ASX:BWP

Stock Analysis Report

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.

Snowflake

Fundamentals

Unattractive dividend payer and overvalued.


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


Market Performance


7 Day Return

3.6%

BWP

1.5%

AU REITs

-0.2%

AU Market


1 Year Return

27.2%

BWP

19.5%

AU REITs

10.5%

AU Market

Return vs Industry: BWP exceeded the Australian REITs industry which returned 19.5% over the past year.

Return vs Market: BWP exceeded the Australian Market which returned 10.5% over the past year.


Shareholder returns

BWPIndustryMarket
7 Day3.6%1.5%-0.2%
30 Day10.8%1.9%-1.4%
90 Day12.6%-0.7%-1.0%
1 Year38.0%27.2%25.5%19.5%16.9%10.5%
3 Year74.5%42.9%50.2%28.5%36.9%18.6%
5 Year144.8%74.1%100.2%55.6%50.2%16.2%

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?

16.31x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: BWP (A$4.3) is trading above our estimate of fair value (A$3.29)

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


Price To Earnings Ratio

PE vs Industry: BWP is poor value based on its PE Ratio (16.3x) compared to the REITs industry average (16.3x).

PE vs Market: BWP is good value based on its PE Ratio (16.3x) compared to the Australian market (18.4x).


Price to Earnings Growth Ratio

PEG Ratio: BWP is poor value based on its PEG Ratio (5.3x)


Price to Book Ratio

PB vs Industry: BWP is overvalued based on its PB Ratio (1.5x) compared to the AU REITs industry average (1.2x).


Next Steps

Future Growth

How is BWP Trust forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

3.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: BWP's forecast earnings growth (3.1% per year) is above the savings rate (2.3%).

Earnings vs Market: BWP's earnings (3.1% per year) are forecast to grow slower than the Australian market (10.2% per year).

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

Revenue vs Market: BWP's revenue (0.05% per year) is forecast to grow slower than the Australian market (3.6% per year).

High Growth Revenue: BWP's revenue (0.05% 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 (6.1%).


Next Steps

Past Performance

How has BWP Trust performed over the past 5 years?

-3.8%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: BWP's earnings have declined by -3.8% 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 (-7.5%) over the past year, making it difficult to compare to the REITs industry average (-16.4%).


Return on Equity

High ROE: BWP's Return on Equity (9%) is considered low.


Return on Assets

ROA vs Industry: BWP has a higher Return on Assets than the REITs industry average last year.


Return on Capital Employed

ROCE Improving: BWP's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is BWP Trust's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

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

Debt Coverage by Assets: BWP's debt is not covered by short term assets (assets are 0.1x debt).


Financial Institutions Analysis

Asset Level: BWP's level of assets compared to its equity is low.

Allowance for Bad Loans: Insufficient data to determine if BWP has a sufficient allowance for bad loans.

Low Risk Liabilities: BWP reports no customer deposits, loans are made up entirely of externally borrowed funds.

Loan Level: Insufficient data to determine if BWP has an acceptable proportion of non-loan assets held.

Low Risk Deposits: BWP has advanced significantly more loans than the customer deposits it holds.

Level of Bad Loans: Insufficient data to determine if BWP has an appropriate level of bad loans.


Next Steps

Dividend

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

4.21%

Current Dividend Yield


Dividend Yield vs Market

company4.2%marketbottom25%2.4%markettop25%5.6%industryaverage4.4%forecastin3Years4.3%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: BWP's dividend (4.21%) is higher than the bottom 25% of dividend payers in the Australian market (2.44%).

High Dividend: BWP's dividend (4.21%) is low compared to the top 25% of dividend payers in the Australian market (5.61%).

Stable Dividend: BWP's dividend payments have been volatile 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 (104.7%), 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 (101.3% payout ratio).


Next Steps

Management

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

10.7yrs

Average management tenure


CEO

Michael Wedgwood (56yo)

5.7yrs

Tenure

0

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 ...


Management Age and Tenure

10.7yrs

Average Tenure

Experienced Management: BWP's management team is seasoned and experienced (10.7 years average tenure).


Board Age and Tenure

6.3yrs

Average Tenure

63.5yo

Average Age

Experienced Board: BWP's board of directors are considered experienced (6.3 years average tenure).


Insider Trading

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


Ownership Breakdown


Management Team

  • Karen Lange

    Company Secretary

    • Tenure: 11.5yrs
  • Andrew Ross

    Portfolio Manager of BWP Management Limited

    • Tenure: 14.3yrs
  • David Hawkins

    Finance Manager

    • Tenure: 9.8yrs
  • Michael Wedgwood (56yo)

    MD & Director

    • Tenure: 5.7yrs
  • Sarah Sampimon

    Office Manager

    • Tenure: 0yrs

Board Members

  • Fiona Harris (58yo)

    Non-Executive External Director

    • Tenure: 7yrs
  • Erich Fraunschiel (73yo)

    Chairman of the Board

    • Tenure: 3.8yrs
  • Tony Howarth (67yo)

    Non-Executive Director

    • Tenure: 7yrs
  • Mike Steur (60yo)

    Non-Executive External Director

    • Tenure: 4.7yrs
  • Rick Higgins (73yo)

    Non-Executive External Director

    • Tenure: 11.8yrs
  • Michael Wedgwood (56yo)

    MD & Director

    • Tenure: 5.7yrs

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$2.737b
  • 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 Analysis2019/10/21 10:31
End of Day Share Price2019/10/21 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.