ASX:FRI

Stock Analysis Report

Executive Summary

Finbar Group Limited, through its subsidiaries, develops and invests in properties in Australia.

Snowflake

Fundamentals

Excellent balance sheet unattractive dividend payer.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: FRI has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

1.8%

FRI

-0.2%

AU Real Estate

-1.0%

AU Market


1 Year Return

3.6%

FRI

37.0%

AU Real Estate

16.2%

AU Market

Return vs Industry: FRI underperformed the Australian Real Estate industry which returned 37% over the past year.

Return vs Market: FRI underperformed the Australian Market which returned 16.2% over the past year.


Shareholder returns

FRIIndustryMarket
7 Day1.8%-0.2%-1.0%
30 Day-2.3%4.2%-0.2%
90 Day-2.8%11.6%2.2%
1 Year11.3%3.6%41.8%37.0%21.9%16.2%
3 Year20.1%-1.7%35.8%21.2%36.3%17.7%
5 Year-11.8%-38.5%47.1%20.9%52.7%18.3%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

20.45x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: FRI (A$0.86) is trading above our estimate of fair value (A$0.53)

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


Price To Earnings Ratio

PE vs Industry: FRI is poor value based on its PE Ratio (20.4x) compared to the Real Estate industry average (13x).

PE vs Market: FRI is poor value based on its PE Ratio (20.4x) compared to the Australian market (18.7x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate FRI's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: FRI is good value based on its PB Ratio (0.9x) compared to the AU Real Estate industry average (1x).


Next Steps

Future Growth

How is Finbar Group forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

18.0%

Forecasted Real Estate industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Finbar Group has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has Finbar Group performed over the past 5 years?

-27.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: FRI has high quality earnings.

Growing Profit Margin: FRI's current net profit margins (7.4%) are lower than last year (9.2%).


Past Earnings Growth Analysis

Earnings Trend: FRI's earnings have declined by -27.7% per year over the past 5 years.

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

Earnings vs Industry: FRI had negative earnings growth (-18.3%) over the past year, making it difficult to compare to the Real Estate industry average (-2.4%).


Return on Equity

High ROE: FRI's Return on Equity (4.6%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Finbar Group's financial position?


Financial Position Analysis

Short Term Liabilities: FRI's short term assets (A$196.9M) exceeds its short term liabilities (A$79.1M)

Long Term Liabilities: FRI's short term assets (A$196.9M) exceeds its long term liabilities (51.0M)


Debt to Equity History and Analysis

Debt Level: FRI's debt to equity ratio (32%) is considered satisfactory.

Reducing Debt: FRI's debt to equity ratio has reduced from 33% to 32% over the past 5 years.

Debt Coverage: FRI's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: FRI earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet

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

Debt Coverage by Assets: FRI's debt is covered by short term assets (assets are 2.5x debt).


Next Steps

Dividend

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

7.02%

Current Dividend Yield


Dividend Yield vs Market

company7.0%marketbottom25%2.4%markettop25%5.6%industryaverage2.5%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: FRI's dividend (7.02%) is higher than the bottom 25% of dividend payers in the Australian market (2.38%).

High Dividend: FRI's dividend (7.02%) is in the top 25% of dividend payers in the Australian market (5.58%)


Stability and Growth of Payments

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

Growing Dividend: FRI's dividend payments have not increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (143.5%), FRI's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

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

9.3yrs

Average management tenure


CEO

Darren Pateman (50yo)

9.3yrs

Tenure

AU$980,308

Compensation

Mr. Darren John Pateman, EMBA, GradDipACG, ACSA, AGIA, MAICD, AFAIM, has been Managing Director of Finbar Group Limited since July 15, 2010. Mr. Pateman has been the Managing Director of 406 & 407 Newcastl ...


CEO Compensation Analysis

Compensation vs Market: Darren's total compensation ($USD665.65K) is above average for companies of similar size in the Australian market ($USD466.75K).

