    • Tenure: 4.5yrs
  • De Liu (45yo)

    Director

    • Tenure: 4.5yrs

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$546.718m
  • 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,  ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/20 00:47
End of Day Share Price2019/10/18 00:00
Earnings2019/06/30
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.