Stella International Holdings Limited (1836) AI Stock Analysis

• Market Cap: $12.36B
• Dividend Yield: 10.16%
• Average Volume (3M): 1.48M
• Price to Earnings (P/E): 9.9
• Beta (1Y): 0.17
• Revenue Growth: -0.14%
• EPS Growth: -14.24%
• Country: HK
• Employees: 42,600
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Apparel - Footwear & Accessories
• EPS (TTM): 0.73
• Shares Outstanding: 839,726,500
• 10 Day Avg. Volume: 1,094,403
• 30 Day Avg. Volume: 1,475,751
• PEG Ratio: 0.61
• Price to Book (P/B): 1.58
• Price to Sales (P/S): 1.12
• P/FCF Ratio: 8.81
• Enterprise Value/Market Cap: 0.82
• Enterprise Value/Revenue: 8.72
• Enterprise Value/Gross Profit: 37.19
• Enterprise Value/Ebitda: 66.22
• 1Y Price Target: $16.92
• Price Target Upside: 14.57% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 82 Outperform
• Price Target: HK$18.00 ▲(21.87% Upside)

Stella International Holdings Limited scores highly due to its strong financial performance, characterized by robust profitability, low leverage, and excellent cash flow generation. The valuation is attractive with a high dividend yield, appealing to income investors. Technical analysis indicates stability with no significant bullish or bearish trends. The absence of earnings call and corporate events data did not impact the overall score.

Positive Factors

Cash Generation

Strong cash generation supports operational and financial activities, ensuring the company can invest in growth and manage obligations efficiently.

Balance Sheet Health

A strong balance sheet with low leverage enhances financial stability and flexibility, positioning the company well for future growth opportunities.

Profitability

High profitability margins indicate efficient operations and the ability to generate significant earnings, supporting long-term business sustainability.

Negative Factors

Revenue Growth

While there is positive growth, revenue levels remain below the 2019 peak, suggesting challenges in fully recovering market position.

Revenue Growth Decline

The decline in revenue growth rate indicates potential market or operational challenges that could impact long-term growth prospects.

EPS Growth

A significant drop in EPS growth suggests pressure on earnings, which could affect investor confidence and the company's ability to reinvest in growth.

Stella International Holdings Limited Business Overview & Revenue Model

Company Description

Stella International Holdings Limited designs, develops, manufactures, and sells footwear products and leather goods in North America, the People's Republic of China, Europe, Asia, and internationally. It operates in two segments, Manufacturing; and Retailing and Wholesaling. The company is also involved in the holding of intellectual property rights; and the provision of secretary and accounting services. In addition, it manufactures and sells handbags. The company offers its products under the Stella Luna and What For brands names. Stella International Holdings Limited was founded in 1982 and is based in Kowloon, Hong Kong.

How the Company Makes Money

Stella International generates revenue primarily through the manufacturing and sale of footwear, which constitutes a significant portion of its business. The company operates on a business-to-business model, supplying products to well-known international brands and retailers. Key revenue streams include direct sales from footwear manufacturing, licensing agreements, and partnerships with global brands for exclusive product lines. Additionally, the company benefits from economies of scale and a diversified product portfolio, which help to stabilize earnings. Strategic partnerships with major retailers further enhance its market reach, while investments in advanced manufacturing technologies contribute to cost efficiency and improved profit margins.

Stella International Holdings Limited Financial Statement Overview

Summary

Stella International Holdings Limited presents a strong financial profile characterized by steady revenue growth, high profitability, low leverage, and robust cash flow generation. The company's strategic management and financial health position it well for sustained growth. While revenue has not yet returned to its 2019 peak, the consistent improvement in profit margins and cash flow metrics highlights a positive trajectory. Overall, Stella International Holdings is financially sound with a promising outlook.

Income Statement

The income statement reveals strong profitability with a Gross Profit Margin of 24.8% and a notable Net Profit Margin of 11.1% for the latest year. Revenue has grown by 3.5% year-over-year, indicating positive growth trends. The EBIT Margin stands at 11.9%, demonstrating efficient operational performance. Overall, Stella International Holdings exhibits solid revenue growth and profitability metrics, though the revenue levels are still lower than peak levels seen in 2019.

Balance Sheet

The balance sheet is robust with a low Debt-to-Equity Ratio of 0.01, indicating minimal leverage risk. The Return on Equity is strong at 15.5%, showcasing effective management of shareholder capital. Additionally, the company maintains a high Equity Ratio of 77.4%, suggesting financial stability. With increasing equity and low debt levels, Stella International Holdings is well-positioned for future growth.

