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HRnetGroup

SGX:CHZ
Snowflake Description

Flawless balance sheet and good value.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
CHZ
SGX
SGD599M
Market Cap
  1. Home
  2. SG
  3. Commercial Services
Company description

HRnetGroup Limited, an investment holding company, engages in the recruitment and staffing business in Singapore, the People’s Republic of China, Hong Kong, Japan, South Korea, Malaysia, Thailand, and Indonesia. The last earnings update was 82 days ago. More info.


Add to Portfolio Compare Print
CHZ Share Price and Events
7 Day Returns
-4.9%
SGX:CHZ
-2.4%
SG Professional Services
-1.4%
SG Market
1 Year Returns
-26.1%
SGX:CHZ
-19.2%
SG Professional Services
0.8%
SG Market
CHZ Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
HRnetGroup (CHZ) -4.9% -6.5% -0.9% -26.1% - -
SG Professional Services -2.4% -3.2% 0.5% -19.2% -18.5% 177.9%
SG Market -1.4% 0.3% 1.8% 0.8% 1.6% -7.7%
1 Year Return vs Industry and Market
  • CHZ underperformed the Professional Services industry which returned -19.2% over the past year.
  • CHZ underperformed the Market in Singapore which returned 0.8% over the past year.
Price Volatility
CHZ
Industry
5yr Volatility vs Market

Value

 Is HRnetGroup undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of HRnetGroup to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for HRnetGroup.

SGX:CHZ Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 4 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 6.6%
Perpetual Growth Rate 10-Year SG Government Bond Rate 1.8%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for SGX:CHZ
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year SG Govt Bond Rate 1.8%
Equity Risk Premium S&P Global 5.4%
Professional Services Unlevered Beta Simply Wall St/ S&P Global 0.83
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.83 (1 + (1- 17%) (2.51%))
0.898
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.9
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 1.75% + (0.898 * 5.44%)
6.63%

Discounted Cash Flow Calculation for SGX:CHZ using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for HRnetGroup is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

Note: Free cash flow to equity valuations ignore the company's cash or debt.

SGX:CHZ DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (SGD, Millions) Source Present Value
Discounted (@ 6.63%)
2020 51.35 Analyst x2 48.16
2021 59.40 Analyst x2 52.24
2022 61.20 Analyst x1 50.47
2023 62.70 Est @ 2.45% 48.49
2024 64.10 Est @ 2.24% 46.49
2025 65.44 Est @ 2.09% 44.51
2026 66.75 Est @ 1.99% 42.57
2027 68.03 Est @ 1.92% 40.69
2028 69.30 Est @ 1.87% 38.87
2029 70.57 Est @ 1.83% 37.12
Present value of next 10 years cash flows SGD449.00
SGX:CHZ DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= SGD70.57 × (1 + 1.75%) ÷ (6.63% – 1.75%)
SGD1,470.08
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= SGD1,470.08 ÷ (1 + 6.63%)10
SGD773.36
SGX:CHZ Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= SGD449.00 + SGD773.36
SGD1,222.36
Equity Value per Share
(SGD)
= Total value / Shares Outstanding
= SGD1,222.36 / 1,007.07
SGD1.21
SGX:CHZ Discount to Share Price
Calculation Result
Value per share (SGD) From above. SGD1.21
Current discount Discount to share price of SGD0.58
= -1 x (SGD0.58 - SGD1.21) / SGD1.21
52.2%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price HRnetGroup is available for.
Intrinsic value
>50%
Share price is SGD0.58 vs Future cash flow value of SGD1.21
Current Discount Checks
For HRnetGroup to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • HRnetGroup's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • HRnetGroup's share price is below the future cash flow value, and at a substantial discount (> 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for HRnetGroup's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are HRnetGroup's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
SGX:CHZ PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-09-30) in SGD SGD0.05
SGX:CHZ Share Price ** SGX (2020-01-28) in SGD SGD0.58
Asia Professional Services Industry PE Ratio Median Figure of 158 Publicly-Listed Professional Services Companies 21.85x
Singapore Market PE Ratio Median Figure of 378 Publicly-Listed Companies 13.43x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of HRnetGroup.

