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BWP

BWP Trust ASX:BWP Stock Report

Last Price

AU$4.12

Market Cap

AU$2.6b

7D

-2.6%

1Y

2.0%

Updated

08 Aug, 2022

Data

Company Financials +
BWP fundamental analysis
Snowflake Score
Valuation5/6
Future Growth0/6
Past Performance3/6
Financial Health4/6
Dividends3/6

BWP Stock Overview

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.

BWP Trust Competitors

Price History & Performance

Summary of all time highs, changes and price drops for BWP Trust
Historical stock prices
Current Share PriceAU$4.12
52 Week HighAU$4.35
52 Week LowAU$3.66
Beta0.46
1 Month Change2.74%
3 Month Change0.98%
1 Year Change1.98%
3 Year Change7.29%
5 Year Change40.61%
Change since IPO288.68%

Recent News & Updates

Shareholder Returns

BWPAU REITsAU Market
7D-2.6%-1.2%0.7%
1Y2.0%-9.7%-8.0%

Return vs Industry: BWP exceeded the Australian REITs industry which returned -7.9% over the past year.

Return vs Market: BWP exceeded the Australian Market which returned -7.9% over the past year.

Price Volatility

Is BWP's price volatile compared to industry and market?
BWP volatility
BWP Average Weekly Movement3.2%
REITs Industry Average Movement4.1%
Market Average Movement10.5%
10% most volatile stocks in AU Market17.6%
10% least volatile stocks in AU Market4.6%

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

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

About the Company

FoundedEmployeesCEOWebsite
1998n/aMichael Wedgwoodhttps://www.bwptrust.com.au

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. The majority of the Trust’s properties are large format retailing properties, in particular, Bunnings Warehouses, leased to Bunnings Group Limited (“Bunnings”). Bunnings is the leading retailer of home improvement and outdoor living products in Australia and New Zealand, and a major supplier to project builders, commercial trades people, and the housing industry.

BWP Trust Fundamentals Summary

How do BWP Trust's earnings and revenue compare to its market cap?
BWP fundamental statistics
Market CapAU$2.65b
Earnings (TTM)AU$486.64m
Revenue (TTM)AU$153.27m

5.4x

P/E Ratio

17.3x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
BWP income statement (TTM)
RevenueAU$153.27m
Cost of RevenueAU$16.12m
Gross ProfitAU$137.14m
Other Expenses-AU$349.49m
EarningsAU$486.64m

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

n/a

Earnings per share (EPS)0.76
Gross Margin89.48%
Net Profit Margin317.51%
Debt/Equity Ratio18.3%

How did BWP perform over the long term?

See historical performance and comparison

Dividends

4.4%

Current Dividend Yield

106%

Payout Ratio
We’ve recently updated our valuation analysis.

Valuation

Is BWP undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

5/6

Valuation Score 5/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for BWP?

Other financial metrics that can be useful for relative valuation.

BWP key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue20.2x
Enterprise Value/EBITDAn/a
PEG Ratio-0.1x

Price to Earnings Ratio vs Peers

How does BWP's PE Ratio compare to its peers?

BWP PE Ratio vs Peers
The above table shows the PE ratio for BWP vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average19.6x
HDN HomeCo Daily Needs REIT
66.4x26.4%AU$2.8b
SCP Shopping Centres Australasia Property Group
4.1x-25.2%AU$3.2b
WPR Waypoint REIT
4.1x-40.0%AU$1.8b
CQR Charter Hall Retail REIT
4x-14.4%AU$2.3b
BWP BWP Trust
5.4x-36.6%AU$2.6b

Price-To-Earnings vs Peers: BWP is good value based on its Price-To-Earnings Ratio (5.4x) compared to the peer average (19.6x).


Price to Earnings Ratio vs Industry

How does BWP's PE Ratio compare vs other companies in the AU REITs Industry?

Price-To-Earnings vs Industry: BWP is good value based on its Price-To-Earnings Ratio (5.4x) compared to the Australian REITs industry average (6.8x)


Price to Earnings Ratio vs Fair Ratio

What is BWP's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

BWP PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio5.4x
Fair PE Ratio6.8x

Price-To-Earnings vs Fair Ratio: BWP is good value based on its Price-To-Earnings Ratio (5.4x) compared to the estimated Fair Price-To-Earnings Ratio (6.8x).


Share Price vs Fair Value

What is the Fair Price of BWP when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: BWP (A$4.12) is trading below our estimate of fair value (A$5.65)

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


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Target price is lower than the current share price.


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Future Growth

How is BWP Trust forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?

Future Growth Score

0/6

Future Growth Score 0/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


-36.6%

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 (-36.6% per year).

Earnings vs Market: BWP's earnings are forecast to decline over the next 3 years (-36.6% per year).

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

Revenue vs Market: BWP's revenue (3.2% per year) is forecast to grow slower than the Australian market (5.7% per year).

High Growth Revenue: BWP's revenue (3.2% 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 (4.6%).


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Past Performance

How has BWP Trust performed over the past 5 years?

Past Performance Score

3/6

Past Performance Score 3/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


18.0%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: BWP has a large one-off gain of A$371.9M impacting its June 30 2022 financial results.

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


Past Earnings Growth Analysis

Earnings Trend: BWP's earnings have grown by 18% per year over the past 5 years.

Accelerating Growth: BWP's earnings growth over the past year (84.9%) exceeds its 5-year average (18% per year).

Earnings vs Industry: BWP earnings growth over the past year (84.9%) underperformed the REITs industry 182.6%.


Return on Equity

High ROE: BWP's Return on Equity (19.6%) is considered low.


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Financial Health

How is BWP Trust's financial position?

Financial Health Score

4/6

Financial Health Score 4/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: BWP's short term assets (A$20.7M) do not cover its short term liabilities (A$80.0M).

Long Term Liabilities: BWP's short term assets (A$20.7M) do not cover its long term liabilities (A$455.6M).


Debt to Equity History and Analysis

Debt Level: BWP's net debt to equity ratio (17.8%) is considered satisfactory.

Reducing Debt: BWP's debt to equity ratio has reduced from 27% to 18.3% over the past 5 years.

Debt Coverage: BWP's debt is well covered by operating cash flow (24.4%).

Interest Coverage: BWP's interest payments on its debt are well covered by EBIT (9.3x coverage).


Balance Sheet


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Dividend

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

Dividend Score

3/6

Dividend Score 3/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Cash Flow Coverage


4.44%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: BWP's dividend (4.44%) is higher than the bottom 25% of dividend payers in the Australian market (2.62%).

High Dividend: BWP's dividend (4.44%) is low compared to the top 25% of dividend payers in the Australian market (6.24%).


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.


Earnings Payout to Shareholders

Earnings Coverage: With its high payout ratio (105.8%), BWP's dividend payments are not well covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: With its high cash payout ratio (105.8%), BWP's dividend payments are not well covered by cash flows.


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Management

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

13.5yrs

Average management tenure


CEO

Michael Wedgwood (59 yo)

8.5yrs

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

Experienced Management: BWP's management team is seasoned and experienced (13.5 years average tenure).


Board Members

Experienced Board: BWP's board of directors are considered experienced (8 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.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

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


Key Information

  • Name: BWP Trust
  • Ticker: BWP
  • Exchange: ASX
  • Founded: 1998
  • Industry: Retail REITs
  • Sector: Real Estate
  • Implied Market Cap: AU$2.647b
  • 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


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/08/08 00:00
End of Day Share Price2022/08/08 00:00
Earnings2022/06/30
Annual Earnings2022/06/30


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.