ASX:CHC

Stock Analysis Report

Executive Summary

With over 28 years’ experience in property investment and funds management, we’re one of Australia’s leading fully integrated property groups.

Snowflake

Fundamentals

Second-rate dividend payer with questionable track record.


Similar Companies

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

3.0%

CHC

0.2%

AU REITs

0.4%

AU Market


1 Year Return

68.4%

CHC

18.4%

AU REITs

9.8%

AU Market

Return vs Industry: CHC exceeded the Australian REITs industry which returned 18.4% over the past year.

Return vs Market: CHC exceeded the Australian Market which returned 9.8% over the past year.


Shareholder returns

CHCIndustryMarket
7 Day3.0%0.2%0.4%
30 Day3.2%0.6%-1.1%
90 Day2.2%-2.1%-0.6%
1 Year74.8%68.4%24.4%18.4%16.1%9.8%
3 Year182.5%144.1%46.8%25.7%36.1%17.9%
5 Year255.0%175.3%100.9%56.2%49.4%15.7%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

27.5%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: CHC (A$11.84) is trading below our estimate of fair value (A$16.34)

Significantly Undervalued: CHC is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: CHC is poor value based on its PE Ratio (23.3x) compared to the REITs industry average (16x).

PE vs Market: CHC is poor value based on its PE Ratio (23.3x) compared to the Australian market (18.2x).


Price to Earnings Growth Ratio

Low PEG Ratio: CHC is poor value based on its PEG Ratio (3.2x)


Price to Book Ratio

PB vs Industry: CHC is overvalued based on its PB Ratio (2.9x) compared to the AU REITs industry average (1.1x).


Next Steps

Future Growth

How is Charter Hall Group forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

7.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CHC's forecast earnings growth (7.3% per year) is above the savings rate (2.3%).

Earnings vs Market: CHC's earnings (7.3% per year) are forecast to grow slower than the Australian market (10.3% per year).

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

Revenue vs Market: CHC's revenue is expected to decline over the next 3 years (-4.1% per year).

High Growth Revenue: CHC's revenue is forecast to decline over the next 3 years (-4.1% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: CHC's Return on Equity is forecast to be low in 3 years time (12%).


Next Steps

Past Performance

How has Charter Hall Group performed over the past 5 years?

17.1%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: CHC's earnings have grown by 17.1% per year over the past 5 years.

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

Earnings vs Industry: CHC had negative earnings growth (-5.7%) over the past year, making it difficult to compare to the REITs industry average (-16.3%).


Return on Equity

High ROE: CHC's Return on Equity (12.1%) is considered low.


Return on Assets

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


Return on Capital Employed

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


Next Steps

Financial Health

How is Charter Hall Group'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: CHC has a low level of unsold assets or inventory.

Debt Coverage by Assets: CHC's debt is not covered by short term assets (assets are 0.9x debt).


Financial Institutions Analysis

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

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

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

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

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

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


Next Steps

Dividend

What is Charter Hall Group's current dividend yield, its reliability and sustainability?

2.91%

Current Dividend Yield


Dividend Yield vs Market

company2.9%marketbottom25%2.4%markettop25%5.6%industryaverage4.4%forecastin3Years3.5%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: CHC's dividend (2.91%) is higher than the bottom 25% of dividend payers in the Australian market (2.44%).

High Dividend: CHC's dividend (2.91%) is low compared to the top 25% of dividend payers in the Australian market (5.59%).

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

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


Current Payout to Shareholders

Dividend Coverage: At its current payout ratio (78.5%), CHC's payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: CHC's dividends in 3 years are forecast to be covered by earnings (72.1% payout ratio).


Next Steps

Management

What is the CEO of Charter Hall Group's salary, the management and board of directors tenure and is there insider trading?

2.5yrs

Average management tenure


CEO

David Harrison (53yo)

15yrs

Tenure

AU$4,489,646

Compensation

Mr. David William Harrison has been Group Chief Executive Officer and Managing Director at Charter Hall Group since February 16, 2016. He is responsible for all aspects of the Charter Hall business, with s ...


CEO Compensation Analysis

Compensation vs. Market: David's total compensation ($USD3.07M) is about average for companies of similar size in the Australian market ($USD2.30M).