SGX:CHZ PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= SGX:CHZ Share Price ÷ EPS (both in SGD)

= 0.58 ÷ 0.05

11.89x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • HRnetGroup is good value based on earnings compared to the Asia Professional Services industry average.
  • HRnetGroup is good value based on earnings compared to the Singapore market.
Price based on expected Growth
Does HRnetGroup's expected growth come at a high price?
Raw Data
SGX:CHZ PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 11.89x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 4 Analysts
4.3%per year
Asia Professional Services Industry PEG Ratio Median Figure of 55 Publicly-Listed Professional Services Companies 1.69x
Singapore Market PEG Ratio Median Figure of 125 Publicly-Listed Companies 1.13x

*Line of best fit is calculated by linear regression .

SGX:CHZ PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 11.89x ÷ 4.3%

2.75x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • HRnetGroup is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on HRnetGroup's assets?
Raw Data
SGX:CHZ PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-09-30) in SGD SGD0.35
SGX:CHZ Share Price * SGX (2020-01-28) in SGD SGD0.58
Singapore Professional Services Industry PB Ratio Median Figure of 6 Publicly-Listed Professional Services Companies 0.77x
Singapore Market PB Ratio Median Figure of 603 Publicly-Listed Companies 0.77x
SGX:CHZ PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= SGX:CHZ Share Price ÷ Book Value per Share (both in SGD)

= 0.58 ÷ 0.35

1.68x

* Primary Listing of HRnetGroup.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • HRnetGroup is overvalued based on assets compared to the SG Professional Services industry average.
X
Value checks
We assess HRnetGroup's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Professional Services industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Professional Services industry average (and greater than 0)? (1 check)
  5. HRnetGroup has a total score of 4/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is HRnetGroup expected to perform in the next 1 to 3 years based on estimates from 4 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
4.3%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is HRnetGroup expected to grow at an attractive rate?
  • HRnetGroup's earnings growth is expected to exceed the low risk savings rate of 1.8%.
Growth vs Market Checks
  • HRnetGroup's earnings growth is positive but not above the Singapore market average.
  • HRnetGroup's revenue growth is positive but not above the Singapore market average.
Annual Growth Rates Comparison
Raw Data
SGX:CHZ Future Growth Rates Data Sources
Data Point Source Value (per year)
SGX:CHZ Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 4 Analysts 4.3%
SGX:CHZ Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 4 Analysts 2.9%
Asia Professional Services Industry Earnings Growth Rate Market Cap Weighted Average 16.8%
Asia Professional Services Industry Revenue Growth Rate Market Cap Weighted Average 10.2%
Singapore Market Earnings Growth Rate Market Cap Weighted Average 6%
Singapore Market Revenue Growth Rate Market Cap Weighted Average 5.3%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
SGX:CHZ Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 4 Analyst Estimates (S&P Global) See Below
All numbers in SGD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
SGX:CHZ Future Estimates Data
Date (Data in SGD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2022-12-31
2021-12-31 457 57 57 4
2020-12-31 440 54 54 4
2020-01-28
2019-12-31 431 67 53 4
SGX:CHZ Past Financials Data
Date (Data in SGD Millions) Revenue Cash Flow Net Income *
2019-09-30 428 56 49
2019-06-30 426 55 50
2019-03-31 425 57 51
2018-12-31 428 52 48
2018-09-30 422 54 54
2018-06-30 414 45 52
2018-03-31 404 38 46
2017-12-31 392 35 41
2017-09-30 383 34 39
2017-06-30 377 39 37
2017-03-31 370 49 41
2016-12-31 365 53 41

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • HRnetGroup's earnings are expected to grow by 4.3% yearly, however this is not considered high growth (20% yearly).
  • HRnetGroup's revenue is expected to grow by 2.9% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
SGX:CHZ Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 4 Analyst Estimates (S&P Global) See Below

