Harvey Norman Holdings Ltd
HVN: XASX (AUS)
Morningstar Rating for Stocks | Fair Value | Economic Moat | Capital Allocation |
---|---|---|---|
A$9.20 | Dmfl | Gzsvjxmyj |
Harvey Norman’s Fiscal 2022 Earnings Decline Less Severe Than Expected, but Further Pain To Come
No-moat Harvey Norman’s underlying EPS declined by 9% in fiscal 2022, but earnings receded less than the 29% decline we expected. We increase our fair value estimate by 5% to AUD 3.90 per share due to higher near-term earnings and the time value money impact on our DCF model. At current prices, shares screen as slightly overvalued.