Compensation vs Earnings: David's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Management Age and Tenure

2.5yrs

Average Tenure

53yo

Average Age

Experienced Management: CHC's management team is considered experienced (2.5 years average tenure).


Board Age and Tenure

4.9yrs

Average Tenure

60yo

Average Age

Experienced Board: CHC's board of directors are considered experienced (4.9 years average tenure).


Insider Trading

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


Recent Insider Transactions

SellAU$29,210,12830 Sep 19
Morgan Stanley, Investment Banking and Brokerage Investments
EntityCompany
Shares2,550,562
Max PriceAU$11.45
BuyAU$29,893,48930 Sep 19
Morgan Stanley, Investment Banking and Brokerage Investments
EntityCompany
Shares2,636,051
Max PriceAU$11.34
BuyAU$159,04212 Sep 19
Gregory Paramor
EntityIndividual
Shares14,300
Max PriceAU$11.12
BuyAU$38,618,13612 Sep 19
Morgan Stanley, Investment Banking and Brokerage Investments
EntityCompany
Shares3,113,195
Max PriceAU$12.40
BuyAU$125,00026 Aug 19
David Ross
EntityIndividual
Shares10,000
Max PriceAU$12.50
SellAU$1,704,44221 Aug 19
Colonial First State Asset Management (Australia) Limited
EntityCompany
Shares142,147
Max PriceAU$11.99
SellAU$25,647,20021 Aug 19
Morgan Stanley, Investment Banking and Brokerage Investments
EntityCompany
Shares2,188,758
Max PriceAU$11.72
BuyAU$4,777,10421 Aug 19
Colonial First State Asset Management (Australia) Limited
EntityCompany
Shares419,208
Max PriceAU$11.40
BuyAU$15,494,28121 Aug 19
Morgan Stanley, Investment Banking and Brokerage Investments
EntityCompany
Shares1,330,431
Max PriceAU$11.65
BuyAU$18,441,29708 Aug 19
Colonial First State Asset Management (Australia) Limited
EntityCompany
Shares1,599,248
Max PriceAU$11.53
SellAU$71,187,79518 Jul 19
AMP Capital Investors Limited
EntityCompany
Shares7,943,646
Max PriceAU$9.08
SellAU$1,543,39218 Jul 19
Ipac Asset Management Limited
EntityCompany
Shares170,884
Max PriceAU$9.03
BuyAU$1,352,90918 Jul 19
Ipac Asset Management Limited
EntityCompany
Shares160,984
Max PriceAU$8.40
BuyAU$57,761,19218 Jul 19
AMP Capital Investors Limited
EntityCompany
Shares7,701,141
Max PriceAU$8.86
SellAU$3,457,23118 Jul 19
National Mutual Funds Management Limited
EntityCompany
Shares406,418
Max PriceAU$8.51
BuyAU$3,847,72818 Jul 19
National Mutual Funds Management Limited
EntityCompany
Shares463,845
Max PriceAU$8.30
BuyAU$61,617,15909 Jul 19
Colonial First State Asset Management (Australia) Limited
EntityCompany
Shares5,744,363
Max PriceAU$10.85
SellAU$8,494,03209 Jul 19
Colonial First State Asset Management (Australia) Limited
EntityCompany
Shares806,442
Max PriceAU$10.58
BuyAU$767,23009 Jul 19
Realindex Investments Pty Limited
EntityCompany
Shares70,736
Max PriceAU$10.85
BuyAU$665,94909 Jul 19
ASB Group Investments Ltd.
EntityCompany
Shares60,487
Max PriceAU$11.01
SellAU$1,821,95509 Jul 19
Realindex Investments Pty Limited
EntityCompany
Shares173,422
Max PriceAU$10.51
SellAU$3,382,59721 Jun 19
Cohen & Steers Capital Management, Inc.
EntityCompany
Shares303,189
Max PriceAU$11.31
BuyAU$1,569,55118 Jun 19
Cohen & Steers Capital Management, Inc.
EntityCompany
Shares136,163
Max PriceAU$11.53
SellAU$70,48112 Jun 19
Cohen & Steers Capital Management, Inc.
EntityCompany
Shares7,079
Max PriceAU$9.96
BuyAU$2,256,37812 Jun 19
Cohen & Steers Capital Management, Inc.
EntityCompany
Shares225,262
Max PriceAU$10.23
BuyAU$32,632,70506 May 19
Colonial First State Asset Management (Australia) Limited
EntityCompany
Shares3,315,489
Max PriceAU$10.21