All data from HRnetGroup Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

SGX:CHZ Future Estimates Data
Date (Data in SGD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2022-12-31
2021-12-31 0.06 0.07 0.05 4.00
2020-12-31 0.05 0.06 0.05 4.00
2020-01-28
2019-12-31 0.05 0.05 0.05 4.00
SGX:CHZ Past Financials Data
Date (Data in SGD Millions) EPS *
2019-09-30 0.05
2019-06-30 0.05
2019-03-31 0.05
2018-12-31 0.05
2018-09-30 0.06
2018-06-30 0.06
2018-03-31 0.05
2017-12-31 0.05
2017-09-30 0.05
2017-06-30 0.05
2017-03-31 0.05
2016-12-31 0.05

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • HRnetGroup is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess HRnetGroup's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Asia market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Asia market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
HRnetGroup has a total score of 1/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has HRnetGroup performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare HRnetGroup's growth in the last year to its industry (Professional Services).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • HRnetGroup's year on year earnings growth rate has been positive over the past 5 years.
  • HRnetGroup's 1-year earnings growth is negative, it can't be compared to the 5-year average.
  • HRnetGroup's 1-year earnings growth is negative, it can't be compared to the Asia Professional Services industry average.
Earnings and Revenue History
HRnetGroup's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from HRnetGroup Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

SGX:CHZ Past Revenue, Cash Flow and Net Income Data
Date (Data in SGD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-09-30 427.72 49.09 92.28
2019-06-30 425.99 49.70 92.32
2019-03-31 425.49 51.20 93.83
2018-12-31 428.49 48.18 93.57
2018-09-30 421.64 54.05 89.50
2018-06-30 414.10 52.15 87.36
2018-03-31 403.54 46.47 83.84
2017-12-31 391.92 41.33 82.04
2017-09-30 383.13 39.11 80.78
2017-06-30 376.73 37.31 80.43
2017-03-31 369.84 41.11 81.14
2016-12-31 365.04 41.09 82.01
2015-12-31 356.01 38.18 85.93
2014-12-31 324.45 33.35 84.06

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • HRnetGroup has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • HRnetGroup used its assets more efficiently than the Asia Professional Services industry average last year based on Return on Assets.
  • HRnetGroup's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess HRnetGroup's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Professional Services industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
HRnetGroup has a total score of 2/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is HRnetGroup's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up HRnetGroup's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • HRnetGroup is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • HRnetGroup's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of HRnetGroup's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • HRnetGroup has no debt, it does not need to be covered by short term assets.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from HRnetGroup Company Filings, last reported 3 months ago.

SGX:CHZ Past Debt and Equity Data
Date (Data in SGD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-09-30 363.73 0.00 263.86
2019-06-30 350.09 0.00 304.46
2019-03-31 365.64 0.00 326.95
2018-12-31 344.82 0.00 300.67
2018-09-30 338.77 0.00 296.77
2018-06-30 328.31 0.00 286.76
2018-03-31 338.68 0.00 306.08
2017-12-31 320.77 0.00 297.31
2017-09-30 307.19 0.00 281.40
2017-06-30 295.99 0.00 279.29
2017-03-31 97.21 0.00 109.39
2016-12-31 97.21 0.00 109.39
2015-12-31 136.32 0.00 125.72
2014-12-31 144.77 0.00 127.73
  • HRnetGroup has no debt.
  • HRnetGroup has not taken on any debt in the past 5 years.
  • HRnetGroup has no debt, it does not need to be covered by operating cash flow.
  • HRnetGroup has no debt, therefore coverage of interest payments is not a concern.
X
Financial health checks
We assess HRnetGroup's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. HRnetGroup has a total score of 6/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

