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Peet

ASX:PPC
Snowflake Description

Proven track record and fair value.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
PPC
ASX
A$503M
Market Cap
  1. Home
  2. AU
  3. Real Estate
Company description

Peet Limited acquires, develops, and markets residential land in Australia. The last earnings update was 83 days ago. More info.


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PPC Share Price and Events
7 Day Returns
6.1%
ASX:PPC
6.4%
AU Real Estate
1.1%
AU Market
1 Year Returns
-21.8%
ASX:PPC
-19.5%
AU Real Estate
2.6%
AU Market
PPC Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Peet (PPC) 6.1% 5.1% 4% -21.8% 11.8% -21.8%
AU Real Estate 6.4% 6.8% 4% -19.5% -3% 5.9%
AU Market 1.1% 1.6% 4.4% 2.6% 17.9% 7.7%
1 Year Return vs Industry and Market
  • PPC underperformed the Real Estate industry which returned -19.5% over the past year.
  • PPC underperformed the Market in Australia which returned 2.6% over the past year.
Price Volatility
PPC
Industry
5yr Volatility vs Market

Value

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

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Peet to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Peet.

ASX:PPC Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 4 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 9.6%
Perpetual Growth Rate 10-Year AU Government Bond Rate 2.3%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for ASX:PPC
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year AU Govt Bond Rate 2.3%
Equity Risk Premium S&P Global 6%
Real Estate Unlevered Beta Simply Wall St/ S&P Global 0.99
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.989 (1 + (1- 30%) (50.27%))
1.226
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.23
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.31% + (1.226 * 5.96%)
9.62%

Discounted Cash Flow Calculation for ASX:PPC using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Peet is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

ASX:PPC DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (AUD, Millions) Source Present Value
Discounted (@ 9.62%)
2019 2.10 Analyst x2 1.92
2020 26.05 Analyst x2 21.68
2021 22.15 Analyst x2 16.82
2022 19.79 Est @ -10.64% 13.71
2023 18.46 Est @ -6.76% 11.66
2024 17.71 Est @ -4.04% 10.21
2025 17.33 Est @ -2.13% 9.11
2026 17.20 Est @ -0.8% 8.25
2027 17.22 Est @ 0.13% 7.53
2028 17.35 Est @ 0.79% 6.93
Present value of next 10 years cash flows A$107.81
ASX:PPC DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= A$17.35 × (1 + 2.31%) ÷ (9.62% – 2.31%)
A$243.02
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= A$243.02 ÷ (1 + 9.62%)10
A$97.01
ASX:PPC Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= A$107.81 + A$97.01
A$204.82
Equity Value per Share
(AUD)
= Total value / Shares Outstanding
= A$204.82 / 483.30
A$0.42
ASX:PPC Discount to Share Price
Calculation Result
Value per share (AUD) From above. A$0.42
Current discount Discount to share price of A$1.04
= -1 x (A$1.04 - A$0.42) / A$0.42
-145.4%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of Peet is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Peet's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Peet's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
ASX:PPC PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-12-31) in AUD A$0.10
ASX:PPC Share Price ** ASX (2019-05-17) in AUD A$1.04
Australia Real Estate Industry PE Ratio Median Figure of 23 Publicly-Listed Real Estate Companies 11.54x
Australia Market PE Ratio Median Figure of 542 Publicly-Listed Companies 15.99x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Peet.

ASX:PPC PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= ASX:PPC Share Price ÷ EPS (both in AUD)

= 1.04 ÷ 0.10

10.1x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Peet is good value based on earnings compared to the AU Real Estate industry average.
  • Peet is good value based on earnings compared to the Australia market.
Price based on expected Growth
Does Peet's expected growth come at a high price?
Raw Data
ASX:PPC PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 10.1x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 4 Analysts
-4.4%per year
Australia Real Estate Industry PEG Ratio Median Figure of 10 Publicly-Listed Real Estate Companies 0.68x
Australia Market PEG Ratio Median Figure of 360 Publicly-Listed Companies 1.42x

*Line of best fit is calculated by linear regression .