BuyAU$1,097,57506 May 19
Realindex Investments Pty Limited
EntityCompany
Shares117,176
Max PriceAU$9.37
BuyAU$434,29902 May 19
Vinva Investment Management
EntityCompany
Shares43,192
Max PriceAU$10.06
SellAU$3,071,33602 May 19
Vinva Investment Management
EntityCompany
Shares312,512
Max PriceAU$9.83
BuyAU$72,339,88222 Apr 19
The Vanguard Group, Inc.
EntityCompany
Shares7,072,937
Max PriceAU$10.27
SellAU$24,189,42622 Apr 19
The Vanguard Group, Inc.
EntityCompany
Shares2,385,079
Max PriceAU$10.15
SellAU$5,995,19915 Apr 19
David Harrison
EntityIndividual
Role
Chief Executive Officer
MD, Group CEO & Director
Shares600,000
Max PriceAU$9.99
BuyAU$8,401,98511 Apr 19
Cohen & Steers Capital Management, Inc.
EntityCompany
Shares1,001,967
Max PriceAU$8.39
SellAU$48,366,53011 Apr 19
Cohen & Steers Capital Management, Inc.
EntityCompany
Shares5,664,075
Max PriceAU$9.03
BuyAU$009 Apr 19
FIL Limited
EntityCompany
Shares18,892,489
Max PriceAU$10.36
SellAU$009 Apr 19
FIL Limited
EntityCompany
Shares17,734,075
Max PriceAU$9.87
BuyAU$152,998,99409 Apr 19
Vinva Investment Management
EntityCompany
Shares17,328,212
Max PriceAU$8.83
SellAU$1,321,39209 Apr 19
Vinva Investment Management
EntityCompany
Shares138,353
Max PriceAU$9.55
SellAU$19,033,36628 Feb 19
Colonial First State Asset Management (Australia) Limited
EntityCompany
Shares2,336,683
Max PriceAU$8.61
BuyAU$1,012,13928 Feb 19
ASB Group Investments Ltd.
EntityCompany
Shares130,744
Max PriceAU$7.74
SellAU$144,20328 Feb 19
ASB Group Investments Ltd.
EntityCompany
Shares17,759
Max PriceAU$8.12
BuyAU$7,750,06828 Feb 19
Colonial First State Asset Management (Australia) Limited
EntityCompany
Shares1,017,691
Max PriceAU$7.62
BuyAU$329,11612 Dec 18
Realindex Investments Pty Limited
EntityCompany
Shares44,986
Max PriceAU$7.35
BuyAU$1,875,82012 Dec 18
Colonial First State Asset Management (Australia) Limited
EntityCompany
Shares258,042
Max PriceAU$7.29
BuyAU$167,55106 Dec 18
Realindex Investments Pty Limited
EntityCompany
Shares23,856
Max PriceAU$7.02
SellAU$4,122,63506 Dec 18
Colonial First State Asset Management (Australia) Limited
EntityCompany
Shares588,257
Max PriceAU$7.01
SellAU$71,79006 Dec 18
Realindex Investments Pty Limited
EntityCompany
Shares10,334
Max PriceAU$6.95
BuyAU$127,80626 Nov 18
Colonial First State Asset Management (Australia) Limited
EntityCompany
Shares18,258
Max PriceAU$7.00
BuyAU$12,434,75823 Nov 18
Realindex Investments Pty Limited
EntityCompany
Shares1,960,689
Max PriceAU$6.34
SellAU$21,335,45223 Nov 18
Realindex Investments Pty Limited
EntityCompany
Shares3,280,205
Max PriceAU$6.50
SellAU$69,105,16523 Nov 18
Colonial First State Asset Management (Australia) Limited
EntityCompany
Shares11,358,438
Max PriceAU$6.31
BuyAU$58,687,15623 Nov 18
Colonial First State Asset Management (Australia) Limited
EntityCompany
Shares9,509,357
Max PriceAU$6.88
SellAU$699,71019 Nov 18
Pinnacle Investment Management Group Limited
EntityCompany
Shares100,000
Max PriceAU$7.00
BuyAU$1,091,04514 Nov 18
Pinnacle Investment Management Group Limited
EntityCompany
Shares153,068
Max PriceAU$7.13
SellAU$627,32508 Nov 18
Pinnacle Investment Management Group Limited
EntityCompany
Shares94,193
Max PriceAU$6.66
SellAU$136,51007 Nov 18
Pinnacle Investment Management Group Limited
EntityCompany
Shares19,784
Max PriceAU$6.90
BuyAU$839,67307 Nov 18
Pinnacle Investment Management Group Limited
EntityCompany
Shares123,668
Max PriceAU$6.80
BuyAU$3,946,82530 Oct 18
Pinnacle Investment Management Group Limited
EntityCompany
Shares559,766
Max PriceAU$7.05

