Michael Hill International Ltd
ASX:MHJ
Intrinsic Value
Michael Hill International Ltd. engages in the retail sale of jewellery and related services. [ Read More ]
The intrinsic value of one
MHJ
stock under the Base Case scenario is
1.32
AUD.
Compared to the current market price of 0.68 AUD,
Michael Hill International Ltd
is
Undervalued by 49%.
MHJ could be a value trap.A value trap occurs when a stock looks inexpensive based on fundamental analysis but fails to reach its intrinsic valuation over time, often due to underlying issues not reflected in quantitative data.
Scrutinize beyond numbers; assess long-term potential.
Michael Hill International Ltd's market capitalization is 261.5m AUD.
MHJ stock price is 0.68 AUD.
MHJ stock price (0.68 AUD) is 49% less than its Intrinsic Value (1.32 AUD).
MHJ has upside potential of 53% compared to the average analyst price target.
Open Wall St Estimates
MHJ has positive three-year average ROIC (Return on Invested Capital): 10%. The company is efficient at using invested capital to generate operating income.
MHJ's Revenue has dropped by 0% over the past 12 months.
MHJ's ROIC (Return on Invested Capital) has increased in the last 3 years from 4% to 5%.
MHJ has positive Operating Income for the last twelve months.
MHJ's ROE (Return on Equity) for the past 12 months is positive and is equal to 7%.
MHJ's Revenue is forecast to grow at a rate of 5% per year over the next 3 years.
MHJ's ROE (Return on Equity) has decreased in the last 3 years from 11% to 7%.
MHJ's Altman Z-Score is equal to 2.38.
MHJ's ROIC (Return on Invested Capital) for the past 12 months is very low and is equal to 5%.
MHJ has positive Net Income for the last twelve months.
MHJ's Revenue has been growing by 9% per year for the last 3 years.
MHJ's long-term assets (577m AUD) exceed its long-term liabilties (387m AUD).
MHJ's short-term assets (271m AUD) exceed its short-term liabilties (168m AUD).
MHJ's D/E (Debt to Equity) is very low and is equal to 0.78.
MHJ has positive three-year average ROE (Return on Equity): 19%. The company is efficient at transforming stockholders' equity into net income.
MHJ has positive Free Cash Flow for the last twelve months.
MHJ has positive Gross Profit for the last twelve months.
MHJ has positive Net Debt. This means that the company has more debt (148m AUD) than cash and short-term investments (23m AUD).
MHJ doesn't generate enough operating income (26m AUD) to safely cover interest payments on its debt (-12m AUD).
Valuation Backtest
Michael Hill International Ltd
Run backtest to discover the historical profit from buying and selling
MHJ
stocks based on their intrinsic value.
Analyze the historical link between intrinsic value and market price to make more informed investment decisions.
Fundamental Analysis
Michael Hill International Ltd
Balance Sheet Decomposition
Michael Hill International Ltd
| Current Assets | 270.9m |
| Cash & Short-Term Investments | 22.8m |
| Receivables | 21.3m |
| Other Current Assets | 226.9m |
| Non-Current Assets | 305.9m |
| PP&E | 197m |
| Intangibles | 56.6m |
| Other Non-Current Assets | 52.4m |
| Current Liabilities | 168.1m |
| Accounts Payable | 85.6m |
| Accrued Liabilities | 10.2m |
| Other Current Liabilities | 72.4m |
| Non-Current Liabilities | 219.1m |
| Long-Term Debt | 148.3m |
| Other Non-Current Liabilities | 70.8m |
Earnings Waterfall
Michael Hill International Ltd
|
Revenue
|
628.9m
AUD
|
|
Cost of Revenue
|
-238.3m
AUD
|
|
Gross Profit
|
390.6m
AUD
|
|
Operating Expenses
|
-364.6m
AUD
|
|
Operating Income
|
26m
AUD
|
|
Other Expenses
|
-13m
AUD
|
|
Net Income
|
13m
AUD
|
Free Cash Flow Analysis
Michael Hill International Ltd
MHJ Profitability Score
Profitability Due Diligence
Michael Hill International Ltd's profitability score is 57/100. The higher the profitability score, the more profitable the company is.
Score
Michael Hill International Ltd's profitability score is 57/100. The higher the profitability score, the more profitable the company is.
MHJ Solvency Score
Solvency Due Diligence
Michael Hill International Ltd's solvency score is 37/100. The higher the solvency score, the more solvent the company is.
Score
Michael Hill International Ltd's solvency score is 37/100. The higher the solvency score, the more solvent the company is.
Wall St
Price Targets
MHJ Price Targets Summary
Michael Hill International Ltd
According to Wall Street analysts, the average 1-year price target for
MHJ
is 1.04 AUD
with a low forecast of 0.93 AUD and a high forecast of 1.16 AUD.
Shareholder Return
MHJ Price
Michael Hill International Ltd
| Average Annual Return | 29.62% |
| Standard Deviation of Annual Returns | 63.17% |
| Max Drawdown | -68% |
| Market Capitalization | 261.5m AUD |
| Shares Outstanding | 384 624 000 |
| Percentage of Shares Shorted |
N/A
|
Company Profile
Michael Hill International Ltd
Country
Industry
Market Cap
Dividend Yield
Description
Michael Hill International Ltd. engages in the retail sale of jewellery and related services. The company is headquartered in Brisbane, Queensland. The company went IPO on 2016-07-07. The firm operates through three segments: Australia, New Zealand and Canada. The firm offers various products and services under following categories: engagement and weddings, jewelry, gifts and collections. Its engagement and weddings category include engagement rings, promise rings, wedding bands and bridal sets. Its jewelry includes rings, earrings, bracelets and bangles, necklaces and pendants, chains, men's jewelry and watches. Its collections consist of bridal and engagement collections and fashion collections. Its gift category provides various types of gifts for partners, parents, friends and children. The company operates approximately 285 stores and digital platform across Australia, New Zealand and Canada.
Contact
IPO
Employees
Officers
The intrinsic value of one
MHJ
stock under the Base Case scenario is
1.32
AUD.
Compared to the current market price of 0.68 AUD,
Michael Hill International Ltd
is
Undervalued by 49%.
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