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GMG

Goodman GroupASX:GMG Stock Report

Last Price

AU$22.94

Market Cap

AU$42.9b

7D

-3.4%

1Y

29.6%

Updated

17 Jan, 2022

Data

Company Financials +
GMG fundamental analysis
Snowflake Score
Valuation3/6
Future Growth0/6
Past Performance4/6
Financial Health5/6
Dividends4/6

GMG Stock Overview

Goodman Group is an integrated property group with operations throughout Australia, New Zealand, Asia, Continental Europe, the United Kingdom, North America and Brazil.

Goodman Group Competitors

Prologis

NYSE:PLD

US$114.9b

Macquarie Group

ASX:MQG

AU$76.5b

Scentre Group

ASX:SCG

AU$15.8b

ESR Cayman

SEHK:1821

HK$79.4b

Price History & Performance

Summary of all time highs, changes and price drops for Goodman Group
Historical stock prices
Current Share PriceAU$22.94
52 Week HighAU$26.96
52 Week LowAU$16.37
Beta0.43
1 Month Change-12.64%
3 Month Change5.28%
1 Year Change29.60%
3 Year Change95.73%
5 Year Change231.50%
Change since IPO11.09%

Recent News & Updates

Dec 18
Do Goodman Group's (ASX:GMG) Earnings Warrant Your Attention?

Do Goodman Group's (ASX:GMG) Earnings Warrant Your Attention?

It's only natural that many investors, especially those who are new to the game, prefer to buy shares in 'sexy' stocks...

Shareholder Returns

GMGAU REITsAU Market
7D-3.4%-1.7%0.5%
1Y29.6%18.4%10.3%

Return vs Industry: GMG exceeded the Australian REITs industry which returned 19.5% over the past year.

Return vs Market: GMG exceeded the Australian Market which returned 10.4% over the past year.

Price Volatility

Is GMG's price volatile compared to industry and market?
GMG volatility
GMG Average Weekly Movement3.4%
REITs Industry Average Movement3.2%
Market Average Movement8.4%
10% most volatile stocks in AU Market15.2%
10% least volatile stocks in AU Market3.6%

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

Volatility Over Time: GMG's weekly volatility (3%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
2001941Greg Goodmanhttps://www.goodman.com

Goodman Group is an integrated property group with operations throughout Australia, New Zealand, Asia, Continental Europe, the United Kingdom, North America and Brazil. Goodman Group, comprised of the stapled entities Goodman Limited, Goodman Industrial Trust and Goodman Logistics (HK) Limited, is the largest industrial property group listed on the Australian Securities Exchange and one of the largest listed specialist investment managers of industrial property and business space globally. Goodman’s global property expertise, integrated own+develop+manage customer service offering and significant investment management platform ensures it creates innovative property solutions that meet the individual requirements of its customers, while seeking to deliver long-term returns for investors.

Goodman Group Fundamentals Summary

How do Goodman Group's earnings and revenue compare to its market cap?
GMG fundamental statistics
Market CapAU$42.86b
Earnings (TTM)AU$2.31b
Revenue (TTM)AU$3.70b

18.5x

P/E Ratio

11.6x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
GMG income statement (TTM)
RevenueAU$3.70b
Cost of RevenueAU$895.10m
Gross ProfitAU$2.80b
ExpensesAU$490.20m
EarningsAU$2.31b

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

Feb 17, 2022

Earnings per share (EPS)1.24
Gross Margin75.79%
Net Profit Margin62.53%
Debt/Equity Ratio15.7%

How did GMG perform over the long term?

See historical performance and comparison

Dividends

1.3%

Current Dividend Yield

49%

Payout Ratio

Valuation

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

35.3%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: GMG (A$22.94) is trading below our estimate of fair value (A$35.44)

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


Price To Earnings Ratio

PE vs Industry: GMG is poor value based on its PE Ratio (18.5x) compared to the Australian REITs industry average (9.8x).

