ASX:PPC

Stock Analysis Report

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Executive Summary

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


Snowflake Analysis

Fair value with moderate growth potential.

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's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

7.8%

PPC

1.6%

AU Real Estate

2.7%

AU Market


1 Year Return

-15.3%

PPC

-2.2%

AU Real Estate

-6.6%

AU Market

Return vs Industry: PPC underperformed the Australian Real Estate industry which returned -1.6% over the past year.

Return vs Market: PPC underperformed the Australian Market which returned -6.9% over the past year.


Shareholder returns

PPCIndustryMarket
7 Day7.8%1.6%2.7%
30 Day27.6%12.7%12.2%
90 Day-14.5%-20.7%-2.8%
1 Year-12.6%-15.3%1.2%-2.2%-2.7%-6.6%
3 Year-9.5%-19.5%-6.2%-15.4%18.2%2.6%
5 Year8.4%-11.8%5.3%-13.1%33.2%4.4%

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?

33.7%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: PPC (A$0.97) is trading below our estimate of fair value (A$1.46)

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


Price To Earnings Ratio

PE vs Industry: PPC is poor value based on its PE Ratio (15.8x) compared to the Real Estate industry average (14.4x).

PE vs Market: PPC is poor value based on its PE Ratio (15.8x) compared to the Australian market (15.7x).


Price to Earnings Growth Ratio

PEG Ratio: PPC is good value based on its PEG Ratio (0.8x)


Price to Book Ratio

PB vs Industry: PPC is overvalued based on its PB Ratio (0.9x) compared to the AU Real Estate industry average (0.7x).


Next Steps

Future Growth

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

19.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: PPC's forecast earnings growth (19.2% per year) is above the savings rate (2.3%).

Earnings vs Market: PPC's earnings (19.2% per year) are forecast to grow faster than the Australian market (14.5% per year).

High Growth Earnings: PPC's earnings are forecast to grow, but not significantly.

Revenue vs Market: PPC's revenue (12% per year) is forecast to grow faster than the Australian market (4.2% per year).

High Growth Revenue: PPC's revenue (12% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: PPC's Return on Equity is forecast to be low in 3 years time (7.3%).


Next Steps

Past Performance

How has Peet performed over the past 5 years?

3.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: PPC has high quality earnings.

Growing Profit Margin: PPC's current net profit margins (12.9%) are lower than last year (18.5%).


Past Earnings Growth Analysis

Earnings Trend: PPC's earnings have grown by 3.2% per year over the past 5 years.

Accelerating Growth: PPC's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: PPC had negative earnings growth (-41.4%) over the past year, making it difficult to compare to the Real Estate industry average (-13.4%).


Return on Equity

High ROE: PPC's Return on Equity (5.3%) is considered low.


Next Steps

Financial Health

How is Peet's financial position?


Financial Position Analysis

Short Term Liabilities: PPC's short term assets (A$166.1M) exceed its short term liabilities (A$93.1M).

Long Term Liabilities: PPC's short term assets (A$166.1M) do not cover its long term liabilities (A$290.8M).


Debt to Equity History and Analysis

Debt Level: PPC's debt to equity ratio (52.1%) is considered high.

Reducing Debt: PPC's debt to equity ratio has reduced from 56.4% to 52.1% 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 (5.4x coverage).


Balance Sheet


Next Steps

Dividend

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

5.15%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: PPC's dividend (5.18%) is higher than the bottom 25% of dividend payers in the Australian market (2.52%).

High Dividend: PPC's dividend (5.18%) is low compared to the top 25% of dividend payers in the Australian market (6.55%).


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: With its reasonable payout ratio (57.4%), PPC's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: PPC's dividends in 3 years are forecast to be covered by earnings (51.5% payout ratio).


Next Steps

Management

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

9.8yrs

Average management tenure


CEO

Brendan Gore

12.83yrs

Tenure

AU$1,916,888

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 ($USD1.33M) is above average for companies of similar size in the Australian market ($USD769.73K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Brendan Gore
MD, CEO & Director12.83yrsAU$1.92m1.1% A$5.1m
Brett Fullarton
Chief Financial Officer6.67yrsAU$663.42k0.12% A$582.7k
Peter Dumas
Chief Investment Officerno dataAU$767.43k0.23% A$1.0m
Dom Scafetta
Group Company Secretary15.33yrsAU$534.72k0.26% A$1.2m
Anna Ross-Adjie
Human Resources Manager3.08yrsno datano data

9.8yrs

Average Tenure

Experienced Management: PPC's management team is seasoned and experienced (9.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Brendan Gore
MD, CEO & Director12.83yrsAU$1.92m1.1% A$5.1m
Robert McKinnon
Independent Non-Executive Director6.08yrsAU$126.77k0.010% A$48.3k
Anthony Lennon
Non-Executive Director24.42yrsAU$161.77k0.28% A$1.3m
Anthony Lennon
Non-Executive Chairmanno dataAU$256.32k20.14% A$93.9m
Trevor Allen
Independent Non-Executive Director8.17yrsAU$156.77k0.019% A$88.8k
Vicki Krause
Independent Non-Executive Director6.17yrsAU$101.77kno data

8.2yrs

Average Tenure

65.5yo

Average Age

Experienced Board: PPC's board of directors are considered experienced (8.2 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: PPC insiders have sold more shares than they have bought 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$466.385m
  • 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

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
PPCASX (Australian Securities Exchange)YesOrdinary SharesAUAUDAug 2004
PPCCHIA (Chi-X Australia)YesOrdinary SharesAUAUDAug 2004

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 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, 2019, it managed and marketed a land bank of approximately 49,413 lots. Peet Limited was founded in 1895 and is based in Perth, Australia. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/06/05 10:30
End of Day Share Price2020/06/05 00:00
Earnings2019/12/31
Annual Earnings2019/06/30


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.