ASX:PPC

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

Good value with mediocre balance sheet.

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

-0.4%

ASX:PPC

1.9%

AU Real Estate

0.5%

AU Market


1 Year Return

-2.5%

ASX:PPC

-5.7%

AU Real Estate

6.3%

AU Market

PPC outperformed the Real Estate industry which returned -5.7% over the past year.

PPC underperformed the Market in Australia which returned 6.3% over the past year.


Share holder returns

PPCIndustryMarket
7 Day-0.4%1.9%0.5%
30 Day1.7%16.0%4.5%
90 Day-3.3%20.1%2.5%
1 Year2.2%-2.5%-2.8%-5.7%12.4%6.3%
3 Year31.1%15.3%22.5%9.6%41.3%22.3%
5 Year19.1%-4.1%40.2%15.7%47.8%14.7%

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

31%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Peet's share price is below the future cash flow value, and at a moderate discount (> 20%).

Peet's share price is below the future cash flow value, but not at a substantial discount (< 40%).


Price Based on Earnings

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

Peet is poor value based on expected growth next year.


Price Based on Value of Assets

Peet is good value based on assets compared to the AU Real Estate industry average.


Next Steps

Future Growth

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

0.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Peet's revenue is expected to grow by 5.9% yearly, however this is not considered high growth (20% yearly).

Peet's earnings are expected to grow by 0.3% yearly, however this is not considered high growth (20% yearly).

Peet's revenue growth is expected to exceed the Australia market average.

Peet's earnings growth is positive but not above the Australia market average.

Peet's earnings growth is positive but not above the low risk savings rate of 2.3%.


Earnings per Share Growth Estimates


Future Return on Equity

Peet is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


Next Steps

Past Performance

How has Peet performed over the past 5 years?

8.5%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Peet's year on year earnings growth rate has been positive over the past 5 years.

Peet's 1-year earnings growth is negative, it can't be compared to the 5-year average.

Peet's 1-year earnings growth is negative, it can't be compared to the AU Real Estate industry average.


Return on Equity

Peet has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Peet used its assets less efficiently than the AU Real Estate industry average last year based on Return on Assets.


Return on Capital Employed

Peet has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Peet's financial position?


Financial Position Analysis

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.


Debt to Equity History and Analysis

Peet's level of debt (45.9%) 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 (76.7% vs 45.9% today).

Operating cash flow is negative therefore debt is not well covered.

Interest payments on debt are well covered by earnings (EBIT is 6.9x coverage).


Balance Sheet

Low level of unsold assets.

Debt is not covered by short term assets, assets are 0.6x debt.


Next Steps

Dividend

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

3.52%

Expected Dividend Yield


Upcoming Dividend Payment

Purchase Peet before the 'Buy Limit' to receive their next dividend payment.


Dividend Yield and Payments Analysis

Peet's pays a higher dividend yield than the bottom 25% of dividend payers in Australia (2.44%).

Peet's dividend is below the markets top 25% of dividend payers in Australia (5.52%).

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

Dividends paid are covered by earnings (2x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be covered by earnings (1.9x coverage).


Next Steps

Management

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

9.0yrs

Average management tenure


CEO

Brendan Gore 0

12.1yrs

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

Brendan's remuneration is higher than average for companies of similar size in Australia.

Brendan's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

9.0yrs

Average Tenure

The average tenure for the Peet management team is over 5 years, this suggests they are a seasoned and experienced team.


Board Age and Tenure

7.4yrs

Average Tenure

65.5yo

Average Age

The tenure for the Peet board of directors is about average.


Insider Trading

No 3 month open market individual insider trading information.


Recent Insider Transactions

SellAU$16,78703 Sep 19
Orbis Investment Management Limited
EntityCompany
Shares14,168
Max PriceAU$1.20
BuyAU$6,962,12003 Sep 19
Orbis Investment Management Limited
EntityCompany
Shares6,219,316
Max PriceAU$1.15
BuyAU$47,59927 Mar 19
Ellerston Capital Limited
EntityCompany
Shares49,646
Max PriceAU$0.96
SellAU$1,495,39527 Mar 19
Ellerston Capital Limited
EntityCompany
Shares1,567,797
Max PriceAU$0.96
SellAU$15,977,12319 Mar 19
Ellerston Capital Limited
EntityCompany
Shares15,607,615
Max PriceAU$1.02
BuyAU$2,429,40819 Mar 19
Ellerston Capital Limited
EntityCompany
Shares2,288,586
Max PriceAU$1.06
BuyAU$3,968,68617 Dec 18
Orbis Investment Management Limited
EntityCompany
Shares3,797,309
Max PriceAU$1.05
BuyAU$8,514,80505 Nov 18
Orbis Investment Management Limited
EntityCompany
Shares7,940,916
Max PriceAU$1.09
SellAU$23,318,59619 Oct 18
Challenger Limited
EntityCompany
Shares19,974,010
Max PriceAU$1.17

Ownership Breakdown


Management Team

  • Brendan Gore

    MD, CEO & Director

    • Tenure: 12.1yrs
    • Compensation: AU$1.92m
  • Peter Dumas

    Chief Investment Officer

    • Tenure: 0yrs
    • Compensation: AU$767.43k
  • Dom Scafetta

    Group Company Secretary

    • Tenure: 14.6yrs
    • Compensation: AU$534.72k
  • Brett Fullarton

    Chief Financial Officer

    • Tenure: 5.9yrs
    • Compensation: AU$663.42k
  • Anna Ross-Adjie

    Human Resources Manager

    • Tenure: 2.3yrs

Board Members

  • Bob McKinnon (69yo)

    Independent Non-Executive Director

    • Tenure: 5.3yrs
    • Compensation: AU$126.77k
  • Brendan Gore

    MD, CEO & Director

    • Tenure: 12.1yrs
    • Compensation: AU$1.92m
  • Anthony Lennon (52yo)

    Non-Executive Director

    • Tenure: 23.7yrs
    • Compensation: AU$161.77k
  • Tony Lennon (77yo)

    Non-Executive Chairman

    • Tenure: 0yrs
    • Compensation: AU$256.32k
  • Trevor Allen (62yo)

    Independent Non-Executive Director

    • Tenure: 7.4yrs
    • Compensation: AU$156.77k
  • Vicki Krause

    Independent Non-Executive Director

    • Tenure: 5.4yrs
    • Compensation: AU$101.77k

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$570.295m
  • 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 Analysis2019/09/16 10:31
End of Day Share Price2019/09/16 00:00
Earnings2019/06/30
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.