 What is HRnetGroup's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
4.83%
Current annual income from HRnetGroup dividends. Estimated to be 5.08% next year.
If you bought SGD2,000 of HRnetGroup shares you are expected to receive SGD97 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • HRnetGroup's pays a higher dividend yield than the bottom 25% of dividend payers in Singapore (2.5%).
  • HRnetGroup's dividend is below the markets top 25% of dividend payers in Singapore (5.49%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
SGX:CHZ Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 4 Analyst Estimates (S&P Global) See Below
Asia Professional Services Industry Average Dividend Yield Market Cap Weighted Average of 117 Stocks 1.1%
Singapore Market Average Dividend Yield Market Cap Weighted Average of 312 Stocks 4%
Singapore Minimum Threshold Dividend Yield 10th Percentile 1.6%
Singapore Bottom 25% Dividend Yield 25th Percentile 2.5%
Singapore Top 25% Dividend Yield 75th Percentile 5.5%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

SGX:CHZ Future Dividends Estimate Data
Date (Data in SGD) Dividend per Share (annual) Avg. No. Analysts
2022-12-31
2021-12-31 0.03 4.00
2020-12-31 0.03 4.00
2020-01-28
2019-12-31 0.03 4.00
SGX:CHZ Past Annualized Dividends Data
Date (Data in SGD) Dividend per share (annual) Avg. Yield (%)
2019-04-26 0.028 4.385
2018-04-27 0.023 2.789

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Whilst dividend payments have been stable, HRnetGroup has been paying a dividend for less than 10 years.
  • Dividend payments have increased, but HRnetGroup only paid a dividend in the past 2 years.
Current Payout to shareholders
What portion of HRnetGroup's earnings are paid to the shareholders as a dividend.
  • Dividends paid are covered by earnings (1.7x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be covered by earnings (1.9x coverage).
X
Income/ dividend checks
We assess HRnetGroup's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.6%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can HRnetGroup afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. HRnetGroup has a total score of 3/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of HRnetGroup's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
  • HRnetGroup has no CEO, or we have no data on them.
Management Team Tenure

Average tenure and age of the HRnetGroup management team in years:

8
Average Tenure
51
Average Age
  • The average tenure for the HRnetGroup management team is over 5 years, this suggests they are a seasoned and experienced team.
Management Team

Peter Sim

TITLE
Founder & Chairman of the Board
AGE
65

Jennifer Kang

TITLE
Chief Financial Officer
AGE
51
TENURE
8 yrs

Adeline Sim

TITLE
Chief Legal Officer & Executive Director
AGE
38
TENURE
1.9 yrs

Tan Daisy

TITLE
Chief People Officer
AGE
49
TENURE
8 yrs

Joo Sim

TITLE
Executive Director
AGE
62

Shirley Lim

TITLE
Company Secretary
TENURE
1.6 yrs

Lorencz Tay

TITLE
Group Business Leader & MD of PeopleSearch Group of Companies
TENURE
13 yrs
Board of Directors Tenure

Average tenure and age of the HRnetGroup board of directors in years:

2.7
Average Tenure
61.5
Average Age
  • The average tenure for the HRnetGroup board of directors is less than 3 years, this suggests a new board.
Board of Directors

Peter Sim

TITLE
Founder & Chairman of the Board
AGE
65

Adeline Sim

TITLE
Chief Legal Officer & Executive Director
AGE
38
TENURE
2.7 yrs

Joo Sim

TITLE
Executive Director
AGE
62
TENURE
3.3 yrs

Sin Ann

TITLE
Lead Independent Director
AGE
61
TENURE
2.7 yrs

Mae Heng

TITLE
Independent Director
AGE
49
TENURE
2.7 yrs

Tan Siew

TITLE
Independent Director
AGE
65
TENURE
2.7 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month open market individual insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (SGD) Value (SGD)
10. Jun 19 Buy Wei Sim Individual 06. Jun 19 06. Jun 19 35,900 SGD0.71 SGD25,489
06. Jun 19 Buy Wei Sim Individual 04. Jun 19 04. Jun 19 9,500 SGD0.71 SGD6,745
04. Jun 19 Buy Wei Sim Individual 03. Jun 19 03. Jun 19 4,600 SGD0.71 SGD3,266
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Management checks
We assess HRnetGroup's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. HRnetGroup has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Should We Be Delighted With HRnetGroup Limited's (SGX:CHZ) ROE Of 15%?

