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 second-rate dividend payer.


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

1.1%

GPT

1.1%

AU REITs

2.5%

AU Market


1 Year Return

24.8%

GPT

21.0%

AU REITs

11.1%

AU Market

Return vs Industry: GPT exceeded the Australian REITs industry which returned 21% over the past year.

Return vs Market: GPT exceeded the Australian Market which returned 11.1% over the past year.


Shareholder returns

GPTIndustryMarket
7 Day1.1%1.1%2.5%
30 Day3.1%3.0%0.7%
90 Day1.0%-0.4%1.4%
1 Year30.4%24.8%27.1%21.0%17.5%11.1%
3 Year50.6%30.8%47.2%26.0%37.8%19.4%
5 Year99.3%57.4%104.5%59.0%51.7%17.6%

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 compared to its fair value and its price relative to the market?

10.64x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Undervalued: GPT (A$6.25) is trading above our estimate of fair value (A$5.23)

Significantly Undervalued: GPT is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: GPT is good value based on its PE Ratio (10.6x) compared to the REITs industry average (16.1x).

PE vs Market: GPT is good value based on its PE Ratio (10.6x) compared to the Australian market (18x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: GPT is good value based on its PB Ratio (1.1x) compared to the AU REITs industry average (1.1x).


Next Steps

Future Growth

How is GPT Group forecast 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 Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: GPT's earnings are forecast to decline over the next 3 years (-5.6% per year).

Earnings vs Market: GPT's earnings are forecast to decline over the next 3 years (-5.6% per year).

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

Revenue vs Market: GPT's revenue (5% per year) is forecast to grow faster than the Australian market (3.6% per year).

High Growth Revenue: GPT's revenue (5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: GPT's Return on Equity is forecast to be low in 3 years time (5.7%).


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

Earnings Trend: GPT's earnings have grown by 15.5% per year over the past 5 years.

Accelerating Growth: GPT's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: GPT had negative earnings growth (-14.7%) over the past year, making it difficult to compare to the REITs industry average (-16.3%).


Return on Equity

High ROE: GPT's Return on Equity (9.7%) is considered low.


Return on Assets

ROA vs Industry: GPT has a higher Return on Assets than the REITs industry average last year.


Return on Capital Employed

ROCE Improving: GPT's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is GPT Group's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

Inventory Level: GPT has a high level of physical assets or inventory.

Debt Coverage by Assets: GPT's debt is not covered by short term assets (assets are 0.1x debt).


Financial Institutions Analysis

Asset Level: GPT's level of assets compared to its equity is low.

Allowance for Bad Loans: Insufficient data to determine if GPT has a sufficient allowance for bad loans.

Low Risk Liabilities: GPT reports no customer deposits, loans are made up entirely of externally borrowed funds.

Loan Level: Insufficient data to determine if GPT has an acceptable proportion of non-loan assets held.

Low Risk Deposits: GPT has advanced significantly more loans than the customer deposits it holds.

Level of Bad Loans: Insufficient data to determine if GPT has an appropriate level of bad loans.


Next Steps

Dividend

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

4.20%

Current Dividend Yield


Dividend Yield vs Market

company4.2%marketbottom25%2.5%markettop25%5.6%industryaverage4.4%forecastin3Years4.4%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: GPT's dividend (4.2%) is higher than the bottom 25% of dividend payers in the Australian market (2.46%).

High Dividend: GPT's dividend (4.2%) is low compared to the top 25% of dividend payers in the Australian market (5.56%).

Stable Dividend: GPT's dividend payments have been volatile in the past 10 years.

Growing Dividend: GPT's dividend payments have fallen over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: At its current payout ratio (79.1%), GPT's payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: GPT's dividends in 3 years are forecast to be thoroughly covered by earnings (0.04% payout ratio).


Next Steps

Management

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

3.9yrs

Average management tenure


CEO

Bob Johnston (57yo)

4.1yrs

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

Compensation vs. Market: Bob's total compensation ($USD2.66M) is about average for companies of similar size in the Australian market ($USD2.78M).

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


Management Age and Tenure

3.9yrs

Average Tenure

Experienced Management: GPT's management team is considered experienced (3.9 years average tenure).


Board Age and Tenure

3.8yrs

Average Tenure

60yo

Average Age

Experienced Board: GPT's board of directors are considered experienced (3.8 years average tenure).


Insider Trading

Insider Buying: GPT insiders have bought more shares than they have sold in the past 3 months.


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: 3.9yrs
    • Compensation: AU$1.88m
  • Bob Johnston (57yo)

    CEO, MD & Director

    • Tenure: 4.1yrs
    • Compensation: AU$3.93m
  • Phil Taylor

    Head of People & Performance

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

    Head of Office & Logistics

    • Tenure: 3.9yrs
    • Compensation: AU$1.22m
  • James Coyne

    General Counsel & Company Secretary

    • Tenure: 15.8yrs
    • 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: 3.9yrs
    • Compensation: AU$1.78m
  • Chris Barnett

    Head of Retail

    • Tenure: 0.5yrs
  • Jacqui O'Dea

    Chief Risk Officer

    • Tenure: 0.5yrs

Board Members

  • Tracey Horton (55yo)

    Non-Executive Director

    • Tenure: 0.4yrs
  • Gene Tilbrook (66yo)

    Non-Executive Director

    • Tenure: 9.4yrs
    • Compensation: AU$201.49k
  • Swe Guan Lim (65yo)

    Non-Executive Director

    • Tenure: 4.6yrs
    • Compensation: AU$204.58k
  • Angus McNaughton

    Non- Executive Director

    • Tenure: 0.9yrs
    • Compensation: AU$30.57k
  • Bob Johnston (57yo)

    CEO, MD & Director

    • Tenure: 4.1yrs
    • Compensation: AU$3.93m
  • Vickki McFadden (60yo)

    Chairman of the Board

    • Tenure: 1.4yrs
    • 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$11.960b
  • 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 Analysis2019/10/16 10:31
End of Day Share Price2019/10/16 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.