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ABP

Abacus Property GroupASX:ABP Stock Report

Market Cap

AU$3.1b

7D

1.1%

1Y

27.8%

Updated

24 Oct, 2021

Data

Company Financials +
ABP fundamental analysis
Snowflake Score
Valuation5/6
Future Growth1/6
Past Performance3/6
Financial Health4/6
Dividends5/6

ABP Overview

Abacus Property Group (ASX:ABP), is a diversified Australian REIT with an investment portfolio concentrated in the Office and Self Storage sectors.

Abacus Property Group Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Abacus Property Group
Historical stock prices
Current Share PriceAU$3.68
52 Week HighAU$2.59
52 Week LowAU$3.71
Beta0.84
1 Month Change1.94%
3 Month Change15.36%
1 Year Change27.78%
3 Year Change11.18%
5 Year Change33.33%
Change since IPO-35.44%

Recent News & Updates

Shareholder Returns

ABPAU REITsAU Market
7D1.1%2.7%0.6%
1Y27.8%25.2%21.3%

Return vs Industry: ABP exceeded the Australian REITs industry which returned 25.2% over the past year.

Return vs Market: ABP exceeded the Australian Market which returned 21.3% over the past year.

Price Volatility

Is ABP's price volatile compared to industry and market?
ABP volatility
ABP Beta0.84
Industry Beta0.86
Market Beta1

Stable Share Price: ABP is less volatile than 75% of Australian stocks over the past 3 months, typically moving +/- 3% a week.

Volatility Over Time: ABP's weekly volatility (3%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
1996n/aSteven Sewellhttps://www.abacusproperty.com.au

Abacus Property Group (ASX:ABP), is a diversified Australian REIT with an investment portfolio concentrated in the Office and Self Storage sectors. We invest capital in real estate opportunities to deliver superior long term returns and maximise securityholder value. Abacus is a strong asset backed, annuity style business model where capital is directed towards assets that provide potential for enhanced income growth and ultimately create value.

Abacus Property Group Fundamentals Summary

How do Abacus Property Group's earnings and revenue compare to its market cap?
ABP fundamental statistics
Market CapAU$3.06b
Earnings (TTM)AU$369.41m
Revenue (TTM)AU$288.92m

8.3x

P/E Ratio

10.6x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
ABP income statement (TTM)
RevenueAU$288.92m
Cost of RevenueAU$64.41m
Gross ProfitAU$224.51m
Expenses-AU$144.90m
EarningsAU$369.41m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)0.44
Gross Margin77.71%
Net Profit Margin127.86%
Debt/Equity Ratio34.1%

How did ABP perform over the long term?

See historical performance and comparison

Dividends

4.6%

Current Dividend Yield

45%

Payout Ratio

Valuation

Is Abacus Property Group undervalued compared to its fair value and its price relative to the market?

30.6%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: ABP (A$3.68) is trading below our estimate of fair value (A$5.3)

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


Price To Earnings Ratio

PE vs Industry: ABP is good value based on its PE Ratio (8.3x) compared to the Australian REITs industry average (9.8x).

PE vs Market: ABP is good value based on its PE Ratio (8.3x) compared to the Australian market (19.9x).


Price to Earnings Growth Ratio

PEG Ratio: ABP's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: ABP is good value based on its PB Ratio (1.1x) compared to the AU REITs industry average (1.2x).


Future Growth

How is Abacus Property Group forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?

-16.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ABP's earnings are forecast to decline over the next 3 years (-16.3% per year).

Earnings vs Market: ABP's earnings are forecast to decline over the next 3 years (-16.3% per year).

High Growth Earnings: ABP's earnings are forecast to decline over the next 3 years.

Revenue vs Market: ABP's revenue (7% per year) is forecast to grow faster than the Australian market (5.5% per year).

High Growth Revenue: ABP's revenue (7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: ABP's Return on Equity is forecast to be low in 3 years time (5.5%).


Past Performance

How has Abacus Property Group performed over the past 5 years?

-6.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ABP has a large one-off gain of A$243.6M impacting its June 30 2021 financial results.

Growing Profit Margin: ABP's current net profit margins are higher than last year (29.8%).


Past Earnings Growth Analysis

Earnings Trend: ABP's earnings have declined by 6.4% per year over the past 5 years.

Accelerating Growth: ABP's earnings growth over the past year (336%) exceeds its 5-year average (-6.4% per year).

Earnings vs Industry: ABP earnings growth over the past year (336%) exceeded the REITs industry 106.4%.


Return on Equity

High ROE: ABP's Return on Equity (12.7%) is considered low.


Financial Health

How is Abacus Property Group's financial position?


Financial Position Analysis

Short Term Liabilities: ABP's short term assets (A$257.9M) exceed its short term liabilities (A$124.2M).

Long Term Liabilities: ABP's short term assets (A$257.9M) do not cover its long term liabilities (A$1.0B).


Debt to Equity History and Analysis

Debt Level: ABP's debt to equity ratio (34.1%) is considered satisfactory.

Reducing Debt: ABP's debt to equity ratio has reduced from 48.3% to 34.1% over the past 5 years.

Debt Coverage: ABP's debt is not well covered by operating cash flow (13.3%).

Interest Coverage: ABP's interest payments on its debt are well covered by EBIT (7.3x coverage).


Balance Sheet


Dividend

What is Abacus Property Group current dividend yield, its reliability and sustainability?

4.62%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: ABP's dividend (4.62%) is higher than the bottom 25% of dividend payers in the Australian market (2.23%).

High Dividend: ABP's dividend (4.62%) is low compared to the top 25% of dividend payers in the Australian market (5.3%).


Stability and Growth of Payments

Stable Dividend: ABP's dividends per share have been stable in the past 10 years.

Growing Dividend: ABP's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (45%), ABP's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: ABP's dividends in 3 years are forecast to be covered by earnings (93.3% payout ratio).


Next Steps

Management

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

3.9yrs

Average management tenure


CEO

Steven Sewell (55 yo)

3.5yrs

Tenure

AU$2,738,644

Compensation

Mr. Steven Craig Sewell, BSc, has been Managing Director of Macquarie Infrastructure and Real Assets (Europe) Limited since July 02, 2018. He has been Managing Director of Abacus Property Group since April...


CEO Compensation Analysis

Compensation vs Market: Steven's total compensation ($USD2.05M) is above average for companies of similar size in the Australian market ($USD1.40M).

Compensation vs Earnings: Steven's compensation has increased by more than 20% in the past year.


Leadership Team

Experienced Management: ABP's management team is considered experienced (3.9 years average tenure).


Board Members

Experienced Board: ABP's board of directors are not considered experienced ( 2.2 years average tenure), which suggests a new board.


Ownership

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


Insider Trading Volume

Insider Buying: ABP insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 25%.


Top Shareholders

Company Information

Abacus Property Group's employee growth, exchange listings and data sources


Key Information

  • Name: Abacus Property Group
  • Ticker: ABP
  • Exchange: ASX
  • Founded: 1996
  • Industry: Diversified REITs
  • Sector: Real Estate
  • Market Cap: AU$3.061b
  • Shares outstanding: 831.82m
  • Website: https://www.abacusproperty.com.au

Number of Employees


Location

  • Abacus Property Group
  • Australia Square
  • Level 34
  • Sydney
  • New South Wales
  • 2000
  • Australia

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/10/24 07:01
End of Day Share Price2021/10/22 00:00
Earnings2021/06/30
Annual Earnings2021/06/30


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.