Michael Hill International Ltd. (MHJ) AI Stock Analysis

• Market Cap: AU$142.39M
• Dividend Yield: 13.29%
• Average Volume (3M): 107.23K
• Price to Earnings (P/E): 67.3
• Beta (1Y): 0.26
• 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: 102.70% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 55 Neutral
• Price Target: AU$0.50 ▲(35.14% Upside)

The overall stock score of 55 reflects the company's stable revenue growth and effective cost management, offset by challenges in profitability and increasing debt levels. The technical analysis indicates a bearish trend, and the high P/E ratio suggests potential overvaluation. The absence of a dividend yield further impacts the valuation negatively.

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. exhibits 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, highlighting the need for improved operational efficiency and financial management to enhance shareholder value.

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: Neutral
• Last Price: 0.37
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• 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 Neutral. The current price of 0.37 is above the 20-day moving average (MA) of 0.36, below the 50-day MA of 0.37, and below the 200-day MA of 0.42, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 53.73 is Neutral, neither overbought nor oversold. The STOCH value of 33.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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
BBN	66 Neutral	AU$373.71M	39.04	8.94%	1.03%	4.72%	465.60%
LOV	65 Neutral	€4.17B	48.22	110.44%	2.04%	14.24%	3.58%
ABY	62 Neutral	AU$100.07M	131.48	1.90%	―	1.58%	-65.09%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
ADH	61 Neutral	€400.78M	15.47	11.70%	4.65%	3.99%	-18.35%
MHJ	55 Neutral	AU$142.39M	67.27	1.24%	13.29%	-0.20%	―
BBT	46 Neutral	AU$274.41M	―	-14.71%	―	126.29%	95.17%

Michael Hill International Ltd. Corporate Events

Michael Hill International Ltd. Appoints New Director

Michael Hill International Ltd. has announced the appointment of Andrea Frances Slingsby as a new director, effective from April 14, 2025. This appointment is part of the company’s ongoing efforts to strengthen its leadership team, which may have implications for its strategic direction and stakeholder engagement.

Michael Hill Appoints Andrea Slingsby as Alternate Director

Michael Hill International Limited has appointed Andrea Slingsby as an alternate director to Sir Michael Hill, who is on leave for cancer treatment. Andrea brings extensive board governance and consulting experience, having previously served in executive roles within the company and currently holding a directorship at Prime Financial Group. Her appointment is expected to support the company’s strategic growth and operational continuity during this period.

Michael Hill International Ltd. Announces Quotation of New Securities

Michael Hill International Ltd. has announced the quotation of 66,314 fully paid ordinary securities on the Australian Securities Exchange (ASX), effective from April 11, 2025. This move is part of the company’s strategy to enhance its market presence and provide more liquidity to its shareholders, potentially impacting its operations and positioning within the jewelry retail industry.

Michael Hill Announces Cessation of Share Rights

Michael Hill International Ltd. announced the cessation of 2,286,200 share rights due to the lapse of conditional rights, as the conditions were not met or became incapable of being satisfied. This cessation of securities could impact the company’s capital structure and may have implications for stakeholders regarding the company’s financial strategies and market positioning.

Michael Hill Announces Cessation of Share Rights

Michael Hill International Ltd. announced the cessation of 44,416 share rights due to the lapse of conditional rights, as the conditions were not met or became incapable of being satisfied. This cessation may impact the company’s capital structure and could have implications for stakeholders regarding the company’s financial strategies and market positioning.

Michael Hill International Addresses Delay in Director’s Notice Lodgement

Michael Hill International Limited announced a delay in lodging the Appendix 3Z Final Director’s Interest Notice for the late Mr. Daniel Bracken due to exceptional circumstances, including respect for his family and a temporary closure of operations caused by Tropical Cyclone Alfred. The company has updated its processes to prevent future delays, affirming that its current arrangements with directors are adequate.

Michael Hill International Announces Interim Leadership Changes

Michael Hill International Limited has announced interim leadership changes following the passing of CEO Daniel Bracken. Andrew Lowe, the current Chief Financial and Supply Chain Officer, has been appointed as Interim CEO while the company conducts a global search for a permanent replacement. The board has also appointed Claudia Batten as Deputy Chair to support Lowe during this transition. These changes are expected to ensure stability and continued execution of the company’s strategic priorities.

Michael Hill International Mourns the Loss of CEO Daniel Bracken

Michael Hill International Limited has announced the unexpected passing of its CEO and Managing Director, Daniel Bracken, due to an adverse reaction to medical treatment. Bracken, who led the company for seven years, was instrumental in transforming the business and is remembered for his innovative leadership. The board will announce interim leadership arrangements soon.

Michael Hill International Ltd. Focuses on Expansion and Operational Excellence Amid Economic Uncertainties

Michael Hill International Ltd.’s latest report highlights the company’s strategic focus on expanding its market presence and improving operational performance. The announcement underscores the company’s commitment to navigating economic uncertainties and adapting to changing market trends, which is crucial for maintaining its competitive edge and ensuring long-term growth.

Michael Hill International Ltd. Reports Resilient Half-Year Financial Performance Amid Economic Challenges

Michael Hill International Ltd. reported its financial results for the half-year ending December 2024, showing a slight decrease in revenue by 0.7% to $360.2 million, while gross margin improved to 61.3%. The company faced challenging economic conditions, particularly in New Zealand, but saw strong sales growth in Canada and a modest increase in Australia. Digital sales also grew, supported by omni-channel initiatives. The company is focusing on reducing costs and optimizing its store network, including expanding the Bevilles brand. Despite the challenges, the company successfully introduced higher margin gifting products and elevated its sustainable diamond offerings.

Michael Hill International Ltd. Reports Slight Revenue Dip but Strong Profit Growth

Michael Hill International Ltd. reported its financial results for the half-year ending December 29, 2024, showing a slight decrease in revenue by 0.7% to $360,169, while earnings before interest and taxation (EBIT) rose by 12.4% to $32,364. The net profit after tax increased by 9.5% to $16,862. The company declared an interim dividend for the year ending June 29, 2025, and highlighted the calculation of net tangible assets, which included right-of-use assets and lease liabilities. Overall, despite a dip in revenue, Michael Hill International Ltd. demonstrated improved profitability and shareholder returns, reflecting a robust financial position and strategic focus in its operations.

Michael Hill to Release Half-Year Financial Results

Michael Hill International Ltd. announced the release of its half-year financial results for the period ending December 29, 2024, scheduled after the market closes on February 21, 2025. The company will hold an investor briefing on February 24, 2025, to discuss these results, indicating its commitment to transparency and stakeholder engagement.