Michael Hill International Ltd. (MHJ) AI Stock Analysis

• Market Cap: AU$153.94M
• Dividend Yield: N/A
• Average Volume (3M): 107.23K
• Price to Earnings (P/E): 72.7
• Beta (1Y): 0.29
• Revenue Growth: -0.20%
• EPS Growth: N/A
• Country: AU
• Employees: 2,500
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Luxury Goods
• EPS (TTM): -0.04
• Shares Outstanding: 384,842,600
• 10 Day Avg. Volume: 106,988
• 30 Day Avg. Volume: 107,232
• PEG Ratio: -0.14
• Price to Book (P/B): 0.93
• Price to Sales (P/S): 0.25
• P/FCF Ratio: 3.52
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: AU$0.75
• Price Target Upside: 97.37% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 54 Neutral
• Price Target: AU$0.41 ▲(7.37% Upside)

Michael Hill International Ltd. faces significant challenges with profitability and valuation. The stock's technical indicators suggest a bearish trend, and the high P/E ratio indicates overvaluation. These factors outweigh the stable revenue growth and effective cost management.

Positive Factors

Omnichannel Retail Network

An established network of branded stores plus digital channels provides diversified, durable revenue sources and multiple customer touchpoints. Omnichannel capability supports inventory turnover, customer retention and resilience versus single-channel disruption over the medium term.

Higher‑value Product Mix

A product mix that includes higher-value diamond and gemstone pieces increases average selling prices and margin potential. Over the medium term this supports cash generation and earnings quality when merchandising and upsell execution remain consistent, aiding profitability.

Stable Gross Profit Margin

Stable gross margins indicate effective sourcing and production cost control, helping protect unit economics even if volumes fluctuate. This underpins margin sustainability, supports reinvestment in omnichannel capability, and provides a buffer against input cost moves over months.

Negative Factors

Declining Free Cash Flow

Declining free cash flow weakens the company’s ability to fund store maintenance, inventory and strategic initiatives internally. Over the medium term this increases reliance on external financing or cuts to investment, which can erode competitive positioning and growth optionality.

Rising Leverage & Lower ROE

An increased debt-to-equity ratio combined with materially lower ROE signals higher leverage and reduced capital efficiency. This reduces financial flexibility, elevates refinancing and interest-rate risk, and magnifies earnings volatility across business cycles, constraining strategic choices.

Weak Profitability Margins

Persistently low net profit and EBIT margins limit the company’s capacity to convert sales into retained earnings. Over months this restricts internal funding for growth, weakens returns to shareholders, and reduces the firm’s buffer versus pricing pressure or rising input costs.

Michael Hill International Ltd. Business Overview & Revenue Model

Company Description

Michael Hill International Limited owns and operates jewelry stores and provides related services. The company's store offers rings, earrings, bracelets and bangles, necklaces and pendants, chains, watches, collections, and gifts, as well as birthstones. It also provides care plans and diamond warranty services. The company operates its stores under the Michael Hill and Emma & Roe brand names, as well as e-commerce platforms. As of June 27, 2021, Michael Hill International Limited operated 285 stores. Michael Hill International Limited was founded in 1979 and is based in Cannon Hill, Australia.

How the Company Makes Money

Michael Hill International Ltd. generates revenue primarily through the sale of its jewelry products across its retail stores and online platforms. The company employs a multi-channel retail strategy, which allows it to reach customers through both physical locations and e-commerce. Key revenue streams include the sale of diamond and gemstone jewelry, which is often marked up significantly due to the perceived value of these materials. Additionally, Michael Hill offers financing options for customers, such as layaway plans and interest-free credit, which can encourage higher sales volumes. The company may also benefit from partnerships with suppliers and manufacturers for exclusive collections or promotions, enhancing its product offerings and attracting more customers. Seasonal promotions, particularly around holidays like Christmas and Valentine's Day, also contribute to spikes in revenue, as these events are key times for jewelry purchases.

Michael Hill International Ltd. Financial Statement Overview

Summary

Michael Hill International Ltd. shows stable revenue growth and effective cost management, but faces challenges in profitability and increasing debt levels. The decline in free cash flow growth and return on equity are areas of concern.

Income Statement

Michael Hill International Ltd. has shown modest revenue growth over the years, with a 1.9% increase in the latest period. However, profitability metrics such as the net profit margin and EBIT margin are relatively low, indicating challenges in converting revenue into profit. The gross profit margin remains stable, suggesting effective cost management at the production level.

Balance Sheet

The company's debt-to-equity ratio has increased, indicating a higher reliance on debt financing, which could pose a risk if not managed properly. Return on equity has decreased significantly, reflecting lower profitability relative to shareholder equity. The equity ratio suggests a moderate level of financial stability.

