# Harvey Norman Holdings (HVN.AU)

Canonical: https://gigainvestors.com/s/HVN.AU

Analysis as of: 2026-10-16T07:38:40.308Z. Financial observations: FY1997–FY2026.

Listing currency: AUD. Reporting currency: AUD.

## Verdict

Not a wonderful business

Quality tests for Buy: not passed (profit record: pass; earnings resilience is evidence only). Published buy qualification: no.

Share price: AUD 4.09 per share; close as of 2026-10-15.

Estimated value: low AUD 2.52 per share, central AUD 2.84 per share, high AUD 3.27 per share. Buy at or below the central value AUD 2.84 per share. Valuation as of 2026-10-16T07:38:40.308Z; scenarios are not confidence intervals.

Expected annual return: 7.7% at the stated quote. About 7.7% a year at today's price (required return 10.0%). required return 10.0% a year (10% floor; AU 10-year bond 5.2% + 4 points).

## Checklist

### understandable: pass

- 5 revenue declines in the last 10 years (informational)

- Financial history: 10 years

- Years with declining revenue: 5

- Years with a net loss: 0

- Operating margin variation: 0.24×

Chart: Operating margin; fiscal year observations.

- FY2017: 0.17×

- FY2018: 0.16×

- FY2019: 0.13×

- FY2020: 0.14×

- FY2021: 0.20×

- FY2022: 0.18×

- FY2023: 0.12×

- FY2024: 0.09×

- FY2025: 0.10×

- FY2026: 0.18×

### moat: fail

- ROIC median below threshold

- ROIC worst years below threshold (more than 1 bad year allowed)

- Recent gross margin fell 4.1pp below the typical margin (limit 4pp)

- ROIC, median of available years: 6.5%

- ROIC, second-lowest year: 4.1%

- Typical minus recent gross margin: 4.1 pp

- Typical gross margin (annual median): 50.9%

- Recent gross margin (lower of latest and 3-year median): 46.8%

- Years with nonpositive capital: 0

- Capital spending / revenue: 3.8%

- ROIC including acquisitions, ten-year median: 7.5%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2017: 10.5%

- FY2018: 9.0%

- FY2019: 5.5%

- FY2020: 5.2%

- FY2021: 11.4%

- FY2022: 8.9%

- FY2023: 5.2%

- FY2024: 3.7%

- FY2025: 4.1%

- FY2026: 7.4%

### economics: fail

- owner earnings cash conversion below threshold

- Owner earnings / net income, 5-yr: 0.54×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: AUD 1.5B

- Net income, five-year total: AUD 2.7B

- Return on incremental invested capital: 58.0%

- Working capital / revenue, annual change: 0.2 pp

- Working capital / revenue, change between three-year averages: -1.1 pp

- Working capital / revenue, final three-year average: 31.3%

Chart: Annual owner cash / profit; fiscal year observations.

- FY2022: 0.78×

- FY2023: 0.46×

- FY2024: 0.17×

- FY2025: 0.48×

- FY2026: 0.55×

### management: pass

- Historical market-dollar context (not the management verdict): 2017 to 2026 (9 years)

- buybacks unrelated to price (informational)

- ROIC first 3 years vs last 3 years: 9.0% vs 4.1%

- Per-share earnings: 0.33 to 0.42 (three-year endpoint medians)

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: 1.1%

- Ordinary dilution, 5-year annual growth: 0.0%

- Market cap gain: AUD 1.9B

- Cumulative retained earnings: AUD 1.6B

- Diluted shares, 10-year annual growth: 1.1%

- Diluted shares, 5-year annual growth: 0.0%

- $1 test, starting fiscal year: FY2017

- $1 test, ending fiscal year: FY2026

- Per-share value growth: 3.0%

- Per-share value change: AUD 0.09

- Per-share value, starting three-year median: AUD 0.33

- Per-share value, ending three-year median: AUD 0.42

- Average buyback yield: 2.8%

- Buyback history: 1 years

- Debt-funded buybacks: No

- Acquisition spending: AUD 50M

- Cumulative net income, 10 years: AUD 5.3B

- ROIC, first three-year median: 9.0%

- ROIC, last three-year median: 4.1%

Chart: Earnings per share; fiscal year observations.