ASX:PPC PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 10.1x ÷ -4.4%

-2.31x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Peet earnings are not expected to grow next year, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on Peet's assets?
Raw Data
ASX:PPC PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-12-31) in AUD A$1.11
ASX:PPC Share Price * ASX (2019-05-17) in AUD A$1.04
Australia Real Estate Industry PB Ratio Median Figure of 37 Publicly-Listed Real Estate Companies 0.93x
Australia Market PB Ratio Median Figure of 1,676 Publicly-Listed Companies 1.65x
ASX:PPC PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= ASX:PPC Share Price ÷ Book Value per Share (both in AUD)

= 1.04 ÷ 1.11

0.93x

* Primary Listing of Peet.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Peet is good value based on assets compared to the AU Real Estate industry average.
X
Value checks
We assess Peet's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Real Estate industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Real Estate industry average (and greater than 0)? (1 check)
  5. Peet has a total score of 3/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is Peet expected to perform in the next 1 to 3 years based on estimates from 4 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
-4.4%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Peet expected to grow at an attractive rate?
  • Peet's earnings are expected to decrease over the next 1-3 years, this is below the low risk savings rate of 2.3%.
Growth vs Market Checks
  • Peet's earnings are expected to decrease over the next 1-3 years, this is below the Australia market average.
  • Peet's revenue growth is positive but not above the Australia market average.
Annual Growth Rates Comparison
Raw Data
ASX:PPC Future Growth Rates Data Sources
Data Point Source Value (per year)
ASX:PPC Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 4 Analysts -4.4%
ASX:PPC Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 4 Analysts 0.4%
Australia Real Estate Industry Earnings Growth Rate Market Cap Weighted Average 15.2%
Australia Real Estate Industry Revenue Growth Rate Market Cap Weighted Average 0.6%
Australia Market Earnings Growth Rate Market Cap Weighted Average 6.9%
Australia Market Revenue Growth Rate Market Cap Weighted Average 3.2%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
ASX:PPC Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (4 months ago) See Below
Future Estimates Average of up to 4 Analyst Estimates (S&P Global) See Below
All numbers in AUD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
ASX:PPC Future Estimates Data
Date (Data in AUD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2021-06-30 267 25 43 3
2020-06-30 257 38 42 3
2019-06-30 259 5 45 3
ASX:PPC Past Financials Data
Date (Data in AUD Millions) Revenue Cash Flow Net Income *
2018-12-31 272 26 50
2018-09-30 280 47 50
2018-06-30 288 67 49
2018-03-31 279 62 48
2017-12-31 270 56 47
2017-09-30 283 57 46
2017-06-30 296 57 45
2017-03-31 292 46 44
2016-12-31 288 35 44
2016-09-30 278 26 43
2016-06-30 268 17 43
2016-03-31 285 40 41

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Peet's earnings are expected to decrease over the next 1-3 years, this is not considered high growth.
  • Peet's revenue is expected to grow by 0.4% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
ASX:PPC Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (4 months ago) See Below
Future Estimates Average of up to 4 Analyst Estimates (S&P Global) See Below

All data from Peet Company Filings, last reported 4 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

ASX:PPC Future Estimates Data
Date (Data in AUD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2021-06-30 0.09 0.10 0.08 3.00
2020-06-30 0.09 0.10 0.08 3.00
2019-06-30 0.09 0.10 0.09 3.00
ASX:PPC Past Financials Data
Date (Data in AUD Millions) EPS *
2018-12-31 0.10
2018-09-30 0.10
2018-06-30 0.10
2018-03-31 0.10
2017-12-31 0.10
2017-09-30 0.09
2017-06-30 0.09
2017-03-31 0.09
2016-12-31 0.09
2016-09-30 0.09
2016-06-30 0.09
2016-03-31 0.08