Ownership Breakdown


Management Team

  • Adrian Tasman Taylor (47yo)

    Office Chief Executive Officer

    • Tenure: 2.8yrs
    • Compensation: AU$1.34m
  • Sean Thomas McMahon

    Chief Investment Officer

    • Tenure: 3.3yrs
    • Compensation: AU$2.00m
  • David Harrison (53yo)

    MD, Group CEO & Director

    • Tenure: 15yrs
    • Compensation: AU$4.49m
  • David Southon (53yo)

    • Tenure: 0yrs
    • Compensation: AU$197.19k
  • Russell Proutt

    Chief Financial Officer

    • Tenure: 2.3yrs
    • Compensation: AU$2.11m
  • Richard Stacker

    Industrial CEO

    • Tenure: 1.3yrs
    • Compensation: AU$989.07k
  • Natalie Devlin

    Chief Experience Officer

    • Tenure: 0.3yrs
    • Compensation: AU$539.04k
  • Philip Cheetham

    Head of Listed Investor Relations

    • Tenure: 3.8yrs
  • Mark Bryant

    Group General Counsel & Company Secretary

    • Tenure: 0yrs
  • Sheridan Ware

    Chief Information & Technology Officer

    • Tenure: 0.3yrs

Board Members

  • David Clarke (63yo)

    Independent Chairman of the Board

    • Tenure: 4.9yrs
    • Compensation: AU$384.00k
  • Karen Moses (61yo)

    Non-Executive Independent Director

    • Tenure: 3.1yrs
    • Compensation: AU$194.75k
  • Phil Garling (65yo)

    Non-Executive Independent Director

    • Tenure: 6.7yrs
    • Compensation: AU$187.58k
  • Anne Brennan (59yo)

    Non-Executive Independent Director

    • Tenure: 9yrs
    • Compensation: AU$205.00k
  • David Harrison (53yo)

    MD, Group CEO & Director

    • Tenure: 15yrs
    • Compensation: AU$4.49m
  • David Ross (58yo)

    Non-Executive Independent Director

    • Tenure: 2.8yrs
    • Compensation: AU$182.45k
  • Greg Paramor

    Independent Non Executive Director

    • Tenure: 0.9yrs
    • Compensation: AU$116.01k

Company Information

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


Key Information

  • Name: Charter Hall Group
  • Ticker: CHC
  • Exchange: ASX
  • Founded: 1991
  • Industry: Diversified REITs
  • Sector: Real Estate
  • Market Cap: AU$5.515b
  • Shares outstanding: 465.78m
  • Website: https://www.charterhall.com.au

Location

  • Charter Hall Group
  • No. 1 Martin Place
  • Level 20
  • Sydney
  • New South Wales
  • 2000
  • Australia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
CHCASX (Australian Securities Exchange)YesStapled SecuritiesAUAUDJun 2006
CTOU.FOTCPK (Pink Sheets LLC)YesStapled SecuritiesUSUSDJun 2006
CHCCHIA (Chi-X Australia)YesStapled SecuritiesAUAUDJun 2006

Biography

With over 28 years’ experience in property investment and funds management, we’re one of Australia’s leading fully integrated property groups. We use our property expertise to access, deploy, manage and in ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/19 10:33
End of Day Share Price2019/10/18 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.