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Harvey Norman Holdings Ltd (AU:HVN)
ASX:HVN
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Harvey Norman Holdings Ltd (HVN) AI Stock Analysis

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AU:HVN

Harvey Norman Holdings Ltd

(Sydney:HVN)

Rating:73Outperform
Price Target:
AU$6.00
▲(6.95%Upside)
The overall stock score for Harvey Norman Holdings Ltd is primarily influenced by its strong financial stability and positive technical indicators. While the company faces challenges in profit margins and leverage, its effective cost management and robust cash flow generation are significant strengths. The fair valuation and attractive dividend yield further enhance the stock's investment appeal.
Positive Factors
Profit Growth
The company's 2H24 profit before tax increased by 5.0% year over year, which was 8% above the Goldman Sachs estimate.
Negative Factors
Market Competition
The company is experiencing market share loss in Australia due to higher competition in the electronics and furniture industry.
Sales Performance
The New Zealand retail segment delivered a -9.0% comparable sales decline in the second half of FY24.

Harvey Norman Holdings Ltd (HVN) vs. iShares MSCI Australia ETF (EWA)

Harvey Norman Holdings Ltd Business Overview & Revenue Model

Company DescriptionHarvey Norman Holdings Ltd (HVN) is a prominent Australian-based multinational retail company engaged in the sale of furniture, bedding, computers, communications, and consumer electrical products. Established in 1982, the company operates across several sectors, including home and lifestyle, technology, and electrical appliances. Through its extensive network of company-operated and franchised stores, Harvey Norman serves customers in Australia, New Zealand, and several other international markets.
How the Company Makes MoneyHarvey 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 overall financial stability with strong cash flow generation and a healthy equity base. However, challenges include maintaining profit margins and managing increasing leverage. Revenue growth is a concern, but effective cost management and cash flow efficiency remain strengths.
Income Statement
72
Positive
Harvey Norman Holdings Ltd has demonstrated a stable revenue base with a minor decline from the previous year, but overall, it has been consistent over the years. The gross profit margin is strong at approximately 46.5%, indicating good control over the cost of goods sold. The net profit margin decreased from last year to 8.98%, reflecting challenges in maintaining bottom-line profitability. The EBIT and EBITDA margins are solid, but there is a noticeable decrease in EBIT margin from the previous year, which might suggest increased operating expenses or lower revenue efficiency.
Balance Sheet
68
Positive
The company maintains a healthy equity ratio of around 56.8%, suggesting a strong foundation with moderate reliance on debt. However, the debt-to-equity ratio has increased slightly over the years to 0.51, indicating a growing leverage which could pose risks if not managed properly. The return on equity (ROE) has decreased to 7.83%, suggesting reduced profitability relative to shareholders' equity.
Cash Flow
75
Positive
Operating cash flow remains robust, and free cash flow is positive, indicating good internal cash generation capability. The free cash flow to net income ratio is strong, showing effective conversion of income into cash. However, the growth in free cash flow has been minimal, indicating stagnation in cash flow growth despite steady operating cash inflow.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue3.92B3.98B4.14B4.15B2.29B
Gross Profit1.99B1.94B2.12B2.16B1.67B
EBITDA837.26M1.08B1.39B1.37B904.13M
Net Income352.45M539.52M811.53M841.41M480.54M
Balance Sheet
Total Assets7.93B7.67B7.25B6.67B5.83B
Cash, Cash Equivalents and Short-Term Investments273.47M218.75M248.80M305.71M343.43M
Total Debt2.28B2.18B1.90B1.74B1.47B
Total Liabilities3.39B3.21B2.95B2.78B2.35B
Stockholders Equity4.50B4.43B4.26B3.86B3.45B
Cash Flow
Free Cash Flow494.37M492.60M502.38M443.57M963.06M
Operating Cash Flow686.53M680.26M597.30M543.87M1.06B
Investing Cash Flow-301.18M-333.48M-178.79M-254.12M-136.96M
Financing Cash Flow-334.25M-379.07M-432.87M-335.47M-811.37M

Harvey Norman Holdings Ltd Technical Analysis

Technical Analysis Sentiment
Positive
Last Price5.61
Price Trends
50DMA
5.40
Positive
100DMA
5.22
Positive
200DMA
4.96
Positive
Market Momentum
MACD
0.08
Negative
RSI
60.94
Neutral
STOCH
76.44
Neutral
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 5.61 is above the 20-day moving average (MA) of 5.48, above the 50-day MA of 5.40, and above the 200-day MA of 4.96, indicating a bullish trend. The MACD of 0.08 indicates Negative momentum. The RSI at 60.94 is Neutral, neither overbought nor oversold. The STOCH value of 76.44 is Neutral, 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

Overall Rating
UnderperformOutperform
Sector (57)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
77
Outperform
AU$3.42B15.0917.52%7.86%2.56%-13.62%
75
Outperform
AU$11.71B25.4629.07%2.33%6.21%0.20%
74
Outperform
AU$802.58M27.5417.54%2.25%5.33%-4.25%
73
Outperform
$6.99B16.399.58%4.28%1.77%15.57%
73
Outperform
AU$3.29B16.6314.01%4.89%-27.48%-27.96%
57
Neutral
HK$26.32B4.03-2.03%5.52%-0.23%-68.02%
53
Neutral
€1.10B22.948.55%9.37%-2.43%-49.64%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
AU:HVN
Harvey Norman Holdings Ltd
5.61
1.28
29.47%
AU:MYR
Myer Holdings Limited
0.64
-0.16
-19.92%
AU:JBH
JB Hi-Fi Limited
105.77
41.86
65.50%
AU:SUL
Super Retail Group Limited
15.02
0.96
6.83%
AU:PMV
Premier Investments Limited
20.54
-2.95
-12.56%
AU:BLX
Beacon Lighting Group Ltd
3.51
1.14
48.10%

Harvey Norman Holdings Ltd Corporate Events

Harvey Norman Announces Director’s Shareholding Change
Jul 14, 2025

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.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jun 05, 2025