ASX:GPT

Stock Analysis Report

Executive Summary

The GPT Group is one of Australia’s largest diversified property groups and a top 50 ASX listed company by market capitalisation.

Snowflake

Fundamentals

Fair value with mediocre balance sheet.


Similar Companies

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

1.8%

GPT

0.08%

AU REITs

1.0%

AU Market


1 Year Return

18.0%

GPT

14.9%

AU REITs

6.9%

AU Market

GPT outperformed the REITs industry which returned 14.9% over the past year.

GPT outperformed the Market in Australia which returned 6.9% over the past year.


Share holder returns

GPTIndustryMarket
7 Day1.8%0.08%1.0%
30 Day-2.8%-1.1%3.9%
90 Day-3.3%-2.1%1.6%
1 Year23.3%18.0%20.7%14.9%13.1%6.9%
3 Year40.2%21.7%39.5%19.4%39.5%20.7%
5 Year101.8%59.4%105.2%59.6%52.8%18.7%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is GPT Group undervalued based on future cash flows and its price relative to the stock market?

10.51x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

GPT Group's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).

GPT Group's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).


Price Based on Earnings

GPT Group is good value based on earnings compared to the AU REITs industry average.

GPT Group is good value based on earnings compared to the Australia market.


Price Based on Expected Growth

GPT Group earnings are not expected to grow next year, we can't assess if its growth is good value.


Price Based on Value of Assets

GPT Group is good value based on assets compared to the AU REITs industry average.


Next Steps

Future Growth

How is GPT Group expected to perform in the next 1 to 3 years based on estimates from 5 analysts?

-5.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

GPT Group's revenue is expected to grow by 5% yearly, however this is not considered high growth (20% yearly).

GPT Group's earnings are expected to decrease over the next 1-3 years, this is not considered high growth.

GPT Group's revenue growth is expected to exceed the Australia market average.

GPT Group's earnings are expected to decrease over the next 1-3 years, this is below the Australia market average.

GPT Group's earnings are expected to decrease over the next 1-3 years, this is below the low risk savings rate of 2.3%.


Earnings per Share Growth Estimates


Future Return on Equity

GPT Group is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


Next Steps

Past Performance

How has GPT Group performed over the past 5 years?

15.5%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

GPT Group's year on year earnings growth rate has been positive over the past 5 years.

GPT Group's 1-year earnings growth is negative, it can't be compared to the 5-year average.

GPT Group's 1-year earnings growth is negative, it can't be compared to the AU REITs industry average.


Return on Equity

GPT Group has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

GPT Group used its assets more efficiently than the AU REITs industry average last year based on Return on Assets.


Return on Capital Employed

GPT Group's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is GPT Group's financial position?


Financial Position Analysis

GPT Group's short term (1 year) commitments are greater than its holdings of cash and other short term assets.

GPT Group's long term commitments exceed its cash and other short term assets.


Debt to Equity History and Analysis

GPT Group's level of debt (29%) compared to net worth is satisfactory (less than 40%).

The level of debt compared to net worth has been reduced over the past 5 years (37.2% vs 29% today).

Debt is not well covered by operating cash flow (17.6%, less than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 3.7x coverage).


Balance Sheet

High level of physical assets or inventory.

Debt is not covered by short term assets, assets are 0.1x debt.


Next Steps

Dividend

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

4.44%

Expected Dividend Yield


Dividend Yield and Payments Analysis

GPT Group's pays a higher dividend yield than the bottom 25% of dividend payers in Australia (2.47%).

GPT Group's dividend is below the markets top 25% of dividend payers in Australia (5.58%).

Dividends per share have been volatile in the past 10 years (annual drop of over 20%).

Dividends per share have fallen over the past 10 years.


Current Payout to Shareholders

Dividends paid are covered by earnings (1.3x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be thoroughly covered by earnings (2325.6x coverage).


Next Steps

Management

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

3.8yrs

Average management tenure


CEO

Bob Johnston (57yo)

4yrs

Tenure

AU$3,928,719

Compensation

Mr. Robert William Johnston, also known as Bob, B. Eng (Electrical) (Honours 1), has been the Chief Executive for Project Management of Construction and PFI of Lend Lease Corp. Ltd. since July 8, 2005. Mr. ...


CEO Compensation Analysis

Bob's remuneration is about average for companies of similar size in Australia.

Bob's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

3.8yrs

Average Tenure

The tenure for the GPT Group management team is about average.


