ASX:FRI

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

Market Cap

AU$234.0m

Last Updated

2021/07/30 16:30 UTC

Data Sources

Company Financials

Executive Summary

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


Snowflake Analysis

Flawless balance sheet and slightly overvalued.

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

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


Market Performance


7 Day Return

-5.0%

FRI

1.0%

AU Real Estate

0.4%

AU Market


1 Year Return

26.9%

FRI

19.9%

AU Real Estate

28.3%

AU Market

Return vs Industry: FRI exceeded the Australian Real Estate industry which returned 19.9% over the past year.

Return vs Market: FRI underperformed the Australian Market which returned 28.3% over the past year.


Shareholder returns

FRIIndustryMarket
7 Day-5.0%1.0%0.4%
30 Day0%4.1%1.7%
90 Day3.7%-1.3%5.1%
1 Year31.7%26.9%22.2%19.9%33.1%28.3%
3 Year2.2%-13.3%-19.2%-25.6%34.9%18.5%
5 Year35.4%-0.6%23.5%4.5%66.5%34.1%

Long-Term 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?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: FRI (A$0.85) is trading below our estimate of fair value (A$45.88)

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


Price To Earnings Ratio

PE vs Industry: FRI is poor value based on its PE Ratio (53.7x) compared to the Australian Real Estate industry average (24.4x).

PE vs Market: FRI is poor value based on its PE Ratio (53.7x) compared to the Australian market (20.3x).


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's PB Ratio (1x) is in line with the AU Real Estate industry average.


Future Growth

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

23.9%

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.


Past Performance

How has Finbar Group performed over the past 5 years?

-0.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: FRI has a large one-off gain of A$1.2M impacting its December 31 2020 financial results.

Growing Profit Margin: FRI's current net profit margins (3.1%) are lower than last year (9%).


Past Earnings Growth Analysis

Earnings Trend: FRI's earnings have declined by 0.6% 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 (-71.6%) over the past year, making it difficult to compare to the Real Estate industry average (-32.4%).


Return on Equity

High ROE: FRI's Return on Equity (1.8%) is considered low.


Financial Health

How is Finbar Group's financial position?


Financial Position Analysis

Short Term Liabilities: FRI's short term assets (A$118.0M) exceed its short term liabilities (A$67.3M).

Long Term Liabilities: FRI's short term assets (A$118.0M) exceed its long term liabilities (A$14.9M).


Debt to Equity History and Analysis

Debt Level: FRI's debt to equity ratio (22.1%) is considered satisfactory.

Reducing Debt: FRI's debt to equity ratio has reduced from 45.6% to 22.1% over the past 5 years.

Debt Coverage: FRI's debt is well covered by operating cash flow (131.7%).

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


Balance Sheet


Dividend

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

4.71%

Current Dividend Yield


Upcoming Dividend Payment

TodayJul 31 2021Ex Dividend DateAug 09 2021Dividend Pay DateSep 10 202132 days from Ex DividendBuy in the next 9 days to receive the upcoming dividend

Dividend Yield vs Market

Notable Dividend: FRI's dividend (4.71%) is higher than the bottom 25% of dividend payers in the Australian market (1.99%).

High Dividend: FRI's dividend (4.71%) is low compared to the top 25% of dividend payers in the Australian market (4.91%).


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 fallen over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (189.6%), 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

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

11.0yrs

Average management tenure


CEO

Darren Pateman (52 yo)

11yrs

Tenure

AU$926,355

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 ($USD685.63K) is above average for companies of similar size in the Australian market ($USD456.53K).

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


Leadership Team

Experienced Management: FRI's management team is seasoned and experienced (11 years average tenure).


Board Members

Experienced Board: FRI's board of directors are considered experienced (9.6 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.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Insufficient data to determine if shareholders have been diluted in the past year.


Top Shareholders

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$234.026m
  • 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


Biography

Finbar Group Limited, through its subsidiaries, develops and invests in properties in Australia. It develops medium to high density residential buildings and commercial properties, as well as rents its pro...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/07/30 16:30
End of Day Share Price2021/07/30 00:00
Earnings2020/12/31
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.