Stella International Holdings Limited (1836) AI Stock Analysis

• Market Cap: $12.14B
• Dividend Yield: 17.86%
• Average Volume (3M): 1.62M
• Price to Earnings (P/E): 8.8
• Beta (1Y): 0.07
• Revenue Growth: 3.18%
• EPS Growth: 18.35%
• Country: HK
• Employees: 42,600
• Sector: Consumer Defensive
• Sector Strength: 55
• Industry: Apparel - Footwear & Accessories
• EPS (TTM): 0.78
• Shares Outstanding: 836,836,000
• 10 Day Avg. Volume: 2,035,544
• 30 Day Avg. Volume: 1,616,932
• PEG Ratio: -1.99
• Price to Book (P/B): 1.40
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 7.86
• Enterprise Value/Market Cap: 0.09
• Enterprise Value/Revenue: 0.19
• Enterprise Value/Gross Profit: 2.96
• Enterprise Value/Ebitda: 1.34
• 1Y Price Target: $12.80
• Price Target Upside: -10.15% Downside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 3

• Rating: 81 Outperform
• Price Target: HK$16.50 ▲(15.87%Upside)

Stella International Holdings demonstrates strong financial health, characterized by robust profitability and cash flow metrics. The valuation is appealing with a low P/E ratio and high dividend yield. Technical analysis shows neutral price trends, indicating a potential buying opportunity if the fundamentals remain strong.

Positive Factors

Earnings Growth

Stella remains committed to delivering a low-teens earnings CAGR for 2024-26.

Order Visibility

Stella sees firm order visibility for 2025, particularly for larger sportswear brands.

Shareholder Returns

Stella is committed to improving shareholder returns in the form of share repurchase or dividend of up to USD60mn a year for three years.

Negative Factors

Shipment Volumes

Key risks include weaker-than-expected shipment volumes and margin expansion.

Supply Chain Disruptions

Supply chain disruptions and wage inflation are noted as potential challenges.

US Tariffs

Excessive US tariffs are noted as a potential challenge for Stella.

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 Holdings Limited generates revenue through the manufacturing and sale of footwear and leather goods. The company operates primarily as an original design manufacturer (ODM) and original equipment manufacturer (OEM), producing footwear for major global brands. Key revenue streams include direct sales of its manufactured products to brand owners and retailers, as well as providing design and development services. The company benefits from strategic partnerships with international fashion brands, leveraging its expertise in high-quality craftsmanship and innovative design to secure long-term contracts. Stella International's earnings are also supported by its ability to adapt to market trends, ensuring a steady demand for its products.

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.

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

Stella International Holdings Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 14.24
• 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 14.24 is below the 20-day moving average (MA) of 14.39, below the 50-day MA of 14.52, and below the 200-day MA of 14.68, indicating a bearish trend. The MACD of 0.04 indicates Positive momentum. The RSI at 45.95 is Neutral, neither overbought nor oversold. The STOCH value of 21.79 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	81 Outperform	$12.14B	8.83	15.89%	17.86%	3.18%	18.35%
Sector *	50 Neutral	AU$2.21B	-0.57	-14.39%	12.18%	7.38%	-60.19%
KMSWF	―	$51.47M	―	-3.04%	20.61%	―	―
TSIOF	―	$1.32B	8.26	12.43%	4.04%	―	―
YUEIF	―	$2.53B	6.42	9.04%	14.80%	―	―
2683	78 Outperform	HK$302.38M	4.70	23.19%	21.62%	14.78%	56.67%
1023	55 Neutral	HK$481.35M	5.10	-1.08%	12.00%	-4.68%	-112.44%

Stella International Holdings Limited Corporate Events

Stella International Reports Revenue Growth and Confirms Strategic Targets

Stella International Holdings Limited reported a 2.9% increase in consolidated revenue for the second quarter of 2025, reaching US$444.0 million, driven by a rise in shipment volumes primarily in the Sports segment. Despite a decrease in average selling price due to a higher proportion of lower-priced sports product orders, the company is on track to meet its Three-Year Plan targets, including a 10% operating margin and a low-teens growth rate in profit after tax by the end of 2025. The company also 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 Sell with a HK$11.00 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 Schedules Board Meeting to Review Interim Results

Stella International Holdings Limited has announced a board meeting scheduled for August 21, 2025, to review and approve the interim financial results for the first half of the year and to consider the payment of an interim dividend. This meeting is significant as it will provide insights into the company’s financial health and potential returns for shareholders, impacting its market positioning and stakeholder interests.

The most recent analyst rating on (HK:1836) stock is a Sell with a HK$11.40 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 Passes All AGM Resolutions, Secures Strong Shareholder Support

Stella International Holdings Limited announced that all resolutions proposed at its Annual General Meeting on 15 May 2025 were successfully passed by poll. The resolutions included the approval of financial statements, declaration of dividends, re-election of directors, and re-appointment of Ernst & Young as auditors. This outcome reflects strong shareholder support and positions the company for continued stability and growth.

The most recent analyst rating on (HK:1836) stock is a Buy with a HK$15.60 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 Reports Q1 2025 Revenue Decline Amid Increased Sports Footwear Shipments

Stella International Holdings Limited reported a 2.2% decrease in consolidated revenue for the first quarter of 2025, amounting to US$331.0 million, attributed to a high base effect from the previous year. Despite this, the company experienced a 3.4% increase in shipment volumes, driven by the sports segment. The company is ahead of its Three-Year Plan targets, maintaining a strong operating profit margin and committing to returning additional cash to shareholders through dividends and share repurchases.