OTCPK:XIAC.F

Stock Analysis Report

Executive Summary

Xiaomi Corporation, an Internet company, provides hardware, software, and Internet services in Mainland China and internationally.

Rewards

PE ratio (19.9x) is below the Tech industry average (21.8x)

Earnings are forecast to grow 18.03% per year

Became profitable this year

Risk Analysis

Shareholders have been substantially diluted in the past year

Large one-off items impacting financial results



Snowflake Analysis

Excellent balance sheet with moderate growth potential.


Similar Companies

Samsung Electronics

KOSE:A005930

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

11.8%

XIAC.F

1.6%

US Tech

0.6%

US Market


1 Year Return

-23.5%

XIAC.F

62.0%

US Tech

20.8%

US Market

Return vs Industry: XIAC.F underperformed the US Tech industry which returned 62% over the past year.

Return vs Market: XIAC.F underperformed the US Market which returned 20.8% over the past year.


Shareholder returns

XIAC.FIndustryMarket
7 Day11.8%1.6%0.6%
30 Day22.1%3.6%2.5%
90 Day10.0%23.5%4.9%
1 Year-23.5%-23.5%64.7%62.0%23.5%20.8%
3 Yearn/a131.4%113.4%46.5%37.0%
5 Yearn/a139.9%115.4%64.6%46.5%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

Is Xiaomi undervalued compared to its fair value and its price relative to the market?

19.85x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: XIAC.F ($1.33) is trading above our estimate of fair value ($0.17)

Significantly Below Fair Value: XIAC.F is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: XIAC.F is good value based on its PE Ratio (19.9x) compared to the Tech industry average (21.8x).

PE vs Market: XIAC.F is poor value based on its PE Ratio (19.9x) compared to the US market (18.6x).


Price to Earnings Growth Ratio

PEG Ratio: XIAC.F is poor value based on its PEG Ratio (1.1x)


Price to Book Ratio

PB vs Industry: XIAC.F is overvalued based on its PB Ratio (2.8x) compared to the US Tech industry average (1.7x).


Next Steps

Future Growth

How is Xiaomi forecast to perform in the next 1 to 3 years based on estimates from 23 analysts?

18.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: XIAC.F's forecast earnings growth (18% per year) is above the savings rate (1.7%).

Earnings vs Market: XIAC.F's earnings (18% per year) are forecast to grow faster than the US market (14.4% per year).

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

Revenue vs Market: XIAC.F's revenue (18.2% per year) is forecast to grow faster than the US market (7.4% per year).

High Growth Revenue: XIAC.F's revenue (18.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: XIAC.F's Return on Equity is forecast to be low in 3 years time (14.2%).


Next Steps

Past Performance

How has Xiaomi performed over the past 5 years?

45.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: XIAC.F has a large one-off gain of CN¥4.2B impacting its September 30 2019 financial results.

Growing Profit Margin: XIAC.F became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: XIAC.F has become profitable over the past 5 years, growing earnings by 45% per year.

Accelerating Growth: XIAC.F has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: XIAC.F has become profitable in the last year, making it difficult to compare its past year earnings growth to the Tech industry (30.2%).


Return on Equity

High ROE: XIAC.F's Return on Equity (13.8%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Xiaomi's financial position?


Financial Position Analysis

Short Term Liabilities: XIAC.F's short term assets (CN¥124.5B) exceed its short term liabilities (CN¥77.8B).

Long Term Liabilities: XIAC.F's short term assets (CN¥124.5B) exceed its long term liabilities (CN¥10.3B).


Debt to Equity History and Analysis

Debt Level: XIAC.F's debt to equity ratio (19.4%) is considered satisfactory.

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

Debt Coverage: XIAC.F's debt is well covered by operating cash flow (49.6%).

Interest Coverage: XIAC.F earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet

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

Debt Coverage by Assets: XIAC.F's debt is covered by short term assets (assets are 8x debt).


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.7%industryaverage1.3%forecastin3Years0%

Current dividend yield vs market & industry

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

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

Growing Dividend: Insufficient data to determine if XIAC.F'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 XIAC.F'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 Xiaomi's salary, the management and board of directors tenure and is there insider trading?

1.3yrs

Average management tenure


CEO

Jun Lei (50yo)

0yrs

Tenure

0

Mr. Lei Jun serves as the Chairman of the board and Chief Executive Officer of Xiaomi Corporation and has been its Executive Director since May 3, 2010. Mr. Lei co-founded Xiaomi Corporation in 2010. He is ...