Cash Flow

Cash flow analysis shows a healthy Free Cash Flow Growth Rate of 22.0%, with Free Cash Flow reaching $197 million. The Operating Cash Flow to Net Income Ratio is 1.54, underscoring excellent cash generation capabilities. Furthermore, the Free Cash Flow to Net Income Ratio of 1.15 indicates efficient cash conversion from profits. Stella International Holdings demonstrates strong cash flow performance, supporting its operational and financial activities.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.16B	1.55B	1.49B	1.63B	1.54B	1.14B
Gross Profit	272.65M	383.96M	366.73M	352.13M	316.85M	201.66M
EBITDA	153.13M	220.01M	218.50M	192.62M	160.62M	54.14M
Net Income	118.42M	171.05M	141.07M	118.03M	89.69M	1.69M
Balance Sheet
Total Assets	1.45B	1.42B	1.36B	1.26B	1.30B	1.15B
Cash, Cash Equivalents and Short-Term Investments	350.80M	423.55M	294.48M	213.65M	135.69M	109.31M
Total Debt	67.72M	12.00M	15.24M	22.17M	29.00M	22.55M
Total Liabilities	357.47M	305.83M	292.24M	242.13M	281.49M	225.72M
Stockholders Equity	1.08B	1.10B	1.05B	998.86M	998.60M	924.59M
Cash Flow
Free Cash Flow	107.42M	197.09M	161.51M	182.14M	64.55M	119.37M
Operating Cash Flow	166.84M	264.07M	229.15M	240.08M	120.26M	170.46M
Investing Cash Flow	-28.30M	-31.35M	-56.57M	-53.77M	-71.35M	-71.30M
Financing Cash Flow	-84.30M	-102.64M	-90.79M	-106.41M	-22.62M	-51.90M

Stella International Holdings Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 14.77
• 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 HK:1836, the sentiment is Negative. The current price of 14.77 is below the 20-day moving average (MA) of 15.37, below the 50-day MA of 15.82, and below the 200-day MA of 14.98, indicating a bearish trend. The MACD of -0.22 indicates Positive momentum. The RSI at 36.63 is Neutral, neither overbought nor oversold. The STOCH value of 68.11 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:1836.

Stella International Holdings Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1836	82 Outperform	$12.36B	9.91	14.55%	10.16%	-0.14%	-14.24%
1361	81 Outperform	HK$12.16B	9.28	12.52%	5.22%	14.63%	15.55%
0551	74 Outperform	HK$28.18B	9.56	8.72%	7.69%	5.75%	0.93%
2683	73 Outperform	HK$465.83M	5.44	28.87%	5.45%	31.25%	147.52%
1023	62 Neutral	HK$500.61M	-2.81	-10.55%	11.54%	-1.38%	-275.02%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
1170	49 Neutral	HK$337.81M	-12.44	-2.53%	4.15%	2.32%	-88.07%

Stella International Holdings Limited Corporate Events

Stella International Sets 2026 Board and Committee Line-Up

Stella International Holdings Limited has announced the composition of its board of directors effective 1 January 2026, comprising four executive directors, including Chairman Chen Li-Ming, Lawrence and Chief Executive Officer Chi Lo-Jen, and five independent non-executive directors. The company has also detailed the membership of its five key board committees—Audit, Corporate Governance, Executive, Nomination and Remuneration—clarifying the leadership and oversight roles of each director, such as Peter Bolliger chairing the Audit Committee and Thomas Yue leading the Corporate Governance Committee. This updated board and committee structure underscores the company’s emphasis on strengthened corporate governance, clearer accountability and specialized oversight, which may enhance stakeholder confidence in its management and control framework.

The most recent analyst rating on (HK:1836) stock is a Buy with a HK$18.00 price target. To see the full list of analyst forecasts on Stella International Holdings Limited stock, see the HK:1836 Stock Forecast page.

Stella International Appoints Veteran HR Executive Connie Ma as Independent Non-Executive Director

Stella International Holdings Limited has appointed veteran human resources executive Ms. Ma Hui-Fan, Connie as an independent non-executive director, effective 1 January 2026, and as a member of its Corporate Governance, Nomination and Remuneration Committees. With more than 30 years of HR experience, including senior leadership roles at Taiwan Semiconductor Manufacturing Company and Trend Micro, as well as an independent directorship at Primax Electronics, Ms. Ma is expected to strengthen Stella’s governance structure and oversight capabilities. She will serve an initial three-year term, receiving an annual director’s fee of HK$525,000, and has been confirmed as independent under Hong Kong listing rules, with no shareholding, related-party relationships, or conflicts of interest disclosed, underscoring the company’s emphasis on board independence and corporate governance standards.

The most recent analyst rating on (HK:1836) stock is a Buy with a HK$18.00 price target. To see the full list of analyst forecasts on Stella International Holdings Limited stock, see the HK:1836 Stock Forecast page.

Stella International Holdings Sees Revenue Growth in Q3 2025

Stella International Holdings Limited reported a 3.7% increase in consolidated revenue for the third quarter of 2025, driven by a rise in shipment volumes, particularly in the sports segment. The company is addressing challenges in expanding its production facilities in Indonesia and the Philippines, which will aid future operations. Stella plans to return up to US$60 million annually to shareholders through share repurchases and special dividends in 2025 and 2026.

The most recent analyst rating on (HK:1836) stock is a Buy with a HK$17.50 price target. To see the full list of analyst forecasts on Stella International Holdings Limited stock, see the HK:1836 Stock Forecast page.