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Peet is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Peet's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Australia market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Australia market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Peet has a total score of 0/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has Peet performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Peet's growth in the last year to its industry (Real Estate).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Peet's year on year earnings growth rate has been positive over the past 5 years.
  • Peet's 1-year earnings growth is less than its 5-year average (7.3% vs 13.9%)
  • Peet's earnings growth has exceeded the AU Real Estate industry average in the past year (7.3% vs -6.2%).
Earnings and Revenue History
Peet's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Peet Company Filings, last reported 4 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

ASX:PPC Past Revenue, Cash Flow and Net Income Data
Date (Data in AUD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-12-31 271.91 50.34 29.97
2018-09-30 279.76 49.73 30.93
2018-06-30 287.62 49.11 31.89
2018-03-31 278.88 48.02 32.09
2017-12-31 270.14 46.92 32.29
2017-09-30 283.09 45.86 31.96
2017-06-30 296.04 44.79 31.64
2017-03-31 292.07 44.31 31.22
2016-12-31 288.10 43.83 30.80
2016-09-30 278.11 43.21 31.07
2016-06-30 268.13 42.59 31.33
2016-03-31 284.96 41.22 31.63
2015-12-31 301.79 39.84 31.93
2015-09-30 328.11 39.15 31.75
2015-06-30 354.43 38.46 31.58
2015-03-31 354.59 36.33 31.90
2014-12-31 354.74 34.20 32.22
2014-09-30 315.40 32.24 32.68
2014-06-30 276.05 30.29 33.15
2014-03-31 263.67 21.69 32.10
2013-12-31 251.29 13.08 31.04
2013-09-30 245.14 6.98 27.88
2013-06-30 238.99 0.88 24.71
2013-03-31 194.25 -1.12 23.66
2012-12-31 174.86 -2.21 22.62
2012-09-30 160.87 1.61 22.04
2012-06-30 146.87 5.44 21.46

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Peet has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Peet used its assets more efficiently than the AU Real Estate industry average last year based on Return on Assets.
  • Peet has improved its use of capital last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Peet's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Real Estate industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Peet has a total score of 4/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Peet's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Peet's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Peet is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Peet's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of Peet's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • Debt is not covered by short term assets, assets are 0.7x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Peet Company Filings, last reported 4 months ago.

ASX:PPC Past Debt and Equity Data
Date (Data in AUD Millions) Total Equity Total Debt Cash & Short Term Investments
2018-12-31 549.22 252.66 48.02
2018-09-30 549.22 252.66 48.02
2018-06-30 551.44 241.06 76.75
2018-03-31 551.44 241.06 76.75
2017-12-31 531.86 260.21 70.86
2017-09-30 531.86 260.21 70.86
2017-06-30 525.32 288.19 88.37
2017-03-31 525.32 288.19 88.37
2016-12-31 509.05 302.08 68.95
2016-09-30 509.05 302.08 68.95
2016-06-30 501.52 364.38 73.37
2016-03-31 501.52 364.38 73.37
2015-12-31 487.96 363.30 49.31
2015-09-30 487.96 363.30 49.31
2015-06-30 483.89 286.50 57.72
2015-03-31 483.89 286.50 57.72
2014-12-31 480.66 270.79 54.68
2014-09-30 480.66 270.79 54.68
2014-06-30 420.05 323.28 38.78
2014-03-31 420.05 323.28 38.78
2013-12-31 400.67 364.50 26.56
2013-09-30 400.67 364.50 26.56
2013-06-30 380.33 358.82 36.42
2013-03-31 401.22 337.78 33.14
2012-12-31 267.32 323.83 20.81
2012-09-30 267.32 323.83 20.81
2012-06-30 265.34 355.85 22.61
  • Peet's level of debt (46%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has been reduced over the past 5 years (90.8% vs 46% today).
  • Debt is not well covered by operating cash flow (10.4%, less than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 6.3x coverage).
X
Financial health checks
We assess Peet's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Peet has a total score of 3/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
4.81%
Current annual income from Peet dividends. Estimated to be 4.38% next year.
If you bought A$2,000 of Peet shares you are expected to receive A$96 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Peet's pays a higher dividend yield than the bottom 25% of dividend payers in Australia (2.65%).
  • Peet's dividend is below the markets top 25% of dividend payers in Australia (5.83%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
ASX:PPC Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 4 Analyst Estimates (S&P Global) See Below
Australia Real Estate Industry Average Dividend Yield Market Cap Weighted Average of 15 Stocks 3.9%
Australia Market Average Dividend Yield Market Cap Weighted Average of 415 Stocks 4.3%
Australia Minimum Threshold Dividend Yield 10th Percentile 1.5%
Australia Bottom 25% Dividend Yield 25th Percentile 2.6%
Australia Top 25% Dividend Yield 75th Percentile 5.8%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

