Michael Hill International Ltd. (MHJ) AI Stock Analysis

• Market Cap: AU$127.00M
• Dividend Yield: N/A
• Average Volume (3M): 107.23K
• Price to Earnings (P/E): 60.0
• Beta (1Y): 0.24
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 54 Neutral
• Price Target: AU$0.50 ▲(51.52% 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

Multi-Channel Retail Strategy

The multi-channel approach enhances market reach and customer engagement, providing resilience against market fluctuations and supporting revenue growth.

Stable Revenue Growth

Stable revenue growth indicates a strong market position and effective strategies, ensuring consistent cash flow and potential for long-term profitability.

Effective Cost Management

Effective cost management supports margin sustainability, allowing the company to maintain profitability even in competitive markets.

Negative Factors

Increasing Debt Levels

Rising debt levels can strain financial flexibility and increase risk, potentially impacting long-term financial stability and growth opportunities.

Decline in Free Cash Flow

A decline in free cash flow suggests challenges in operational efficiency, which could affect the company's ability to invest in growth and manage debt.

Low Profitability Metrics

Low profitability metrics highlight challenges in converting revenue into profit, which may affect long-term financial health and shareholder returns.

Michael Hill International Ltd. Business Overview & Revenue Model

Company Description

Michael Hill International Ltd. (MHJ) is a prominent jewelry retailer based in Australia and New Zealand, with a growing presence in Canada and the United States. The company specializes in designing, manufacturing, and retailing a wide range of jewelry products, including engagement rings, wedding bands, earrings, necklaces, and bracelets. With a focus on quality craftsmanship and customer service, MHJ operates a network of retail stores and offers online shopping, catering to a diverse clientele seeking both luxury and affordable jewelry options.

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: Negative
• Last Price: 0.33
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• 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 Negative. The current price of 0.33 is below the 20-day moving average (MA) of 0.34, below the 50-day MA of 0.34, and below the 200-day MA of 0.38, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 43.88 is Neutral, neither overbought nor oversold. The STOCH value of 26.67 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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$108.05M	141.98	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$3.38B	39.04	110.44%	2.52%	14.24%	3.58%
ADH	58 Neutral	AU$299.70M	11.57	11.70%	6.21%	3.99%	-18.35%
BBN	56 Neutral	AU$320.90M	33.52	8.94%	―	4.72%	465.60%
MHJ	54 Neutral	AU$127.00M	60.00	1.24%	―	-0.20%	―
BBT	43 Neutral	AU$198.10M	-17.92	-14.71%	―	126.29%	95.17%

Michael Hill International Ltd. Corporate Events

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.

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.

Michael Hill Updates Securities Trading Policy

Michael Hill International Limited has updated its Securities Trading Policy, effective from October 24, 2025, in compliance with ASX Listing Rule 12.10. This update reflects the company’s commitment to maintaining transparent and robust trading practices, which is crucial for its stakeholders and market positioning.

Michael Hill International Ltd. Releases Forward-Looking Performance Report

Michael Hill International Ltd. has released a report containing forward-looking statements about its future financial and operational performance. The report highlights potential risks and uncertainties that could impact the company’s results, including economic conditions, market trends, and competition. Stakeholders are advised to be cautious with these projections as actual outcomes may differ materially.

Michael Hill International Ltd. Navigates Challenges and Leadership Transitions

Michael Hill International Ltd. faced a challenging FY25 with subdued consumer demand and inflationary pressures impacting margins. The company focused on cost management, productivity improvements, and AI integration to enhance operations and maintain stability. Despite these efforts, no dividends were declared for FY25. The company is undergoing leadership transitions, with the appointment of a new CEO, Jonathan Waecker, who is expected to guide the company towards growth and profitability. The legacy of the company’s founder, Sir Michael Hill, and former CEO, Daniel Bracken, continues to inspire the team as they navigate these changes.

Michael Hill International Announces 2025 AGM Details

Michael Hill International Limited announced that its 2025 Annual General Meeting will be held on October 22, 2025, at 10:00 am AEST. Shareholders can participate online, and the Chair and CEO’s address along with the AGM presentation will be available on the ASX and NZX platforms. This meeting is an opportunity for stakeholders to engage with the company’s leadership and gain insights into its strategic direction and performance.

Michael Hill Exempt from NZ Climate Disclosure, Releases Voluntary ESG Report

Michael Hill International Limited announced that it is exempt from New Zealand’s climate-related disclosure requirements for the FY25 period due to its primary listing on the ASX and limited presence in New Zealand. The company voluntarily prepared climate statements, which are available in its FY25 ESG Report, highlighting its commitment to transparency and sustainability despite the exemption.

Michael Hill International Ltd. Announces Virtual Annual General Meeting

Michael Hill International Ltd. has announced its upcoming Annual General Meeting, scheduled to be held virtually on October 22, 2025. The meeting will cover several key items, including the presentation of financial statements and reports, the adoption of the remuneration report, and the re-election of directors Gary Smith, Andrea Slingsby, and Robert Fyfe. This meeting is crucial for stakeholders as it addresses the company’s governance and strategic direction, impacting its operational and industry positioning.

Michael Hill International Ltd. Unveils ESG Report 2025

Michael Hill International Ltd. has released its ESG Report 2025, highlighting its strategic focus on sustainability and operational goals. The report outlines the company’s plans for future operations, including market expansion and new product launches, while acknowledging potential risks and uncertainties that could impact its financial performance.

Michael Hill International Affirms Commitment to Strong Governance Practices

Michael Hill International Limited has released its corporate governance statement for the financial year ending June 29, 2025, which is available on their website. The statement outlines the company’s adherence to the ASX Corporate Governance Council’s recommendations, highlighting the roles and responsibilities of the board and management, and ensuring transparency in director appointments and accountability of the company secretary. This announcement underscores Michael Hill’s commitment to maintaining robust governance practices, which is crucial for its stakeholders and enhances its credibility in the industry.

Michael Hill International’s 2025 Strategic Outlook and Market Expansion

Michael Hill International Limited’s annual report for 2025 highlights the company’s strategic focus on expanding into new markets and launching new products. The report outlines potential risks and uncertainties that could impact the company’s operations, including economic conditions, market trends, and competition. Stakeholders are advised to consider these factors when evaluating the company’s future performance.

Michael Hill International Appoints New Director

Michael Hill International Limited has announced the appointment of Andrea Frances Slingsby as a new director, effective from September 8, 2025. The initial director’s interest notice reveals that Andrea Frances Slingsby currently holds no relevant interests in securities or contracts related to the company. This announcement is a procedural update and does not indicate any immediate operational changes or impacts on the company’s market positioning.

Michael Hill International Ltd. Announces Quotation of New Securities

Michael Hill International Ltd. has announced the quotation of 23,326 ordinary fully paid securities on the ASX, issued under an employee incentive scheme. This move is part of the company’s strategy to enhance its market presence and incentivize its workforce, potentially impacting its operational dynamics and stakeholder interests positively.

Michael Hill Appoints Andrea Slingsby as Non-Executive Director

Michael Hill International Limited has appointed Andrea Slingsby as a non-executive director, effective immediately. Andrea brings over 20 years of experience in governance, strategic growth, and operational transformation across various industries, including retail and technology. Her previous roles at Michael Hill and other ASX-listed companies highlight her expertise in both domestic and international growth, making her a valuable addition to the board. This appointment is expected to strengthen the company’s strategic direction and governance, potentially enhancing its market position and stakeholder confidence.