ASX:GMG

Stock Analysis Report

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Executive Summary

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


Snowflake Analysis

Excellent balance sheet with proven track record and pays a dividend.


Similar Companies

Share Price & News

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


Latest Share Price and Events

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.


Market Performance


7 Day Return

2.3%

GMG

2.3%

AU REITs

-0.1%

AU Market


1 Year Return

11.4%

GMG

-11.5%

AU REITs

12.7%

AU Market

Return vs Industry: GMG exceeded the Australian REITs industry which returned -11.5% over the past year.

Return vs Market: GMG underperformed the Australian Market which returned 12.7% over the past year.


Shareholder returns

GMGIndustryMarket
7 Day2.3%2.3%-0.1%
30 Day-6.0%-1.7%-1.2%
90 Day-8.2%-6.1%1.8%
1 Year13.4%11.4%-7.9%-11.5%16.4%12.7%
3 Year113.6%99.8%26.5%9.8%27.7%12.2%
5 Year188.3%152.1%42.8%11.5%59.9%29.1%

Long-Term Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

16.8%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: GMG (A$16.94) is trading below our estimate of fair value (A$20.35)

Significantly Below Fair Value: GMG is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: GMG is poor value based on its PE Ratio (17.9x) compared to the AU REITs industry average (17.6x).

PE vs Market: GMG is good value based on its PE Ratio (17.9x) compared to the Australian market (19.6x).


Price to Earnings Growth Ratio

PEG Ratio: GMG is poor value based on its PEG Ratio (5.9x)


Price to Book Ratio

PB vs Industry: GMG is overvalued based on its PB Ratio (2.6x) compared to the AU REITs industry average (1x).


Next Steps

Future Growth

How is Goodman Group forecast to perform in the next 1 to 3 years based on estimates from 10 analysts?

3.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: GMG's forecast earnings growth (3.1% per year) is above the savings rate (2%).

Earnings vs Market: GMG's earnings (3.1% per year) are forecast to grow slower than the Australian market (15.4% per year).

High Growth Earnings: GMG's earnings are forecast to grow, but not significantly.

Revenue vs Market: GMG's revenue (0.8% per year) is forecast to grow slower than the Australian market (5.5% per year).

High Growth Revenue: GMG's revenue (0.8% per year) is forecast to grow slower than 20% 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 (11.5%).


Next Steps

Past Performance

How has Goodman Group performed over the past 5 years?

9.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: GMG has high quality earnings.

Growing Profit Margin: GMG's current net profit margins (56.9%) are lower than last year (57.6%).


Past Earnings Growth Analysis

Earnings Trend: GMG's earnings have grown by 9% per year over the past 5 years.

Accelerating Growth: GMG's earnings growth over the past year (15%) exceeds its 5-year average (9% per year).

Earnings vs Industry: GMG earnings growth over the past year (15%) exceeded the REITs industry -1.2%.


Return on Equity

High ROE: GMG's Return on Equity (14.5%) is considered low.


Next Steps

Financial Health

How is Goodman Group's financial position?


Financial Position Analysis

Short Term Liabilities: GMG's short term assets (A$1.8B) exceed its short term liabilities (A$994.0M).

Long Term Liabilities: GMG's short term assets (A$1.8B) do not cover its long term liabilities (A$2.5B).


Debt to Equity History and Analysis

Debt Level: GMG's debt to equity ratio (17.1%) is considered satisfactory.

Reducing Debt: GMG's debt to equity ratio has reduced from 34.7% to 17.1% over the past 5 years.

Debt Coverage: GMG's debt is well covered by operating cash flow (75.3%).

Interest Coverage: GMG's interest payments on its debt are well covered by EBIT (27.4x coverage).


Balance Sheet


Next Steps

Dividend

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

1.77%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: GMG's dividend (1.77%) isn’t notable compared to the bottom 25% of dividend payers in the Australian market (2.11%).

High Dividend: GMG's dividend (1.77%) is low compared to the top 25% of dividend payers in the Australian market (5.61%).


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 (35.6%), 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 (47.4% payout ratio).


Next Steps

Management

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

11.3yrs

Average management tenure


CEO

Greg Goodman (56 yo)

22.58yrs

Tenure

AU$11,994,034

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 ($USD9.18M) is above average for companies of similar size in the Australian market ($USD3.48M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Gregory Goodman
Group CEO & Director22.58yrsAU$11.99m2.12%
A$ 662.1m
Nick Vrondas
Group Chief Financial Officer12.08yrsAU$5.07mno data
Michael O'Sullivan
Group Chief Risk Officerno dataAU$3.42m0.036%
A$ 11.3m
Nicholas Kurtis
Group Head of Equities13.17yrsAU$4.48m0.027%
A$ 8.5m
Anthony Rozic
Deputy Group CEO8.17yrsAU$6.49m0.065%
A$ 20.5m
Daniel Cornelius Peeters
Executive Director of Corporate & Director8.17yrsAU$5.48m0.088%
A$ 27.7m
James Inwood
Head of Group Stakeholder Relationsno dataAU$1.02mno data
Carl Bicego
Group Head of Legal & Company Secretary3.92yrsno datano data
Michelle Chaperon
Head of Group Corporate Communicationsno datano datano data
Alison Brink
Group General Manager of Marketing & Communications15.17yrsno datano data
John Taylor
Group General Manager of Human Resources10.58yrsno datano data
Paul McGarry
Head of Asia4.58yrsno datano data

11.3yrs

Average Tenure

51yo

Average Age

Experienced Management: GMG's management team is seasoned and experienced (11.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Gregory Goodman
Group CEO & Director22.58yrsAU$11.99m2.12%
A$ 662.1m
Anthony Rozic
Deputy Group CEO8.17yrsAU$6.49m0.065%
A$ 20.5m
Daniel Cornelius Peeters
Executive Director of Corporate & Director8.17yrsAU$5.48m0.088%
A$ 27.7m
Stephen Johns
Independent Chairman of the Board0.33yrAU$305.00k0.0022%
A$ 679.1k
Phillip Pryke
Independent Director10.42yrsAU$380.36k0.0032%
A$ 1.0m
Penelope Winn
Independent Director3.08yrsAU$280.00k0.0013%
A$ 419.4k
Rebecca McGrath
Independent Director8.92yrsAU$295.00k0.0023%
A$ 729.2k
Mark Johnson
Independent Director0.75yrAU$21.25k0.00027%
A$ 84.5k
Christopher Green
Independent Director1.92yrsAU$255.00k0.0043%
A$ 1.3m

8.2yrs

Average Tenure

56yo

Average Age

Experienced Board: GMG's board of directors are considered experienced (8.2 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: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

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


Key Information

  • Name: Goodman Group
  • Ticker: GMG
  • Exchange: ASX
  • Founded: 2001
  • Industry: Industrial REITs
  • Sector: Real Estate
  • Market Cap: AU$31.295b
  • Shares outstanding: 1.85b
  • Website: https://www.goodman.com

Number of Employees


Location

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

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
GMGASX (Australian Securities Exchange)YesStapled SecuritiesAUAUDFeb 2005
MY4DB (Deutsche Boerse AG)YesStapled SecuritiesDEEURFeb 2005
GMGS.FOTCPK (Pink Sheets LLC)YesStapled SecuritiesUSUSDFeb 2005
GMGCHIA (Chi-X Australia)YesStapled SecuritiesAUAUDFeb 2005

Biography

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 stap...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/03/07 07:05
End of Day Share Price2021/03/05 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.