Hallenstein Glasson Holdings Limited (HLG.NZ) Stock Analysis & Winston Score

Hallenstein Glasson Holdings is a New Zealand clothing retailer that sells affordable fashion for men and women. It operates two main brands: Hallensteins, which targets men with casual and workwear clothing, and Glassons, which sells trendy women's fashion. The company's stores are found primarily in New Zealand and Australia, making it one of the more recognizable homegrown apparel chains in the region.

The company makes money by selling clothes directly to shoppers through its physical stores and online channels. With a gross margin above 60%, it keeps a solid portion of each sale as profit, which reflects strong brand loyalty and efficient sourcing. Its competitive edge comes from well-established brand identities and a loyal customer base built over decades. The main risk the business faces is the pressure of fast-fashion competition from global online retailers like ASOS and Shein, which can undercut prices and attract younger shoppers away from traditional brick-and-mortar chains.

Winston Score History

Growth Profile

For growth stock investors

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

+14.6% YoY

YoY Growth Rate

Steady revenue growth

EPS Growth

+30.6% YoY

YoY Growth Rate

EPS growth accelerating

R&D Spend

$0/ year

0.0% of revenue

Below sector average (4%)

Research and development spending

Insider Activity

21.2%ownership

Insiders own a meaningful stake in the company

Cash Position

Cash flow positive

$71M cash & investments

Quarterly Free Cash Flow

↑ Burn rate improving

Company generates more cash than it spends — no dilution risk from fundraising

Growth + cash flow

Hallenstein Glasson Holdings Limited is a rare growth stock that's already generating positive cash flow while growing at 15%. The Winston Score doesn't fully credit this transition from "burner" to "earner."

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Share count broadly stable

+0.1% over 4y

The share count has stayed roughly flat over this period — little dilution or buyback activity.

Diluted shares outstanding: 59.6M (2021) → 59.7M (2025)

Score breakdown

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Quality

Gross Margin

60.9%

Premium pricing power — 60.9% gross margin

Operating Margin

14.9%

Healthy — 14.9% operating margin

ROCE

27.7%

Exceptional — 27.7% return on capital

ROIC above 25%. Every dollar invested in the business earns more than 25 cents back per year.

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Growth

Sales YoY

+11.7%

Steady sales growth (+11.7% YoY)

EPS YoY

+34.5%

Earnings growing fast (+34.5% YoY)

Earnings growing 25%+ a year. The compounder zone.

EPS Consistency

5/8 quarters

Mixed — about half the quarters showed growth

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Cash Flow

Cash Conversion

216%

Turns 216% of profit into real cash

FCF Margin

15.8%

Converts sales into free cash efficiently (15.8%)

FCF margin between 10% and 20%. Every $100 in sales becomes $10 to $20 in real cash.

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Stability

Debt / Equity

0.22

Conservative — low debt load (0.22)

Interest Cover

15.09x

Comfortably covers interest (15.1x)

Interest coverage above 8. Profits cover interest many times over.

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Valuation

P/E Ratio (TTM)

13.8x

Attractive valuation — P/E 13.8

P/E in the normal range. Price is roughly $15 for every $1 of yearly profit.

P/E vs Forward

+1.3

GROWING

Earnings expected to grow — slightly cheaper on forward P/E

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Dividends

Dividend Yield

5.98%

Healthy income — 5.98% yield

Generous yield. Worth checking whether the payout is sustainable.

Dividend Growth

+20.0%

Dividend growing fast (20.0% YoY)

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