- FY2017: AUD 0.40

- FY2018: AUD 0.33

- FY2019: AUD 0.33

- FY2020: AUD 0.39

- FY2021: AUD 0.67

- FY2022: AUD 0.65

- FY2023: AUD 0.43

- FY2024: AUD 0.28

- FY2025: AUD 0.42

- FY2026: AUD 0.42

### accounting: pass

- Sloan accruals: -0.1%

- Receivables to sales index (DSRI): 1.11×

- Restructuring years, last five: 0

- Stock compensation / operating cash flow: 0.0%

- Earnings backed by cash: Yes

- Operating cash / earnings: 1.02×

- Accounting red flags: 0

- Goodwill and intangibles / equity: 0.02×

Chart: Sloan accruals; fiscal year observations.

- FY2017: 0.6%

- FY2018: -1.7%

- FY2019: 0.6%

- FY2020: -9.9%

- FY2021: 4.5%

- FY2022: 3.0%

- FY2023: -1.8%

- FY2024: -4.2%

- FY2025: -2.1%

- FY2026: -0.1%

## Holders

## Price story

Down 45% since Sep 2025 · sales +4.7%

Story as of 2026-10-16T10:00:10.122Z; price observation 2026-10-15.

Price needs cash profits to grow 5.7% a year for ten years

### Sales · FY2025–2026

sales +4.7%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2017: AUD 2.9B 

- FY2018: AUD 2.8B 

- FY2019: AUD 2.2B 

- FY2020: AUD 2.3B 

- FY2021: AUD 4.1B 

- FY2022: AUD 4.1B 

- FY2023: AUD 4.0B 

- FY2024: AUD 3.9B 

- FY2025: AUD 4.1B 

- FY2026: AUD 4.3B 

### Gross margin · FY2026

gross margin 46.8%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2017: 20.6% 

- FY2018: 52.5% 

- FY2019: 32.4% 

- FY2020: 72.9% 

- FY2021: 52.1% 

- FY2022: 51.1% 

- FY2023: 48.7% 

- FY2024: 50.8% 

- FY2025: 51.0% 

- FY2026: 46.8% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in specialty retail; annual sales are AUD 4.3 billion.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:38:40.308Z); FY2026: revenue 4313160000; grossProfit 2018459000; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); HVN.AU: Harvey Norman Holdings Limited engages in the integrated retail, franchise, property, and digital system businesses. The company engages in the retail of furniture, bedding, computers, and communications and consumer electrical products. It also owns, develops, and manages retail complexes, as well as acts as a lessor of premises to Harvey Norman, Domayne, and Joyce Mayne franchisees, and other third parties. In addition, the company is also involved in the property investment and media placement activities; and provision of other commercial loans and advances. The company was founded in 1982 and is headquartered in Homebush West, Australia.

### Why customers stay

Margins ranged from 46.8% to 51% during 2024–26; it earns 6.5% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:38:40.308Z); FY2024: grossProfit / revenue = 50.8%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:38:40.308Z); FY2025: grossProfit / revenue = 51%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:38:40.308Z); FY2026: grossProfit / revenue = 46.8%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:38:40.308Z); 10-year return on capital observations [[2017,0.10459958614442207],[2018,0.08973380599483732],[2019,0.05547581496646079],[2020,0.051611075768005575],[2021,0.11403607066607781],[2022,0.08859131396371796],[2023,0.05208916646556494],[2024,0.03664726537073442],[2025,0.041473559061818474],[2026,0.07391343529069014]]; median 0.06469462512857546. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Where the cash goes

