ASX:FWD

Stock Analysis Report

Executive Summary

Fleetwood Corporation Limited engages in the design, manufacture, and sale of manufactured modular accommodation in Australia and New Zealand.

Rewards

Trading at 70.8% below its fair value

Earnings are forecast to grow 17.01% per year

Earnings grew by 14.8% over the past year

Risk Analysis

Shareholders have been diluted in the past year



Snowflake Analysis

Very undervalued with flawless balance sheet.


Similar Companies

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

-2.9%

FWD

-2.6%

AU Consumer Durables

-2.0%

AU Market


1 Year Return

6.4%

FWD

33.5%

AU Consumer Durables

16.7%

AU Market

Return vs Industry: FWD underperformed the Australian Consumer Durables industry which returned 33.5% over the past year.

Return vs Market: FWD underperformed the Australian Market which returned 16.7% over the past year.


Shareholder returns

FWDIndustryMarket
7 Day-2.9%-2.6%-2.0%
30 Day-11.6%0.2%0.1%
90 Day4.2%1.4%0.4%
1 Year6.4%6.4%36.9%33.5%22.5%16.7%
3 Year10.3%1.0%53.9%41.3%35.4%16.8%
5 Year81.1%65.8%123.4%94.9%60.6%24.4%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: FWD (A$1.99) is trading below our estimate of fair value (A$6.81)

Significantly Below Fair Value: FWD is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: FWD is good value based on its PE Ratio (12.9x) compared to the Consumer Durables industry average (15.7x).

PE vs Market: FWD is good value based on its PE Ratio (12.9x) compared to the Australian market (18.6x).


Price to Earnings Growth Ratio

PEG Ratio: FWD is good value based on its PEG Ratio (0.8x)


Price to Book Ratio

PB vs Industry: FWD is good value based on its PB Ratio (0.8x) compared to the AU Consumer Durables industry average (4.9x).


Next Steps

Future Growth

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

17.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: FWD's forecast earnings growth (17% per year) is above the savings rate (1.1%).

Earnings vs Market: FWD's earnings (17% per year) are forecast to grow faster than the Australian market (9.4% per year).

High Growth Earnings: FWD's earnings are forecast to grow, but not significantly.

Revenue vs Market: FWD's revenue (6.3% per year) is forecast to grow faster than the Australian market (3.6% per year).

High Growth Revenue: FWD's revenue (6.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: FWD's Return on Equity is forecast to be low in 3 years time (9.4%).


Next Steps

Past Performance

How has Fleetwood performed over the past 5 years?

50.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: FWD has high quality earnings.

Growing Profit Margin: FWD's current net profit margins (4.4%) are lower than last year (4.6%).


Past Earnings Growth Analysis

Earnings Trend: FWD's earnings have grown significantly by 50.7% per year over the past 5 years.

Accelerating Growth: FWD's earnings growth over the past year (14.8%) is below its 5-year average (50.7% per year).

Earnings vs Industry: FWD earnings growth over the past year (14.8%) exceeded the Consumer Durables industry 4.3%.


Return on Equity

High ROE: FWD's Return on Equity (6%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Fleetwood's financial position?


Financial Position Analysis

Short Term Liabilities: FWD's short term assets (A$145.3M) exceed its short term liabilities (A$73.8M).

Long Term Liabilities: FWD's short term assets (A$145.3M) exceed its long term liabilities (A$6.7M).


Debt to Equity History and Analysis

Debt Level: FWD is debt free.

Reducing Debt: FWD has no debt compared to 5 years ago when its debt to equity ratio was 29.2%.

Debt Coverage: FWD has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: FWD has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet

Inventory Level: FWD has a high level of physical assets or inventory.

Debt Coverage by Assets: Insufficient data to determine if FWD's debt is covered by short term assets.


