ASX:CHC

Stock Analysis Report

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Executive Summary

With over 30 years’ experience in property investment and funds management, we’re one of Australia’s leading fully integrated property groups. More Details


Snowflake Analysis

Solid track record established dividend payer.


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

Stable Share Price: CHC is less volatile than 75% of Australian stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: CHC's weekly volatility (4%) has been stable over the past year.


Market Performance


7 Day Return

-4.0%

CHC

-0.9%

AU REITs

2.3%

AU Market


1 Year Return

20.7%

CHC

-9.4%

AU REITs

-0.3%

AU Market

Return vs Industry: CHC exceeded the Australian REITs industry which returned -9.3% over the past year.

Return vs Market: CHC exceeded the Australian Market which returned -1% over the past year.


Shareholder returns

CHCIndustryMarket
7 Day-4.0%-0.9%2.3%
30 Day0.8%8.1%7.2%
90 Day3.4%12.3%8.7%
1 Year24.9%20.7%-5.7%-9.4%3.1%-0.3%
3 Year134.0%107.1%24.3%7.5%24.2%8.8%
5 Year263.1%186.8%57.4%22.5%55.4%24.4%

Long-Term 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?

44.3%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: CHC (A$13.05) is trading below our estimate of fair value (A$23.45)

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


Price To Earnings Ratio

PE vs Industry: CHC is good value based on its PE Ratio (17.5x) compared to the AU REITs industry average (17.7x).

PE vs Market: CHC is good value based on its PE Ratio (17.5x) compared to the Australian market (22.5x).


Price to Earnings Growth Ratio

PEG Ratio: CHC is poor value based on its PEG Ratio (10.6x)


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 8 analysts?

1.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CHC's forecast earnings growth (1.7% per year) is below the savings rate (2.3%).

Earnings vs Market: CHC's earnings (1.7% per year) are forecast to grow slower than the Australian market (17.9% 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 (-5.2% per year).

High Growth Revenue: CHC's revenue is forecast to decline over the next 3 years (-5.2% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: CHC's Return on Equity is forecast to be low in 3 years time (12.9%).


Next Steps

Past Performance

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

14.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CHC has high quality earnings.

Growing Profit Margin: CHC's current net profit margins (47.6%) are higher than last year (45%).


Past Earnings Growth Analysis

Earnings Trend: CHC's earnings have grown by 14.1% per year over the past 5 years.

Accelerating Growth: CHC's earnings growth over the past year (46.4%) exceeds its 5-year average (14.1% per year).

Earnings vs Industry: CHC earnings growth over the past year (46.4%) exceeded the REITs industry 6.8%.


Return on Equity

High ROE: CHC's Return on Equity (16.2%) is considered low.


Next Steps

Financial Health

How is Charter Hall Group's financial position?


Financial Position Analysis

Short Term Liabilities: CHC's short term assets (A$321.8M) exceed its short term liabilities (A$209.0M).

Long Term Liabilities: CHC's short term assets (A$321.8M) do not cover its long term liabilities (A$405.0M).


Debt to Equity History and Analysis

Debt Level: CHC's debt to equity ratio (18.1%) is considered satisfactory.

Reducing Debt: Insufficient data to determine if CHC's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: CHC's debt is well covered by operating cash flow (103.8%).

Interest Coverage: CHC's interest payments on its debt are well covered by EBIT (31.2x coverage).


Balance Sheet


Next Steps

Dividend

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

2.79%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: CHC's dividend (2.79%) is higher than the bottom 25% of dividend payers in the Australian market (2.11%).

High Dividend: CHC's dividend (2.79%) is low compared to the top 25% of dividend payers in the Australian market (5.06%).


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (40.1%), CHC's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: CHC's dividends in 3 years are forecast to be covered by earnings (57.1% payout ratio).


Next Steps

Management

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

3.6yrs

Average management tenure


CEO

David Harrison (54 yo)

16.08yrs

Tenure

AU$4,783,605

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 ($USD3.48M) is above average for companies of similar size in the Australian market ($USD1.91M).

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


Leadership Team

NamePositionTenureCompensationOwnership
David Harrison
MD, Group CEO & Director16.08yrsAU$4.78m0.29%
A$ 17.5m
Russell Proutt
Chief Financial Officer3.33yrsAU$2.28m0.015%
A$ 913.7k
Sean Thomas McMahon
Chief Investment Officer4.42yrsAU$2.31m0.056%
A$ 3.4m
David Southon
no dataAU$197.19kno data
Sheridan Ware
Chief Information & Technology Officer1.42yrsno datano data
Philip Cheetham
Head of Listed Investor Relations4.83yrsno datano data
Mark Bryant
Group General Counsel & Company Secretaryno datano datano data
Richard Stacker
Industrial & Logistics CEO2.33yrsAU$989.07kno data
Natalie Devlin
Chief Experience Officer1.42yrsAU$539.04kno data
Gregory Chubb
Retail Chief Executive Officer3.83yrsAU$1.21mno data
Steven Bennett
Direct Chief Executive Officerno datano datano data
Anne Edwards
Head of Group Financeno datano datano data

3.6yrs

Average Tenure

Experienced Management: CHC's management team is considered experienced (3.6 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
David Harrison
MD, Group CEO & Director16.08yrsAU$4.78m0.29%
A$ 17.5m
David Clarke
Independent Non-Executive Chairman6yrsAU$393.60k0.0098%
A$ 599.2k
Karen Moses
Independent Non-Executive Director4.17yrsAU$199.62k0.0050%
A$ 302.3k
Gregory Paramor
Independent Non Executive Director2yrsAU$189.11k0.0031%
A$ 186.7k
Philip Garling
Independent Non-Executive Director7.75yrsAU$192.25k0.0036%
A$ 219.0k
Anne Brennan
Independent Non-Executive Director10.08yrsAU$210.12k0.0064%
A$ 391.7k
David Ross
Independent Non-Executive Director3.92yrsAU$182.45kno data

6.0yrs

Average Tenure

62yo

Average Age

Experienced Board: CHC's board of directors are considered experienced (6 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: CHC insiders have only sold shares 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

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$6.083b
  • Shares outstanding: 465.78m
  • Website: https://www.charterhall.com.au

Number of Employees


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 30 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 Analysis2020/11/24 10:30
End of Day Share Price2020/11/24 00:00
Earnings2020/06/30
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.