Management Age and Tenure

1.3yrs

Average Tenure

50.5yo

Average Age

Experienced Management: XIAC.F's management team is not considered experienced ( 1.3 years average tenure), which suggests a new team.


Board Age and Tenure

0.6yrs

Average Tenure

51yo

Average Age

Experienced Board: XIAC.F's board of directors are not considered experienced ( 0.6 years average tenure), which suggests a new board.


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

SellUS$30,891,06226 Aug 19
Bin Lin
EntityIndividual
Role
Vice Chairman
Co-Founder
Shares26,706,200
Max PriceUS$1.16
SellUS$6,322,96126 Aug 19
Bin Lin
EntityIndividual
Role
Vice Chairman
Co-Founder
Shares5,559,600
Max PriceUS$1.14
SellUS$10,286,20726 Aug 19
Bin Lin
EntityIndividual
Role
Vice Chairman
Co-Founder
Shares9,047,600
Max PriceUS$1.14

Ownership Breakdown

Dilution of Shares: Shareholders have been substantially diluted in the past year, with total shares outstanding growing by 82.7%.


Management Team

  • Jun Lei (50yo)

    Founder

    • Tenure: 0yrs
  • Xiang Wang (58yo)

    President

    • Tenure: 0.08yrs
  • So Man (45yo)

    Joint Company Secretary

    • Tenure: 1.7yrs
  • Bin Lin (51yo)

    Co-Founder

    • Tenure: 0.2yrs
  • Shou Zi Chew (37yo)

    Senior VP

    • Tenure: 0.2yrs
  • Yan Qi (70yo)

    Senior VP of Leading Platform

    • Tenure: 0yrs
  • Murlikrishnan B.

    Chief Operating Officer of India

    • Tenure: 1.4yrs
  • Steve Lin

    Joint Company Secretary

    • Tenure: 1.7yrs
  • Anuj Sharma

    Marketing Head for India

    • Tenure: 1.3yrs
  • Yan Luo

    General Manager

    • Tenure: 0.8yrs

Board Members

  • Jun Lei (50yo)

    Founder

    • Tenure: 0yrs
  • Eric Wong (58yo)

    Independent Non-Executive Director

    • Tenure: 1.5yrs
  • Bin Lin (51yo)

    Co-Founder

    • Tenure: 0.2yrs
  • Shou Zi Chew (37yo)

    Senior VP

    • Tenure: 0.2yrs
  • Chen Dongsheng (61yo)

    Independent Non-Executive Director

    • Tenure: 1.5yrs
  • Liu Qin (46yo)

    Non-Executive Director

    • Tenure: 0.9yrs
  • Timothy Tong (66yo)

    Independent Non-Executive Director

    • Tenure: 0.3yrs

Company Information

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


Key Information

  • Name: Xiaomi Corporation
  • Ticker: XIAC.F
  • Exchange: OTCPK
  • Founded: 2010
  • Industry: Technology Hardware, Storage and Peripherals
  • Sector: Tech
  • Market Cap: HK$248.074b
  • Listing Market Cap: HK$31.827b
  • Shares outstanding: 23.85b
  • Website: https://www.mi.com

Number of Employees


Location

  • Xiaomi Corporation
  • Rainbow City Office Building
  • 68 Qinghe Middle Street
  • Beijing
  • China

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
1810SEHK (The Stock Exchange of Hong Kong Ltd.)YesClass B Ordinary SharesHKHKDJul 2018
XIAC.FOTCPK (Pink Sheets LLC)YesClass B Ordinary SharesUSUSDJul 2018
3CPDB (Deutsche Boerse AG)YesClass B Ordinary SharesDEEURJul 2018
1810SHSC (Stock Exchange of Hong Kong Limited - Shanghai - Hong Kong Stock Connect)YesClass B Ordinary SharesHKHKDJul 2018
1810SZSC (The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect)YesClass B Ordinary SharesHKHKDJul 2018
XIAC.YOTCPK (Pink Sheets LLC)UNSPON ADS EACH REP 5 ORD SHSUSUSDAug 2018
3CPADB (Deutsche Boerse AG)UNSPON ADS EACH REP 5 ORD SHSDEEURAug 2018

Biography

Xiaomi Corporation, an Internet company, provides hardware, software, and Internet services in Mainland China and internationally. It operates through Smartphones, IoT and Lifestyle Products, Internet Serv ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/14 01:51
End of Day Share Price2019/12/13 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.