ASX:APZ

Stock Analysis Report

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Executive Summary

Formed in 2001, Aspen Group is an ASX listed property group strategically focused on providing “value for money” accommodation. More Details


Snowflake Analysis

Good value with adequate balance sheet and pays a dividend.

Share Price & News

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


Latest Share Price and Events

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

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


Market Performance


7 Day Return

0.9%

APZ

-0.06%

AU REITs

-1.6%

AU Market


1 Year Return

3.1%

APZ

-13.5%

AU REITs

8.6%

AU Market

Return vs Industry: APZ exceeded the Australian REITs industry which returned -13.5% over the past year.

Return vs Market: APZ underperformed the Australian Market which returned 8.6% over the past year.


Shareholder returns

APZIndustryMarket
7 Day0.9%-0.06%-1.6%
30 Day-1.3%-2.9%1.2%
90 Day-2.9%-7.6%3.9%
1 Year9.3%3.1%-9.9%-13.5%12.2%8.6%
3 Year34.5%15.3%25.2%8.6%28.2%12.8%
5 Year36.0%0.4%42.8%11.4%61.7%30.2%

Long-Term Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

45.6%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: APZ (A$1.17) is trading below our estimate of fair value (A$2.15)

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


Price To Earnings Ratio

PE vs Industry: APZ is good value based on its PE Ratio (6.9x) compared to the AU REITs industry average (16.7x).

PE vs Market: APZ is good value based on its PE Ratio (6.9x) compared to the Australian market (20.1x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate APZ's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: APZ's PB Ratio (0.9x) is in line with the AU REITs industry average.


Next Steps

Future Growth

How is Aspen Group forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

-17.1%

Forecasted annual revenue growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: Insufficient data to determine if APZ's forecast earnings growth is above the savings rate (2%).

Earnings vs Market: Insufficient data to determine if APZ's earnings are forecast to grow faster than the Australian market

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

Revenue vs Market: APZ's revenue is expected to decline over the next 3 years (-17.1% per year).

High Growth Revenue: APZ's revenue is forecast to decline over the next 3 years (-17.1% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if APZ's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Aspen Group performed over the past 5 years?

43.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: APZ has a large one-off gain of A$8.9M impacting its December 31 2020 financial results.

Growing Profit Margin: APZ became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: APZ has become profitable over the past 5 years, growing earnings by 43.7% per year.

Accelerating Growth: APZ has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: APZ has become profitable in the last year, making it difficult to compare its past year earnings growth to the REITs industry (-2.2%).


Return on Equity

High ROE: APZ's Return on Equity (13%) is considered low.


Next Steps

Financial Health

How is Aspen Group's financial position?


Financial Position Analysis

Short Term Liabilities: APZ's short term assets (A$14.7M) exceed its short term liabilities (A$9.7M).

Long Term Liabilities: APZ's short term assets (A$14.7M) do not cover its long term liabilities (A$55.5M).


Debt to Equity History and Analysis

Debt Level: APZ's debt to equity ratio (38.2%) is considered satisfactory.

Reducing Debt: APZ's debt to equity ratio has increased from 4% to 38.2% over the past 5 years.

Debt Coverage: APZ's debt is well covered by operating cash flow (21.6%).

Interest Coverage: APZ's interest payments on its debt are well covered by EBIT (4.9x coverage).


Balance Sheet


Next Steps

Dividend

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

5.43%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: APZ's dividend (5.43%) is higher than the bottom 25% of dividend payers in the Australian market (2.07%).

High Dividend: APZ's dividend (5.43%) is in the top 25% of dividend payers in the Australian market (5.28%)


Stability and Growth of Payments

Stable Dividend: APZ's dividend payments have been volatile in the past 10 years.

Growing Dividend: APZ's dividend payments have fallen over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (55.6%), APZ's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: APZ's dividends in 3 years are forecast to be covered by earnings (71.1% payout ratio).


Next Steps

Management

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

3.2yrs

Average management tenure


CEO

John Carter (56 yo)

1.92yrs

Tenure

AU$606,992

Compensation

Mr. John Carter, MBA (Syd), BAppSc (Property Resource Mgmt) (UniSA), AAPI, GAICD, serves as Executive Director & Joint Chief Executive Officer at Aspen Group since March 14, 2019. Mr. Carter is a Managing ...


CEO Compensation Analysis

Compensation vs Market: John's total compensation ($USD468.29K) is above average for companies of similar size in the Australian market ($USD293.60K).

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


Leadership Team

NamePositionTenureCompensationOwnership
John Carter
Joint CEO & Executive Director1.92yrsAU$606.99k0.23%
A$ 307.2k
David Dixon
Joint CEO1.92yrsAU$606.99k0.28%
A$ 386.1k
Winston Chan
Group Financial Controllerno datano datano data
Mark Licciardo
Joint Company Secretary4.42yrsno datano data
Michael Dunstan
Financial Accountant of Aspen Living Villages Business14.33yrsno datano data

3.2yrs

Average Tenure

Experienced Management: APZ's management team is considered experienced (3.2 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
John Carter
Joint CEO & Executive Director1.92yrsAU$606.99k0.23%
A$ 307.2k
David Dixon
Joint CEO1.92yrsAU$606.99k0.28%
A$ 386.1k
Guy Farrands
Independent Non-Executive Director8.25yrsAU$93.62k0.15%
A$ 199.5k
Clive Appleton
Independent Non-Executive Chairman4.67yrsAU$168.52k0.52%
A$ 708.6k
Ben Norman
Alternate Director2.08yrsno datano data

4.7yrs

Average Tenure

57yo

Average Age

Experienced Board: APZ's board of directors are considered experienced (4.7 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: APZ 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 20.8%.


Top Shareholders

Company Information

Aspen Group's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Aspen Group
  • Ticker: APZ
  • Exchange: ASX
  • Founded: 2001
  • Industry: Diversified REITs
  • Sector: Real Estate
  • Market Cap: AU$136.151m
  • Shares outstanding: 116.37m
  • Website: https://www.aspengroup.com.au

Location

  • Aspen Group
  • 21 Oxford Street
  • Bondi Junction
  • New South Wales
  • 2022
  • Australia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
APZASX (Australian Securities Exchange)YesStapled SecuritiesAUAUDJun 1993
AYV1DB (Deutsche Boerse AG)YesStapled SecuritiesDEEURJun 1993
APZCHIA (Chi-X Australia)YesStapled SecuritiesAUAUDJun 1993

Biography

Formed in 2001, Aspen Group is an ASX listed property group strategically focused on providing “value for money” accommodation. The accommodation sector is considered to have positive long term structural ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/03/01 07:02
End of Day Share Price2021/02/26 00:00
Earnings2020/12/31
Annual Earnings2020/06/30


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.