ASX:PPC

Stock Analysis Report

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Executive Summary

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


Snowflake Analysis

Reasonable growth potential and slightly overvalued.

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

6.2%

PPC

1.7%

AU Real Estate

-0.3%

AU Market


1 Year Return

4.3%

PPC

-27.1%

AU Real Estate

-11.1%

AU Market

Return vs Industry: PPC exceeded the Australian Real Estate industry which returned -23.7% over the past year.

Return vs Market: PPC exceeded the Australian Market which returned -10.6% over the past year.


Shareholder returns

PPCIndustryMarket
7 Day6.2%1.7%-0.3%
30 Day20.0%4.4%-4.2%
90 Day23.7%-0.3%1.6%
1 Year5.0%4.3%-25.4%-27.1%-7.8%-11.1%
3 Year7.0%-2.4%-20.0%-26.9%17.1%2.1%
5 Year36.6%14.3%16.5%-2.7%43.1%13.0%

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?

34.6%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: PPC (A$1.2) is trading below our estimate of fair value (A$1.84)

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


Price To Earnings Ratio

PE vs Industry: PPC is unprofitable, so we can't compare its PE Ratio to the AU 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 is overvalued based on its PB Ratio (1.1x) compared to the AU Real Estate industry average (0.9x).


Next Steps

Future Growth

How is Peet forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

122.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: PPC is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (2.3%).

Earnings vs Market: PPC is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: PPC's is expected to become profitable in the next 3 years.

Revenue vs Market: PPC's revenue (18.1% per year) is forecast to grow faster than the Australian market (4.4% per year).

High Growth Revenue: PPC's revenue (18.1% 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 (8.9%).


Next Steps

  • Explore growth companies in the Real Estate industry.

Past Performance

How has Peet performed over the past 5 years?

-13.0%

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 13% 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 (-39.6%).


Return on Equity

High ROE: PPC has a negative Return on Equity (-5.96%), as it is currently unprofitable.


Next Steps

Financial Health

How is Peet's financial position?


Financial Position Analysis

Short Term Liabilities: PPC's short term assets (A$179.4M) exceed its short term liabilities (A$174.6M).

Long Term Liabilities: PPC's short term assets (A$179.4M) do not cover its long term liabilities (A$201.4M).


Debt to Equity History and Analysis

Debt Level: PPC's debt to equity ratio (56.9%) is considered high.

Reducing Debt: PPC's debt to equity ratio has reduced from 59.5% to 56.9% over the past 5 years.

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

Interest Coverage: PPC is unprofitable, therefore interest payments are not well covered by earnings.


Balance Sheet


Next Steps

Dividend

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

1.25%

Current Dividend Yield


Upcoming Dividend Payment


Dividend Yield vs Market

Notable Dividend: PPC's dividend (1.25%) isn’t notable compared to the bottom 25% of dividend payers in the Australian market (2.34%).

High Dividend: PPC's dividend (1.25%) is low compared to the top 25% of dividend payers in the Australian market (5.59%).


Stability and Growth of Payments

Stable Dividend: PPC is not paying a notable dividend for the Australian market, therefore no need to check if payments are stable.

Growing Dividend: PPC is not paying a notable dividend for the Australian market, therefore no need to check if payments are increasing.


Current Payout to Shareholders

Dividend Coverage: PPC is not paying a notable dividend for the Australian market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of PPC's dividend in 3 years as they are not forecast to pay a notable one for the Australian market.


Next Steps

Management

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

10.0yrs

Average management tenure


CEO

Brendan Gore

13.08yrs

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 ($USD1.01M) is above average for companies of similar size in the Australian market ($USD731.38K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Brendan Gore
MD, CEO & Director13.08yrsAU$1.43m1.1%
A$ 6.4m
Brett Fullarton
Chief Financial Officer6.92yrsAU$546.30k0.12%
A$ 724.6k
Peter Dumas
Chief Investment Officerno dataAU$628.84k0.23%
A$ 1.3m
Dom Scafetta
Group Company Secretary15.58yrsAU$434.56k0.21%
A$ 1.2m
Anna Ross-Adjie
Human Resources Manager3.33yrsno datano data

10.0yrs

Average Tenure

Experienced Management: PPC's management team is seasoned and experienced (10 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Brendan Gore
MD, CEO & Director13.08yrsAU$1.43m1.1%
A$ 6.4m
Robert McKinnon
Lead Independent Non-Executive Directorno dataAU$122.54k0.010%
A$ 60.0k
Anthony Lennon
Non-Executive Director24.67yrsAU$156.38k0.28%
A$ 1.6m
Anthony Lennon
Non-Executive Chairmanno dataAU$245.42k20.14%
A$ 116.8m
Trevor Allen
Independent Non-Executive Director8.42yrsAU$151.54k0.019%
A$ 110.5k
Vicki Krause
Independent Non-Executive Director6.42yrsAU$98.38kno data

11.0yrs

Average Tenure

66.5yo

Average Age

Experienced Board: PPC's board of directors are seasoned and experienced ( 11 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$579.961m
  • 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 segm ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/09/24 19:04
End of Day Share Price2020/09/24 00:00
Earnings2020/06/30
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.