PE vs Market: GMG is good value based on its PE Ratio (18.5x) compared to the Australian market (19.3x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: GMG is overvalued based on its PB Ratio (3.3x) compared to the AU REITs industry average (1.2x).


Future Growth

How is Goodman Group forecast to perform in the next 1 to 3 years based on estimates from 11 analysts?

-1.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: GMG's earnings are forecast to decline over the next 3 years (-1.4% per year).

Earnings vs Market: GMG's earnings are forecast to decline over the next 3 years (-1.4% per year).

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

Revenue vs Market: GMG's revenue is expected to decline over the next 3 years (-14.6% per year).

High Growth Revenue: GMG's revenue is forecast to decline over the next 3 years (-14.6% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

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


Past Performance

How has Goodman Group performed over the past 5 years?

17.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: GMG has high quality earnings.

Growing Profit Margin: GMG's current net profit margins (62.5%) are higher than last year (59.4%).


Past Earnings Growth Analysis

Earnings Trend: GMG's earnings have grown by 17.4% per year over the past 5 years.

Accelerating Growth: GMG's earnings growth over the past year (53.7%) exceeds its 5-year average (17.4% per year).

Earnings vs Industry: GMG earnings growth over the past year (53.7%) underperformed the REITs industry 106.4%.


Return on Equity

High ROE: GMG's Return on Equity (17.6%) is considered low.


Financial Health

How is Goodman Group's financial position?


Financial Position Analysis

Short Term Liabilities: GMG's short term assets (A$1.6B) exceed its short term liabilities (A$1.0B).

Long Term Liabilities: GMG's short term assets (A$1.6B) do not cover its long term liabilities (A$2.7B).


Debt to Equity History and Analysis

Debt Level: GMG's net debt to equity ratio (8.7%) is considered satisfactory.

Reducing Debt: GMG's debt to equity ratio has reduced from 34.1% to 15.7% over the past 5 years.

Debt Coverage: GMG's debt is well covered by operating cash flow (54.1%).

Interest Coverage: GMG's interest payments on its debt are well covered by EBIT (1866.1x coverage).


Balance Sheet


Dividend

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

1.31%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: GMG's dividend (1.31%) isn’t notable compared to the bottom 25% of dividend payers in the Australian market (2.18%).

High Dividend: GMG's dividend (1.31%) is low compared to the top 25% of dividend payers in the Australian market (5.39%).


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (49.5%), GMG's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: GMG's dividends in 3 years are forecast to be well covered by earnings (35.8% payout ratio).


Next Steps

Management

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

13.5yrs

Average management tenure


CEO

Greg Goodman (58 yo)

23.42yrs

Tenure

AU$13,378,601

Compensation

Mr. Gregory Leith Goodman, also known as Greg, serves as Chief Executive Officer of Goodman Logistics (HK) Limited. Mr. Goodman has been the Chief Executive Officer of Goodman Limited since July 1995. Mr....


CEO Compensation Analysis

Compensation vs Market: Greg's total compensation ($USD9.67M) is above average for companies of similar size in the Australian market ($USD3.67M).

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


Leadership Team

Experienced Management: GMG's management team is seasoned and experienced (13.5 years average tenure).


Board Members

Experienced Board: GMG's board of directors are considered experienced (9 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: GMG 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

Goodman Group's employee growth, exchange listings and data sources


Key Information

  • Name: Goodman Group
  • Ticker: GMG
  • Exchange: ASX
  • Founded: 2001
  • Industry: Industrial REITs
  • Sector: Real Estate
  • Implied Market Cap: AU$42.857b
  • Shares outstanding: 1.87b
  • Website: https://www.goodman.com

Number of Employees


Location

  • Goodman Group
  • The Hayesbery
  • 1-11 Hayes Road
  • Rosebery
  • New South Wales
  • 2018
  • Australia

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/01/17 16:16
End of Day Share Price2022/01/17 00:00
Earnings2021/06/30
Annual Earnings2021/06/30


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.