The formula for return on equity is: Return on Equity = Net Profit ÷ Shareholders' Equity Or for HRnetGroup: 15% = S$50m ÷ S$350m (Based on the trailing twelve months to June 2019.) Most know that net profit is the total earnings after all expenses, but the concept of shareholders' equity is a little more complicated. … One simple way to determine if a company has a good return on equity is to compare it to the average for its industry. … In the latter case, the debt required for growth will boost returns, but will not impact the shareholders' equity.

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Is HRnetGroup Limited's (SGX:CHZ) Future Growth Already Accounted For In Today's Price?

HRnetGroup is available at a price-to-earnings ratio of 12.76x, showing us it is overvalued compared to the SG market average ratio of 12.56x , and undervalued based on its latest annual earnings update compared to the Professional Services average of 14.97x. … However, since HRnetGroup is a high-growth stock, we must also account for its earnings growth by using calculation called the PEG ratio. … A PE ratio of 12.76x and expected year-on-year earnings growth of 11% give HRnetGroup an acceptable PEG ratio of 1.14x.

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Is There An Opportunity With HRnetGroup Limited's (SGX:CHZ) 44% Undervaluation?

Generally we assume that a dollar today is more valuable than a dollar in the future, and so the sum of these future cash flows is then discounted to today's value: 10-year free cash flow (FCF) estimate 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 Levered FCF (SGD, Millions) SGD61.2m SGD66.0m SGD68.8m SGD71.4m SGD73.7m SGD75.9m SGD78.0m SGD80.1m SGD82.1m SGD84.2m Growth Rate Estimate Source Analyst x1 Analyst x1 Est @ 4.3% Est @ 3.7% Est @ 3.28% Est @ 2.99% Est @ 2.78% Est @ 2.64% Est @ 2.54% Est @ 2.47% Present Value (SGD, Millions) Discounted @ 7.75% SGD56.8 SGD56.9 SGD55.0 SGD53.0 SGD50.8 SGD48.5 SGD46.3 SGD44.1 SGD42.0 SGD39.9 ("Est" = FCF growth rate estimated by Simply Wall St) Present Value of 10-year Cash Flow (PVCF)= SGD493.2m The second stage is also known as Terminal Value, this is the business's cash flow after the first stage. … Terminal Value (TV) = FCF2029 × (1 + g) ÷ (r – g) = S$84m × (1 + 2.3%) ÷ (7.7% – 2.3%) = S$1.6b Present Value of Terminal Value (PVTV) = TV / (1 + r)10 = SGDS$1.6b ÷ ( 1 + 7.7%)10 = SGD750.02m The total value, or equity value, is then the sum of the present value of the future cash flows, which in this case is SGD1.24b. … SGX:CHZ Intrinsic value, July 31st 2019 The assumptions Now the most important inputs to a discounted cash flow are the discount rate, and of course, the actual cash flows.

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Why We Like HRnetGroup Limited’s (SGX:CHZ) 16% Return On Capital Employed

To be precise, we'll consider its Return On Capital Employed (ROCE), as that will inform our view of the quality of the business. … Analysts use this formula to calculate return on capital employed: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) Or for HRnetGroup: 0.16 = S$60m ÷ (S$448m - S$66m) (Based on the trailing twelve months to March 2019.) Therefore, HRnetGroup has an ROCE of 16%. … Due to the way ROCE is calculated, a high level of current liabilities makes a company look as though it has less capital employed, and thus can (sometimes unfairly) boost the ROCE.