Paid dividends in 10 of 10 years.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:38:40.308Z); FY2017: growth capex 11497000; upkeep 77869000; owner earnings 448976000. Growth capex / owner earnings = 0.025607159402729767.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:38:40.308Z); FY2018: growth capex 0; upkeep 93895000; owner earnings 366274000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:38:40.308Z); FY2019: growth capex 0; upkeep 94222000; owner earnings 392641200. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:38:40.308Z); FY2020: growth capex 18014150.64129594; upkeep 75890849.35870406; owner earnings 237834750.64129594. Growth capex / owner earnings = 0.07574229835094624.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:38:40.308Z); FY2021: growth capex 0; upkeep 100300000; owner earnings 655700000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:38:40.308Z); FY2022: growth capex 0; upkeep 94918000; owner earnings 632088400. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:38:40.308Z); FY2023: growth capex 0; upkeep 187660000; owner earnings 246956400. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:38:40.308Z); FY2024: growth capex 0; upkeep 192158000; owner earnings 59746000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:38:40.308Z); FY2025: growth capex 1102000; upkeep 182456000; owner earnings 246484200. Growth capex / owner earnings = 0.004470874806579895.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:38:40.308Z); FY2026: growth capex 0; upkeep 150503000; owner earnings 290382599. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:38:40.308Z); Dividend observations: [[2017,344962000],[2018,267337000],[2019,342122000],[2020,322505000],[2021,473483000],[2022,436102000],[2023,380032000],[2024,274122000],[2025,299042000],[2026,361342000]]. Zero only counted when supported by a complete cash-flow statement.

### Are managers owners

Insiders own 58.3% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); HVN.AU SharesStats.PercentInsiders = 58.278 percentage points; cache date 2026-10-16.

### What the price says

The price assumes cash profits grow 5.7% yearly over ten years; actual decline was 3.2%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:38:40.308Z); Ten-year compound average after fade. Initial solved rate 0.06888956994890727. Price 4.09; FX 1; discount 0.1; same standard ten-year fade to terminal 0.03. FY2016 owner earnings/share 0.32224843317732427 → FY2026 0.23275475588782985. Closing-price date 2026-10-15.

