Harvey Norman Holdings Ltd (HVN) AI Stock Analysis

• Market Cap: $9.31B
• Dividend Yield: 3.25%
• Average Volume (3M): 2.60M
• Price to Earnings (P/E): 17.8
• Beta (1Y): 0.89
• Revenue Growth: 5.09%
• EPS Growth: 46.94%
• Country: AU
• Employees: 6,500
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Department Stores
• EPS (TTM): 0.15
• Shares Outstanding: 1,246,006,700
• 10 Day Avg. Volume: 3,025,617
• 30 Day Avg. Volume: 2,600,025
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 0.93
• Enterprise Value/Revenue: 2.47
• Enterprise Value/Gross Profit: 4.50
• Enterprise Value/Ebitda: 9.45
• 1Y Price Target: $7.38
• Price Target Upside: -1.23% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 8

• Rating: 66 Neutral
• Price Target: AU$8.00 ▲(7.10% Upside)

Harvey Norman Holdings Ltd scores well due to strong financial performance and bullish technical indicators. However, the overbought technical conditions and moderate valuation metrics slightly temper the overall score. Continued attention to debt management and cash flow efficiency will be important for sustaining growth.

Positive Factors

Negative Factors

Harvey Norman Holdings Ltd Business Overview & Revenue Model

Company Description

Harvey Norman Holdings Limited engages in the integrated retail, franchise, property, and digital system businesses. It franchises and sells products in various categories, including electrical goods, furniture, computerized communications, bedding and Manchester, kitchen and small appliances, bathroom and tiles, and carpets and floorings. As of June 30, 2022, the company operated 195 franchised complexes under the Harvey Norman, Domayne, and Joyce Mayne brands in Australia; and 109 company-operated stores under the Harvey Norman brand in New Zealand, Singapore, Malaysia, Slovenia, Croatia, Ireland, and Northern Ireland. It is also involved in the property investment and media placement activities; acts as a lessor of premises to Harvey Norman, Domayne, and Joyce Mayne franchisees and other third parties, as well as retail properties; development and sale of properties; and provision of consumer finance and other commercial loans and advances. The company was founded in 1982 and is based in Homebush West, Australia.

How the Company Makes Money

Harvey Norman Holdings Ltd generates revenue primarily through the sale of consumer goods across its various retail segments. The company operates a unique business model that includes both company-operated and franchised stores. Franchisees pay a combination of franchise fees and rent, contributing to the company's income. Additionally, Harvey Norman benefits from the sale of its real estate portfolio, as the company owns many of its store properties, providing rental income and opportunities for capital appreciation. The company's earnings are further supplemented by strategic partnerships with major electronics, furniture, and technology brands, which enable it to offer a wide range of products to its customers.

Harvey Norman Holdings Ltd Financial Statement Overview

Summary

Harvey Norman Holdings Ltd demonstrates strong financial health with robust revenue growth of 22.998% and improved profitability. The balance sheet shows a solid capital structure, though rising debt levels could pose a risk. Cash flow generation is strong, but there are potential challenges in cash flow management.

Income Statement

Harvey Norman Holdings Ltd has shown a strong revenue growth rate of 22.998% in the most recent year, indicating a robust recovery from previous declines. The gross profit margin remains stable above 50%, and the net profit margin has improved to 12.57%, reflecting enhanced profitability. However, the EBIT and EBITDA margins have slightly decreased compared to earlier years, suggesting some pressure on operational efficiency.

Balance Sheet

The company maintains a healthy debt-to-equity ratio of 0.48, indicating moderate leverage and a strong equity base. Return on equity has improved to 10.79%, showing effective utilization of shareholder funds. The equity ratio stands at 57.35%, reflecting a solid capital structure. However, the increase in total debt over the years could pose a potential risk if not managed carefully.

Cash Flow

Operating cash flow has remained stable, and free cash flow has grown by 22.396%, indicating strong cash generation capabilities. The free cash flow to net income ratio is healthy at 0.74, suggesting efficient conversion of profits into cash. However, the operating cash flow to net income ratio has decreased, indicating potential challenges in cash flow management.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	3.50B	4.12B	3.92B	3.98B	4.14B	4.15B
Gross Profit	1.92B	2.10B	1.99B	1.94B	2.12B	2.16B
EBITDA	914.39M	1.06B	837.26M	1.08B	1.39B	1.37B
Net Income	518.02M	518.02M	352.45M	539.52M	811.53M	841.41M
Balance Sheet
Total Assets	8.37B	8.37B	7.93B	7.67B	7.25B	6.67B
Cash, Cash Equivalents and Short-Term Investments	279.69M	279.69M	273.47M	218.75M	248.80M	305.71M
Total Debt	2.29B	2.29B	2.28B	2.18B	1.90B	1.74B
Total Liabilities	3.53B	3.53B	3.39B	3.21B	2.95B	2.78B
Stockholders Equity	4.80B	4.80B	4.50B	4.43B	4.26B	3.86B
Cash Flow
Free Cash Flow	510.74M	510.74M	494.37M	492.60M	502.38M	443.57M
Operating Cash Flow	694.30M	694.30M	686.53M	680.26M	597.30M	543.87M
Investing Cash Flow	-222.54M	-222.54M	-301.18M	-333.48M	-178.79M	-254.12M
Financing Cash Flow	-445.62M	-445.62M	-334.25M	-379.07M	-432.87M	-335.47M

Harvey Norman Holdings Ltd Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 7.47
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:HVN, the sentiment is Positive. The current price of 7.47 is above the 20-day moving average (MA) of 7.32, above the 50-day MA of 6.60, and above the 200-day MA of 5.46, indicating a bullish trend. The MACD of 0.21 indicates Positive momentum. The RSI at 69.38 is Neutral, neither overbought nor oversold. The STOCH value of 83.23 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AU:HVN.

Harvey Norman Holdings Ltd Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
JBH	75 Outperform	AU$12.74B	27.42	28.60%	2.11%	10.03%	5.38%
BLX	72 Outperform	AU$736.19M	25.10	―	2.49%	1.89%	-3.30%
PMV	71 Outperform	AU$3.08B	18.56	―	5.24%	-48.80%	-35.88%
SUL	68 Neutral	AU$3.67B	16.55	16.79%	7.07%	4.83%	-7.62%
HVN	66 Neutral	$9.31B	17.75	10.92%	3.25%	5.09%	46.94%
MYR	60 Neutral	AU$819.41M	-2.88	―	6.32%	13.78%	-413.50%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%

Harvey Norman Holdings Ltd Corporate Events

Harvey Norman Announces Director’s Shareholding Change

Harvey Norman Holdings Ltd announced a change in the director’s interest for Gerald Harvey, with a significant transaction involving the disposal and acquisition of fully paid ordinary shares. This change in shareholding could have implications for the company’s governance and investor confidence, as it reflects a shift in the director’s financial stake in the company.

The most recent analyst rating on (AU:HVN) stock is a Buy with a A$5.85 price target. To see the full list of analyst forecasts on Harvey Norman Holdings Ltd stock, see the AU:HVN Stock Forecast page.