ASX:PPC

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

Market Cap

AU$560.6m

Last Updated

2021/07/27 15:46 UTC

Data Sources

Company Financials

Executive Summary

Peet Limited acquires, develops, and markets residential land in Australia. More Details


Snowflake Analysis

Mediocre balance sheet with weak fundamentals.

Share Price & News

How has Peet's share price performed over time and what events caused price changes?


Latest Share Price and Events

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

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


Market Performance


7 Day Return

0.9%

PPC

3.3%

AU Real Estate

2.0%

AU Market


1 Year Return

39.8%

PPC

17.4%

AU Real Estate

26.0%

AU Market

Return vs Industry: PPC exceeded the Australian Real Estate industry which returned 17.4% over the past year.

Return vs Market: PPC exceeded the Australian Market which returned 26% over the past year.


Shareholder returns

PPCIndustryMarket
7 Day0.9%3.3%2.0%
30 Day-2.9%1.5%1.4%
90 Day-3.3%-1.3%4.3%
1 Year42.5%39.8%19.5%17.4%30.6%26.0%
3 Year6.6%-3.3%-17.5%-24.1%33.4%17.2%
5 Year44.6%20.8%22.3%3.6%65.0%32.8%

Long-Term Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Peet undervalued compared to its fair value and its price relative to the market?

1.11x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: PPC (A$1.16) is trading above our estimate of fair value (A$0.22)

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


Price To Earnings Ratio

PE vs Industry: PPC is unprofitable, so we can't compare its PE Ratio to the Australian Real Estate industry average.

PE vs Market: PPC is unprofitable, so we can't compare its PE Ratio to the Australian market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate PPC's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: PPC's PB Ratio (1.1x) is in line with the AU Real Estate industry average.


Future Growth

How is Peet forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

23.8%

Forecasted Real Estate industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Peet has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Past Performance

How has Peet performed over the past 5 years?

-29.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: PPC is currently unprofitable.

Growing Profit Margin: PPC is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: PPC is unprofitable, and losses have increased over the past 5 years at a rate of 29.2% per year.

Accelerating Growth: Unable to compare PPC's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: PPC is unprofitable, making it difficult to compare its past year earnings growth to the Real Estate industry (-32.4%).


Return on Equity

High ROE: PPC has a negative Return on Equity (-4.93%), as it is currently unprofitable.


Financial Health

How is Peet's financial position?


Financial Position Analysis

Short Term Liabilities: PPC's short term assets (A$193.5M) exceed its short term liabilities (A$154.1M).

Long Term Liabilities: PPC's short term assets (A$193.5M) do not cover its long term liabilities (A$212.8M).


Debt to Equity History and Analysis

Debt Level: PPC's debt to equity ratio (54.1%) is considered high.

Reducing Debt: PPC's debt to equity ratio has reduced from 74.4% to 54.1% over the past 5 years.

Debt Coverage: PPC's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: PPC's interest payments on its debt are well covered by EBIT (4.2x coverage).


Balance Sheet


Dividend

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

1.29%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: PPC's dividend (1.29%) isn’t notable compared to the bottom 25% of dividend payers in the Australian market (2.01%).

High Dividend: PPC's dividend (1.29%) is low compared to the top 25% of dividend payers in the Australian market (4.94%).


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: PPC is paying a dividend but the company is unprofitable.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

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

13.9yrs

Average management tenure


CEO

Brendan Gore

13.92yrs

Tenure

AU$1,434,817

Compensation

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 C...


CEO Compensation Analysis

Compensation vs Market: Brendan's total compensation ($USD1.06M) is above average for companies of similar size in the Australian market ($USD678.14K).

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


Leadership Team

Experienced Management: PPC's management team is seasoned and experienced (13.9 years average tenure).


Board Members

Experienced Board: PPC's board of directors are seasoned and experienced ( 11.9 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 not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Peet Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Peet Limited
  • Ticker: PPC
  • Exchange: ASX
  • Founded: 1895
  • Industry: Real Estate Development
  • Sector: Real Estate
  • Market Cap: AU$560.629m
  • Shares outstanding: 483.30m
  • Website: https://www.peet.com.au

Number of Employees


Location

  • Peet Limited
  • 200 St Georges Terrace
  • Level 7
  • Perth
  • Western Australia
  • 6000
  • Australia

Listings


Biography

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 segm...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/07/27 15:46
End of Day Share Price2021/07/27 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.