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


Management Age and Tenure

9.3yrs

Average Tenure

50yo

Average Age

Experienced Management: FRI's management team is seasoned and experienced (9.3 years average tenure).


Board Age and Tenure

8.6yrs

Average Tenure

58.5yo

Average Age

Experienced Board: FRI's board of directors are considered experienced (8.6 years average tenure).


Insider Trading

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


Recent Insider Transactions

BuyAU$38,23827 Sep 19
John Chan
EntityIndividual
Role
Chairman of the Board
Executive Chairman
Shares45,521
Max PriceAU$0.84
BuyAU$57,54826 Sep 19
Forward International Pty Ltd
EntityCompany
Shares68,510
Max PriceAU$0.84
BuyAU$57,54826 Sep 19
John Chan
EntityIndividual
Role
Chairman of the Board
Executive Chairman
Shares68,510
Max PriceAU$0.84
BuyAU$31,49001 Jul 19
Lee Verios
EntityIndividual
Role
Member of the Board of Directors
Non-Executive Independent Director
Shares36,196
Max PriceAU$0.87
SellAU$62,98214 Jun 19
Lee Verios
EntityIndividual
Role
Member of the Board of Directors
Non-Executive Independent Director
Shares72,393
Max PriceAU$0.87
BuyAU$7,38002 Jun 19
Darren Pateman
EntityIndividual
Role
Chief Executive Officer
MD & Executive Director
Shares8,491
Max PriceAU$0.87
BuyAU$42,00005 Mar 19
John Chan
EntityIndividual
Role
Chairman of the Board
Executive Chairman
Shares50,000
Max PriceAU$0.84

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 14.2%.


Management Team

  • John Chan (72yo)

    Executive Chairman

    • Tenure: 9.3yrs
    • Compensation: AU$739.34k
  • Darren Pateman (50yo)

    MD & Executive Director

    • Tenure: 9.3yrs
    • Compensation: AU$980.31k
  • Ed Bank

    CFO & Company Secretary

    • Tenure: 14.7yrs
    • Compensation: AU$404.40k
  • Ronald Chan (38yo)

    COO & Executive Director

    • Tenure: 2.8yrs
    • Compensation: AU$421.30k

Board Members

  • John Chan (72yo)

    Executive Chairman

    • Tenure: 9.3yrs
    • Compensation: AU$739.34k
  • Kee Kong Loh (67yo)

    Non-Executive Director

    • Tenure: 26.6yrs
    • Compensation: AU$76.11k
  • Darren Pateman (50yo)

    MD & Executive Director

    • Tenure: 9.3yrs
    • Compensation: AU$980.31k
  • Terence Peh (45yo)

    Non-Executive Director

    • Tenure: 1.6yrs
    • Compensation: AU$65.93k
  • Lee Verios (70yo)

    Non-Executive Independent Director

    • Tenure: 7.9yrs
    • Compensation: AU$76.11k
  • Ronald Chan (38yo)

    COO & Executive Director

    • Tenure: 2.8yrs
    • Compensation: AU$421.30k

Company Information

Finbar Group Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Finbar Group Limited
  • Ticker: FRI
  • Exchange: ASX
  • Founded: 1984
  • Industry: Real Estate Development
  • Sector: Real Estate
  • Market Cap: AU$232.665m
  • Shares outstanding: 272.12m
  • Website: https://www.finbar.com.au

Location

  • Finbar Group Limited
  • 181 Adelaide Terrace
  • Level 6
  • East Perth
  • Western Australia
  • 6004
  • Australia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
FRIASX (Australian Securities Exchange)YesOrdinary SharesAUAUDJan 1992
FRICHIA (Chi-X Australia)YesOrdinary SharesAUAUDJan 1992

Biography

Finbar Group Limited, through its subsidiaries, develops and invests in properties in Australia. The company develops medium to high density residential buildings and commercial properties, as well as rent ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/11/22 10:31
End of Day Share Price2019/11/21 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.