HVN

 HVN Harvey Norman

09-07-2026

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Over the past 5 years, Harvey Norman Holdings Ltd (ASX: HVN) experienced a peak in profits and Return on Equity (ROE) in 2021/2022 during the pandemic retail boom, followed by a decline in earnings, before rebounding strongly. Debt has remained strictly managed and the company's financial health has stayed sound. [1, 2, 3, 4, 5]

Financial Performance Overview (5-Year Trajectory)

• Profit & Revenue: The company saw record net profits of about \(\$811.5\) million in FY22. Profits then declined over the next two years as consumer spending normalised. However, the business bounced back significantly, posting a FY25 net profit of \(\$518\) million (a 47% increase from FY24) and an interim net profit of \(\$321.9\) million for 1H26. Total system sales revenue remains robust, exceeding expectations with international store expansions. [1, 2, 3, 4, 5, 6, 7]
• Debt Level: The company’s Balance Sheet Health is solid, with a low debt-to-equity ratio consistently hovering between 13% and 21% over the last few years. The low net debt is supported by a massive freehold property portfolio (valued over \(\$4.5\) billion). [1, 2, 3, 4]
• Return on Equity (ROE): ROE peaked at 23% in 2021, but subsequently fell to a low of about 7.9% in FY24 due to rising equity and softer post-COVID earnings. Following the profit recovery in FY25, ROE has since recovered to an estimated 11.55%. [1, 2, 3]
• Dividends: HVN remains a reliable dividend payer, maintaining or adjusting solid dividend distributions to shareholders, with yields generally trading between 6% and 7%. [1, 2]

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The Price-to-Earnings (P/E) ratio for Harvey Norman Holdings Limited (ASX: HVN) has fluctuated between a minimum of 4.94 and a maximum of 19.36 over the last 10 years, maintaining a long-term median of 10.93. [1]

Track Annual P/E Ratio Changes

The following table shows the annual P/E ratio for Harvey Norman recorded at the close of each calendar year: [1, 2]

Calendar Year	Historical P/E Ratio	Year-over-Year Change
2025	13.7	-7.2%
2024	14.8	+93.47%
2023	7.65	+55.43%
2022	4.92	-16.2%
2021	5.87	-47.0%
2020	11.08	+15.5%
2019	9.59	-21.4%
2018	12.20	+6.1%
2017	11.50	-21.1%
2016	14.58	+13.6%

Review 10-Year Statistical Summary

Analyzing the data across the 10-year macro cycle highlights several foundational bounds for the business: [1, 2]

• 10-Year Mean Average: 10.41
• 10-Year Median Baseline: 10.93
• 10-Year Peak High: 19.36
• 10-Year Cycle Low: 4.94 [1, 2]

Analyze Key Historical Phases

1. The Post-Pandemic Margin Squeeze (2022–2023)

Harvey Norman hit a notable cyclical bottom in 2022 with a P/E drop down to 4.92. This low valuation occurred despite massive consumer electronics spending because the market anticipated a harsh drop-off in discretionary spending due to climbing RBA interest rates. [1]

2. Earnings Compression and Valuation Spike (2024–2025)

The sharp P/E ratio jump to 14.8 in 2024 was primarily driven by standard denominator compression. As net profits contracted under inflation and rising franchise operating costs, the resulting lower Earnings Per Share (EPS) caused the price-to-earnings multiple to distort upward. [1, 2]

3. Modern Trading Context (2026)

The current Trailing Twelve Months (TTM) P/E ratio hovers around 10.28 to 10.62. This sits in line with its 10-year historical median, marking it as significantly discounted relative to the broader ASX retail sector average which sits closer to 18.9x

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