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HIL

HomeChoice InternationalJSE:HIL Stock Report

Market Cap

R2.6b

7D

-7.0%

1Y

2.1%

Updated

19 Oct, 2021

Data

Company Financials
HIL fundamental analysis
Snowflake Score
Valuation2/6
Future Growth0/6
Past Performance1/6
Financial Health4/6
Dividends2/6

HIL Overview

HomeChoice International plc, an investment holding company, operates as an omni-channel home-shopping retailer in South Africa and internationally.

Price History & Performance

Summary of all time highs, changes and price drops for HomeChoice International
Historical stock prices
Current Share PriceR25.01
52 Week HighR18.80
52 Week LowR30.89
Beta0.11
1 Month Change-4.36%
3 Month Change13.73%
1 Year Change2.08%
3 Year Change-39.00%
5 Year Change-28.54%
Change since IPO-16.63%

Recent News & Updates

Aug 24
There May Be Reason For Hope In HomeChoice International's (JSE:HIL) Disappointing Earnings

There May Be Reason For Hope In HomeChoice International's (JSE:HIL) Disappointing Earnings

Shareholders appeared unconcerned with HomeChoice International plc's ( JSE:HIL ) lackluster earnings report last week...

May 31
HomeChoice International (JSE:HIL) Might Be Having Difficulty Using Its Capital Effectively

HomeChoice International (JSE:HIL) Might Be Having Difficulty Using Its Capital Effectively

Did you know there are some financial metrics that can provide clues of a potential multi-bagger? Amongst other things...

Shareholder Returns

HILZA Online RetailZA Market
7D-7.0%6.4%1.0%
1Y2.1%-6.7%20.8%

Return vs Industry: HIL exceeded the ZA Online Retail industry which returned -7.4% over the past year.

Return vs Market: HIL underperformed the ZA Market which returned 20.7% over the past year.

Price Volatility

Is HIL's price volatile compared to industry and market?
HIL volatility
HIL Beta0.11
Industry Beta1
Market Beta1

Stable Share Price: HIL is not significantly more volatile than the rest of ZA stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: HIL's weekly volatility (5%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
1985n/aGregoire Lartiguehttps://www.homechoiceinternational.com

HomeChoice International plc, an investment holding company, operates as an omni-channel home-shopping retailer in South Africa and internationally. It operates through Retail, Financial Services, Property, and Other segments. The company offers a range of homewares and selected apparels and footwear products under the HomeChoice brand; and technology-related products under the FoneChoice brand.

HomeChoice International Fundamentals Summary

How do HomeChoice International's earnings and revenue compare to its market cap?
HIL fundamental statistics
Market CapR2.63b
Earnings (TTM)R179.00m
Revenue (TTM)R2.78b

14.7x

P/E Ratio

0.9x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
HIL income statement (TTM)
RevenueR2.78b
Cost of RevenueR1.07b
Gross ProfitR1.96b
ExpensesR1.78b
EarningsR179.00m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)1.70
Gross Margin70.39%
Net Profit Margin6.43%
Debt/Equity Ratio34.3%

How did HIL perform over the long term?

See historical performance and comparison

Dividends

3.8%

Current Dividend Yield

27%

Payout Ratio

Valuation

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

14.7x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: HIL (ZAR25.01) is trading above our estimate of fair value (ZAR12.34)

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


Price To Earnings Ratio

PE vs Industry: HIL is good value based on its PE Ratio (14.7x) compared to the Global Online Retail industry average (26.8x).

PE vs Market: HIL is poor value based on its PE Ratio (14.7x) compared to the ZA market (11.5x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: HIL is good value based on its PB Ratio (0.8x) compared to the XX Online Retail industry average (3.7x).


Future Growth

How is HomeChoice International forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

30.8%

Forecasted Retail 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 HomeChoice International 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.


Past Performance

How has HomeChoice International performed over the past 5 years?

-12.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: HIL has high quality earnings.

Growing Profit Margin: HIL's current net profit margins (6.4%) are lower than last year (11.6%).


Past Earnings Growth Analysis

Earnings Trend: HIL's earnings have declined by 12.3% per year over the past 5 years.

Accelerating Growth: HIL's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: HIL had negative earnings growth (-44.8%) over the past year, making it difficult to compare to the Online Retail industry average (54%).


Return on Equity

High ROE: HIL's Return on Equity (5.4%) is considered low.


Financial Health

How is HomeChoice International's financial position?


Financial Position Analysis

Short Term Liabilities: HIL's short term assets (ZAR4.0B) exceed its short term liabilities (ZAR400.0M).

Long Term Liabilities: HIL's short term assets (ZAR4.0B) exceed its long term liabilities (ZAR1.2B).


Debt to Equity History and Analysis

Debt Level: HIL's debt to equity ratio (34.3%) is considered satisfactory.

Reducing Debt: HIL's debt to equity ratio has increased from 32.9% to 34.3% over the past 5 years.

Debt Coverage: HIL's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: HIL's interest payments on its debt are well covered by EBIT (13.2x coverage).


Balance Sheet


Dividend

What is HomeChoice International current dividend yield, its reliability and sustainability?

3.76%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: HIL's dividend (3.76%) is higher than the bottom 25% of dividend payers in the ZA market (3.05%).

High Dividend: HIL's dividend (3.76%) is low compared to the top 25% of dividend payers in the ZA market (8.06%).


Stability and Growth of Payments

Stable Dividend: HIL has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: HIL has only been paying a dividend for 7 years, and since then payments have fallen.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (27.4%), HIL's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

11.8yrs

Average management tenure


CEO

Gregoire Lartigue (49 yo)

no data

Tenure

R402,000

Compensation

Mr. Gregoire Lartigue is General Partner at Vaalon Capital. Mr. Lartigue serves as the Group Chief Executive Officer at HomeChoice International PLC. Mr. Lartigue has experience in both the Trust and fiduc...


CEO Compensation Analysis

Compensation vs Market: Gregoire's total compensation ($USD27.67K) is below average for companies of similar size in the ZA market ($USD478.25K).

Compensation vs Earnings: Gregoire's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: HIL's management team is seasoned and experienced (11.8 years average tenure).


Board Members

Experienced Board: HIL's board of directors are considered experienced (6.9 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.


Recent Insider Transactions

Ownership Breakdown

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


Top Shareholders

Company Information

HomeChoice International plc's employee growth, exchange listings and data sources


Key Information

  • Name: HomeChoice International plc
  • Ticker: HIL
  • Exchange: JSE
  • Founded: 1985
  • Industry: Internet and Direct Marketing Retail
  • Sector: Retail
  • Market Cap: R2.630b
  • Shares outstanding: 105.17m
  • Website: https://www.homechoiceinternational.com

Number of Employees


Location

  • HomeChoice International plc
  • 78 Main Road
  • Wynberg
  • Cape Town
  • Western Cape
  • 7800
  • South Africa

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/10/19 21:43
End of Day Share Price2021/10/19 00:00
Earnings2021/06/30
Annual Earnings2020/12/31


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.