Next Steps

Dividend

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

3.16%

Forecast Dividend Yield


Dividend Yield vs Market

company0%marketbottom25%2.4%markettop25%5.6%industryaverage2.9%forecastin3Years3.2%

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate FWD's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate FWD's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if FWD's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if FWD's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: FWD is not paying a notable dividend for the Australian market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of FWD's dividend in 3 years as they are not forecast to pay a notable one for the Australian market.


Next Steps

Management

What is the CEO of Fleetwood's salary, the management and board of directors tenure and is there insider trading?

2.2yrs

Average management tenure


CEO

Brad Denison (47yo)

5.3yrs

Tenure

AU$820,885

Compensation

Mr. Bradley Raymond Denison, also known as Brad, Bachelor of Commerce has been the Managing Director, Chief Executive Oficr and Director of Fleetwood Corporation Limited since August 1, 2014 and served as  ...


CEO Compensation Analysis

Compensation vs Market: Brad's total compensation ($USD562.56K) is above average for companies of similar size in the Australian market ($USD255.57K).

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


Management Age and Tenure

2.2yrs

Average Tenure

Experienced Management: FWD's management team is considered experienced (2.2 years average tenure).


Board Age and Tenure

2.4yrs

Average Tenure

Experienced Board: FWD's board of directors are not considered experienced ( 2.4 years average tenure), which suggests a new board.


Insider Trading

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


Recent Insider Transactions

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Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 48.8%.


Management Team

  • Brad Denison (47yo)

    MD, CEO & Director

    • Tenure: 5.3yrs
    • Compensation: AU$820.89k
  • David Robertson

    Chief Executive Officer of Fleetwood Parks

    • Tenure: 0yrs
    • Compensation: AU$173.17k
  • Andrew Wackett

    CFO & Joint Company Secretary

    • Tenure: 2.5yrs
    • Compensation: AU$445.18k
  • Jarrod Waring

    Chief Executive Officer of Modular Accommodation

    • Tenure: 0yrs
    • Compensation: AU$467.32k
  • Manuel Larre

    Chief Executive Officer of Parts & Accessories

    • Tenure: 0yrs
    • Compensation: AU$405.18k
  • Elizabeth Maynard

    General Counsel & Joint Company Secretary

    • Tenure: 1.3yrs
    • Compensation: AU$245.90k
  • Dominic Letts

    Executive General Manager of Village Operations

    • Tenure: 1.9yrs
    • Compensation: AU$388.66k

Board Members

  • Jeff Dowling

    Non-Executive Director

    • Tenure: 2.4yrs
    • Compensation: AU$90.00k
  • Brad Denison (47yo)

    MD, CEO & Director

    • Tenure: 5.3yrs
    • Compensation: AU$820.89k
  • Phil Campbell (67yo)

    Non-Executive Chairman

    • Tenure: 3.3yrs
    • Compensation: AU$140.00k
  • Adrienne Parker

    Non-Executive Director

    • Tenure: 2.3yrs
    • Compensation: AU$90.00k
  • Mark Southey

    Non-Executive Director

    • Tenure: 1.2yrs
    • Compensation: AU$60.00k

Company Information

Fleetwood Corporation Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Fleetwood Corporation Limited
  • Ticker: FWD
  • Exchange: ASX
  • Founded: 1964
  • Industry: Homebuilding
  • Sector: Consumer Durables
  • Market Cap: AU$187.330m
  • Shares outstanding: 94.61m
  • Website: https://www.fleetwoodcorporation.com.au

Number of Employees


Location

  • Fleetwood Corporation Limited
  • 21 Regal Place
  • East Perth
  • Western Australia
  • 6004
  • Australia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
FWDASX (Australian Securities Exchange)YesOrdinary SharesAUAUDJan 1992
FWDCHIA (Chi-X Australia)YesOrdinary SharesAUAUDJan 1992

Biography

Fleetwood Corporation Limited engages in the design, manufacture, and sale of manufactured modular accommodation in Australia and New Zealand. The company also engages in the operation of accommodation vil ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/07 10:31
End of Day Share Price2019/12/06 00:00
Earnings2019/06/30
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.