Cash Flow

Free cash flow has declined, indicating potential issues in generating cash from operations. The operating cash flow to net income ratio is moderate, suggesting that cash generation is not fully aligned with reported earnings. The free cash flow to net income ratio is relatively healthy, indicating that a substantial portion of earnings is being converted into free cash flow.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	704.72M	692.44M	703.36M	684.48M	657.25M	594.92M
Gross Profit	427.16M	418.70M	425.81M	439.49M	423.98M	371.90M
EBITDA	47.34M	79.11M	78.58M	118.20M	131.41M	125.76M
Net Income	2.68M	2.26M	-523.00K	38.29M	51.79M	48.70M
Balance Sheet
Total Assets	558.19M	558.19M	595.76M	594.72M	566.78M	545.94M
Cash, Cash Equivalents and Short-Term Investments	11.03M	11.03M	22.04M	22.71M	106.27M	77.75M
Total Debt	208.34M	208.34M	233.26M	186.19M	143.66M	143.64M
Total Liabilities	374.48M	374.48M	413.42M	389.46M	350.46M	338.14M
Stockholders Equity	183.72M	183.72M	182.34M	205.26M	216.32M	207.80M
Cash Flow
Free Cash Flow	51.21M	48.39M	18.26M	49.85M	98.79M	133.69M
Operating Cash Flow	60.81M	59.30M	41.36M	87.14M	123.71M	154.13M
Investing Cash Flow	-11.07M	-10.91M	-30.49M	-89.59M	-24.88M	-20.37M
Financing Cash Flow	-60.26M	-59.08M	-11.51M	-80.01M	-72.85M	-68.03M

Michael Hill International Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.38
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:MHJ, the sentiment is Positive. The current price of 0.38 is below the 20-day moving average (MA) of 0.39, above the 50-day MA of 0.36, and above the 200-day MA of 0.38, indicating a bullish trend. The MACD of 0.01 indicates Positive momentum. The RSI at 54.96 is Neutral, neither overbought nor oversold. The STOCH value of 66.67 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AU:MHJ.

Michael Hill International Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ABY	66 Neutral	AU$103.35M	135.80	1.90%	―	1.58%	-65.09%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
LOV	61 Neutral	AU$3.43B	39.67	110.44%	2.57%	14.24%	3.58%
ADH	58 Neutral	AU$310.34M	11.98	11.70%	5.85%	3.99%	-18.35%
BBN	56 Neutral	AU$323.61M	33.80	8.94%	―	4.72%	465.60%
MHJ	54 Neutral	AU$153.94M	72.73	1.24%	―	-0.20%	―
BBT	49 Neutral	AU$255.45M	-23.11	-14.71%	―	126.29%	95.17%

Michael Hill International Ltd. Corporate Events

Michael Hill lifts earnings outlook as sales improve and balance sheet swings to net cash

Michael Hill International reported a solid first-half trading update for the 26 weeks to 28 December 2025, with preliminary group sales rising 3.1% to $370.3 million and same-store sales up 3.8%, driven by record performance in Canada, strong growth in Australia and a return to positive same-store growth in New Zealand. Comparable EBIT is expected to increase to between $27 million and $30 million, up 12%–24% year-on-year, as disciplined product planning, targeted promotions and a stronger Christmas trading period helped offset record-high precious metal input costs and keep gross margins broadly flat, while inventory was cut by about $11 million and the balance sheet shifted to a net cash position of roughly $20 million, supported by a refinanced debt facility and ongoing store portfolio optimisation including new and refurbished flagship locations.

The most recent analyst rating on (AU:MHJ) stock is a Hold with a A$0.40 price target. To see the full list of analyst forecasts on Michael Hill International Ltd. stock, see the AU:MHJ Stock Forecast page.

Michael Hill Extends and Improves Terms on $110m Debt Facility

Michael Hill International has refinanced its existing debt facility on improved margins, extending the term by two years to 31 August 2028 while maintaining its $90 million core facility and $20 million seasonal uplift. The renewed facility, backed by long-term banking partner ANZ and new lender Commonwealth Bank of Australia, reinforces the company’s funding stability and flexibility under standard covenant and guarantee terms, supporting its ongoing operations and growth across its key markets.

The most recent analyst rating on (AU:MHJ) stock is a Hold with a A$0.50 price target. To see the full list of analyst forecasts on Michael Hill International Ltd. stock, see the AU:MHJ Stock Forecast page.

Michael Hill Announces Cessation of Share Rights

Michael Hill International Ltd. announced the cessation of 2,251,529 share rights due to the lapse of conditional rights, as the conditions were not met or became incapable of being satisfied. This announcement may affect the company’s capital structure and could have implications for its market positioning and stakeholder interests.

The most recent analyst rating on (AU:MHJ) stock is a Hold with a A$0.50 price target. To see the full list of analyst forecasts on Michael Hill International Ltd. stock, see the AU:MHJ Stock Forecast page.

Michael Hill Appoints New CFO to Drive Financial Strategy

Michael Hill International Limited has appointed Elodie Guillaumond as Chief Financial Officer, effective 2 February 2026. Elodie brings over 20 years of experience in strategic financial leadership from roles at companies like Ampol and Coles, where she demonstrated strong governance and transformation skills. Her appointment is expected to enhance Michael Hill’s financial management and operational efficiency, aligning with the company’s goals for sustainable growth and profitability.

The most recent analyst rating on (AU:MHJ) stock is a Hold with a A$0.50 price target. To see the full list of analyst forecasts on Michael Hill International Ltd. stock, see the AU:MHJ Stock Forecast page.