## Monthly share-price history (AUD per share)

- 2016-11: AUD 4.56 per share

- 2016-12: AUD 4.94 per share

- 2017-01: AUD 4.80 per share

- 2017-02: AUD 4.94 per share

- 2017-03: AUD 4.35 per share

- 2017-04: AUD 4.02 per share

- 2017-05: AUD 3.62 per share

- 2017-06: AUD 3.67 per share

- 2017-07: AUD 4.20 per share

- 2017-08: AUD 3.92 per share

- 2017-09: AUD 3.73 per share

- 2017-10: AUD 3.63 per share

- 2017-11: AUD 3.85 per share

- 2017-12: AUD 4.00 per share

- 2018-01: AUD 4.34 per share

- 2018-02: AUD 3.85 per share

- 2018-03: AUD 3.54 per share

- 2018-04: AUD 3.38 per share

- 2018-05: AUD 3.46 per share

- 2018-06: AUD 3.19 per share

- 2018-07: AUD 3.41 per share

- 2018-08: AUD 3.46 per share

- 2018-09: AUD 3.43 per share

- 2018-10: AUD 3.11 per share

- 2018-11: AUD 3.08 per share

- 2018-12: AUD 3.08 per share

- 2019-01: AUD 3.29 per share

- 2019-02: AUD 3.51 per share

- 2019-03: AUD 3.92 per share

- 2019-04: AUD 4.07 per share

- 2019-05: AUD 4.06 per share

- 2019-06: AUD 3.97 per share

- 2019-07: AUD 4.28 per share

- 2019-08: AUD 4.27 per share

- 2019-09: AUD 4.53 per share

- 2019-10: AUD 4.09 per share

- 2019-11: AUD 4.30 per share

- 2019-12: AUD 4.07 per share

- 2020-01: AUD 4.23 per share

- 2020-02: AUD 3.71 per share

- 2020-03: AUD 2.95 per share

- 2020-04: AUD 2.78 per share

- 2020-05: AUD 3.26 per share

- 2020-06: AUD 3.54 per share

- 2020-07: AUD 3.72 per share

- 2020-08: AUD 4.42 per share

- 2020-09: AUD 4.53 per share

- 2020-10: AUD 4.44 per share

- 2020-11: AUD 4.61 per share

- 2020-12: AUD 4.69 per share

- 2021-01: AUD 5.34 per share

- 2021-02: AUD 5.24 per share

- 2021-03: AUD 5.73 per share

- 2021-04: AUD 5.27 per share

- 2021-05: AUD 5.32 per share

- 2021-06: AUD 5.48 per share

- 2021-07: AUD 5.67 per share

- 2021-08: AUD 5.38 per share

- 2021-09: AUD 5.03 per share

- 2021-10: AUD 4.96 per share

- 2021-11: AUD 5.07 per share

- 2021-12: AUD 4.94 per share

- 2022-01: AUD 4.91 per share

- 2022-02: AUD 5.25 per share

- 2022-03: AUD 5.35 per share

- 2022-04: AUD 5.09 per share

- 2022-05: AUD 4.38 per share

- 2022-06: AUD 3.71 per share

- 2022-07: AUD 4.14 per share

- 2022-08: AUD 4.23 per share

- 2022-09: AUD 4.04 per share

- 2022-10: AUD 4.16 per share

- 2022-11: AUD 4.25 per share

- 2022-12: AUD 4.13 per share

- 2023-01: AUD 4.47 per share

- 2023-02: AUD 3.85 per share

- 2023-03: AUD 3.58 per share

- 2023-04: AUD 3.61 per share

- 2023-05: AUD 3.37 per share

- 2023-06: AUD 3.48 per share

- 2023-07: AUD 3.78 per share

- 2023-08: AUD 4.04 per share

- 2023-09: AUD 3.87 per share

- 2023-10: AUD 3.67 per share

- 2023-11: AUD 3.93 per share

- 2023-12: AUD 4.20 per share

- 2024-01: AUD 4.42 per share

- 2024-02: AUD 4.95 per share

- 2024-03: AUD 5.15 per share

- 2024-04: AUD 4.59 per share

- 2024-05: AUD 4.46 per share

- 2024-06: AUD 4.17 per share

- 2024-07: AUD 4.79 per share

- 2024-08: AUD 4.58 per share

- 2024-09: AUD 4.95 per share

- 2024-10: AUD 4.58 per share

- 2024-11: AUD 4.76 per share

- 2024-12: AUD 4.67 per share

- 2025-01: AUD 5.20 per share

- 2025-02: AUD 5.22 per share

- 2025-03: AUD 5.00 per share

- 2025-04: AUD 5.23 per share

- 2025-05: AUD 5.24 per share

- 2025-06: AUD 5.27 per share

- 2025-07: AUD 5.80 per share

- 2025-08: AUD 6.89 per share

- 2025-09: AUD 7.38 per share

- 2025-10: AUD 7.23 per share

- 2025-11: AUD 6.94 per share

- 2025-12: AUD 6.94 per share

- 2026-01: AUD 6.48 per share

- 2026-02: AUD 5.76 per share

- 2026-03: AUD 4.93 per share

- 2026-04: AUD 4.50 per share

- 2026-05: AUD 4.61 per share

- 2026-06: AUD 4.82 per share

- 2026-07: AUD 4.92 per share

- 2026-08: AUD 4.28 per share

- 2026-09: AUD 4.26 per share

- 2026-10: AUD 4.14 per share

## Annual estimated value (AUD per share)

- FY2017: low AUD 3.29 per share, central AUD 3.83 per share, high AUD 4.45 per share

- FY2018: low AUD 3.53 per share, central AUD 4.01 per share, high AUD 4.63 per share

- FY2019: low AUD 2.82 per share, central AUD 3.18 per share, high AUD 3.67 per share

- FY2020: low AUD 2.88 per share, central AUD 3.24 per share, high AUD 3.72 per share

- FY2021: low AUD 6.42 per share, central AUD 8.12 per share, high AUD 9.45 per share

- FY2022: low AUD 6.32 per share, central AUD 8.06 per share, high AUD 9.39 per share

- FY2023: low AUD 5.89 per share, central AUD 7.28 per share, high AUD 8.47 per share

- FY2024: low AUD 3.72 per share, central AUD 4.21 per share, high AUD 4.86 per share

- FY2025: low AUD 2.40 per share, central AUD 2.71 per share, high AUD 3.12 per share

- FY2026: low AUD 2.51 per share, central AUD 2.84 per share, high AUD 3.27 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

Prior published observations retained from 2026-10-15T06:44:19.141Z where newer inputs omit a numeric field or fiscal period.

## Sources

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.

## Reported holder observations