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Those Who Purchased HRnetGroup (SGX:CHZ) Shares A Year Ago Have A 16% Loss To Show For It

For example, the HRnetGroup Limited (SGX:CHZ) share price is down 16% in the last year. … One imperfect but simple way to consider how the market perception of a company has shifted is to compare the change in the earnings per share (EPS) with the share price movement. … We note that for HRnetGroup the TSR over the last year was -13%, which is better than the share price return mentioned above.

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What Kind Of Shareholders Own HRnetGroup Limited (SGX:CHZ)?

A look at the shareholders of HRnetGroup Limited (SGX:CHZ) can tell us which group is most powerful. … See our latest analysis for HRnetGroup SGX:CHZ Ownership Summary, May 16th 2019 What Does The Institutional Ownership Tell Us About HRnetGroup? … Sometimes insiders or other related parties have an interest in shares in a public company through a separate private company.

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Is HRnetGroup Limited's (SGX:CHZ) 3.6% Dividend Worth Your Time?

Dividend paying stocks like HRnetGroup Limited (SGX:CHZ) tend to be popular with investors, and for good reason - some research shows that a significant amount of all stock market returns come from reinvested dividends. … Some readers mightn't know much about HRnetGroup's 3.6% dividend, as it has only been paying distributions for a year or so. … The company also bought back stock during the year, equivalent to approximately 0.8% of the company's market capitalisation at the time.

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Are Investors Undervaluing HRnetGroup Limited (SGX:CHZ) By 29%?

I will use the Discounted Cash Flow (DCF) model! … If you want to learn more about discounted cash flow, the rationale behind this calculation can be read in detail in the Simply Wall St analysis model. … We're using the 2-stage growth model, which simply means we take in account two stages of company's growth

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How Do Analysts See HRnetGroup Limited (SGX:CHZ) Performing In The Years Ahead?

In December 2018, HRnetGroup Limited (SGX:CHZ) released its most recent earnings announcement, whicha … suggested

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Will HRnetGroup Limited's (SGX:CHZ) Earnings Grow In The Next 12 Months?

In December 2018, HRnetGroup Limited (SGX:CHZ) announced its earnings update. … in-line with historical trends, with earnings growth rate expected to be 11% in the upcoming year, relative to the past five-year average earnings growth of 10% per year

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Company Info

Description

HRnetGroup Limited, an investment holding company, engages in the recruitment and staffing business in Singapore, the People’s Republic of China, Hong Kong, Japan, South Korea, Malaysia, Thailand, and Indonesia. The company operates through Flexible Staffing, Professional Recruitment, and Others segments. It offers permanent recruitment, payroll, and temporary and contracted staffing services for financial institutions, information technology and telecommunications, retail and consumer, manufacturing, healthcare life science, education, insurance, services, logistics, and other industries. The company also provides other services comprising management training consulting services. It provides its services under the HRnet One, Recruit Express, PeopleSearch, SearchAsia, RecruitFirst, PeopleFirst, RecruitLegal, YesPay!, Recruit Express Services, Performance Consulting, and Young Talent brands. The company was founded in 1992 and is headquartered in Singapore. HRnetGroup Limited is a subsidiary of SIMCO Ltd.

Details
Name: HRnetGroup Limited
CHZ
Exchange: SGX
Founded: 1992
SGD599,208,217
1,007,072,635
Website: http://www.hrnetgroup.com
Address: HRnetGroup Limited
Ngee Ann City,
Tower A,
Singapore,
238873,
Singapore
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
SGX CHZ Ordinary Shares Singapore Exchange SG SGD 16. Jun 2017
OTCPK HRNT.F Ordinary Shares Pink Sheets LLC US USD 16. Jun 2017
Number of employees
Current staff
Staff numbers
880
HRnetGroup employees.
Industry
Human Resource and Employment Services
Commercial Services
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2020/01/28 13:08
End of day share price update: 2020/01/28 00:00
Last estimates confirmation: 2020/01/10
Last earnings filing: 2019/11/07
Last earnings reported: 2019/09/30
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.