Harvey Norman Holdings Limited — Cyborg Score 5/10
Mixed
Specialty Retail - Cyclical Consumer Electronics and Furniture
Strategic Profile
The franchise business model promotes entrepreneurial leadership aimed at evolving product offerings to match the demands of consumers. However, headwinds continue to mount as internet research and price comparisons threaten Harvey Norman's brick-and-mortar peers. In fiscal year 2025, Harvey Norman Holdings's revenue was 2.92 billion, an increase of 4.13% compared to the previous year's 2.80 billion. Earnings were 518.02 million, an increase of 46.97%.
Cyborg Score Rationale
Harvey Norman demonstrates solid earnings growth and strong recent shareholder returns, but faces structural challenges from e-commerce disruption and declining EPS trends. Earnings per share (EPS) have dropped 14% per year over three years despite share price appreciation, suggesting valuation concerns. Return on invested capital (ROIC) is 3.78%, which does not match up to its cost of capital at 11.33%, indicating value destruction concerns.
Top Insights
The bricks-and-mortar retailer posted comparable sales growth of 8.1 per cent in the July to November period
Harvey Norman Holdings shareholders have received a total shareholder return of 33% over the last year, which includes the dividend
In the core Australian market, Harvey Norman must compete on price with online offers, despite offering its customers in-store service and advice
Recent earnings growth of 47% (FY2025) suggests operational improvements or margin expansion despite macroeconomic headwinds
Named Competitors
JB Hi-Fi — Electronics and appliance retailer with expanding portfolio
Amazon — Online retail and e-commerce platform
Officeworks — Office and technology products retailer
Recent Developments
(February 2026) UBS upgraded Harvey Norman from Neutral to Buy
(February 2026) Stock trading at $6.28-$6.35, up 23% over past year
(January 2026) Earnings date scheduled for February 26, 2026
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