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%

PPC

3.0%

AU Real Estate

2.5%

AU Market


1 Year Return

2.7%

PPC

2.9%

AU Real Estate

11.1%

AU Market

Return vs Industry: PPC matched the Australian Real Estate industry which returned 2.9% over the past year.

Return vs Market: PPC underperformed the Australian Market which returned 11.1% over the past year.


Shareholder returns

PPCIndustryMarket
7 Day0%3.0%2.5%
30 Day-0.9%2.1%0.7%
90 Day1.8%13.2%1.4%
1 Year7.6%2.7%6.1%2.9%17.5%11.1%
3 Year38.6%22.1%22.2%9.4%37.8%19.4%
5 Year17.6%-4.9%40.1%15.7%51.7%17.6%

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?

31.5%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: PPC (A$1.16) is trading below our estimate of fair value (A$1.69)

Significantly Undervalued: PPC is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: PPC is good value based on its PE Ratio (11.8x) compared to the Real Estate industry average (12.9x).

PE vs Market: PPC is good value based on its PE Ratio (11.8x) compared to the Australian market (18x).


Price to Earnings Growth Ratio

Low PEG Ratio: PPC is poor value based on its PEG Ratio (45x)


Price to Book Ratio

PB vs Industry: PPC is good value based on its PB Ratio (1x) compared to the AU Real Estate industry average (1x).


Next Steps

Future Growth

How is Peet forecast 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 Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: PPC's forecast earnings growth (0.3% per year) is below the savings rate (2.3%).

Earnings vs Market: PPC's earnings (0.3% per year) are forecast to grow slower than the Australian market (10.3% per year).

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

Revenue vs Market: PPC's revenue (5.9% per year) is forecast to grow faster than the Australian market (3.6% per year).

High Growth Revenue: PPC's revenue (5.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: PPC's Return on Equity is forecast to be low in 3 years time (8.5%).


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

Earnings Trend: PPC's earnings have grown by 8.5% 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 (-3.2%) over the past year, making it difficult to compare to the Real Estate industry average (-2.5%).


Return on Equity

High ROE: PPC's Return on Equity (8.5%) is considered low.


Return on Assets

ROA vs Industry: PPC's Return on Assets is below or equal to the Real Estate industry average last year.


Return on Capital Employed

ROCE Improving: PPC has significantly improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is Peet's financial position?


Financial Position Analysis

Short Term Liabilities: PPC's short term assets (A$164.6M) exceeds its short term liabilities (A$92.3M)

Long Term Liabilities: PPC's short term assets (164.6M) do not cover its long term liabilities (269.8M)


Debt to Equity History and Analysis

Debt Level: PPC's debt to equity ratio (45.9%) is considered high

Reducing Debt: PPC's debt to equity ratio has reduced from 76.7% to 45.9% 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 (6.9x coverage).


Balance Sheet

Inventory Level: PPC has a low level of unsold assets or inventory.

Debt Coverage by Assets: PPC's 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?

4.31%

Current Dividend Yield


Dividend Yield vs Market

company4.3%marketbottom25%2.5%markettop25%5.6%industryaverage2.7%forecastin3Years3.6%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: PPC's dividend (4.31%) is higher than the bottom 25% of dividend payers in the Australian market (2.46%).

High Dividend: PPC's dividend (4.31%) is low compared to the top 25% of dividend payers in the Australian market (5.56%).

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 (51.1%), 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 (51.3% payout ratio).


Next Steps

Management

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

9.1yrs

Average management tenure


CEO

Brendan Gore 0

12.2yrs

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 ($USD1.30M) is about average for companies of similar size in the Australian market ($USD726.86K).

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


Management Age and Tenure

9.1yrs

Average Tenure

Experienced Management: PPC's management team is seasoned and experienced (9.1 years average tenure).


Board Age and Tenure

7.5yrs

Average Tenure

65.5yo

Average Age

Experienced Board: PPC's board of directors are considered experienced (7.5 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


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

Ownership Breakdown


Management Team

  • Brendan Gore

    MD, CEO & Director

    • Tenure: 12.2yrs
    • Compensation: AU$1.92m
  • Peter Dumas

    Chief Investment Officer

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

    Group Company Secretary

    • Tenure: 14.7yrs
    • Compensation: AU$534.72k
  • Brett Fullarton

    Chief Financial Officer

    • Tenure: 6yrs
    • Compensation: AU$663.42k
  • Anna Ross-Adjie

    Human Resources Manager

    • Tenure: 2.4yrs

Board Members

  • Bob McKinnon (69yo)

    Independent Non-Executive Director

    • Tenure: 5.4yrs
    • Compensation: AU$126.77k
  • Brendan Gore

    MD, CEO & Director

    • Tenure: 12.2yrs
    • Compensation: AU$1.92m
  • Anthony Lennon (52yo)

    Non-Executive Director

    • Tenure: 23.8yrs
    • Compensation: AU$161.77k
  • Tony Lennon (77yo)

    Non-Executive Chairman

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

    Independent Non-Executive Director

    • Tenure: 7.5yrs
    • Compensation: AU$156.77k
  • Vicki Krause

    Independent Non-Executive Director

    • Tenure: 5.5yrs
    • 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$555.796m
  • 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 Analysis2019/10/16 10:30
End of Day Share Price2019/10/16 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.