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HDN

HomeCo Daily Needs REITASX:HDN Stock Report

Market Cap

AU$1.1b

7D

-5.2%

1Y

10.7%

Updated

03 Dec, 2021

Data

Company Financials +
HDN fundamental analysis
Snowflake Score
Valuation2/6
Future Growth5/6
Past Performance0/6
Financial Health3/6
Dividends3/6

HDN Stock Overview

HomeCo Daily Needs REIT is an Australian Real Estate Investment Trust listed on the ASX with a mandate to invest in convenience-based assets across the target sub-sectors of Neighbourhood Retail, Large Format Retail and Health & Services.

Price History & Performance

Summary of all time highs, changes and price drops for HomeCo Daily Needs REIT
Historical stock prices
Current Share PriceAU$1.36
52 Week HighAU$1.70
52 Week LowAU$1.13
Beta0
1 Month Change-4.90%
3 Month Change-15.53%
1 Year Change10.70%
3 Year Changen/a
5 Year Changen/a
Change since IPO6.57%

Recent News & Updates

Shareholder Returns

HDNAU REITsAU Market
7D-5.2%-1.8%-0.7%
1Y10.7%14.8%9.8%

Return vs Industry: HDN underperformed the Australian REITs industry which returned 14.8% over the past year.

Return vs Market: HDN matched the Australian Market which returned 9.8% over the past year.

Price Volatility

Is HDN's price volatile compared to industry and market?
HDN volatility
HDN Average Weekly Movement3.7%
REITs Industry Average Movement3.0%
Market Average Movement8.3%
10% most volatile stocks in AU Market15.7%
10% least volatile stocks in AU Market3.7%

Stable Share Price: HDN is less volatile than 75% of Australian stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: HDN's weekly volatility (4%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
2020n/an/ahttps://www.home-co.com.au

HomeCo Daily Needs REIT is an Australian Real Estate Investment Trust listed on the ASX with a mandate to invest in convenience-based assets across the target sub-sectors of Neighbourhood Retail, Large Format Retail and Health & Services. HomeCo Daily Needs REIT aims to provide unitholders with consistent and growing distributions. HomeCo Daily Needs REIT(ASX:HDN) operates independently of Home Consortium Limited as of December 31, 2020.

HomeCo Daily Needs REIT Fundamentals Summary

How do HomeCo Daily Needs REIT's earnings and revenue compare to its market cap?
HDN fundamental statistics
Market CapAU$1.13b
Earnings (TTM)AU$41.73m
Revenue (TTM)AU$60.27m

27.1x

P/E Ratio

18.8x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
HDN income statement (TTM)
RevenueAU$60.27m
Cost of RevenueAU$22.27m
Gross ProfitAU$38.00m
Expenses-AU$3.73m
EarningsAU$41.73m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)0.05
Gross Margin63.05%
Net Profit Margin69.25%
Debt/Equity Ratio44.5%

How did HDN perform over the long term?

See historical performance and comparison

Dividends

3.3%

Current Dividend Yield

55%

Payout Ratio

Valuation

Is HomeCo Daily Needs REIT undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: HDN (A$1.36) is trading below our estimate of fair value (A$4.62)

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


Price To Earnings Ratio

PE vs Industry: HDN is poor value based on its PE Ratio (27.1x) compared to the Australian REITs industry average (9.6x).

PE vs Market: HDN is poor value based on its PE Ratio (27.1x) compared to the Australian market (18.6x).


Price to Earnings Growth Ratio

PEG Ratio: HDN is poor value based on its PEG Ratio (1.2x)


Price to Book Ratio

PB vs Industry: HDN's PB Ratio (1.2x) is in line with the AU REITs industry average.


Future Growth

How is HomeCo Daily Needs REIT forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?

23.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: HDN's forecast earnings growth (23.2% per year) is above the savings rate (1.9%).

Earnings vs Market: HDN's earnings (23.2% per year) are forecast to grow faster than the Australian market (11.8% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: HDN's revenue (20.8% per year) is forecast to grow faster than the Australian market (5.2% per year).

High Growth Revenue: HDN's revenue (20.8% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: HDN's Return on Equity is forecast to be low in 3 years time (6.4%).


Past Performance

How has HomeCo Daily Needs REIT performed over the past 5 years?

-0.3%

Historical Real Estate annual earnings growth


Earnings and Revenue History

Quality Earnings: HDN has a large one-off gain of A$22.4M impacting its June 30 2021 financial results.

Growing Profit Margin: Insufficient data to determine if HDN's profit margins have improved over the past year.


Past Earnings Growth Analysis

Earnings Trend: Unable to establish if HDN's year-on-year earnings growth rate was positive over the past 5 years as it has been trading publicly for less than 3 years.

Accelerating Growth: Unable to compare HDN's past year earnings growth to its 5-year average as it has been trading publicly for less than 3 years.

Earnings vs Industry: Insufficient data to determine if HDN's earnings growth over the past year exceeded the REITs industry average.


Return on Equity

High ROE: HDN's Return on Equity (4.5%) is considered low.


Financial Health

How is HomeCo Daily Needs REIT's financial position?


Financial Position Analysis

Short Term Liabilities: HDN's short term assets (A$268.8M) exceed its short term liabilities (A$31.5M).

Long Term Liabilities: HDN's short term assets (A$268.8M) do not cover its long term liabilities (A$425.8M).


Debt to Equity History and Analysis

Debt Level: HDN's net debt to equity ratio (17.7%) is considered satisfactory.

Reducing Debt: Insufficient data to determine if HDN's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: HDN's debt is not well covered by operating cash flow (7.4%).

Interest Coverage: HDN's interest payments on its debt are well covered by EBIT (3.8x coverage).


Balance Sheet


Dividend

What is HomeCo Daily Needs REIT current dividend yield, its reliability and sustainability?

3.25%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: HDN's dividend (3.25%) is higher than the bottom 25% of dividend payers in the Australian market (2.3%).

High Dividend: HDN's dividend (3.25%) is low compared to the top 25% of dividend payers in the Australian market (5.58%).


Stability and Growth of Payments

Stable Dividend: Too early to tell whether HDN's dividend payments have been stable as they only just started paying a dividend.

Growing Dividend: Too early to tell if HDN's dividend payments are increasing as they only just started paying a dividend.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (54.7%), HDN's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: HDN's dividends in 3 years are forecast to be covered by earnings (92.5% payout ratio).


Next Steps

Management

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

1.2yrs

Average board tenure


CEO

HomeCo Daily Needs REIT has no CEO, or we have no data on them.


Board Members

Experienced Board: HDN's board of directors are not considered experienced ( 1.2 years average tenure), which suggests a new board.


Ownership

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


Insider Trading Volume

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


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been substantially diluted in the past year, with total shares outstanding growing by 64%.


Top Shareholders

Company Information

HomeCo Daily Needs REIT's employee growth, exchange listings and data sources


Key Information

  • Name: HomeCo Daily Needs REIT
  • Ticker: HDN
  • Exchange: ASX
  • Founded: 2020
  • Industry: Retail REITs
  • Sector: Real Estate
  • Market Cap: AU$1.131b
  • Shares outstanding: 831.38m
  • Website: https://www.home-co.com.au

Location

  • HomeCo Daily Needs REIT
  • 19 Bay Street
  • Double Bay
  • Sydney
  • New South Wales
  • 2028
  • Australia

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/12/03 16:12
End of Day Share Price2021/12/03 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.