ASX:PPC Future Dividends Estimate Data
Date (Data in A$) Dividend per Share (annual) Avg. No. Analysts
2021-06-30 0.04 4.00
2020-06-30 0.05 4.00
2019-06-30 0.05 4.00
ASX:PPC Past Annualized Dividends Data
Date (Data in A$) Dividend per share (annual) Avg. Yield (%)
2018-08-22 0.050 4.753
2018-02-21 0.050 3.810
2017-08-23 0.048 3.525
2017-02-22 0.045 3.810
2016-08-24 0.045 4.637
2015-08-27 0.060 6.039
2015-02-25 0.030 2.619
2014-08-28 0.012 1.066
2013-02-28 0.000 0.000
2012-10-01 0.000 0.000
2012-08-28 0.000 0.000
2012-02-24 0.000 0.000
2011-09-30 0.085 9.471
2011-08-29 0.085 6.808
2010-08-26 0.090 5.142
2010-02-24 0.080 3.760
2009-08-20 0.070 3.428

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • 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
What portion of Peet's earnings are paid to the shareholders as a dividend.
  • Dividends paid are well covered by earnings (2.1x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be covered by earnings (2x coverage).
X
Income/ dividend checks
We assess Peet's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.5%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Peet afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Peet has a total score of 3/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

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

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Brendan Gore
COMPENSATION A$2,837,953
TENURE AS CEO 11.8 years
CEO Bio

Mr. Brendan David Gore, B.Comm, FCPA, FCIS, FGIA, FAICD, has been the Managing Director and Chief Executive Officer of Peet Limited, the holding company of Peet Caboolture Syndicate Limited and Peet & Co Casey Land Syndicate Limited since August 6, 2007. Mr. Gore served as the Chief Operating Officer of Peet Limited (formerly, Peet & Co Ltd.) from January 18, 2007 to August 6, 2007 with responsibility for developing Peet's integrated operational strategy and managing the day-to-day safety and performance of its business divisions. He served as the Chief Financial Officer of Peet Limited until January 18, 2007. He played a key role in expanding the Peet's scope of activities and growing its core residential development and land syndication businesses. He has held senior corporate, commercial and operational roles for more than 20 years and expertise in the business, resources and property sectors. Prior to Pet, He served as Company Secretary and Chief Financial Officer of Mermaid Marine Australia Limited until March 30, 2005. He has been an Executive Director of Peet Limited since August 6, 2007. He has been a Non-Executive Director at CIC Australia Limited since May 30, 2013. Mr. Gore is a qualified accountant and Member of the Australian Institute of Company Directors, Mr. Gore is also a Fellow of CPA Australia and Fellow of the Chartered Institute of Secretaries.

CEO Compensation
  • Brendan's compensation has been consistent with company performance over the past year.
  • Brendan's remuneration is higher than average for companies of similar size in Australia.
Management Team Tenure

Average tenure of the Peet management team in years:

8.7
Average Tenure
  • The average tenure for the Peet management team is over 5 years, this suggests they are a seasoned and experienced team.
Management Team

Brendan Gore

TITLE
MD, CEO & Director
COMPENSATION
A$3M
TENURE
11.8 yrs

Brett Fullarton

TITLE
Chief Financial Officer
COMPENSATION
A$867K
TENURE
5.6 yrs

Peter Dumas

TITLE
Chief Investment Officer
COMPENSATION
A$1M

Dom Scafetta

TITLE
Group Company Secretary
COMPENSATION
A$693K
TENURE
14.3 yrs

Anna Ross-Adjie

TITLE
Human Resources Manager
TENURE
2 yrs
Board of Directors Tenure

Average tenure and age of the Peet board of directors in years:

