ASX:PWG

Stock Analysis Report

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Executive Summary


Snowflake Analysis

Flawless balance sheet second-rate dividend payer.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: PWG is less volatile than 75% of Australian stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: PWG's weekly volatility (6%) has been stable over the past year.


Market Performance


7 Day Return

-3.0%

PWG

1.3%

AU REITs

0.3%

AU Market


1 Year Return

-5.1%

PWG

-11.2%

AU REITs

12.5%

AU Market

Return vs Industry: PWG exceeded the Australian REITs industry which returned -11.2% over the past year.

Return vs Market: PWG underperformed the Australian Market which returned 12.5% over the past year.


Shareholder returns

PWGIndustryMarket
7 Day-3.0%1.3%0.3%
30 Day-1.5%-0.7%2.2%
90 Day11.6%-5.6%4.0%
1 Year-0.8%-5.1%-7.5%-11.2%16.1%12.5%
3 Yearn/a29.0%11.9%31.1%15.1%
5 Yearn/a43.9%12.3%62.5%31.3%

Long-Term Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

23.35x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: PWG (A$1.3) is trading above our estimate of fair value (A$1.15)

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


Price To Earnings Ratio

PE vs Industry: PWG is poor value based on its PE Ratio (23.4x) compared to the AU REITs industry average (17.6x).

PE vs Market: PWG is poor value based on its PE Ratio (23.4x) compared to the Australian market (20x).


Price to Earnings Growth Ratio

PEG Ratio: PWG is poor value based on its PEG Ratio (1.8x)


Price to Book Ratio

PB vs Industry: PWG is overvalued based on its PB Ratio (2.2x) compared to the AU REITs industry average (1x).


Next Steps

Future Growth

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

13.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: PWG's forecast earnings growth (13% per year) is above the savings rate (2%).

Earnings vs Market: PWG's earnings (13% per year) are forecast to grow slower than the Australian market (15.6% per year).

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

Revenue vs Market: PWG's revenue (13.6% per year) is forecast to grow faster than the Australian market (5.6% per year).

High Growth Revenue: PWG's revenue (13.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: PWG's Return on Equity is forecast to be low in 3 years time (12.7%).


Next Steps

Past Performance

How has Primewest Group performed over the past 5 years?

193.8%

Last years earnings growth


Earnings and Revenue History

Quality Earnings: PWG has a large one-off gain of A$5.9M impacting its December 31 2020 financial results.

Growing Profit Margin: PWG's current net profit margins (52.3%) are higher than last year (32.1%).


Past Earnings Growth Analysis

Earnings Trend: Unable to establish if PWG's year-on-year earnings growth rate was positive over the past 5 years as it has been trading publicly for less than 3 years.

Accelerating Growth: Unable to compare PWG's past year earnings growth to its 5-year average as it has been trading publicly for less than 3 years.

Earnings vs Industry: PWG earnings growth over the past year (193.8%) exceeded the REITs industry -3.1%.


Return on Equity

High ROE: PWG's Return on Equity (9.3%) is considered low.


Next Steps

Financial Health

How is Primewest Group's financial position?


Financial Position Analysis

Short Term Liabilities: PWG's short term assets (A$91.7M) exceed its short term liabilities (A$12.3M).

Long Term Liabilities: PWG's short term assets (A$91.7M) exceed its long term liabilities (A$951.0K).


Debt to Equity History and Analysis

Debt Level: PWG is debt free.

Reducing Debt: PWG has not had any debt for past 5 years.

Debt Coverage: PWG has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: PWG has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet


Next Steps

Dividend

What is Primewest Group current dividend yield, its reliability and sustainability?

3.23%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: PWG's dividend (3.23%) is higher than the bottom 25% of dividend payers in the Australian market (2.09%).

High Dividend: PWG's dividend (3.23%) is low compared to the top 25% of dividend payers in the Australian market (5.52%).


Stability and Growth of Payments

Stable Dividend: Too early to tell whether PWG's dividend payments have been stable as they only just started paying a dividend.

Growing Dividend: Too early to tell if PWG's dividend payments are increasing as they only just started paying a dividend.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (52%), PWG's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: PWG's dividends in 3 years are forecast to be covered by earnings (87.7% payout ratio).


Next Steps

Management

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

1.5yrs

Average board tenure


CEO

David Schwartz (66 yo)

no data

Tenure

AU$262,416

Compensation

Mr. David Jacob Schwartz serves as the Executive Chairman of Pascoe’s Pty Limited, ToLife Technologies Pty Limited, Stefani Pure Water Australasia Pty Limited and Loftus Capital Partners Limited. He has be...


CEO Compensation Analysis

Compensation vs Market: David's total compensation ($USD204.95K) is below average for companies of similar size in the Australian market ($USD723.83K).

Compensation vs Earnings: Insufficient data to compare David's compensation with company performance.


Board Members

NamePositionTenureCompensationOwnership
John Bond
Executive Chairman1.5yrsAU$262.42k17.78%
A$ 91.7m
David Schwartz
MD & Executive Directorno dataAU$262.42k17.29%
A$ 89.1m
James Litis
Executive Director1.5yrsAU$262.42k18.02%
A$ 92.9m
Erin Mary Flaherty
Independent Non-Executive Director1.42yrsAU$71.25k0.0076%
A$ 39.0k
Hamish Beck
Independent Non-Executive Director1.42yrsAU$68.92k0.069%
A$ 355.9k

1.5yrs

Average Tenure

66yo

Average Age

Experienced Board: PWG's board of directors are not considered experienced ( 1.5 years average tenure), which suggests a new board.


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.


Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 13.6%.


Top Shareholders

Company Information

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


Key Information

  • Name: Primewest Group Limited
  • Ticker: PWG
  • Exchange: ASX
  • Founded: 2000
  • Industry: Diversified REITs
  • Sector: Real Estate
  • Market Cap: AU$515.512m
  • Shares outstanding: 396.55m
  • Website: https://www.primewest.biz

Location

  • Primewest Group Limited
  • 307 Murray Street
  • Level 1
  • Perth
  • Western Australia
  • 6000
  • Australia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
PWGCHIA (Chi-X Australia)YesStapled UnitsAUAUDNov 2019
PWGASX (Australian Securities Exchange)YesStapled UnitsAUAUDNov 2019

Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/03/04 07:02
End of Day Share Price2021/03/04 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.