ASX:LEP

Stock Analysis Report

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Market Cap

AU$966.0m

Last Updated

2021/08/05 08:05 UTC

Data Sources

Company Financials +

Executive Summary

ALE Property Group (ASX:LEP) is the owner of Australia's largest portfolio of freehold pub properties. More Details


Snowflake Analysis

Acceptable track record and slightly overvalued.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: LEP is less volatile than 75% of Australian stocks over the past 3 months, typically moving +/- 2% a week.

Volatility Over Time: LEP's weekly volatility (2%) has been stable over the past year.


Market Performance


7 Day Return

5.3%

LEP

2.2%

AU REITs

1.1%

AU Market


1 Year Return

3.3%

LEP

29.1%

AU REITs

26.8%

AU Market

Return vs Industry: LEP underperformed the Australian REITs industry which returned 29.1% over the past year.

Return vs Market: LEP underperformed the Australian Market which returned 26.8% over the past year.


Shareholder returns

LEPIndustryMarket
7 Day5.3%2.2%1.1%
30 Day2.9%1.9%3.4%
90 Day12.0%6.7%5.7%
1 Year8.0%3.3%34.4%29.1%31.5%26.8%
3 Year2.5%-9.7%31.4%14.6%35.1%18.7%
5 Year38.2%11.7%46.7%14.7%67.5%35.0%

Long-Term Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

14.41x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: LEP (A$4.96) is trading above our estimate of fair value (A$3.77)

Significantly Below Fair Value: LEP is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: LEP is good value based on its PE Ratio (14.4x) compared to the Australian REITs industry average (17.7x).

PE vs Market: LEP is good value based on its PE Ratio (14.4x) compared to the Australian market (20.4x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: LEP is overvalued based on its PB Ratio (1.5x) compared to the AU REITs industry average (1.2x).


Future Growth

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

-15.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: LEP's earnings are forecast to decline over the next 3 years (-15.6% per year).

Earnings vs Market: LEP's earnings are forecast to decline over the next 3 years (-15.6% per year).

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

Revenue vs Market: LEP's revenue (1.1% per year) is forecast to grow slower than the Australian market (5.1% per year).

High Growth Revenue: LEP's revenue (1.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: LEP's Return on Equity is forecast to be low in 3 years time (4.5%).


Past Performance

How has ALE Property Group performed over the past 5 years?

-25.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: LEP has a large one-off gain of A$52.8M impacting its December 31 2020 financial results.

Growing Profit Margin: LEP's current net profit margins are higher than last year (67.6%).


Past Earnings Growth Analysis

Earnings Trend: LEP's earnings have declined by 25.6% per year over the past 5 years.

Accelerating Growth: LEP's earnings growth over the past year (63.2%) exceeds its 5-year average (-25.6% per year).

Earnings vs Industry: LEP earnings growth over the past year (63.2%) exceeded the REITs industry -1.1%.


Return on Equity

High ROE: LEP's Return on Equity (10.5%) is considered low.


Financial Health

How is ALE Property Group's financial position?


Financial Position Analysis

Short Term Liabilities: LEP's short term assets (A$43.3M) exceed its short term liabilities (A$28.8M).

Long Term Liabilities: LEP's short term assets (A$43.3M) do not cover its long term liabilities (A$599.6M).


Debt to Equity History and Analysis

Debt Level: LEP's debt to equity ratio (93.5%) is considered high.

Reducing Debt: LEP's debt to equity ratio has reduced from 99.1% to 93.5% over the past 5 years.

Debt Coverage: LEP's debt is not well covered by operating cash flow (5.5%).

Interest Coverage: LEP's interest payments on its debt are not well covered by EBIT (2.5x coverage).


Balance Sheet


Dividend

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

4.33%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: LEP's dividend (4.33%) is higher than the bottom 25% of dividend payers in the Australian market (1.96%).

High Dividend: LEP's dividend (4.33%) is low compared to the top 25% of dividend payers in the Australian market (4.96%).


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: At its current payout ratio (93.8%), LEP's payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: LEP's dividends in 3 years are not forecast to be well covered by earnings (134.7% payout ratio).


Next Steps

Management

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

4.3yrs

Average board tenure


CEO

Guy Farrands (58 yo)

0.83

Tenure

Mr. Guy Farrands, BE, Grad Dip Man, FAPI, MAICD, has been Chief Executive Officer, Managing Director and Director at ALE Property Group since October 01, 2020. Mr. Farrands serves as an Independent Non-Exe...


Board Members

Experienced Board: LEP's board of directors are considered experienced (4.3 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 been diluted in the past year, with total shares outstanding growing by 2.4%.


Top Shareholders

Company Information

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


Key Information

  • Name: ALE Property Group
  • Ticker: LEP
  • Exchange: ASX
  • Founded: 2003
  • Industry: Specialized REITs
  • Sector: Real Estate
  • Market Cap: AU$965.964m
  • Shares outstanding: 200.41m
  • Website: https://www.alegroup.com.au

Location

  • ALE Property Group
  • 264-278 George Street
  • Suite 28.02
  • Sydney
  • New South Wales
  • 2000
  • Australia

Listings


Biography

ALE Property Group (ASX:LEP) is the owner of Australia's largest portfolio of freehold pub properties. Established in November 2003, ALE owns a portfolio of around 86 pub properties across the five mainlan...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/08/05 08:05
End of Day Share Price2021/08/05 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.