7.1
Average Tenure
64.5
Average Age
  • The tenure for the Peet board of directors is about average.
Board of Directors

Tony Lennon

TITLE
Non-Executive Chairman
COMPENSATION
A$237K
AGE
76

Brendan Gore

TITLE
MD, CEO & Director
COMPENSATION
A$3M
TENURE
12.3 yrs

Trevor Allen

TITLE
Independent Non-Executive Director
COMPENSATION
A$149K
AGE
61
TENURE
7.1 yrs

Bob McKinnon

TITLE
Independent Non-Executive Director
COMPENSATION
A$119K
AGE
68
TENURE
5 yrs

Anthony Lennon

TITLE
Non-Executive Director
COMPENSATION
A$154K
AGE
51
TENURE
23.3 yrs

Vicki Krause

TITLE
Independent Non-Executive Director
COMPENSATION
A$94K
TENURE
5.1 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (A$) Value (A$)
27. Mar 19 Sell Ellerston Capital Limited Company 21. Mar 19 25. Mar 19 -1,567,797 A$0.96 A$-1,495,395
27. Mar 19 Buy Ellerston Capital Limited Company 20. Mar 19 22. Mar 19 49,646 A$0.96 A$47,599
19. Mar 19 Sell Ellerston Capital Limited Company 29. Aug 18 15. Mar 19 -15,607,615 A$1.02 A$-15,977,123
19. Mar 19 Buy Ellerston Capital Limited Company 25. Jul 18 19. Mar 19 2,288,586 A$1.06 A$2,429,408
17. Dec 18 Buy Orbis Investment Management Limited Company 02. Nov 18 13. Dec 18 3,797,309 A$1.05 A$3,968,686
05. Nov 18 Buy Orbis Investment Management Limited Company 16. Aug 18 01. Nov 18 7,940,916 A$1.09 A$8,514,805
19. Oct 18 Sell Challenger Limited Company 18. Aug 15 16. Oct 18 -19,974,010 A$1.17 A$-23,318,596
16. Aug 18 Sell Orbis Investment Management Limited Company 24. Feb 17 14. Aug 18 -1,481,089 A$1.22 A$-1,786,620
16. Aug 18 Buy Orbis Investment Management Limited Company 12. Dec 16 14. Aug 18 7,877,239 A$1.43 A$9,920,069
23. Jul 18 Sell NovaPort Capital Pty Limited Company 31. Jan 18 19. Jul 18 -3,716,071 A$1.24 A$-4,620,093
X
Management checks
We assess Peet's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Peet has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

What Kind Of Shareholders Own Peet Limited (ASX:PPC)?

The big shareholder groups in Peet Limited (ASX:PPC) have power over the company. … Institutions often own shares in more established companies, while it's not unusual to see insiders own a fair bit of smaller companies. … Peet is not a large company by global standards.

Simply Wall St -

Should You Worry About Peet Limited's (ASX:PPC) CEO Pay?

First, this article will compare CEO compensation with compensation at similar sized companies. … How Does Brendan Gore's Compensation Compare With Similar Sized Companies. … According to our data, Peet Limited has a market capitalization of AU$476m, and pays its CEO total annual compensation worth AU$2.8m.

Simply Wall St -

Taking A Look At Peet Limited's (ASX:PPC) ROE

While some investors are already well versed in financial metrics (hat tip), this article is for those who would like to learn about Return On Equity (ROE) and why it is important. … One way to conceptualize this, is that for each A$1 of shareholders' equity it has, the company made A$0.091 in profit. … Return on Equity = Net Profit ÷ Shareholders' Equity

Simply Wall St -

Does Peet Limited's (ASX:PPC) Recent Track Record Look Strong?

