ASX:BWP

Stock Analysis Report

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Executive Summary

Established and listed on the Australian Securities Exchange (“ASX”) in 1998 (see prospectus), BWP Trust (“BWP” or “the Trust”) is a real estate investment trust investing in and managing commercial properties throughout Australia. More Details


Snowflake Analysis

Adequate balance sheet and fair value.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: BWP is less volatile than 75% of Australian stocks over the past 3 months, typically moving +/- 2% a week.

Volatility Over Time: BWP's weekly volatility (2%) has been stable over the past year.


Market Performance


7 Day Return

0.3%

BWP

1.3%

AU REITs

0.3%

AU Market


1 Year Return

0%

BWP

-11.2%

AU REITs

12.5%

AU Market

Return vs Industry: BWP exceeded the Australian REITs industry which returned -11.2% over the past year.

Return vs Market: BWP underperformed the Australian Market which returned 12.5% over the past year.


Shareholder returns

BWPIndustryMarket
7 Day0.3%1.3%0.3%
30 Day-10.3%-0.7%2.2%
90 Day-11.1%-5.6%4.0%
1 Year4.5%0%-7.5%-11.2%16.1%12.5%
3 Year54.4%29.6%29.0%11.9%31.1%15.1%
5 Year55.9%16.7%43.9%12.3%62.5%31.3%

Long-Term Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

5.9%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: BWP (A$3.85) is trading below our estimate of fair value (A$4.09)

Significantly Below Fair Value: BWP is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: BWP is good value based on its PE Ratio (11.3x) compared to the AU REITs industry average (17.6x).

PE vs Market: BWP is good value based on its PE Ratio (11.3x) compared to the Australian market (20x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: BWP is overvalued based on its PB Ratio (1.2x) compared to the AU REITs industry average (1x).


Next Steps

Future Growth

How is BWP Trust forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

-8.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: BWP's earnings are forecast to decline over the next 3 years (-8.1% per year).

Earnings vs Market: BWP's earnings are forecast to decline over the next 3 years (-8.1% per year).

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

Revenue vs Market: BWP's revenue (2.9% per year) is forecast to grow slower than the Australian market (5.6% per year).

High Growth Revenue: BWP's revenue (2.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: BWP's Return on Equity is forecast to be low in 3 years time (6%).


Next Steps

Past Performance

How has BWP Trust performed over the past 5 years?

-7.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: BWP has a large one-off gain of A$102.1M impacting its December 31 2020 financial results.

Growing Profit Margin: BWP's current net profit margins are lower than last year .


Past Earnings Growth Analysis

Earnings Trend: BWP's earnings have declined by 7.2% per year over the past 5 years.

Accelerating Growth: BWP's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: BWP had negative earnings growth (-3.1%) over the past year, making it difficult to compare to the REITs industry average (-3.1%).


Return on Equity

High ROE: BWP's Return on Equity (10.7%) is considered low.


Next Steps

Financial Health

How is BWP Trust's financial position?


Financial Position Analysis

Short Term Liabilities: BWP's short term assets (A$37.3M) do not cover its short term liabilities (A$76.8M).

Long Term Liabilities: BWP's short term assets (A$37.3M) do not cover its long term liabilities (A$463.4M).


Debt to Equity History and Analysis

Debt Level: BWP's debt to equity ratio (22.6%) is considered satisfactory.

Reducing Debt: BWP's debt to equity ratio has reduced from 30.2% to 22.6% over the past 5 years.

Debt Coverage: BWP's debt is well covered by operating cash flow (24%).

Interest Coverage: BWP's interest payments on its debt are well covered by EBIT (8.7x coverage).


Balance Sheet


Next Steps

Dividend

What is BWP Trust current dividend yield, its reliability and sustainability?

4.75%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: BWP's dividend (4.75%) is higher than the bottom 25% of dividend payers in the Australian market (2.09%).

High Dividend: BWP's dividend (4.75%) is low compared to the top 25% of dividend payers in the Australian market (5.52%).


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (114.4%), BWP's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: BWP's dividends in 3 years are not forecast to be well covered by earnings (103.1% payout ratio).


Next Steps

Management

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

12.1yrs

Average management tenure


CEO

Michael Wedgwood (57 yo)

7.08yrs

Tenure

Mr. Michael James Wedgwood, BCom, MSc (Finance), GAICD has been the Managing Director of BWP Management Limited, Responsible Entity of BWP Trust since February 24, 2014. Mr. Wedgwood serves as Managing Dir...


Leadership Team

NamePositionTenureCompensationOwnership
Michael Wedgwood
MD & Director7.08yrsno datano data
David Hawkins
Finance Manager11.25yrsno datano data
Sarah Sampimon
Office Managerno datano datano data
Karen Lange
Company Secretary12.92yrsno datano data
Andrew Ross
Portfolio Manager of BWP Management Limited15.75yrsno datano data

12.1yrs

Average Tenure

Experienced Management: BWP's management team is seasoned and experienced (12.1 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Michael Wedgwood
MD & Director7.08yrsno datano data
Fiona Harris
Independent Non-Executive External Director8.42yrsno data0.0031%
A$ 76.9k
Erich Fraunschiel
Independent Chairman of the Board5.25yrsno data0.017%
A$ 430.3k
Anthony Howarth
Non-Executive Director8.42yrsno data0.0031%
A$ 76.9k
Michael James Steur
Independent Non-Executive External Director6.08yrsno datano data
Alison Quinn
Independent Non-executive External Director1.25yrsno datano data

6.6yrs

Average Tenure

60yo

Average Age

Experienced Board: BWP's board of directors are considered experienced (6.6 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

BWP Trust's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: BWP Trust
  • Ticker: BWP
  • Exchange: ASX
  • Founded: 1998
  • Industry: Retail REITs
  • Sector: Real Estate
  • Market Cap: AU$2.473b
  • Shares outstanding: 642.38m
  • Website: https://www.bwptrust.com.au

Location

  • BWP Trust
  • Brookfield Place Tower 2
  • Level 14
  • Perth
  • Western Australia
  • 6000
  • Australia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
BWPASX (Australian Securities Exchange)YesOrdinary UnitsAUAUDSep 1998
BWPCHIA (Chi-X Australia)YesOrdinary UnitsAUAUDSep 1998

Biography

Established and listed on the Australian Securities Exchange (“ASX”) in 1998 (see prospectus), BWP Trust (“BWP” or “the Trust”) is a real estate investment trust investing in and managing commercial proper...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/03/04 07:06
End of Day Share Price2021/03/04 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.