ASX:PWH

Stock Analysis Report

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Executive Summary

PWR Holdings Limited designs, engineers, produces, tests, validates, and sells customized aluminum cooling products and solutions in Australia and internationally.

Rewards

Earnings are forecast to grow 23.35% per year

Earnings grew by 20.2% over the past year

Risk Analysis

No risks detected for PWH from our risk checks.


Snowflake Analysis

Flawless balance sheet with high growth potential.

Share Price & News

How has PWR Holdings's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: PWH has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

6.1%

PWH

2.0%

AU Auto Components

1.4%

AU Market


1 Year Return

7.6%

PWH

22.8%

AU Auto Components

-4.5%

AU Market

Return vs Industry: PWH underperformed the Australian Auto Components industry which returned 24.3% over the past year.

Return vs Market: PWH exceeded the Australian Market which returned -4.2% over the past year.


Shareholder returns

PWHIndustryMarket
7 Day6.1%2.0%1.4%
30 Day2.0%7.7%1.7%
90 Day18.9%27.1%14.7%
1 Year10.7%7.6%25.6%22.8%-0.8%-4.5%
3 Year140.3%122.7%35.3%24.6%19.6%4.1%
5 Yearn/a-6.8%-17.0%45.4%14.4%

Price Volatility Vs. Market

How volatile is PWR Holdings's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is PWR Holdings undervalued compared to its fair value and its price relative to the market?

31.16x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: PWH (A$4.52) is trading above our estimate of fair value (A$2.24)

Significantly Below Fair Value: PWH is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: PWH is poor value based on its PE Ratio (31.2x) compared to the XX Auto Components industry average (20.8x).

PE vs Market: PWH is poor value based on its PE Ratio (31.2x) compared to the Australian market (16.2x).


Price to Earnings Growth Ratio

PEG Ratio: PWH is poor value based on its PEG Ratio (1.3x)


Price to Book Ratio

PB vs Industry: PWH is overvalued based on its PB Ratio (9.7x) compared to the AU Auto Components industry average (3.5x).


Next Steps

Future Growth

How is PWR Holdings forecast to perform in the next 1 to 3 years based on estimates from 3 analysts?

23.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: PWH's forecast earnings growth (23.4% per year) is above the savings rate (2.3%).

Earnings vs Market: PWH's earnings (23.4% per year) are forecast to grow faster than the Australian market (14.9% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: PWH's revenue (17.7% per year) is forecast to grow faster than the Australian market (4.3% per year).

High Growth Revenue: PWH's revenue (17.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: PWH's Return on Equity is forecast to be high in 3 years time (28.4%)


Next Steps

Past Performance

How has PWR Holdings performed over the past 5 years?

15.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: PWH has high quality earnings.

Growing Profit Margin: PWH's current net profit margins (20.6%) are lower than last year (21.5%).


Past Earnings Growth Analysis

Earnings Trend: PWH's earnings have grown by 15.9% per year over the past 5 years.

Accelerating Growth: PWH's earnings growth over the past year (20.2%) exceeds its 5-year average (15.9% per year).

Earnings vs Industry: PWH earnings growth over the past year (20.2%) exceeded the Auto Components industry -24.1%.


Return on Equity

High ROE: PWH's Return on Equity (31.2%) is considered high.


Next Steps

Financial Health

How is PWR Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: PWH's short term assets (A$22.6M) exceed its short term liabilities (A$8.2M).

Long Term Liabilities: PWH's short term assets (A$22.6M) exceed its long term liabilities (A$12.5M).


Debt to Equity History and Analysis

Debt Level: PWH's debt to equity ratio (8%) is considered satisfactory.

Reducing Debt: PWH's debt to equity ratio has reduced from 191.8% to 8% over the past 5 years.

Debt Coverage: PWH's debt is well covered by operating cash flow (518.9%).

Interest Coverage: PWH's interest payments on its debt are well covered by EBIT (107.2x coverage).


Balance Sheet


Next Steps

Dividend

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

1.95%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: PWH's dividend (1.95%) isn’t notable compared to the bottom 25% of dividend payers in the Australian market (2.44%).

High Dividend: PWH's dividend (1.95%) is low compared to the top 25% of dividend payers in the Australian market (6.46%).


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, PWH has been paying a dividend for less than 10 years.

Growing Dividend: PWH's dividend payments have increased, but the company has only paid a dividend for 4 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (60.7%), PWH's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: PWH's dividends in 3 years are forecast to be covered by earnings (56.1% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

4.3yrs

Average management tenure


CEO

Kees Weel

17.17yrs

Tenure

AU$629,025

Compensation

Mr. Kees Cornelius Weel has been the Chief Executive Officer, Managing Director and Executive Director of PWR Holdings Limited since June 30, 2003. Mr. Weel has more than 30 years of experience in the auto ...


CEO Compensation Analysis

Compensation vs Market: Kees's total compensation ($USD450.78K) is below average for companies of similar size in the Australian market ($USD777.50K).

Compensation vs Earnings: Kees's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Kees Weel
MD, CEO & Executive Director17.17yrsAU$629.03k27.41%
A$ 124.0m
Stuart Smith
Chief Financial Officer2.75yrsAU$390.84k0.010%
A$ 45.2k
Matthew Bryson
General Manager of Engineering14.33yrsAU$427.49k3.5%
A$ 15.8m
Andy Burton
General Manager of Europe3.08yrsAU$284.26k0.093%
A$ 419.2k
Jim Ryder
General Manager of USA3.58yrsAU$251.14kno data
Lisa Dalton
Company Secretary5yrsno datano data

4.3yrs

Average Tenure

Experienced Management: PWH's management team is considered experienced (4.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Kees Weel
MD, CEO & Executive Director17.17yrsAU$629.03k27.41%
A$ 124.0m
Jeffrey Forbes
Independent Non-Executive Director5yrsAU$115.00k0.020%
A$ 90.4k
Teresa Handicott
Independent Chairman2.83yrsAU$170.00k0.039%
A$ 178.6k
Roland Dane
Independent Non-Executive Director3.42yrsAU$95.00k0.061%
A$ 275.2k

4.2yrs

Average Tenure

Experienced Board: PWH's board of directors are considered experienced (4.2 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

PWR Holdings Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: PWR Holdings Limited
  • Ticker: PWH
  • Exchange: ASX
  • Founded: 1987
  • Industry: Auto Parts and Equipment
  • Sector: Automobiles
  • Market Cap: AU$452.396m
  • Shares outstanding: 100.09m
  • Website: https://www.pwr.com.au

Number of Employees


Location

  • PWR Holdings Limited
  • 103 Lahrs Road
  • Ormeau
  • Queensland
  • 4208
  • Australia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
PWHASX (Australian Securities Exchange)YesOrdinary SharesAUAUDNov 2015
PWHCHIA (Chi-X Australia)YesOrdinary SharesAUAUDNov 2015

Biography

PWR Holdings Limited designs, engineers, produces, tests, validates, and sells customized aluminum cooling products and solutions in Australia and internationally. It operates through two segments, PWR Per ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/08/14 01:46
End of Day Share Price2020/08/13 00:00
Earnings2019/12/31
Annual Earnings2019/06/30


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.