After reading Peet Limited's (ASX:PPC) latest earnings update (31 December 2018), I found it beneficial to look back at how the company has performed in the past and compare this against the most recent numbers. … Did PPC's recent earnings growth beat the long-term trend and the industry. … However, this one-year growth rate has been lower than its average earnings growth rate over the past 5 years of 14%, indicating the rate at which PPC is growing has slowed down

Simply Wall St -

Peet Limited (ASX:PPC): 4 Days To Buy Before The Ex-Dividend Date

On the 09 April 2019, Peet Limited (ASX:PPC) will be paying shareholders an upcoming dividend amount of AU$0.02 per share. … Has it consistently paid a stable dividend without missing a payment or drastically cutting payout? … Based on future earnings growth, will it be able to continue to payout dividend at the current rate

Simply Wall St -

Is Peet Limited's (ASX:PPC) P/E Ratio Really That Good?

The goal of this article is to teach you how to use price to earnings ratios (P/E ratios). … We'll look at Peet Limited's (ASX:PPC) P/E ratio and reflect on what it tells us about the company's share price. … Price to Earnings Ratio = Share Price ÷ Earnings per Share (EPS)

Simply Wall St -

Is Peet Limited (ASX:PPC) A Great Dividend Stock?

A sizeable part of portfolio returns can be produced by dividend stocks due to their contribution to compounding returns in the long run. … Historically, Peet Limited (ASX:PPC) has paid a dividend to shareholders. … Let's dig deeper into whether Peet should have a place in your portfolio.

Simply Wall St -

What Should We Expect From Peet Limited's (ASX:PPC) Earnings Over The Next Few Years?

Want to participate in a short research study? … Help shape the future of investing tools and you could win a $250 gift card! … Peet Limited's (ASX:PPC) latest earnings announcement in June 2018a

Simply Wall St -

Is Peet Limited's (ASX:PPC) Balance Sheet A Threat To Its Future?

While small-cap stocks, such as Peet Limited (ASX:PPC) with its market cap of AU$517m, are popular for their explosive growth, investors should also be aware of their balance sheet to judge whether the company can survive a downturn. … Evaluating financial health as part of your investment thesis is. … Here are few basic financial health checks you should consider before taking the plunge.

Simply Wall St -

What Type Of Shareholder Owns Peet Limited's (ASX:PPC)?

Every investor in Peet Limited (ASX:PPC) should be aware of the most powerful shareholder groups. … Insiders often own a large chunk of younger, smaller, companies while huge companies tend to have institutions as shareholders. … Peet is not a large company by global standards.

Simply Wall St -

Company Info

Description

Peet Limited acquires, develops, and markets residential land in Australia. The company operates through Funds Management, Company-Owned Projects, and Joint Arrangements segments. The Funds Management segment provides underwriting, capital raising, and asset identification services. The Company-Owned Projects segment acquires parcels of land for residential development purpose, as well as produces non-residential blocks of land. The Joint Arrangements segment undertakes the development of land through joint arrangements with government, statutory authorities, and private landowners. As of June 30, 2018, it managed and marketed a land bank of approximately 49,000 lots. Peet Limited was founded in 1895 and is based in Perth, Australia.

Details
Name: Peet Limited
PPC
Exchange: ASX
Founded: 1895
A$502,632,508
483,300,489
Website: http://www.peet.com.au
Address: Peet Limited
200 St Georges Terrace,
Level 7,
Perth,
Western Australia, 6000,
Australia
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
ASX PPC Ordinary Shares Australian Securities Exchange AU AUD 05. Aug 2004
CHIA PPC Ordinary Shares Chi-X Australia AU AUD 05. Aug 2004
Number of employees
Current staff
Staff numbers
250
Peet employees.
Industry
Real Estate Development
Real Estate
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/05/19 10:30
End of day share price update: 2019/05/17 00:00
Last estimates confirmation: 2019/04/10
Last earnings filing: 2019/02/25
Last earnings reported: 2018/12/31
Last annual earnings reported: 2018/06/30


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.