HPI

Hotel Property InvestmentsASX:HPI Stock Report

Market Cap

AU$581.0m

7D

-7.8%

1Y

7.1%

Updated

18 Sep, 2021

Data

Company Financials +
HPI fundamental analysis
Snowflake Score
Valuation5/6
Future Growth0/6
Past Performance3/6
Financial Health2/6
Dividends4/6

HPI Overview

HPI owns a Portfolio of freehold hotels and associated specialty tenancies located throughout Queensland and South Australia.

Price History & Performance

Summary of all time highs, changes and price drops for Hotel Property Investments
Historical stock prices
Current Share PriceAU$3.32
52 Week HighAU$2.84
52 Week LowAU$3.63
Beta0.71
1 Month Change-0.30%
3 Month Change0.61%
1 Year Change7.10%
3 Year Change3.11%
5 Year Change11.04%
Change since IPO60.39%

Recent News & Updates

Shareholder Returns

HPIAU REITsAU Market
7D-7.8%2.2%-0.01%
1Y7.1%28.0%27.1%

Return vs Industry: HPI underperformed the Australian REITs industry which returned 28% over the past year.

Return vs Market: HPI underperformed the Australian Market which returned 27% over the past year.

Price Volatility

Is HPI's price volatile compared to industry and market?
HPI volatility
HPI Beta0.71
Industry Beta0.85
Market Beta1

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

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

About the Company

FoundedEmployeesCEOWebsite
n/an/aDon Smithhttps://www.hpitrust.com.au

HPI owns a Portfolio of freehold hotels and associated specialty tenancies located throughout Queensland and South Australia. The pubs are leased to the Queensland Venue Company (“QVC”), a joint venture between Coles group and Australian Venue Company, and to Australian Leisure & Hospitality ("ALH"), a joint venture 75% owned by the Woolworths group. HPI’s objective is to maximise the long term income and capital returns from its investments for the benefit of its Securityholders.

Hotel Property Investments Fundamentals Summary

How do Hotel Property Investments's earnings and revenue compare to its market cap?
HPI fundamental statistics
Market CapAU$581.02m
Earnings (TTM)AU$84.72m
Revenue (TTM)AU$60.14m

6.9x

P/E Ratio

9.7x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
HPI income statement (TTM)
RevenueAU$60.14m
Cost of RevenueAU$9.48m
Gross ProfitAU$50.66m
Expenses-AU$34.06m
EarningsAU$84.72m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)0.51
Gross Margin84.24%
Net Profit Margin140.87%
Debt/Equity Ratio62.8%

How did HPI perform over the long term?

See historical performance and comparison

Dividends

5.8%

Current Dividend Yield

32%

Payout Ratio

Valuation

Is Hotel Property Investments undervalued compared to its fair value and its price relative to the market?

30.9%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: HPI (A$3.32) is trading below our estimate of fair value (A$4.8)

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


Price To Earnings Ratio

PE vs Industry: HPI is good value based on its PE Ratio (6.9x) compared to the Australian REITs industry average (9.9x).

PE vs Market: HPI is good value based on its PE Ratio (6.9x) compared to the Australian market (18.7x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: HPI is good value based on its PB Ratio (1x) compared to the AU REITs industry average (1.2x).


Future Growth

How is Hotel Property Investments forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

-15.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: HPI's earnings are forecast to decline over the next 3 years (-15.3% per year).

Earnings vs Market: HPI's earnings are forecast to decline over the next 3 years (-15.3% per year).

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

Revenue vs Market: HPI's revenue (5.1% per year) is forecast to grow slower than the Australian market (5.3% per year).

High Growth Revenue: HPI's revenue (5.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: HPI's Return on Equity is forecast to be low in 3 years time (6.3%).


Past Performance

How has Hotel Property Investments performed over the past 5 years?

-9.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: HPI has a large one-off gain of A$51.0M impacting its June 30 2021 financial results.

Growing Profit Margin: HPI's current net profit margins are higher than last year (75.7%).


Past Earnings Growth Analysis

Earnings Trend: HPI's earnings have declined by 9.5% per year over the past 5 years.

Accelerating Growth: HPI's earnings growth over the past year (106.9%) exceeds its 5-year average (-9.5% per year).

Earnings vs Industry: HPI earnings growth over the past year (106.9%) exceeded the REITs industry 103.3%.


Return on Equity

High ROE: HPI's Return on Equity (14.7%) is considered low.


Financial Health

How is Hotel Property Investments's financial position?


Financial Position Analysis

Short Term Liabilities: HPI's short term assets (A$7.6M) do not cover its short term liabilities (A$24.0M).

Long Term Liabilities: HPI's short term assets (A$7.6M) do not cover its long term liabilities (A$362.0M).


Debt to Equity History and Analysis

Debt Level: HPI's debt to equity ratio (62.8%) is considered high.

Reducing Debt: HPI's debt to equity ratio has reduced from 74.8% to 62.8% over the past 5 years.

Debt Coverage: HPI's debt is not well covered by operating cash flow (12%).

Interest Coverage: HPI's interest payments on its debt are well covered by EBIT (3.7x coverage).


Balance Sheet


Dividend

What is Hotel Property Investments's current dividend yield, its reliability and sustainability?

5.81%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: HPI's dividend (5.81%) is higher than the bottom 25% of dividend payers in the Australian market (2.3%).

High Dividend: HPI's dividend (5.81%) is in the top 25% of dividend payers in the Australian market (5.41%)


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, HPI has been paying a dividend for less than 10 years.

Growing Dividend: HPI's dividend payments have increased, but the company has only paid a dividend for 7 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (31.6%), HPI's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: HPI's dividends in 3 years are forecast to be covered by earnings (98.7% payout ratio).


Next Steps

Management

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

3.6yrs

Average board tenure


CEO

Don Smith

2.92yrs

Tenure

AU$842,269

Compensation

Mr. Donald Smith, also known as Don, has been Managing Director and Chief Executive Officer at Hotel Property Investments since October 1, 2018. Mr. Smith has been a Director at Hotel Property Investments...


CEO Compensation Analysis

Compensation vs Market: Don's total compensation ($USD612.56K) is about average for companies of similar size in the Australian market ($USD722.58K).

Compensation vs Earnings: Don's compensation has increased by more than 20% in the past year.


Board Members

Experienced Board: HPI's board of directors are considered experienced (3.6 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: HPI 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 diluted in the past year, with total shares outstanding growing by 11.1%.


Top Shareholders

Company Information

Hotel Property Investments's employee growth, exchange listings and data sources


Key Information

  • Name: Hotel Property Investments
  • Ticker: HPI
  • Exchange: ASX
  • Founded: NaN
  • Industry: Specialized REITs
  • Sector: Real Estate
  • Market Cap: AU$581.024m
  • Shares outstanding: 175.01m
  • Website: https://www.hpitrust.com.au

Location

  • Hotel Property Investments
  • IBM Centre
  • Suite 2, Level 17
  • Melbourne
  • Victoria
  • 3006
  • Australia

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/09/18 08:03
End of Day Share Price2021/09/17 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.