Board Age and Tenure

3.8yrs

Average Tenure

60yo

Average Age

The tenure for the GPT Group board of directors is about average.


Insider Trading

More shares have been bought than sold by GPT Group individual insiders in the past 3 months, but not in substantial volumes.


Recent Insider Transactions

BuyAU$49,99614 Aug 19
Angus McNaughton
EntityIndividual
Role
Member of the Board of Directors
Non- Executive Director
Shares8,196
Max PriceAU$6.10
BuyAU$283,299,01629 Jan 19
State Street Global Advisors, Inc.
EntityCompany
Shares49,940,928
Max PriceAU$5.71
SellAU$146,921,09529 Jan 19
State Street Global Advisors, Inc.
EntityCompany
Shares25,767,222
Max PriceAU$5.73
BuyAU$280,859,39927 Dec 18
The Vanguard Group, Inc.
EntityCompany
Shares49,797,768
Max PriceAU$5.64
SellAU$169,227,50427 Dec 18
The Vanguard Group, Inc.
EntityCompany
Shares30,010,681
Max PriceAU$5.64

Ownership Breakdown


Management Team

  • Mark Fookes

    Chief Operating Officer

    • Tenure: 3.8yrs
    • Compensation: AU$1.88m
  • Bob Johnston (57yo)

    CEO, MD & Director

    • Tenure: 4yrs
    • Compensation: AU$3.93m
  • Phil Taylor

    Head of People & Performance

    • Tenure: 0yrs
    • Compensation: AU$401.07k
  • Matthew Faddy

    Head of Office & Logistics

    • Tenure: 3.8yrs
    • Compensation: AU$1.22m
  • James Coyne

    General Counsel & Company Secretary

    • Tenure: 15.7yrs
    • Compensation: AU$1.07m
  • Nicholas Harris

    Head of Funds Management

    • Tenure: 3.8yrs
    • Compensation: AU$1.70m
  • Brett Ward

    Head of Investor Relations & Corporate Affairs

    • Tenure: 0yrs
  • Anastasia Clarke

    Chief Financial Officer

    • Tenure: 3.8yrs
    • Compensation: AU$1.78m
  • Chris Barnett

    Head of Retail

    • Tenure: 0.4yrs
  • Jacqui O'Dea

    Chief Risk Officer

    • Tenure: 0.4yrs

Board Members

  • Tracey Horton (55yo)

    Non-Executive Director

    • Tenure: 0.3yrs
  • Gene Tilbrook (66yo)

    Non-Executive Director

    • Tenure: 9.3yrs
    • Compensation: AU$201.49k
  • Swe Guan Lim (65yo)

    Non-Executive Director

    • Tenure: 4.5yrs
    • Compensation: AU$204.58k
  • Angus McNaughton

    Non- Executive Director

    • Tenure: 0.8yrs
    • Compensation: AU$30.57k
  • Bob Johnston (57yo)

    CEO, MD & Director

    • Tenure: 4yrs
    • Compensation: AU$3.93m
  • Vickki McFadden (60yo)

    Chairman of the Board

    • Tenure: 1.3yrs
    • Compensation: AU$306.33k
  • Michelle Somerville

    Non-Executive Director

    • Tenure: 3.8yrs
    • Compensation: AU$223.93k

Company Information

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


Key Information

  • Name: GPT Group
  • Ticker: GPT
  • Exchange: ASX
  • Founded: 1971
  • Industry: Diversified REITs
  • Sector: Real Estate
  • Market Cap: AU$11.980b
  • Shares outstanding: 1.95b
  • Website: https://www.gpt.com.au

Location

  • GPT Group
  • MLC Centre
  • Level 51
  • Sydney
  • New South Wales
  • 2000
  • Australia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
GPTASX (Australian Securities Exchange)YesStapled SecuritiesAUAUDNov 1980
GPTG.FOTCPK (Pink Sheets LLC)YesStapled SecuritiesUSUSDNov 1980
46TDB (Deutsche Boerse AG)YesStapled SecuritiesDEEURNov 1980
GPTCHIA (Chi-X Australia)YesStapled SecuritiesAUAUDNov 1980

Biography

The GPT Group is one of Australia’s largest diversified property groups and a top 50 ASX listed company by market capitalisation. GPT owns and manages a $24 billion portfolio of offices, logistics, busines ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/09/23 10:31
End of Day Share Price2019/09/23 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.