ASX:FRI

Stock Analysis Report

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Executive Summary

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


Snowflake Analysis

Flawless balance sheet not a 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 is less volatile than 75% of Australian stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: FRI's weekly volatility (5%) has been stable over the past year.


Market Performance


7 Day Return

-3.0%

FRI

0.5%

AU Real Estate

2.3%

AU Market


1 Year Return

-5.9%

FRI

-18.1%

AU Real Estate

-0.3%

AU Market

Return vs Industry: FRI exceeded the Australian Real Estate industry which returned -19.4% over the past year.

Return vs Market: FRI underperformed the Australian Market which returned -1% over the past year.


Shareholder returns

FRIIndustryMarket
7 Day-3.0%0.5%2.3%
30 Day11.1%12.7%7.2%
90 Day25.0%26.1%8.7%
1 Year-2.0%-5.9%-16.3%-18.1%3.1%-0.3%
3 Year-4.0%-19.2%2.2%-6.6%24.2%8.8%
5 Year5.1%-23.8%36.7%14.3%55.4%24.4%

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?

32.87x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: FRI (A$0.8) is trading above our estimate of fair value (A$0.16)

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 (32.9x) compared to the AU Real Estate industry average (24.7x).

PE vs Market: FRI is poor value based on its PE Ratio (32.9x) compared to the Australian market (22.5x).


Price to Earnings Growth Ratio

PEG Ratio: FRI's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: FRI's PB Ratio (0.9x) is in line with the AU Real Estate industry average.


Next Steps

Future Growth

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

-78.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: FRI's earnings are forecast to decline over the next 3 years (-78.4% per year).

Earnings vs Market: FRI's earnings are forecast to decline over the next 3 years (-78.4% per year).

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

Revenue vs Market: FRI's revenue is expected to decline over the next 3 years (-57.4% per year).

High Growth Revenue: FRI's revenue is forecast to decline over the next 3 years (-57.4% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if FRI's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Finbar Group performed over the past 5 years?

-8.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: FRI has a large one-off gain of A$6.8M impacting its June 30 2020 financial results.

Growing Profit Margin: FRI's current net profit margins (4.3%) are lower than last year (7.4%).


Past Earnings Growth Analysis

Earnings Trend: FRI's earnings have declined by 8% 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 (-41.9%) over the past year, making it difficult to compare to the Real Estate industry average (-39.6%).


Return on Equity

High ROE: FRI's Return on Equity (2.7%) is considered low.


Next Steps

Financial Health

How is Finbar Group's financial position?


Financial Position Analysis

Short Term Liabilities: FRI's short term assets (A$100.5M) exceed its short term liabilities (A$81.4M).

Long Term Liabilities: FRI's short term assets (A$100.5M) exceed its long term liabilities (A$14.5M).


Debt to Equity History and Analysis

Debt Level: FRI's debt to equity ratio (26.4%) is considered satisfactory.

Reducing Debt: FRI's debt to equity ratio has reduced from 35.9% to 26.4% over the past 5 years.

Debt Coverage: FRI's debt is well covered by operating cash flow (37.3%).

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


Balance Sheet


Next Steps

Dividend

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

2.50%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: FRI's dividend (2.5%) is higher than the bottom 25% of dividend payers in the Australian market (2.11%).

High Dividend: FRI's dividend (2.5%) is low compared to the top 25% of dividend payers in the Australian market (5.06%).


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 (123.2%), FRI's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: FRI is forecast to pay a dividend in 3 years whilst incurring a loss, therefore the dividend is not forecast to be well covered.


Next Steps

Management

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

10.3yrs

Average management tenure


CEO

Darren Pateman (51 yo)

10.33yrs

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 ($USD674.15K) is about average for companies of similar size in the Australian market ($USD529.04K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Darren Pateman
MD & Executive Director10.33yrsAU$926.36k1.33%
A$ 2.9m
Edward Bank
CFO & Company Secretary15.67yrsAU$384.12k0.11%
A$ 241.5k
Ronald Chan
COO & Executive Director3.75yrsAU$484.83k0.089%
A$ 195.3k

10.3yrs

Average Tenure

Experienced Management: FRI's management team is seasoned and experienced (10.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Darren Pateman
MD & Executive Director10.33yrsAU$926.36k1.33%
A$ 2.9m
Ronald Chan
COO & Executive Director3.75yrsAU$484.83k0.089%
A$ 195.3k
Kee Kong Loh
Non-Executive Director27.58yrsAU$76.11k0.74%
A$ 1.6m
Siong Woon Peh
Non-Executive Director2.58yrsAU$65.93kno data
Lee Verios
Non-Executive Independent Director8.92yrsAU$76.11k0.027%
A$ 58.3k

8.9yrs

Average Tenure

51yo

Average Age

Experienced Board: FRI's board of directors are considered experienced (8.9 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: FRI insiders have bought more shares than they have sold 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

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$219.059m
  • 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. 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 Analysis2020/11/24 10:37
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.